Diamond Sports Group LLC's 16 regional sports networks will bear the FanDuel Sports Network banner starting Oct. 21.
Judge Christopher Lopez, overseeing Diamond's Chapter 11 proceedings in US Bankruptcy Court for the Southern District of Texas, approved the programmer's emergency request on Oct. 18 to have FanDuel Inc. become its naming rights partner. Lopez signed off on the FanDuel agreement despite objections from Major League Baseball. In addition to obtaining the naming rights, FanDuel agreed to spend money for commercial time and contribute programming to the RSNs.
FanDuel succeeds Bally Corp. as the RSNs' naming rights partner. Bally gained the rights through a larger deal with Diamond Sports parent Sinclair Inc. in November 2020. Under that now-defunct pact, Sinclair was to receive $85 million over 10 years and a percentage of Bally's interactive marketing budget.
Creditors and other constituents have until Nov. 5 to vote for or against Diamond's amended reorganization plan ahead of a Nov. 14 confirmation hearing. Should the plan gain creditors' approval, Diamond still must secure additional financing commitments and notify the bankruptcy court by Dec. 16 about whether its plan of reorganization will move forward.
Diamond filed for Chapter 11 protection in March 2023 as it faced declining affiliate revenue and more than $8.5 billion in debt.
The FanDuel agreement is two-pronged. It covers the 2024–25 NHL and NBA seasons, whether Diamond emerges from bankruptcy protection or not. Should Diamond succeed in becoming a going concern, the parties will operate under a longer deal.
Financial terms were not disclosed, but a Diamond attorney said at the hearing that FanDuel's allocations would increase beyond the level for the 2024–25 NHL and NBA seasons, should Diamond exit bankruptcy. Court documents indicate FanDuel would gain a 5% stake in Diamond should it emerge as a going concern. It also would have the right to increase that ownership position.
Given that the NHL's 2024–25 season is underway and the NBA's starts Oct. 22, FanDuel negotiated a provision that requires Diamond to secure court approval no later than Oct. 21. If the proposed order had not been entered by then, FanDuel could have terminated the term sheet immediately upon written notice to Diamond.
James Bromley, MLB's attorney for the bankruptcy case, argued that Diamond had only filed the motion on Oct. 15 ; more importantly, he said MLB had not seen the term sheet of the deal, including provisions on wagering.
Bromley said the MLB was given less than 72 hours notice about the Oct. 18 hearing and noted that term sheet details are under seal. He called the information Diamond has furnished to the league "threadbare at best."
While approving the naming rights agreement, Lopez instructed Diamond to show Bromley, the MLB and other interested parties redacted copies of the term sheet.
At this point, Diamond has only committed to continuing to work with one MLB team, the Atlanta Braves. At the hearing, it was mentioned that Diamond is nearing a modified rights deal with the Miami Marlins, and it continues to speak with other MLB clubs it has rights deals with during the 2024 season
Beginning Oct. 21, the RSNs will be listed under the following banners: FanDuel Sports Network Detroit, FanDuel Sports Network Florida, FanDuel Sports Network Great Lakes, FanDuel Sports Network Kansas City, FanDuel Sports Network Indiana, FanDuel Sports Network Midwest, FanDuel Sports Network North, FanDuel Sports Network Ohio, FanDuel Sports Network Oklahoma, FanDuel Sports Network SoCal, FanDuel Sports Network South, FanDuel Sports Network Southeast, FanDuel Sports Network Southwest, FanDuel Sports Network Sun, FanDuel Sports Network West, and FanDuel Sports Network Wisconsin.
Additionally, FanDuel will be a designated reseller for Diamond's direct-to-consumer streaming products for the NBA and NHL clubs.
The parties have also committed to exploring a unified direct-to-consumer app experience with the ability to syndicate FanDuel TV programming across FanDuel Sports Network, including studio programming and FanDuel TV's live rights programming.