Diamond Sports Group and Comcast (CMCSA.US) have agreed to restore the local broadcast of sports events to cable television subscribers.
1min read Diamond Sports Group on Monday reached an agreement with Comcast (CMCSA.US) to resume local sports broadcasts to cable subscribers on Aug. 1, clearing the way for the company to survive after it filed for bankruptcy protection last March, when it was seeking to sign contracts with distributors including Comcast.
Diamond Sports Group, which previously was one of the largest regional sports networks in the U.S., had the rights to broadcast 42 professional teams (14 baseball, 16 NBA, 12 NHL). As more and more viewers watch live sports via streaming media, rather than pay-per-view cable, the company has struggled. It was saddled with more than $8 billion in debt and had filed for bankruptcy protection last March after failing to pay $140 million in interest.
Under the deal, announced Monday, Diamond Sports Group and Comcast had resolved differences over terms, including how quickly Comcast could convert local sports broadcasts to a tiered subscription model, which means customers must choose to add those channels to a package, rather than include them in a broader cable bundle.
“A new agreement with our third-largest distributor, Comcast, is a critical step in our restructuring efforts,” said David Preschlack, chief executive of Diamond Sports Group. “We are pleased that fans will once again be able to watch local sports broadcasts on Xfinity.” The company also reached agreements with Charter Communications, DirecTV and Fubo.
“With distribution secured, we will focus on closing with the NHL and resolving our negotiations with the NBA,” Mr. Preschlack added. “We recognize that with basketball and hockey seasons approaching, time is of the essence. Once we have agreements with the teams and our league partners, we will move quickly to file our reorganization plan with the court.”