Yesterday, Diamond Sports, the company that owns the Bally Sports regional sports channels, secured temporary agreements with both DIRECTV and Comcast, as reported by the New York Post.
“It has reached an agreement in principle with Comcast on a carriage deal for roughly one year and has just reached a similar contract with DIRECTV”
These agreements will provide Diamond Sports with enough money to make their regular payments to NHL and NBA teams for the 2023-24 season, which starts next month.
Because, the company also has an agreement with Charter Communications that needs renewal, and it’s set to expire in February.
The short-term deals with DIRECTV and Comcast might help Diamond Sports continue its operations and meet its financial responsibilities, including payments to NBA and NHL teams.
Yet, we can’t be sure how these deals will affect the company’s long-term stability.
As a last-ditch effort to avoid going out of business, Diamond Sports has proposed reducing the fees they pay to the NBA and NHL by up to 20%.
According to the New York Post, the leagues are considering this proposal.
If Diamond Sports can’t reach agreements with pay-TV providers, it would be a significant challenge for them to create a profitable plan while keeping up with team payments.
So, here’s whether they will be able to survive:
- Charter Renewal: Diamond Sports needs to renew its Charter Communications agreement by February. This decision is vital for their future.
- Short-Term Deals: They’ve struck short-term deals with DIRECTV and Comcast to pay NBA and NHL teams this season. But, it’s uncertain if this helps in the long run.
- Reduced Fees: To avoid bankruptcy, Diamond Sports wants to cut payments to the NBA and NHL by 20%. The leagues’ decision matters a lot.
- Profit Challenges: They struggle to be profitable and pay teams. Figuring this out is crucial.
- Industry Issues: The sports media industry is changing fast. Adapting is a must to survive.