(Bloomberg) -- Bankrupt sports broadcaster Diamond Sports Group won court approval to finish polling creditors on its plan to survive Chapter 11 by cutting debt and broadcasting local games for the upcoming National Hockey League and National Basketball Association seasons.
Judge Christopher Lopez said Wednesday he’d grant Diamond’s request to continue soliciting creditor votes on its restructuring plan, which the court will consider approving in November. Under the plan, Diamond will either reorganize following the 2024-2025 NBA and NHL seasons or wind down its operations, according to an Oct. 2 court filing.
Diamond, a Sinclair Inc. subsidiary that runs a network of Bally Sports-branded sports channels, has also said it is still attempting to strike new broadcast deals with Major League Baseball teams. The league, however, announced this week it will produce and broadcast games for three more teams while future broadcast homes for about a half dozen other clubs remain uncertain.
MLB said it will broadcast Cleveland Guardians, Milwaukee Brewers and Minnesota Twins games next season. The plan mirrors how the league stepped in last year to broadcast San Diego Padres and Arizona Diamondbacks games after those teams’ broadcast deals with Diamond were ended early in Chapter 11.
Another team, the Texas Rangers, is also dropping Diamond but is currently considering local media options for broadcast games for next season, MLB said.
The future of MLB’s rocky business relationship with Diamond has been a key question in the Chapter 11. MLB lawyer James Bromley said during Wednesday’s court hearing that the league will be probing Diamond’s proposed restructuring in the coming weeks and may challenge the plan in the future.
MLB last year successfully opposed the broadcaster’s attempt to use Chapter 11 to reduce the fees it pays teams. MLB Commissioner Rob Manfred also testified that David Smith, the executive chairman of Sinclair, threatened to put its Diamond subsidiary into Chapter 11 unless the league approved new digital rights, including to allow some gambling on games.
Manfred testified that he told Smith at the time that MLB would be prepared to step in and broadcast games on its own, if needed.
Diamond ultimately filed bankruptcy in March 2023 where it’s been attempting to strike a restructuring deal with its lenders and main business partners.
The case is Diamond Sports Group, 23-90116, US Bankruptcy Court, Southern District of Texas (Houston).
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