Diamond Sports has filed for bankruptcy, but things could change now that it’s known that Amazon has agreed to watch five major league baseball teams in exchange for $100 million.
There are 11 MLB teams and a third of NHL teams that Diamond can show. It is the biggest area sports network. Diamond Sports is likely to get another big deal from Sinclaire, which is its parent business. This one will include a $495 million settlement. As these two deals are shown to a bankruptcy judge, they should help Diamond Sports get out of bankruptcy.
Diamond Sports filed for bankruptcy in March of last year after getting a lot of expensive television rights deals and sports fans cutting the cord. The deal with Amazon would let Amazon watch games from MLB teams like the Detroit Tigers, the Tampa Bay Rays, the Miami Marlins, the Milwaukee Brewers, and the Kansas City Royals. Amazon would also get a piece of the company.
Currently, Amazon streams a few NFL games and a few MLB games. It doesn’t stream full games, and it’s not connected to any teams. Affiliate marketing with Diamond Sports is the first step for Amazon to get into the sports business.
Fans of baseball teams who want to watch games on Amazon will have to pay $14.99 a month for an Amazon Prime membership. Even so, Diamond Sports will still show the games between the other teams.
There may also be another deal in the works for Amazon to watch hockey and basketball games in 2024 and 2025.
The debt that Diamond Sports has with its main lenders is around $650 million, and the new revenue deals will help them pay it off. Some people in the know think that Amazon might buy Diamond Sports in the future.
Diamond Sports is being sued by Sinclair for $1.5 billion because they are said to have taken too much in fees. Sinclair thinks the deal will cost him about $350 million.
Amazon might take over Diamond Sports if they don’t pay off their debts and get their funds in order. They should be able to get out of bankruptcy in three months, but we don’t know what will happen next.
