On November 14, at a Houston courthouse, U.S. Bankruptcy Court Judge Christopher Lopez approved the restructuring plan of the financially plagued Diamond Sports Group (DSG), the nation’s largest regional sports network (RSN). Under the new plan, DSG will have agreements to televise and stream six MLB teams for the 2025 season, many at a reduced cost. The RSN also struck agreements with 13 NBA teams and eight NHL clubs. The 27 clubs are a sharp decline from the 42 clubs they had agreements with in 2019 when DSG was formed.

With a debt of nearly $9 billion, DSG has had bankruptcy protection since March 2023 and has been working on a fiscally viable solution. In recent years, the RSN business has been financially plagued as their customers cancel their cable subscription primarily because of escalating costs and other video options. RSN’s have been particularly impacted by cord cutting, since they charge among the highest carriage fees in the cable industry. Since being granted bankruptcy protection 20 months ago, DSG’s debt load has dropped to about $200 million.

Sportico reports since 2019, DSG has shed 25 million subscribers. Smaller subscriber counts also result in lower ratings, impacting revenue from advertising and sponsorship opportunities. The current estimated value of DSG’s RSN holdings is estimated to be between $600 million to $1 billion. The cost to acquire the RSN’s in 2019 had been valued at $10.6 billion.

Heading into the bankruptcy court hearing, DSG has made some notable announcements:

• In October before the bankruptcy hearing, the DSG announced the renaming of their RSN’s. The Bally Sports name which had been in effect since March 2021, is now called the FanDuel Sports Network. As part of the agreement, FanDuel TV programming will air on the RSN’s, including studio shows Up & Adams and Run It Back. The bankruptcy court approved the agreement.

• In early November, DSG reached a multiyear agreement with Amazon Prime Video enabling its 16 RSN’s to stream games on Amazon Prime Video. Under the agreement, Prime Video subscribers can access in-market games as an add-on subscription. The subscription costs will be forthcoming. The financial agreement was not made public. DSG CEO David Preschlack said the Amazon deal, “creates a tremendous opportunity for us to expand our reach and better connect with viewers.” This announcement came days before the bankruptcy hearing. Several other local teams have made in-market streaming available.

• Starting on December 5, Diamond will introduce a streaming option for a single game for NBA and NHL games. The cost will be $6.99 per game. Whether the à la carte option will be available for MLB teams is not known. Both Prime Video and FanDuel Sports Network will provide a single game subscription. A monthly fee and an annual fee will continue to be a available. This announcement was also made just days prior to the bankruptcy hearing.

Looking at revenue, DSG forecasts television revenues from carriage fees to total $776 million by 2027, a drop-off of 47% from $1.48 billion this year. From 2024 to 2027 revenue from advertising and sponsorships are projected to decrease from $368 million this year to $302 million (-18%).

Also, at the court hearing, DSG projected in the upcoming three years, 26% of their current cable television base will cancel their subscription, numbering 16.7 million in 2027 (from 22.6 million). Over that time the RSN projects an increase in streaming users of 2.3 million. Overall, a net loss of 3.6 million subscribers is anticipated.

The 27 clubs that DSG currently has an agreement with are:

13 NBA: Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Detroit Pistons, Indiana Pacers, Los Angeles Clippers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Minnesota Timberwolves, Oklahoma City Thunder, Orlando Magic and San Antonio Spurs.

8 NHL: Carolina Hurricanes, Columbus Blue Jackets, Detroit Red Wings, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues and Tampa Bay Lightning.

6 MLB: Atlanta Braves, Detroit Tigers, Los Angeles Angels, Miami Marlins, St. Louis Cardinals and Tampa Bay Rays. (One month ago, DSG had agreements with only the Atlanta Braves.)

As part of restructuring, the compensation for most clubs were renegotiated. DSG expects an annual reduction in compensation from $1.5 billion this year to $982 million in 2027, a fall-off of 35%. For example, earlier this month, the St. Louis Cardinals had renegotiated a new three-year agreement with DSG that had a reported rights fees reduction of over 20%. The Cardinals RSN agreement is valued at a reported $75 million in 2025. In contrast, the previous 15-year agreement was to run through 2032 and was valued at over $1 billion. The games will air on FanDuel Sports Network Midwest, and in a first, include streaming.

Looking at MLB teams that left DSG’s after the 2024 season include; the Cincinnati Reds, Cleveland Guardians, Milwaukee Brewers and Minnesota Twins. All four will have MLB produce and distribute their games locally. In 2024 MLB produced and distributed games of the Arizona Diamondbacks, Colorado Rockies and San Diego Padres.

MLB Commissioner Rob Manfred has wanted to market a multi-team direct-to-consumer bundle similar to today’s MLB.TV, only without local market blackouts. The court’s DSG decision has, for now, put that plan on hold.

In addition, the Texas Rangers have also dropped DSG, with the potential of launching their own RSN for 2025. Both the NHL’s Dallas Stars and NBA’s Dallas Mavericks have also dropped DSG and are using other distribution models. Dallas Stars games are streamed on the ad supported VICTORY+ with no subscription cost. Dallas Mavericks games are available on a local broadcast station.

Of the 30 MLB clubs only the Kansas City Royals have yet to make a distribution agreement for the 2025 season. There are reports the club is having conversations with DSG.

Furthermore, in August the NHL’s Anaheim Ducks announced they dropped DSG with in-market games available on local broadcast television. Similarly, in August, the NBA’s New Orleans Pelicans announced they were dropping DSG with games airing on a local broadcast TV station.

At the bankruptcy hearing, Judge Christopher Lopez said, “This case was no layup.” The judge credited DSG for finding a viable way back in calling the company’s situation “a model” for how reorganization can happen. Judge Lopez noted, “Reorganization is a good thing. It saves jobs. It helps people see through tough times,” adding “It’s important if you’ve had a stressful day, and you want to root for your team, and go home and enjoy the game with your family.”