Everything you need to know about the new Diamond-Amazon deal

Diamond Sports Group, the regional sports operator for 37 teams across MLB, the NHL and the NBA, dropped a bombshell early Wednesday, announcing a partnership with Amazon that, if approved in court, would place local games on Prime Video and allow the company to emerge from bankruptcy in a reimagined state.

Diamond revealed that it had secured $450 million from creditors to fund a reorganization plan, plus an additional $115 million provided by a new minority investor in Amazon. In exchange, Amazon would have access to all MLB, NHL and NBA teams for which Diamond possesses streaming rights, giving fans in nearly two dozen markets direct-to-consumer access.

It’s a stunning turn of events for a company that initially took on more than $8 billion of debt and seemed headed for liquidation — but there is still a lot to work through. Below we address some of the most pressing questions.

How surprising was this announcement?

There were reports in mid-December about the possibility of Amazon investing in Diamond to essentially secure its streaming rights. But based on comments from attorneys representing MLB and the NBA in bankruptcy court Wednesday, league officials were not involved in those talks and learned the details of this agreement along with everybody else.

In fact, the deal has the potential to undo previous agreements the leagues had negotiated with Diamond. Last fall, Diamond secured wind-down plans with the NBA and the NHL in which it would broadcast the teams in its portfolio for the 2023-24 seasons, then revert the rights back to those leagues. MLB had the framework in place for a similar deal. This Amazon arrangement could change everything. Attorneys for the NBA and MLB said in court Wednesday that they still had a lot to digest.

Which teams are part of the new agreement?

Diamond owns the linear TV rights for 15 NBA teams, 11 NHL teams and 11 MLB teams. But it’s streaming rights that matter here. Diamond has the streaming rights for all of the NBA and NHL teams under its portfolio, but for only five MLB clubs — the Miami Marlins, Tampa Bay Rays, Detroit Tigers, Milwaukee Brewers and Kansas City Royals.

These are the 15 NBA teams under Diamond: Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Dallas Mavericks, Detroit Pistons, Indiana Pacers, Los Angeles Clippers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Minnesota Timberwolves, New Orleans Pelicans, Oklahoma City Thunder, Orlando Magic, San Antonio Spurs.

And these are the 11 NHL teams: Anaheim Ducks, Carolina Hurricanes, Columbus Blue Jackets, Dallas Stars, Detroit Red Wings, Florida Panthers, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues, Tampa Bay Lightning.

What would become of that wind-down plan Diamond negotiated with the NBA and the NHL?

This agreement, if it is ultimately approved by a federal bankruptcy judge, could supersede the prior deals, which were seen by Diamond executives as something of a placeholder while the company ironed out a set restructuring plan.

Between now and the end of the regular season, nothing will change for either league. But if this deal comes together, a source familiar with the agreement said, rights would no longer revert back to the NBA and the NHL. Diamond would maintain its portfolio, though the company could then negotiate different deals with some of those teams or drop some entirely — a decision that will have to come before a predetermined March 22 deadline to provide specifics of its restructuring plan in bankruptcy court. Attorneys for the company said in court Wednesday that it expects to have that firmed up well ahead of the deadline.

NBA and NHL officials, however, were hesitant to say anything with much certainty. Representatives for both leagues spent the day sorting through the intricacies of the Diamond-Amazon agreement. The NBA had been eager to take back streaming rights for its teams, especially given that the league’s national television contracts expire after the 2024-25 season. The NHL might wait to see how open Diamond is to renegotiating some of the longer-term deals in place before the original bankruptcy announcement.

What about MLB in 2024 and beyond?

An attorney for Diamond asserted in bankruptcy court that the company will broadcast all the games and honor all the rights fees for nine of the teams in its portfolio: the Tigers, Marlins, Royals, Brewers, Rays, St. Louis Cardinals, Cincinnati Reds, Los Angeles Angels and Atlanta Braves. There are three others, the attorney said, in talks about restructured contracts. The names weren’t disclosed, but those three, according to sources, are the Texas Rangers, Cleveland Guardians and Minnesota Twins (the Twins are essentially a free agent; their contract with Diamond expired at the end of the 2023 season).

Other than the five teams partnered with Diamond, the streaming rights for the other 25 MLB teams belong to the individual teams and the league, the latter of which has shown no willingness to provide the company with additional rights beyond the 2024 season. Diamond’s hope is that Amazon’s presence could ultimately change that, though a person familiar with the agreement said Amazon’s involvement is not contingent on securing additional streaming rights.

In the short term, though, MLB had been working for months on gaining clarity with Diamond on the 2024 season. Many owners have pointed to that uncertainty — and the uncertainty that hangs over the entire regional sports network business, from which teams draw a significant amount of local revenue — as a reason for reduced spending this offseason. The Amazon deal going through would seemingly provide teams that remain under Diamond with the cost certainty they have coveted — but it would seemingly interrupt MLB’s long-term plan of fitting all of its rights under a national umbrella.

Does this position Amazon to become the primary partner with leagues if they look to break from the old RSN model and work with streaming companies, end blackouts, etc.?

Amazon was in position to be a primary partner before all this, and it’s tough to say how its partnership helps or hurts its cause at the moment. MLB was hopeful of securing a deal with a major streaming service — Amazon, Apple TV+, Hulu, Netflix, ESPN+, etc. — before the start of the 2025 season. But that was under the assumption that it would have at least 15 teams to offer (the 12 Diamond teams, including the Twins; the San Diego Padres and the Arizona Diamondbacks, who fell off their deals last season; and the Colorado Rockies, left without a TV deal now that Warner Bros. Discovery has exited the regional sports business). The calculus would change if the portfolio isn’t as robust.

It’s also worth noting Amazon has long been considered a front-runner to be part of a new NBA agreement, alongside at least the two current partners (Disney and Turner Sports). Those negotiations are set to play out over the next several months. However this specific agreement shakes out, what seems clear is that Amazon is going to be a significant part of the NBA’s broadcast future. As this calendar year plays out, we’ll find out just how big of a part that will be.

My favorite team’s RSN is run by Diamond. Are all my team’s games going to be on Amazon Prime now?

Only if you’re streaming. Essentially, Amazon Prime would fill the role Diamond originally envisioned for its Bally Sports+ app — providing local fans who ditch their cable subscriptions with a streaming option. The funding in this deal would allow Diamond to also keep the linear television rights in its portfolio, so fans who stick with cable can maintain their normal viewing habits.

It’s important to note, though, that location would still matter. Diamond teams on Amazon Prime will be available only to in-market fans. Out-of-market fans would still be able to watch through the leagues’ streaming services, be it MLB.tv, NBA League Pass or, for the NHL, ESPN+. But because those original cable deals would still be in place, blackouts would probably still be an issue.

How much extra is this going to cost me?

A news release from Diamond Sports Group stated that “additional details regarding pricing and availability will be announced at a later date.”

Will the broadcasts still be called Bally Sports?

As part of this agreement, Diamond broadcasts will continue to operate under the Bally Sports name this year, after which a new partner will be sought.

Is this the end of the ongoing RSN saga?

One of Diamond’s attorneys called this deal — which includes Sinclair, Diamond’s former parent company, paying a $495 million settlement and providing reorganization support — “transformational.” Another called it a “watershed” moment for a company that finally has a defined path to continuing operations beyond the 2024 MLB season.

Diamond shared projections Wednesday that showed it expects direct-to-consumer revenue to grow from $49 million in 2023 to $658 million in 2026 under the new deal. (Linear revenue would continually decline but would still account for the biggest chunk in earnings; Diamond projected a drop from $2.47 billion in 2023 to $1.78 billion in 2026.)

But Wednesday’s hearing ended with an attorney for the unsecured creditor committee poking holes in Sinclair’s settlement and the $450 million financing, casting doubt on whether it could ultimately come together. Bankruptcy Judge Christopher Lopez called the deal an “encouraging” development given where Diamond stood by the end of 2023 but added that it still must satisfy bankruptcy code.

“There’s a lot to take in,” Lopez said. “A lot to digest.”

Tim Bontemps and Kristen Shilton contributed to this report.