Court Decides DSG is Able to Recover from Bankruptcy
Diamond Sports Group, a major regional sports network, is set to emerge from bankruptcy following judicial approval on Thursday.
Judge Christopher Lopez of the Southern District of Texas in Houston has given the green light to the company's Chapter 11 reorganization.
According to a press release from DSG, their plan will significantly reduce their debt from nearly $9 billion to just $200 million. After the restructuring, the company will have over $100 million in cash and cash equivalents on its balance sheet.
This decision comes after MLB and the Atlanta Braves withdrew their objections to DSG's reorganization. The Braves have reached a revised agreement with DSG to continue as their primary broadcaster.
Other baseball teams still partnered with DSG include the Detroit Tigers, Los Angeles Angels, Miami Marlins, St. Louis Cardinals, and Tampa Bay Rays.
However, MLB has announced that it will now oversee the broadcasts of Cincinnati Reds games. Previously, MLB took over telecasts for the Arizona Diamondbacks, Cleveland Guardians, Colorado Rockies, Milwaukee Brewers, Minnesota Twins, and San Diego Padres.
DSG also retains the rights to 13 NBA teams (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) and eight NHL teams (Carolina Hurricanes, Columbus Blue Jackets, Detroit Red Wings, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues, and Tampa Bay Lightning).
In a statement, DSG CEO David Preschlack said, "Today marks a significant day for Diamond as we embark on a new path for our business. With our legacy debt now eliminated, we are financially stable and have the full support of our new ownership. Over the past 18 months, we have worked tirelessly to strengthen our business, including securing revised multi-year rights agreements with team and league partners, new distribution agreements, a major naming rights partnership with FanDuel, and a commercial agreement with Amazon."
"These achievements, along with our realigned business, have positioned us to emerge as a sustainable and valuable entity for our partners and fans," Preschlack added.
