Diamond Sports Exits Bankruptcy as Re-org Approved

Twenty months after Diamond Sports Group filed for Chapter 11 bankruptcy protection, the owner and operator of the 16 FanDuel Sports Network RSNs on Thursday was granted a new lease on life in a Houston court room.

At the close of a 90-minute confirmation hearing this morning, Judge Christopher Lopez of the U.S. Bankruptcy Court for the Southern District of Texas gave Diamond the official OK to go forward with its TV and streaming business. The judicial green light provides Diamond to go forward with its plans to distribute in-market games for its 13 NBA, 8 NHL and 6 MLB team partners in 2025 and beyond.

“I’m going to approve the plan,“ Judge Lopez said at approximately 10:30 a.m. local time. “I think it complies with every position under the law.“

Diamond’s prospects seemed all but assured after MLB and the Atlanta Braves withdrew their joint objection to the plan late Wednesday. The lone objection before the court was raised by the U.S. Trustee, from the Department of Justice, which did not approve of legalese related to consent. Judge Lopez carefully refuted that argument, in a 20-minute oration in which he cited U.S. Supreme Court precedent.

“This case was no layup, not for anyone,“ Judge Lopez said as he prepared to hand down his final ruling. “A lot of hard work went into this.“

The judge closed the case with a reminder that a successful reorganization is a net positive. “Today you’re going to save a lot of jobs,“ he said to Diamond’s counsel. A self-professed baseball fanatic, Judge Lopez also noted that the fans will be well served by Diamond’s return from the brink. “There’s going to be somebody who’s going to turn on their television and watch the Detroit Tigers,” he said. “That’s a big part of the American experience.”

Ahead of today’s decisive hearing, Diamond locked in renewals with the Atlanta Braves, Detroit Tigers, Los Angeles Angels, Miami Marlins, St. Louis Cardinals and Tampa Bay Rays. That leaves the Kansas City Royals as the only MLB partner with which Diamond has yet to reach a decision for 2025. Talks between the company and the club are ongoing.

Also sticking around are a baker’s dozen of NBA teams (the 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, San Antonio Spurs) and eight NHL clubs (Carolina Hurricanes, Columbus Blue Jackets, Detroit Red Wings, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues, Tampa Bay Lightning).

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