Changes are forthcoming for Diamond Sports’ regional sports networks. According to court documents filed on Tuesday, the company has reached an agreement with Flutter-owned FanDuel for naming rights. This deal will rebrand the Bally Sports channels in time for the National Hockey League season’s start and just days before the National Basketball Association’s 2024-2025 season begins.
Diamond Sports indicated in the filing that if it successfully exits bankruptcy protection, FanDuel will serve as a “long-term naming rights partner.” The agreement also allows FanDuel the option to acquire up to 5% equity in the restructured company and to receive performance warrants for an additional 5% equity. However, this agreement still requires court approval.
This partnership is a step toward Diamond Sports emerging from bankruptcy and offers FanDuel, already a leader in sports betting, increased visibility. Diamond Sports disclosed in the court papers that discussions with FanDuel began in February, but the final terms of the naming rights deal were negotiated after completing agreements with the NBA and NHL. FanDuel refrained from commenting beyond the filings, and the financial terms were not revealed.
Diamond Sports described FanDuel as an “attractive potential partner” due to the strong alignment between the regional sports networks and the online gaming business. This will mark the third rebranding of the regional sports networks. As part of its acquisition of Fox Corp.’s assets, Disney was required to divest the networks for regulatory approval. Disney sold the networks, then under the Fox Sports banner, to Sinclair in 2019. Subsequently, a naming rights deal was established with gaming company Bally’s Corp.
The agreement with Bally’s Corp. concluded earlier this year as part of a settlement between Diamond Sports and Sinclair. Diamond remains an independent subsidiary of Sinclair and has alleged that Sinclair’s ownership contributed to its challenges, although Sinclair has not admitted to any wrongdoing.
Diamond Sports filed for bankruptcy protection last year and has since been engaged in discussions with the NBA, NHL, and Major League Baseball as it attempts to reorganize. The company hopes to emerge from bankruptcy as early as December, based on its financial projections.
During the bankruptcy proceedings, teams across all three leagues have been leaving the networks and opting for different local viewing options. Earlier this month, Diamond Sports announced plans to drop all its MLB teams, except the Atlanta Braves, for the 2025 season. In total, 11 MLB teams are expected to leave the networks due to various stages of contract expiration with Diamond Sports. A Diamond Sports attorney mentioned in court that dropping these teams “is not our preferred path.”
In 2023, several MLB teams, including the San Diego Padres and Arizona Diamondbacks, exited the regional sports networks, with MLB producing these teams’ local games since then. Recently, the league confirmed it will do the same for the Milwaukee Brewers, Cleveland Guardians, and Minnesota Twins for the 2025 season.
Meanwhile, some NBA teams have shifted to local broadcast stations to air games, and the NHL’s Dallas Stars and Anaheim Ducks have partnered with Victory+, a Canada-based streaming service, for local broadcasts.
