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After extending a nearly $100 million lifeline to bankrupt broadcaster Diamond Sports, Amazon is poised to stream games from five Major League Baseball teams this season, threatening MLB's bid to take control of it. The Post reported that he tried to fend off the attempt.
Diamond, the country's largest regional sports network (RSN) with broadcast rights to 11 MLB teams (half of NBA teams and one-third of NHL teams), will also receive a separate $500 million investment after completing a settlement with its parent company. He is scheduled to receive an injection of Sinclair, sources told the Post late Tuesday.
Despite MLB's potential opposition, the two new revenue streams are expected to be submitted to a bankruptcy judge in Houston for approval as early as Wednesday, according to people familiar with the matter.
Diamond owns the streaming rights to five of MLB's 11 teams, but Baseball Commissioner Rob Manfred has rejected Diamond's proposed deal with Amazon for all 11 teams and has decided not to sign a deal with his own streaming giant. The Post previously reported that he wanted to negotiate.
As The Post exclusively reported, a bankruptcy judge granted Diamond an extension last week to find an alternative that would satisfy creditors.
The new restructuring agreement would give Amazon an unspecified majority stake in Diamond after the company emerges from bankruptcy within about three months, according to people close to the negotiations.
Following its success, Amazon also has the rights to stream all 162 games for the Detroit Tigers, Kansas City Royals, Miami Marlins, Minnesota Twins and Tampa Bay Rays as it looks to expand into the lucrative sports market. included. A look at the NFL playoff game between the Chiefs and Dolphins, which was held exclusively on streaming last weekend.
Amazon exclusively broadcasts some NFL games and some MLB games, but it has not yet entered the regional sports network business that hosts local teams for a full season.
Fans of the five baseball teams will need to subscribe to an Amazon Prime membership, which costs $14.99 per month, to stream the games.
Diamond, which broadcasts under the Bally's brand, will continue to carry cable broadcasts for the 11 MLB teams it owns, including the World Series champion Texas Rangers. However, sources say he may let go of the Rangers and Cleveland Indians before emerging from bankruptcy.
The newspaper has reached out to Diamond, Sinclair, Amazon and MLB for comment.
Diamond has $8 billion in junior debt and was trading at 5 cents on the dollar last week.
Junior creditors will repay almost all of the $650 million they owe senior lenders with a $495 million settlement with Sinclair Broadcasting and a windfall from Amazon's infusion, the people said. He plans to do so.
Diamond Inc. sued its publicly traded parent company for $1.5 billion, accusing it of extracting large sums of money from its subsidiaries in fees and dividends.
Sources said they believe Sinclair could end up losing between $250 million and $350 million in the settlement through tax breaks and fees collected under the transition agreement.
Junior creditors are hoping to take over Diamond and run the business with the blessing of senior creditors. The company may eventually sell the diamonds to Amazon, the person added.
Bally's has agreed to remove its name from Diamond broadcasts after the 2024 baseball season, according to people familiar with the matter.
