Amazon is considering investing in Diamond Sports Group, according to multiple reports, and this move could ultimately bring 40 regional sports team games to the Prime Video streaming platform – as Amazon expands into live sports while Diamond struggles to survive after filing for bankruptcy this year.
Key Facts
It is unclear how much Amazon will invest in Diamond Sports Group, according to the Wall Street Journal, citing people familiar with the potential talks.
Diamond – a subsidiary of Sinclair Broadcast Group and the largest regional sports company in the country – holds the television rights for more than 40 teams in Major League Baseball, the National Basketball Association, and the National Hockey League, broadcasting them on a series of local cable networks under the Bally Sports name.
If the deal goes through, Diamond will continue to operate its sports networks under the Bally Sports name, but the games will eventually be broadcast on Amazon Prime Video, according to the report.
The deal between Amazon and the company must be approved by a bankruptcy judge, as Diamond filed for Chapter 11 bankruptcy earlier this year when it was $9 billion in debt to lenders – a debt amount it intended to reduce by $8 billion through the transfer of ownership from Sinclair to the lenders.
The deal with Amazon could help alleviate the decline in subscriber revenue for Diamond, as all cable broadcasting faces challenges from cord-cutting and the risk of declining advertising revenue in an era dominated by streaming services.
Amazon declined to comment on the matter.
Main Background
Despite financial troubles, Diamond has recently extended its contracts with Comcast, DirecTV, and the NBA, according to the report, with an expected extension with the NHL in the near future. The short-term agreement with the NBA allows for the local broadcasting of 15 teams on Bally Sports networks until the end of the NBA season. However, Diamond still needs a long-term deal to move out of Chapter 11 bankruptcy.
A deal between Amazon and Diamond could help address the company’s broadcasting issues. It would also push Amazon further into the live sports world – a realm that is attracting more competition between traditional networks like Disney’s ESPN and tech companies like Apple, which has a 10-year partnership with the NFL and rights to some Major League Baseball games. Last year, Disney stated it would pay $44.9 billion in rights fees it owns with the NFL, NBA, and others through 2027. Amazon’s current sports offerings notably include Thursday Night Football, which the tech company purchased in a $13 billion deal with the NFL in 2021. A deal with Diamond allowing for the streaming of games would diversify Amazon’s sports catalog beyond football and make its offerings more competitive with those provided by cable providers.
Further Reading
Amazon in Talks to Invest in Diamond Sports (WSJ)
Amazon weighs investment in Diamond Sports Group (Axios)
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Antonio Pequeno IV
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