Judge rules DSG can emerge from bankruptcy

Regional sports network giant Diamond Sports Group is ready to exit bankruptcy after getting judicial approval on Thursday.

Judge Christopher Lopez, representing the Southern District of Texas in Houston, gave the OK to the company’s Chapter 11 reorganization.

DSG stated in a press release that its plan “will reduce its debt from almost $9 billion to $200 million. Upon completion of its restructuring, Diamond will be well capitalized with more than $100 million in cash and cash equivalents on its balance sheet.”

The ruling came a day after MLB and the Atlanta Braves dropped their objections to DSG’s reorganization. The Braves came to a revised deal with DSG to keep the company as its primary broadcaster.

Other baseball teams still partnering with DSG are the Detroit Tigers, Los Angeles Angels, Miami Marlins, St. Louis Cardinals and Tampa Bay Rays.

However, MLB stated Thursday that it will oversee broadcasts of Cincinnati Reds games. MLB previously took over the telecasts for the Arizona Diamondbacks, Cleveland Guardians, Colorado Rockies, Milwaukee Brewers, Minnesota Twins and San Diego Padres.

DS also retains the rights to 13 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 and San Antonio Spurs) and eight NHL teams (the Carolina Hurricanes, Columbus Blue Jackets, Detroit Red Wings, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues and Tampa Bay Lightning).

DSG chief executive officer David Preschlack said in a statement, “Today is a landmark day for Diamond, as we embark on a new path for our business. Diamond is now unencumbered by legacy debt, financially stable and enthusiastically supported by new ownership. Over the last 18 months, we have worked tirelessly to strengthen our business, including by reaching revised multi-year rights agreements with team and league partners, go-forward carriage agreements with major distribution partners, a broad naming rights partnership with FanDuel and a commercial agreement with Amazon.

“These critical achievements and a realigned business are enabling us to emerge as a sustainable, go-forward entity that drives value for our partners and fans.”

–Field Level Media