Correction: This piece initially had Amazon’s offer as part of Diamond’s $450 million available in January. Amazon’s offer was not included in that amount.
Amazon has reportedly withdrawn its $115 million offer to struggling Diamond Sports Group, but the regional sports network carrier still apparently has the necessary funding to proceed in its bid to emerge from bankruptcy.
Sports Business Journal reported Monday that Amazon has dropped its offer. Diamond, parent company of Bally Sports Regional Sports Networks, announced the funding in January as part of its plan to come back from Chapter 11 proceedings.
However, SBJ reports Diamond apparently has enough investors remaining to continue its reorganization plan. The company reportedly had $450 million available in January from debtor-in-possession financing.
Amazon’s motives in dropping the offer are unclear. Under terms of the agreement, Amazon would have received streaming rights to NBA and NHL games under contract with Bally Sports RSNs. A recent court filing revealed Bally Sports will retain broadcast rights to 13 NBA teams and nine NHL teams through at least the 2024-25 season. But it has dropped two NBA teams, the Dallas Mavericks and New Orleans Pelicans, since Amazon made the initial offer.
Amazon’s offer could be viewed as a high-risk investment, given the shaky nature of the RSN business model that led to Diamond’s financial woes in the first place.
Also, Amazon is doing just fine chasing bigger fish at the national level. Within the past year it has landed new contracts to stream the NBA and NASCAR, and the company was pleased with its 2023 Thursday Night Football ratings.
For Diamond and Bally Sports, the bad news comes on the heels of several bits of good news in recent weeks. The NBA/NHL rights deal is a step in the right direction. And Bally Sports finally reached a new carriage agreement with Comcast last month after a three-month hiatus.
About Arthur Weinstein
Arthur spends his free time traveling around the U.S. to sporting events, state and national parks, and in search of great restaurants off the beaten path.