Diamond Sports and Comcast Reach Agreement to Return Bally Sports RSNs to Xfinity TV Customers

Rhea-AI Summary

Diamond Sports Group and Comcast have reached a carriage agreement for the distribution of Diamond's 15 regional sports networks (RSNs) to Xfinity TV customers. Starting August 1, 2024, subscribers to Comcast's Xfinity Ultimate TV package in Bally Sports markets will gain access to live, local MLB, NBA, and NHL games and related content on Diamond's RSN channels. Customers will also be able to stream content through the Bally Sports app using their Xfinity credentials.

This agreement follows Diamond's previously announced distribution deals with Charter Communications, DIRECTV, Cox Communications, and Fubo. Diamond Sports is now focused on finalizing agreements with the NHL and NBA to complete its restructuring efforts and present a reorganization plan to the Court.

Positive

• Secured carriage agreement with Comcast, the third largest distributor
• Expanded distribution to Xfinity Ultimate TV package subscribers
• Includes streaming access through the Bally Sports app
• Previously secured agreements with Charter, DIRECTV, Cox, and Fubo

Negative

• Agreement doesn't take effect until August 1, 2024
• Still in ongoing negotiations with NHL and NBA
• Company remains in Chapter 11 bankruptcy proceedings

Financial Analyst

The agreement between Diamond Sports Group (DSG) and Comcast marks a significant development in DSG's restructuring efforts. As the third-largest distributor for DSG, Comcast's inclusion adds substantial value to Diamond's distribution network. This deal, effective August 1, 2024, will potentially increase DSG's revenue stream and viewer base, which is important for its financial stability.

However, it's important to note that the financial terms were not disclosed, making it challenging to quantify the direct impact on DSG's bottom line. The agreement's timing, coming after deals with other major distributors like Charter Communications and DIRECTV, suggests DSG is making progress in securing its market position.

From an investor's perspective, this news is cautiously positive. While it demonstrates DSG's ability to negotiate with major players, the company still faces significant challenges. The ongoing negotiations with NHL and NBA are critical and the outcome of these talks will be a key factor in DSG's future viability. Investors should closely monitor these developments, as they will significantly influence DSG's reorganization plan and long-term prospects.

Media Industry Expert

This agreement between Diamond Sports Group and Comcast represents a pivotal shift in the sports broadcasting landscape. It's a clear indication that traditional cable providers are adapting to the changing viewer preferences by integrating regional sports networks (RSNs) into premium packages and offering streaming options.

The inclusion of the Bally Sports app authentication for Xfinity customers is particularly noteworthy. This multi-platform approach aligns with the industry trend towards flexibility in content consumption, potentially helping to retain subscribers who might otherwise cut the cord.

However, the delayed implementation (effective August 2024) raises questions about the immediate impact on both companies and viewers. This extended timeline might be a strategic move to allow for technical integration and marketing preparations, but it also risks losing impatient viewers to competing services in the interim.

The broader implication for the industry is the potential stabilization of the RSN model, which has been under significant pressure. If Diamond can secure similar deals with other providers and leagues, it could signal a new equilibrium in sports broadcasting, balancing traditional cable distribution with direct-to-consumer options.

Content to be Available on Xfinity Ultimate TV Package Effective August 1^st

Having Secured Agreements with Distribution Partners, Diamond Sports is Focused on Finalizing Agreements with NHL and NBA

SOUTHPORT, Conn.--(BUSINESS WIRE)-- Diamond Sports Group LLC ("DSG," "Diamond," or the "Company") and Comcast today announced that they have reached a carriage agreement for the distribution of Diamond’s 15 regional sports networks (“RSNs”) to Xfinity TV customers.

Under the agreement, subscribers to Comcast’s Xfinity Ultimate TV package in Bally Sports markets will gain access to live, local MLB, NBA and NHL games and pre- and post-game content on Diamond’s RSN channels, effective August 1, 2024. Additionally, Xfinity Ultimate TV customers will be able to stream Diamond’s RSN content by authenticating using their Xfinity credentials on the Bally Sports app.

David Preschlack, CEO of Diamond Sports stated, “Entering a new carriage agreement with Comcast, our third largest distributor, is a critical step forward in our restructuring effort, and we are pleased that fans will again be able to access broadcasts of their local teams through Xfinity. With certainty on our distribution, we are focused on finalizing an agreement with the NHL and resolving our ongoing negotiations with the NBA. We are mindful that time is of the essence with basketball and hockey seasons fast approaching, and once agreements with our team and league partners are complete, we intend to move expeditiously to present a plan of reorganization to the Court.”

“We appreciate Diamond Sports working with us to reach a solution that returns the Bally Sports RSNs to our Ultimate TV customers in a way that reflects the changing video marketplace for local sports,” said Greg Rigdon, President of Content Acquisition for Comcast. “We look forward to making these networks available on August 1, so customers can enjoy watching their favorite teams again.”

The carriage agreement with Comcast follows Diamond’s previously announced distribution agreements with Charter Communications, DIRECTV, Cox Communications and Fubo.

Financial terms of the carriage agreement with Comcast were not disclosed.

Additional information regarding Diamond’s Chapter 11 cases, including court filings and information about the claims process are available at https://cases.ra.kroll.com/DSG.

About Diamond Sports Group

Diamond Sports Group LLC, an independently managed and unconsolidated subsidiary of Sinclair Inc., owns the Bally Sports Regional Sports Networks (RSNs), the nation’s leading provider of local sports. Its 17 owned-and-operated RSNs include Bally Sports Detroit, Bally Sports Florida, Bally Sports Great Lakes, Bally Sports Indiana, Bally Sports Kansas City, Bally Sports Midwest, Bally Sports New Orleans, Bally Sports North, Bally Sports Ohio, Bally Sports Oklahoma, Bally Sports SoCal, Bally Sports South, Bally Sports Southeast, Bally Sports Southwest, Bally Sports Sun, Bally Sports West, and Bally Sports Wisconsin. The Bally Sports RSNs serve as the TV home to nearly half of all MLB, NHL and NBA teams based in the United States. Diamond Sports Group also has a joint venture in Marquee, the home of the Chicago Cubs, and a minority interest in the YES Network, the local destination for the New York Yankees and Brooklyn Nets. Diamond RSNs produce over 4,000 live local professional telecasts each year in addition to a wide variety of locally produced sports events and programs.

About Comcast Corporation

Comcast Corporation (Nasdaq: CMCSA) is a global media and technology company. From the connectivity and platforms we provide, to the content and experiences we create, our businesses reach hundreds of millions of customers, viewers, and guests worldwide. We deliver world-class broadband, wireless, and video through Xfinity, Comcast Business, and Sky; produce, distribute, and stream leading entertainment, sports, and news through brands including NBC, Telemundo, Universal, Peacock, and Sky; and bring incredible theme parks and attractions to life through Universal Destinations & Experiences. Visit www.comcastcorporation.com for more information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240729122592/en/

Media Contacts

For Diamond Sports Group: Paul Caminiti/Renée Soto/Luc Herbowy, Reevemark, DiamondSportsTeam@reevemark.com

For Comcast:

Jenni Gatta

Jenni_Moyer@Comcast.com

(m) 610-506-8951

John Demming

John_Demming@Comcast.com

(m) 215-429-4744

Source: Diamond Sports Group LLC

FAQ

When will Bally Sports RSNs be available on Xfinity TV for CMCSA customers?

Bally Sports RSNs will be available to Xfinity Ultimate TV package subscribers in Bally Sports markets starting August 1, 2024.

What content will be included in the Diamond Sports and Comcast (CMCSA) agreement?

The agreement includes access to live, local MLB, NBA, and NHL games, as well as pre- and post-game content on Diamond's RSN channels.

Can Xfinity customers stream Bally Sports content after the CMCSA agreement?

Yes, Xfinity Ultimate TV customers will be able to stream Diamond's RSN content by authenticating using their Xfinity credentials on the Bally Sports app.

What other distribution agreements has Diamond Sports secured besides Comcast (CMCSA)?

Diamond Sports has previously announced distribution agreements with Charter Communications, DIRECTV, Cox Communications, and Fubo.