SOUTHPORT, Conn.--(BUSINESS WIRE)--Diamond Sports Group (“Diamond”) announced today that the United States Bankruptcy Court for the Southern District of Texas (the “Court”) approved Diamond’s Plan of Reorganization (the “Plan”) to emerge from Chapter 11 bankruptcy protection. Diamond expects to complete the restructuring process in the coming weeks, after satisfying customary conditions.
Under the terms of the Plan, Diamond will complete a comprehensive balance sheet restructuring that 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 Plan received nearly unanimous support from Diamond’s almost $9 billion in funded debt holders. Upon emergence, Diamond’s lead creditors, funds managed by or affiliated with PGIM, Inc., Hein Park Capital Management LP, Discovery Capital Management, Hudson Bay Capital Management LP, and Alta Fundamental Advisors LLC, will exchange certain funded debt claims for equity in the reorganized company. Sinclair, Inc.’s equity interests in Diamond will be cancelled. Diamond will operate as a standalone entity, having already completed its operational separation from Sinclair.
Upon emergence, Diamond Sports Group, which does business as FanDuel Sports Network, will be home to 13 NBA teams, 8 NHL teams and 6 MLB teams, including:
- NBA: 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.
- NHL: Carolina Hurricanes, Columbus Blue Jackets, Detroit Red Wings, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues and Tampa Bay Lightning.
- MLB: Atlanta Braves, Los Angeles Angels, Miami Marlins, St. Louis Cardinals, Detroit Tigers and Tampa Bay Rays.
Following Diamond’s completion of the restructuring process, David Preschlack, Chief Executive Officer; Eric Ratchman, President of Distribution and Business Development; and David DeVoe Jr., Chief Operating Officer and Chief Financial Officer will remain in their respective roles at Diamond Sports Group. Diamond’s Board will include new members after emergence from bankruptcy.
David Preschlack, CEO of Diamond, stated: “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 eighteen 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.”
Preschlack continued, “Looking ahead, Diamond is well-positioned to further enhance its product offering and remains committed to delivering the highest quality live sports content in-market to fans through both linear and direct-to-consumer frameworks. I want to express my gratitude to the hardworking Diamond Sports Group employees for their unwavering support, dedication and continued confidence throughout this transformative period. Together, we are excited to build a bright future for Diamond and our stakeholders.”
Additional information regarding Diamond’s Chapter 11 proceeding, including court filings and information about the claims process are available at https://cases.ra.kroll.com/DSG. Questions should be directed to the Company’s claims agent, Kroll Restructuring Administration LLC by email to DSGInfo@ra.kroll.com or by phone at (877) 720-6635.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, Wilmer Cutler Pickering Hale and Dorr LLP and Porter Hedges LLP are serving as the Company's legal counsel and AlixPartners, LLP is serving as the Company’s restructuring advisor. LionTree Advisors LLC and Moelis & Company LLC are serving as the Company’s investment bankers, and Reevemark is serving as communications advisor to the Company.
About Diamond Sports Group
Diamond Sports Group LLC, an independently managed and unconsolidated subsidiary of Sinclair Inc., owns the FanDuel Sports Network Regional Sports Networks (RSNs), the nation's leading provider of local sports. Its 16 owned-and-operated RSNs include FanDuel Sports Network Detroit, FanDuel Sports Network Florida, FanDuel Sports Network Great Lakes, FanDuel Sports Network Kansas City, FanDuel Sports Network Indiana, FanDuel Sports Network Midwest, FanDuel Sports Network North, FanDuel Sports Network Ohio, FanDuel Sports Network Oklahoma, FanDuel Sports Network SoCal, FanDuel Sports Network South, FanDuel Sports Network Southeast, FanDuel Sports Network Southwest, FanDuel Sports Network Sun, FanDuel Sports Network West, and FanDuel Sports Network Wisconsin. The FanDuel Sports Network RSNs serve as the TV home to select MLB, NHL and NBA teams based in the United States. Diamond Sports Group also has a minority interest in the YES Network, the local destination for the New York Yankees and Brooklyn Nets. Diamond RSNs produce over 3,000 live local professional telecasts each year in addition to a wide variety of locally produced sports events and programs.