Amazon, Diamond Sports Agree To $100 Million Streaming Deal
Amazon, as expected, has stepped in and extended an olive branch to the bankrupt Diamond Sports Group. Reports surfaced Wednesday that the two parties agreed to a $100 million deal that gives Jeff Bezos’ company streaming rights to five MLB teams, which is big news when you also pair it with the fact that DSG will receive even more money to get back on their feet.
The New York Post also reported that Diamond reached a settlement with former parent company Sinclair for $495 million. They filed a lawsuit alleging that they removed too much money from them in fees and dividends. It sounds like a lot, but Sinclair expects to lose roughly $250-$350 million considering taxes and the transition fees.
DSG is expected to emerge from bankruptcy in about three months, so these new reports will give them a lot of options for the future. I also touched on Diamond briefly in my YES Network post after they reached an agreement with MSG Network to create a “GAME” partnership; ironically enough, the Yankees have a deal with Amazon as well. A handful of their games in 2023 were Prime exclusives but produced by YES Network.
In 2024, Amazon will also be streaming games for the Detroit Tigers, Kansas City Royals, Miami Marlins, Milwaukee Brewers and Tampa Bay Rays. It’s clear that they want an even larger piece of the sports pie. It’s pretty successful following their jump into Thursday night football and some MLB games.
What’s Next For Diamond?
DSG still has streaming rights for a lot of teams. Outside of baseball, they also are in charge of half the teams in the NBA and a third of NHL games. While the widespread move out of cable for many viewers hurt, they are not down for the count. They are expected to continue putting all eleven of their MLB teams on cable.
However, they could move on from both the Cleveland Guardians and reigning World Series champion Texas Rangers within the next three months. As of last week, their junior debt of $8 billion was being traded at five cents on the dollar. There’s even a chance Amazon acquires Diamond outright because they got some equity as part of the agreement.
The long-awaited news on Diamond Sports Group’s future is here, and to no surprise, Amazon is stepping in and getting even more streaming rights.
