The seemingly inevitable liquidation of Diamond Sports — a process that gained steam when all NBA and NHL agreed to truncated one-year contracts to carry games this year on Bally Sports channels, and with MLB on a similar path during recent negotiations — was thrown a major curveball this week.
Instead, Diamond Sports will get an influx of cash from settling a lawsuit with Sinclair and a new investment from Amazon involving streaming rights. The amount is enough to pay off its largest creditors and emerge from bankruptcy as a solvent entity.
"We are thrilled to have reached a comprehensive restructuring agreement that provides a detailed framework for a reorganization plan and substantial new financing that will enable Diamond to operate and thrive beyond 2024," Diamond Sports CEO David Preschlack said in a statement.
The stunning turnaround, which I talked about on Wednesday's Daily Delivery podcast, has significant implications for the Twins — and potentially for other local teams and Minnesota sports viewers in general.
As Major League Baseball and Diamond Sports engaged in deep talks this winter, logic indicated the sides were getting close to an agreement for Diamond to carry teams for one more season before rights dissolved for everyone in 2025.
That path could have led to a resolution for the Twins — a local TV free agent after their Bally Sports North contract expired at the end of last season — as soon as this week. The expectation was that they could wind up on BSN for one more year before negotiating along with other teams a longer-term deal with a different entity (perhaps MLB itself) in 2025.
Instead, a resolution for the Twins could be at least a month away and could test how comfortable the team is with a lack of clarity as spring training and the regular season quickly approach.
It raises the possibility of Diamond, and by extension Bally Sports, continuing to be the local TV home of the Twins beyond just this year, particularly if Amazon comes through with a robust streaming package through Prime Video.