NEW YORK (AP) — Amazon is looking to invest in Diamond Sports Group, a regional sports network operator facing financial troubles. The investment aims to ensure Diamond’s continued operation after this year. Approval of the plan by a bankruptcy judge is necessary, with a decision expected no earlier than May or June.
The potential investment by Amazon comes at a pivotal time for the embattled Diamond Sports Group, which filed for bankruptcy in March last year. The company faced the prospect of shutting down operations by 2024, as it grappled with financial difficulties. However, the collaboration with Amazon and support from creditors could lead to a new company managing most of Diamond’s current assets, allowing it to operate beyond this year.
If the plan goes ahead, fans may not see significant changes in terms of how they access games, at least in the short term. Linear/TV rights and direct-to-consumer/streaming rights are the two key aspects to consider when it comes to watching games. Diamond would continue to broadcast games over TV, while also offering streaming options for viewers.
Under the potential new arrangement, a fee would likely be required to access the streaming package, which would be offered under the Amazon Prime umbrella. However, it remains unclear whether Prime would be the exclusive platform for accessing the package. Diamond’s partnership with Amazon, if approved, could have significant implications for how fans access and watch games in the future.
The potential partnership could also impact the teams carried by Diamond, with some teams not newly included in any streaming package offered by Diamond. MLB has been exploring the possibility of creating a national package that bundles multiple teams without the involvement of a network like Diamond. However, details regarding this are still forthcoming.
Experts remain cautious about the long-term feasibility of the plan, as Diamond’s financial projections have faced skepticism within baseball circles. Sustaining growth and meeting revenue targets will be crucial for the success of the plan, especially as the landscape of sports media continues to evolve.
The fate of Diamond ultimately rests in the hands of its creditors and a bankruptcy judge who will assess the feasibility of the plan. The involvement and cooperation of major parties, including MLB and the individual teams, are also expected to play a significant role in the fate of Diamond Sports Group.
As the plan continues to evolve, the future of sports broadcasting and fans’ access to games will hinge on the decisions and developments surrounding Diamond Sports Group’s partnership with Amazon. The coming months are expected to provide more clarity regarding the potential long-term implications and impact of the collaboration on the sports media landscape.