In a move that reflects the growing convergence of sports broadcasting and gambling, Diamond Sports Group, the owner of regional sports networks (RSNs), is set to rebrand its channels from Bally Sports to FanDuel, as confirmed by recent court filings. This rebranding comes amid Diamond’s ongoing Chapter 11 bankruptcy proceedings, which began in March 2023.
The rebranding will bring FanDuel's sports betting presence to the forefront of NBA and NHL broadcasts, reflecting the increasing integration of sports broadcasting and gambling platforms. The deal, outlined in a bankruptcy court filing on October 15, 2024, signifies a multi-faceted agreement between Diamond and FanDuel.
FanDuel, the largest sportsbook in the U.S., will serve as the exclusive sports betting partner for Diamond’s RSNs. This partnership includes prominent FanDuel content and advertising placements across the networks. Diamond is seeking court approval for the deal by October 21.
FanDuel’s influence extends beyond advertising. As part of the agreement, FanDuel has secured rights to deliver its content, which includes FanDuel TV programming, to Diamond’s networks. Additionally, FanDuel will be granted the ability to sell subscriptions to Diamond’s streaming services, giving the company a stake in Diamond’s future subscriber growth. The court filings suggest FanDuel could also purchase up to 5% of Diamond’s equity, with performance warrants that may allow it to expand that ownership to 10%.
FanDuel Group owns and operates FanDuel TV, formerly known as TVG Network, which is a sports betting-oriented channel that airs horse racing, international sports and studio programming. This rebranding marks a shift for Diamond, which has struggled financially due to cord-cutting and declining viewership. The company has already cut ties with most of its Major League Baseball partners, maintaining only its relationship with the Atlanta Braves, with decisions pending on other teams in joint ventures.
Diamond’s partnership with FanDuel is one of several key moves the company hopes will help it emerge from bankruptcy, alongside restructured distribution agreements and a legal settlement with its parent company, Sinclair Broadcast Group. The integration of FanDuel into Diamond’s operations represents a broader trend in the sports industry, where betting companies increasingly align with broadcast platforms.
Diamond Sports Group’s rebranding of its regional sports networks (RSNs) from Bally Sports to FanDuel is part of a broader effort to recover from significant financial struggles. Once a dominant player in the broadcasting of Major League Baseball (MLB), National Basketball Association (NBA) and National Hockey League (NHL) games, Diamond has faced mounting challenges due to shifts in consumer habits, primarily driven by cord-cutting and the rise of streaming services. This led to a substantial loss in revenue and the eventual filing for Chapter 11 bankruptcy protection in March 2023.
Before its current financial turmoil, Diamond, a subsidiary of Sinclair Broadcast Group, operated one of the largest RSN portfolios in the country. The RSNs carried broadcasts for over 40 professional sports teams, providing local sports coverage to millions of viewers across the U.S. under the Bally Sports brand, which was introduced in 2021 through a naming rights agreement with Bally’s Corporation. However, as viewers increasingly shifted away from traditional cable subscriptions, Diamond’s revenue streams were hit hard, with cord-cutting decimating its subscriber base.
To compound its issues, Diamond was burdened by the debt accumulated from Sinclair’s $10.6 billion acquisition of the RSN portfolio from Disney in 2019, a deal that included 21 networks. The revenue loss from declining subscriptions, combined with the company’s debt obligations, ultimately led Diamond to seek bankruptcy protection.
As part of its restructuring plan, Diamond has severed ties with many MLB teams, keeping only a few key partnerships, such as with the Atlanta Braves. The company remains in limbo with five other MLB teams, including the St. Louis Cardinals and Kansas City Royals, which are in joint ventures not affected by the bankruptcy proceedings. Decisions on whether to retain these relationships are expected by November when the court will review Diamond’s exit plan.
Sinclair Broadcast Group, Diamond’s parent company, is also positioned to exit its involvement with the RSNs following the court’s approval of the Chapter 11 plan. Sinclair, which licensed the Bally Sports name to Diamond, has signaled its intention to sever ties as Diamond reorganizes its operations around basketball and hockey broadcasts while exiting the bulk of its baseball commitments.
With the timing of the rebrand aligned to coincide with the start of the NBA and NHL seasons, the FanDuel name is expected to begin appearing across the RSNs in the coming weeks, pending court approval.