After nearly two years of financial turbulence and a high-profile bankruptcy case, Diamond Sports Group has successfully reorganized as Main Street Sports Group. The reorganization, finalized last November, resolves a significant challenge in the sports media industry. Diamond Sports Group, previously burdened with nearly $9 billion in debt, now operates with a significantly reduced $200 million in liabilities, thanks to a court-approved restructuring plan. This plan received broad support from debt holders and resulted in partnerships with Amazon’s Prime Video and FanDuel.
David Preschlack, CEO of Main Street Sports Group, stated, “Emerging from this process is the culmination of over 20 months of incredibly hard work to transform our business and position us to better serve passionate local fans across our markets.” The restructuring reduced the group’s portfolio of NBA, NHL, and MLB teams to 29, but maintains a substantial presence in local sports broadcasting. Rebranded as the FanDuel Sports Network, the company aims to modernize its offerings for both linear TV and direct-to-consumer platforms.
Diamond Sports Group, a subsidiary of Sinclair Broadcast Group, filed for Chapter 11 bankruptcy in March 2023. This filing reflected broader issues within the RSN model, struggling to adapt to streaming services and cord-cutting. The company's financial difficulties stemmed from declining cable subscriptions, rising sports rights costs, and disputes with league partners. The bankruptcy process included challenging negotiations with major sports leagues and team owners. The company severed ties with Sinclair and restructured rights agreements.
Main Street Sports Group's relaunch shows a shift in the RSN model. The FanDuel Sports Network branding combines gambling and sports media, while the Amazon Prime Video partnership explores hybrid distribution. These strategies aim for relevance in a media landscape where younger audiences prefer streaming. Preschlack added, “With a stronger balance sheet, key partnerships and supportive new owners, we are modernizing our business to thrive in a changing media landscape.” FanDuel Sports Network broadcasts 13 NBA teams, 8 NHL teams, and 8 MLB teams.