Parent company of FanDuel Sports Networks has approved a reorganization plan

The Rays and Lightning finally have certainty about their local television partner, at least for the next season or two.

Diamond Sports Group, the largest owner of regional sports networks including FanDuel Sports Network Sun and FanDuel Sports Network Florida, can emerge from bankruptcy after its reorganization plan was approved Thursday.

Judge Christopher Lopez gave the go-ahead during a hearing in the US Bankruptcy Court in Houston that lasted 90 minutes.

“This case was not a lay-up for anyone. A lot of hard work went into it,” Lopez said during the hearing.

Diamond Sports had been involved in Chapter 11 bankruptcy proceedings in the Southern District of Texas since it filed for protection in March 2023. The company said in a financial filing last year that it had debts of $8.67 billion.

Diamond will emerge from bankruptcy with significantly less debt, but also with fewer teams and networks.

When Diamond went bankrupt, it owned 19 networks under the Bally Sports banner and had the rights to 42 professional teams (14 baseball, 16 NBA and 12 NHL).

The reorganized company now operates under the banner of FanDuel Sports Network after agreeing to a naming rights deal last month. It has 16 networks and offers games for 27 franchises: six baseball, including the Rays; eight NHL, including the Lightning; and 13NBA.

The 16 networks include fans in 31 states.

Last month, as part of the reorganization plan, Diamond voided the contracts of the Rays and Tigers while trying to rework the deals of the five franchises that partially owned their regional sports networks.

Diamond has amended deals with the Rays (terms and duration were not disclosed) and Tigers, and has also reached agreements with the Cardinals, Angels and Marlins, including streaming rights. Discussions with the Royals continue.

Dimaond and the Reds have ended their joint venture, but a lawyer for Diamond said at Thursday’s hearing that he was open to resuming talks. Cincinnati had a 20% stake in the RSN affiliate. Diamond bought back the Reds’ stake for $1.

The Braves were the only franchise whose contract would have remained unchanged, but they agreed to an amended deal that included streaming rights.

Diamond reached an agreement with the NHL in August that allowed the company to continue broadcasting Lightning games this season. Thursday’s court ruling cleared the way for the parties to extend the agreement until at least 2025-2026.

Steaming is an important avenue for Diamond in his search for a new audience. The company announced Wednesday that it has reached a multi-year agreement with Prime Video to make its channels available as an add-on subscription.

Prime Video announced earlier this year that it was purchasing a minority stake in Diamond Sports.

Diamond will also offer single-game prizes on its direct-to-consumer app for NBA and NHL games starting December 5.

Viewers have the option for single games for $6.99, as well as the chance to sign up for a monthly or season pass subscription.

Diamond Sports Group and Sinclair Broadcast Group purchased The Walt Disney Co.’s regional sports networks. for nearly $10 billion in 2019. Disney was required by the Justice Department to sell the networks to acquire 21st Century Fox’s film and television assets. approved.

FanDuel is the largest sportsbook in the United States and provided Diamond with a source of financial backing and brand recognition. However, FanDuel cannot do business in Florida because the only legal online sports betting in the state is through the Hard Rock Bet app.

Times writers Marc Topkin and Eduardo A. Encina contributed to this report.

By JOE REEDY AP Sports Writer