Diamond Sports Group is formally asking the court to approve RSN’s rebranding with FanDuel

Diamond Sports Group has formally filed with a U.S. bankruptcy court to approve the RSN rebrand from Bally Sports to FanDuel. She cited the urgency ahead of the NBA and NHL seasons and argued that the influx of revenue will “favorably position” Diamond to exit Chapter 11 bankruptcy.

As part of a term sheet filed with the judge Christopher Lopez Late Tuesday, FanDuel would gain naming rights to all Diamonds RSNs, all direct-to-consumer streaming apps and related consumer-facing products, at least through the end of the NBA and NHL schedules. If Diamond averts bankruptcy — and the court is expected to rule on its restructuring plan in mid-November — FanDuel would formally commit to multi-year rights fee payments, minimal media and advertising spending, and FanDuel-branded on-air content.

The court filing also states that if Diamond reemerges, FanDuel would be able to purchase 5% of the reorganized company’s shares and “earn performance guarantees exercisable on up to 5% of the reorganized debtors’ shares.” , which provides an incentive for FanDuel to take advantage of them.” makes every effort to expand the Debtors’ subscriber base and offers FanDuel the opportunity to co-invest in the Debtors’ reorganized business.

Diamond specifically mentioned to the court that the FanDuel term sheet negotiated in recent months was time-sensitive due to the expiring contract with Bally. It also emphasized that this is the start of the NBA and NHL seasons and that quick approval “will be critical to the smooth transition from the Bally’s trading name to the FanDuel rebrand to minimize disruption to sports fans and the “To maximize value for debtors’ estates.”

Diamond said in its filing that FanDuel was its “most attractive potential partner” to succeed Bally Sports. However, insiders point out that this is the second sports betting and fantasy sports platform to own naming rights to Diamond, but Bally’s initial revenue influx is not enough to prevent a nationwide RSN collapse.

The amount FanDuel will pay for the naming rights was not disclosed, and Diamond — in a separate filing — asked the court to seal the terms of the deal. Meanwhile, the 13 Diamond NBA teams (Cavaliers, Pacers, Pistons, Bucks, Hawks, Clippers, Grizzlies, Hornets, Heat, Magic, Spurs, T’Wolves and Thunder) have been told that the renaming should be official shortly, certainly before the Season.