FanDuel replaces Bally Sports branding on Diamond RSNs

Diamond Sports Group is moving forward with plans to rebrand its regional sports networks (RSNs) from Bally Sports to FanDuel, according to recent court filings.

This transition comes as Diamond continues to navigate its Chapter 11 bankruptcy process, which began in March 2023. The change is expected to bring FanDuel’s sports betting presence to the forefront of NBA and NHL broadcasts this season, reflecting the increasing integration of sports broadcasting and gaming platforms.

The deal, confirmed in a bankruptcy court filing on Tuesday, October 15, 2024, represents a multi-faceted agreement.

FanDuel, the largest sports betting operator in the United States, will serve as the exclusive integration partner for sports betting on Diamond’s RSNs. This partnership includes prominent FanDuel content and advertising placements across the networks. Diamond is seeking bankruptcy court approval to complete the deal by Oct. 21.

FanDuel’s impact will extend beyond advertising.

As part of the agreement, FanDuel has secured the right to deliver its content, which includes FanDuel TV programming, to Diamond’s networks. In addition, FanDuel will have the ability to sell subscriptions to Diamond’s streaming services, giving it a share in Diamond’s future subscriber growth. According to the court filings, FanDuel could also acquire up to 5% of Diamond’s equity, with performance guarantees that could allow it to expand that stake to 10%.

FanDuel Group owns and operates FanDuel TV, formerly known as TVG Network, a sports betting-focused channel that broadcasts horse racing, international sports and studio programming.

This rebranding marks a shift for Diamond, which has struggled financially due to cord cuts and declining viewership.

The company has already severed ties with most of its Major League Baseball partners, retaining only its relationship with the Atlanta Braves, while decisions on other teams in joint ventures are still pending. The partnership with FanDuel is one of several key moves, along with restructured distribution agreements and a legal settlement with parent company Sinclair Broadcast Group, that Diamond hopes will help the company emerge from bankruptcy.

FanDuel’s integration into Diamond’s operations represents a broader trend in the sports industry, where betting companies are increasingly turning to broadcast platforms.

The demise of Bally Sports

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 difficulties. Diamond, once a dominant player in broadcasting Major League Baseball (MLB), National Basketball Association (NBA) and National Hockey League (NHL) games, is facing changes in consumer habits driven primarily by cord-cutting are faced with increasing challenges with the rise of streaming services. This led to significant revenue losses and ultimately to the filing for Chapter 11 bankruptcy protection in March 2023.

Prior to the 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 and provided local sports coverage to millions of viewers across the United States under the Bally Sports brand, launched in 2021 through a naming rights agreement with Bally’s Corporation. However, as viewers increasingly turned away from traditional cable subscriptions, Diamond’s revenue streams were severely impacted as cord cuts decimated its subscriber base.

To compound its problems, Diamond was burdened by debt accumulated from Sinclair’s $10.6 billion acquisition of Disney’s RSN portfolio in 2019, a deal that included 21 networks. The loss of revenue from declining subscriptions combined with the company’s debts ultimately led Diamond to file for bankruptcy protection.

As part of his restructuring plan, Diamond cut ties with many MLB teams and maintained only a few key partnerships, such as the Atlanta Braves. The company remains in limbo with five other MLB teams, including the St. Louis Cardinals and Kansas City Royals, who are in joint ventures that are not affected by the bankruptcy proceedings. Decisions on whether to maintain those relationships are expected by November, when the court will consider Diamond’s exit plan.

Sinclair Broadcast Group, Diamond’s parent company, is also in a position to exit its interest in the RSNs after the court approved the Chapter 11 plan. Sinclair, which licensed the Bally Sports name to Diamond, has signaled its intention to cut ties as Diamond reorganizes its operations around basketball and hockey broadcasts while shedding most of its baseball commitments.

With the timing of the rebrand coinciding with the start of the NBA and NHL seasons, the FanDuel name is expected to appear on RSNs in the coming weeks, pending court approval.