NBA season is causing Mavericks and Pelicans games to depart from their local sports networks.
- The Mavericks and Pelicans are leaving their regional sports networks before the start of the NBA season on October 22.
- Diamond Sports, the largest owner of regional sports networks, is currently under bankruptcy protection and both teams have ended their contracts with the company.
- Earlier this year, NBA and NHL franchises began to air some of their games on local broadcast stations as part of deals that are increasingly common in the regional sports network business.
The upcoming NBA season will bring excitement for fans of the Dallas Mavericks and New Orleans Pelicans as they eagerly anticipate a fresh viewing experience for local games.
According to a Friday bankruptcy court filing, both teams are leaving their regional sports networks, which are owned by Diamond Sports.
The NBA season is set to start on Oct. 22. Despite not publicly announcing where their local games will be televised, both franchises have a history of airing their games with local broadcasters.
The Pelicans have reached a deal in principle with Gray to broadcast games this season, according to a source close to the team, corroborating earlier media reports. Gray and the Pelicans' representatives declined to comment on the matter.
In the previous season, the Pelicans broadcasted 10 of their games on Gray's local channels, while the Mavericks, who made it to the NBA Finals, signed a 13-game deal with 's Dallas-Fort Worth stations.
CNBC did not receive an immediate response from the representatives of the Mavericks and Tegna regarding who would broadcast their local games.
The Mavericks and Pelicans have shifted most of their regular season games from their Diamond-owned regional sports networks, which are now branded as Bally Sports.
Diamond Sports has been attempting to emerge from bankruptcy for the past 18 months, and during this time, several NBA, WNBA, and NHL teams have shifted their regional sports networks to local broadcasters. As a result, some MLB teams that have left these networks will now have their games produced by the league.
The Mavericks and Pelicans will pay Diamond Sports more than $1.3 million and $297,000, respectively, as part of the terminations, according to the court filing.
As part of its bankruptcy process, Diamond enters into broadcast and streaming rights agreements with the NBA and NHL for the upcoming season, but the split with the Mavericks and Pelicans is yet to be finalized. The deals are subject to court approval.
Diamond Sports CEO David Preschlack stated that the ongoing collaboration and long-term partnerships with the NBA and NHL are significant milestones in the company's efforts to exit bankruptcy protection.
Diamond Sports, despite introducing a sports-only streaming service for some of its teams in 2022, filed for bankruptcy protection due to its $8 billion debt load.
In recent months, Diamond has been under increasing pressure to develop a viable business plan and demonstrate its ability to pay for the necessary rights as the NBA and NHL seasons approach.
Diamond achieved another milestone this summer by striking a deal to restore its networks to s cable TV customers. In May, the Bally Sports networks were removed from Comcast, Diamond's third-largest distributor.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.
Business News
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