Amazon to Invest $115M in Diamond Sports Group Amid Restructuring

Deal Could Reshape Sports Streaming, Allowing Prime Subscribers to Access Local Games

Amazon is set to invest $115 million in Diamond Sports Group, a financially troubled company that owns Bally Sports, the nation's largest regional sports network, as part of a proposed debt restructuring agreement. This investment is part of a $450 million restructuring agreement with creditors, which includes a potential additional investment of $50 million from Amazon within the next nine months.
Diamond Sports Group, which filed for bankruptcy protection in March 2023, owns the broadcast rights to 37 professional sports teams, including 11 MLB teams, 15 NBA teams, and 11 NHL teams. The deal with Amazon, if approved by the court, would allow Amazon to provide direct-to-consumer streaming for all local channels operated by Diamond.
Amazon's investment could potentially save Diamond from liquidation and enable it to operate beyond 2024. The company is also set to receive $495 million in a settlement with its parent company, Sinclair, and sell its 20% ownership of the YES Network as part of the restructuring.
Under the proposed arrangement, Amazon Prime subscribers would be able to purchase streaming access for live local MLB, NBA, and NHL games which are available on Diamond. Diamond forecasts its revenue from streaming will grow from $49 million in 2023 to $658 million by 2026.
Despite the potential benefits of the deal, there remains uncertainty about the future of Diamond's agreements with various sports teams and leagues. The NBA and NHL had previously agreed to lower rights fees for the 2024-25 season, allowing them to walk away from Diamond after the season. However, these plans could change if the restructuring is approved.