Amazon.com Inc AMZN, a major player in ecommerce, is set to enhance its sports media portfolio by potentially striking a deal with a leading regional sports provider. This agreement could boost Amazon's coverage in Major League Baseball, the National Basketball Association, and the National Hockey League, building on its existing successful NFL rights for ‘Thursday Night Football.’
What Happened: Amazon is in talks with Diamond Sports for a partnership to help rescue the regional sports network company that filed for bankruptcy earlier this year.
Diamond Sports, which is owned by Sinclair Inc SBGI and Allen Media Group, is the operator of the Bally Sports regional sports channels, previously known as Fox Sports Network. The company was divested from The Walt Disney Company DIS as part of its buyout of 21st Century Fox and originally valued at $9.6 billion.
Amazon and Diamond Sports Group are actively discussing a streaming partnership and strategic investment, according to a report from The Wall Street Journal. Under the current negotiations, a deal would see Amazon's Prime Video become the streaming home for Diamond Sports MLB, NBA and NHL contests.
Currently, the details regarding Diamond Sports Group’s valuation or the extent of Amazon’s investment in them remain undisclosed.
Experts believe a deal with Amazon could keep Diamond Sports from facing liquidation. Select creditors have been made aware of the potential partnership. A bankruptcy court would have to approve the partnership with Amazon.
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Why It's Important: Diamond owns local media for nearly 40 professional sports teams across the MLB, NBA and NHL. Diamond Sports had the local rights to 15 NBA teams, 11 MLB teams and 12 NHL teams, with several teams and leagues working through what the company's bankruptcy means for the future.
The status of Diamond’s rights for various teams could change, especially as more teams challenge over unpaid dues and in light of the recent announcement of Diamond’s bankruptcy.
The current MLB teams on Bally Sports are the Atlanta Braves, Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers St. Louis Cardinals, Tampa Bay Rays and Texas Rangers.
Diamond and the NBA are working on a deal to keep 15 NBA teams on Bally Sports through the end of the 2023-2024 season. The NBA teams with current deals on Bally Sports are the Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Dallas Mavericks, Detroit Pistons, Indiana Pacers, Los Angeles Clippers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Minnesota Timberwolves, New Orleans Pelicans, Oklahoma City Thunder, Orlando Magic and San Antonio Spurs.
NHL teams on Bally Sports include the Anaheim Ducks, Carolina Hurricanes, Columbus Blue Jackets, Dallas Stars, Detroit Red Wings, Florida Panthers, Los Angeles Kings, Minnesota Wild, Nashville Predators, Phoenix Coyotes, St. Louis Blues and Tampa Bay Lightning.
As Benzinga previously reported, Amazon is among the companies interested in landing national streaming rights to NBA games when the new deal comes up for renewal.
Amazon has the deal in place for "Thursday Night Football" with the NFL and recently announced it landed NASCAR content in a new deal. Amazon is also an investor in YES Network, which is the media home of the New York Yankees and Brooklyn Nets.
News of Amazon's interest in the Diamond Sports streaming rights comes as streaming rivals like Netflix Inc NFLX and Apple Inc AAPL have been more aggressive in bidding on and landing media sports rights for live events and leagues.
SBGI Price Action: Shares of Sinclair Inc. were up 2% to $13.28 on Monday, versus a 52-week trading range of $9.39 to $22.41. Sinclair shares hit an intraday high of $14 Monday on news of the Amazon partnership talks.
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