Amazon to Buy Price in Diamond Sports, Sinclair in Legal Settlement – The Hollywood Reporter

Amazon to Buy Price in Diamond Sports, Sinclair in Legal Settlement – The Hollywood Reporter

Diamond Sports Group, the largest operator of US sports networks (RSNs) on Wednesday revealed what is called a restructuring support agreement (RSA) with creditors, saying that “it provides a plan for a restructuring plan that will help Diamond exit the group. Bankruptcy as a continuing problem and continuing its operations.” Under the plan, Amazon will make a small investment in the company, which was not immediately disclosed, and become a promotional partner, while the TV giant and Diamond Sinclair’s parent will pay $495 million to the company to settle lawsuits. .

RSA also includes a pledge by creditors to provide up to $450 million in cash to support Diamond’s operations as it completes a restructuring plan to emerge from Chapter 11 bankruptcy and repay $350 million in existing debt.

Diamond operates 19 RSNs under the Bally Sports brand name, with more than half of all MLB, NBA and NHL sports.

The settlement with Sinclair is designed to “resolve pending litigation between the company and the defendants,” Diamond said. Under the deal, Sinclair will also provide “regular and general management services to support Diamond’s restructuring and separation from Sinclair’s operations,” it stressed. “Under the RSA, the proceeds from Sinclair will be used to support the restructuring plan and distribute funds to other creditors.”

Sinclair said the decision requires Diamond to “dismiss his $1.5 billion lawsuit against Sinclair and all other defendants, as well as full and final satisfaction and acquittal of all defendants, including Sinclair and his associates.” It added that the $495 million payment is expected to result in a net value for Sinclair of approximately $250 million-$325 million “after consideration of tax benefits, other administrative expenses for the management of Sinclair Television Group and other assets and the price Sinclair will receive in accordance with the agreement.”

Meanwhile, Amazon is planning to enter the market to offer access to Diamond services through Prime Video, making the latter “the main partner of Diamond through direct-to-consumer (DTC) customers to manage Diamond’s local channels,” the company said. it said. “Customers will be able to access all local DTC content, including MLB, NBA and NHL games, as well as pre- and post-game coverage, in categories for which Diamond retains DTC rights, through Prime Video Channels.” Pricing and availability details will be announced later.

In addition, Diamond said it will continue to partner with its existing distribution partners to broadcast MLB, NBA and NHL content.

Diamond RSA has its largest group of borrowers, including 85 percent of the company’s first-rate borrowers, more than 50 percent of its second-tier borrowers, and more than 66 percent of its unsecured borrowers.

“We are pleased to have reached a restructuring agreement that provides a detailed plan for restructuring and new capital that will help Diamond operate and thrive beyond 2024,” said Diamond CEO David Preschlack. “We are grateful for the support from Amazon and the group of our biggest lenders who clearly believe that this business will make a profit. The next diamond to look at will be in establishing RSA and getting out of bankruptcy as a problem going forward.”

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