Bally Sports' show is shown during the eighth inning of a game between the MLB's Houston Astros and the Minnesota Twins at Target Field in Minneapolis, Minnesota, on April 9, 2023.
David Bering | Getty Images Sports | Getty Images
Bally Sports regional channels return Comcast Cable TV customers.
Diamond Sports — owner of regional sports networks under the Bally Sports brand — reached an agreement with Comcast on Monday that will make its networks live for cable customers on Aug. 1.
Networks that broadcast Major League Baseball, the National Basketball Association and the National Hockey League in various markets were cut off to Comcast cable customers on May 1, the start of the regular season. Fans of 11 Major League Baseball teams, including the Detroit Tigers and Minnesota Twins, were affected.
The deal paves the way for Diamond Sports to survive after it filed for bankruptcy in March. The company had been working to secure contracts with several pay-TV providers such as Comcast.
“Entering a new carriage agreement with Comcast, our third-largest distributor, is a critical step forward in our restructuring efforts, and we are thrilled that fans will once again be able to access live broadcasts of their local teams through Xfinity,” Diamond CEO David Breschlak said in a press release.
Diamond has also reached transportation deals with Charter Communicationsdirect tv and Fubo.
“With certainty about our distribution, we are focused on finalizing an agreement with the NHL and resolving our ongoing negotiations with the NBA,” Breschlak said in the statement. “We recognize that time is of the essence as the basketball and hockey seasons rapidly approach, and once agreements with our team and league partners are complete, we intend to move quickly to file a reorganization plan with the court.”
Sports leagues recently expressed concerns about Diamond Sports' future in court hearings, questioning whether the company can put together a viable business plan before the upcoming NBA and NHL seasons this fall.
Diamond was scheduled to seek court approval on Monday for its reorganization plan in the U.S. Bankruptcy Court for the Southern District of Texas, but postponed the hearing as it sought to reach an agreement with Comcast.
The company said it intends to emerge from bankruptcy protection under the ownership of its creditors.
Negotiations between Diamond and Comcast broke down in May after a dispute over terms, particularly how quickly the cable provider would convert sports networks to a tiered model, meaning customers would have to opt for packages that included the channels at a higher price rather than including them in broader cable packages.
The deal reached Monday allows Comcast to offer Diamond Sports networks at such tiers outside of its broader cable bundle, according to people familiar with the matter, who asked not to be identified discussing details of the deal.
Pay-TV companies like Comcast have been shedding customers in recent years as consumers opt for cheaper streaming options. Comcast said last week it lost 419,000 domestic cable customers during the second quarter and now has about 13.2 million total subscribers.
Once a lucrative business, regional sports networks are now under severe pressure as customers leave cable packages.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.
