Amazon will add some of Bally Sports' TV games — but not the Reds — to its Prime Video lineup under a $115 million minority investment in parent company Diamond Sports Group.
Diamond, which filed for Chapter 11 bankruptcy last March citing a $8.67-billion debt, bought the former Fox Sports regional sports networksin 2019. The 18 Bally Sports regional networks hold rights to 37 professional teams — 11 Major League Baseball teams (including the Reds and Guardians); 15 National Basketball Association teams (including the Cavaliers); and 11 National Hockey League teams (including the Blue Jackets).
However, Diamond only has streaming rights to five MLB teams: the Tigers, Royals, Marlins, Rays and Brewers. It does not have streaming rights to the Reds, which is why the Bally Sports+ streaming service launched in 2022 without the Reds.
There are lots of unknowns about if the Amazon deal presented by Diamond Wednesday for approval by a federal court judge for the Southern District of Texas could impact the Reds:
— Bally Sports Ohio is not part of the bankruptcy proceedings because the Reds took an equity stake in the regional sports network (then called Fox Sports Ohio) as part of a 15-year deal running through the 2032 season, according to John Ourand's storiesfor the Sports Business Journal. Reports says the Reds are paid $60 million annually by Diamond.
— Late last year, Diamond indicated in a court filing that it would drop all its regional sports contracts after the 2024 season, the Cincinnati Business Courier's Steve Watkins reported Nov. 28.
But the Amazon cash infusion to pay off Diamond's largest creditors will allow Diamond "to emerge from bankruptcy and continue operations and prevents a total collapse of the regional sports network system where the NBA, NHL and MLB would have to step in to take over production and distribution of most of their teams," according to Associated Press reporter Joe Reedy, a former Enquirer sportswriter.
Last April, MLB was prepared to take over Reds TV production and distribution until Diamond paid its overdue rights fees in full to the team on May 2. By midsummer, MLB had to take over telecasts for the San Diego Padres and Arizona Diamondbacks when Diamond terminated its deals and TV rights reverted to the clubs.
Reds officials did not respond to a request for comment.
Bally Sports Ohio customers can stream in-market Reds games only if they have a cable or satellite subscription.
Viewers' cord-cutting from cable TV and satellite services in favor of streaming has sent subscriber and advertising revenues into a downward spiral for Bally Sports and all cable TV programmers. Cable and satellite providers have lost nearly 25 million customers— or about 25% — in the past five years, according Charter Communications executives when its Spectrum cable systems national dropped Disney and ESPN channels for 10 days last September.
The Cincinnati Business Courier's Watkins says that a bankruptcy court filing for Diamond Sports Net Cincinnati LLC — which broadcasts the Reds, Blue Jackets and Cavaliers — lost $17.7 million in the first nine months of 2023, and $1.8 million in 2022.
From the AP's Reedy:
"Due to the complexity of this bankruptcy case, though, it could take a while before games become available on Prime Video …
"Diamond recently reached agreements with the NHL and NBA to keep local rights through the end of this season.
"It remains in discussions with MLB on reworked agreements. Diamond has not reached amended terms with the defending World Series champion Texas Rangers and Cleveland Guardians, while its contract with the Minnesota Twins expired at the end of last season.
"Amazon, though, has acquired direct-to-consumer rights for the Detroit Tigers, Kansas City Royals, Miami Marlins, Milwaukee Brewers and Tampa Bay Rays."
