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Deal with Amazon could help Diamond Sports, Bally survive
The deal will impact Minnesota viewers as Diamond owns Bally Sports North, which carries broadcasts of the Twins, Timberwolves and Wild.
IRVINE, Calif. — Editor’s note: The video above first aired on March 15, 2023.
Online giant Amazon will partner with Diamond Sports as part of a restructuring agreement as the largest owner of regional sports networks looks to emerge from bankruptcy.
Diamond owns 18 networks under the Bally Sports banner — including Bally Sports North — which broadcasts the Twins, Timberwolves and Wild. Those networks have the rights to 37 professional teams — 11 in baseball, 15 NBA and 11 NHL.
Diamond Sports has been in Chapter 11 bankruptcy proceedings in the Southern District of Texas since it filed for protection last March. The company said in a late 2021 financial filing that it had debt of $8.67 billion.
The terms of the agreement were announced by Diamond Sports on Wednesday morning. Amazon had no comment. The deal remains subject to approval by the bankruptcy court.
The agreement with Diamond Sports’ largest creditors would allow it to emerge from bankruptcy, continue operations and prevent a total collapse of the regional sports network system. Otherwise, the NBA, NHL and MLB would have to step in and take over production and distribution of games for many of their teams.
Last season, MLB had to assume production and distribution duties for televised games played by the San Diego Padres and Arizona Diamondbacks after Diamond let rights payments to the Padres lapse, and was unable to agree to an amended deal with the Diamondbacks.
Under the terms of the restructuring agreement, Amazon will make a minority investment in Diamond and enter into a commercial arrangement to provide access to Diamond’s content via Prime Video.
Customers will be able to access their local team’s content on Prime Video channels where Diamond has rights. Pricing and availability of the service will be announced at a later date. Regional sports content will also remain available on cable and satellite providers.
Amazon Prime already carries some New York Yankees and Brooklyn Nets games produced by the YES Network.
Diamond also has an agreement in principle with Sinclair Broadcast Group to settle pending litigation between the companies.
Sinclair bought the regional sports networks from The Walt Disney Co. for nearly $10 billion in 2019. Disney was required by the Department of Justice to sell the networks for its acquisition of 21st Century Fox’s film and television assets to be approved.
Even before Sinclair purchased the regional sports networks, the business was in a downturn due to cord-cutting and declines in advertising revenue after entering into exorbitant long-term deals with some teams.
Under an agreement with creditors last year, Diamond Sports Group became a separate company from Sinclair.
As part of the settlement, Sinclair will pay Diamond $495 million and provide ongoing services to support Diamond’s reorganization. The proceeds from the settlement will also pay off some creditors.
“We are thrilled to have reached a comprehensive restructuring agreement that provides a detailed framework for a reorganization plan and substantial new financing that will enable Diamond to operate and thrive beyond 2024,” Diamond Sports CEO David Preschlack said in a statement. “We are grateful for the support from Amazon and a group of our largest creditors who clearly believe in the value-creating potential of this business. Diamond’s near-term focus will be on implementing the RSA and emerging from bankruptcy as a going concern for the benefit of our investors, our employees, our team, league and distribution partners, and the millions of fans who will continue to enjoy our broadcasts.”
Diamond recently reached agreements with the NHL and NBA to keep local rights through the end of this winter season. The company remains in discussions with Major League Baseball on reworked agreements for the upcoming 2024 season, with the next court hearing scheduled for Friday.
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Last week, prosecutors charged John Sawchak with attempted 2nd-degree murder and other felony charges after he allegedly shot his neighbor Davis Moturi.
MINNEAPOLIS — Following the shooting between two neighbors, the Minneapolis City Council voted unanimously to request that the city’s auditor conduct an independent investigation into the incidents and cases between Davis Moturi and John Sawchak.
Moturi was allegedly shot by his neighbor, Sawchak, on Wednesday, Oct. 23 but Minneapolis police did not arrest Sawchak until days later.
Minneapolis Police Chief Brian O’Hara defended not arresting Sawchak sooner, calling it a “high-risk” situation. O’Hara later said the victim, who had complained about harassment from Sawchak for months, was failed by police. Sawchak was arrested this past weekend after an hours-long standoff.
Moturi suffered a fractured spine, two broken ribs, and a concussion in the shooting. “Mr. Moturi’s life matters and I’m sorry that for nearly a year, MPD did not treat it like it did,” said Council Member Robin Wonsley in a news release, “Today’s vote affirms that the City Council is committed to taking meaningful actions towards accountability and restoration, starting with this independent review.”
Meanwhile, a spokesperson for Minneapolis Mayor Jacob Frey released this statement:
“Mayor Frey fully supports an independent review of this incident. The mayor and City are committed to always doing better, and this means closely examining past actions and finding where there may be ways to improve and grow. The mayor extends his condolences to Davis Moturi, his wife, Caroline, and their family and friends. The safety of our residents is a top priority and any form of violence or hate speech is completely unacceptable and does not align with who we are as a community. Brian O’Hara will continue to be the Minneapolis Police Chief.”
“This Valentine’s Day, 2025, will mark the five-year anniversary of the premiere of ‘Love is Blind,” Vanessa said on the Season 7 finale. “And, it is gonna be the launch of Season 8, which takes place in Minneapolis.”
The episode also revealed three of the new cast members, one of whom, “Alex,” told Lachey Minneapolis is “not like a major city, but it’s also not a small town,” which he said is just one of the obstacles in his way of finding the one.
“I just never found the right person that clicked for me,” he said.
Meantime, you can bone up on Seasons 1-7 streaming now on Netflix.
MINNEAPOLIS — How much do you know about your grandma’s upbringing?
“The Stories From My Grandmother’s Hands” is a book that aims to show young Black children how their grandmas lived through beautiful illustrations and descriptions.
KARE 11 News at Noon shared more on Thursday about the impact that this book will have.
