Diamond Sports Group, the bankrupt operator of regional sports networks (RSNs) currently under the Bally’s Sports name, is pressing a court for swift approval to rebrand to FanDuel.
In a filing with the U.S. Bankruptcy Court for the Southern District of Texas on Tuesday, Diamond Sports emphasized the urgency of the rebrand. With the NHL season already underway, the 2024-25 NBA season just days from starting, and its current agreement with Major League Baseball (MLB) nearing expiration, the timing is crucial. MLB is currently in its league championship series, leaving only the World Series before the season concludes.
Earlier in June, FanDuel, a subsidiary of Flutter Entertainment (NYSE: FLUT), reached a deal with Diamond to replace Bally’s (NYSE: BALY) as the sponsor for 18 RSNs. The partnership is seen as key to Diamond’s restructuring efforts as it works through bankruptcy while balancing pressure from investors to conserve resources.
FanDuel’s Financial Role Still Uncertain
It remains unclear how much FanDuel will pay for the RSN naming rights. For context, Bally’s struck a deal with Sinclair Broadcast Group in November 2020 to brand 21 RSNs, agreeing to pay $85 million over ten years.
In its court filing, Diamond Sports disclosed that the agreement with FanDuel includes a “significant rights fee payment and certain media and advertising spending commitments.” Additionally, FanDuel would have the option to acquire up to 5% equity in Diamond Sports upon its emergence from bankruptcy protection.
Eric Ratchman, Diamond’s president of distribution and business development, also hinted at potential future integrations between Diamond and FanDuel’s products and services.
FanDuel Partnership Advantageous for Both Sides
FanDuel, the leading online sportsbook in the U.S., already has a notable presence on cable television with its FanDuel TV network, which expanded its focus from horse racing to general sports in 2022. Partnering with FanDuel offers Diamond Sports a stable branding partner with wide U.S. recognition.
On the flip side, FanDuel stands to gain visibility across RSNs that broadcast games for 38 MLB, NBA, and NHL teams. As highlighted in the filing, there is a “high degree of alignment” between the regions where RSNs operate and the states where FanDuel offers online sports betting, including markets like Arizona, Kansas, North Carolina, and Ohio.
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