PHOENIX (AP) — Diamond Sports and the Arizona Diamondbacks postponed their federal bankruptcy court hearing scheduled for Thursday.
Diamond Sports, which owns 19 regional sports networks under the Bally Sports banner, filed an emergency motion last week to get out of its broadcast agreement with the Diamondbacks. It was scheduled to be heard in front of Judge Christopher Lopez in Houston.
In a joint statement, Diamond Sports CEO David Preschlack and Diamondbacks CEO Derrick Hall said games will continue to be broadcast on Bally Sports Arizona while both sides look to come to a resolution.
On June 1, Lopez ordered Diamond Sports to pay the full value of its contracts to the Diamondbacks, Cleveland Guardians, Minnesota Twins and Texas Rangers. Those payments are due July 1.
Diamond has only made payments to the Rangers.
Diamond Sports has been in Chapter 11 bankruptcy proceedings in Texas since March. The company said in a financial filing last fall that it had debt of $8.67 billion.
The Diamondbacks signed a 20-year, $1.5 billion contract with Fox Sports Networks in 2015. Diamond Sports Group and Sinclair Broadcast Group 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.
Diamond Sports said in last week’s filing that it loses significant amounts of money under the agreement with the Diamondbacks and that the deal “no longer fits” within its long-term plans.
The Diamondbacks are a part owner of Bally Sports Arizona. After years of struggling, the Diamondbacks are one of the surprise teams in baseball this season and are leading the NL West.
If Lopez agrees to let Diamond out of the contract, Major League Baseball would take over production of Diamondbacks games. MLB took over the broadcasts of San Diego Padres games May 31 after Diamond Sports missed a rights fees payment and let the grace period expire.
MLB set up a local media department during the offseason to prepare for taking over some teams’ games.
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