Fans of the Dallas Mavericks and New Orleans Pelicans are gearing up for the upcoming National Basketball Association season with anticipation of changes in how they consume local games. According to a recent bankruptcy court filing, both teams are parting ways with their regional sports networks owned by Diamond Sports. This shift is happening just in time for the start of the NBA season on Oct. 22. Although the franchises have not made public announcements regarding their new broadcasting partners, they have a track record of airing games through local broadcasters.
Reports have surfaced that the New Orleans Pelicans have reached a preliminary deal with Gray Television to broadcast their games for the upcoming season. A source close to the team has confirmed this information to CNBC. However, both Gray Television and the Pelicans have chosen not to comment on the specifics of the agreement. In the previous season, the Pelicans aired 10 of their games on Gray’s local stations, indicating a pre-existing relationship between the two parties.
On the other hand, the Dallas Mavericks, who made an appearance in last season’s NBA Finals, had a 13-game arrangement with Tegna’s Dallas-Fort Worth stations. Despite this, representatives for both the Mavericks and Tegna have not provided any comments on the upcoming broadcasting rights for the team’s local games. The Mavericks and Pelicans join a list of teams that have chosen to shift the majority of their regular-season games away from their Diamond-owned regional sports networks, which operate under the Bally Sports brand.
As part of the termination of their contracts with Diamond Sports, the Mavericks are set to pay $1.3 million, while the Pelicans will repay over $297 thousand. These financial settlements are outlined in the court filing related to the teams’ departure from their previous broadcasters. Furthermore, Diamond Sports is in the process of finalizing broadcast and streaming rights agreements with the NBA and NHL for the upcoming season, subject to court approval. David Preschlack, CEO of Diamond Sports, expressed gratitude for the continued collaboration with the leagues, highlighting these agreements as significant steps toward exiting bankruptcy protection.
Diamond Sports, like many other companies, has grappled with the challenges posed by the decline of cable television. Despite launching a sports-only streaming service for select teams in 2022, the company’s massive $8 billion debt burden led to the decision to file for bankruptcy protection. The pressure on Diamond Sports to develop a sustainable business strategy and meet financial obligations has intensified as the NBA and NHL seasons draw closer. Additionally, the company recently resolved an issue with Comcast, its third largest distributor, allowing the return of Bally Sports networks to Comcast’s cable TV customers after a temporary blackout earlier this year.