Diamond Sports Group has always needed to secure an extended agreement from DirecTV in order to be released from the bankruptcy process.
The Diamond Sports bankruptcy case is getting a little more spicy with DirecTV getting involved. ⤵️https://t.co/hnMFhhPbl8
— Awful Announcing (@awfulannouncing) October 12, 2023
Diamond’s Bally Sports Regional Networks, which have 19 regional sports channels, are delivered in one of the largest proportions by the satellite carrier.
According to Awful Announcing, the deal is not going well and the parties are at odds on what exactly would be covered by a new agreement.
DSG came forward and mentioned, “DIRECTV has no basis for withholding any portion of the payments due to the Debtors under the parties’ contract,”
“Faced with this reality, and unable to point to any contractual provision entitling it to relief, DIRECTV instead seeks to resort to supposed “equitable” remedies that would permit it to withhold payments owed under the contract. No legal or equitable principle, however, entitles DIRECTV to re-write its contract with the Debtors.”
Specifically, it mentions that DSG provided DirecTV with 1,987 MLB games. However, DirecTV has been computing independently and subtracting the pro-rata amounts before disbursing its payments to DSG.
“Beginning in July 2023, DIRECTV began underpaying the Debtors (now, in the amount of more than REDACTED), on the ground that REDACTED for the failure by the Debtors and their affiliates to televise certain San Diego Padres games. Then, beginning on September 29, 2023, DIRECTV underpaid the Debtors by more than REDACTED on the ground REDACTED that for the Debtors’ failure to televise certain Arizona Diamondbacks games.”
Contracts are automatically stayed in bankruptcy, so parties cannot amend them without the court’s permission. DSG lowered the payments it owes four MLB teams, which led to a contentious legal dispute with the MLB. The judge, however, ruled that DSG could not change the contracts.
After over two months of negotiations, the parties are still unable to come to a consensus on “preliminary matters”. These are pertaining to reductions for the Diamondbacks and Padres games that were lost.
