The Dallas Mavericks and New Orleans Pelicans are facing a significant shift in how their local games will be broadcast in the upcoming NBA season. Both teams are leaving their regional sports networks owned by Diamond Sports, according to a recent bankruptcy court filing. This move has raised questions among fans about how they will be able to watch their favorite teams in action.
Transition to Local Broadcasters
While neither team has officially announced where their local games will be aired, reports suggest that the Pelicans have reached an agreement in principle with Gray Television to broadcast their games this season. This shift indicates a move towards partnering with local broadcasters instead of relying on regional sports networks owned by Diamond Sports.
The decision by the Mavericks and Pelicans to move away from their Diamond-owned regional sports networks is part of a larger trend in the sports broadcasting industry. Many teams across different leagues, including the NBA, WNBA, and NHL, have chosen to ditch regional sports networks in favor of working with local broadcasters. This shift highlights the challenges faced by companies like Diamond Sports in an evolving media landscape.
As part of the terminations of their agreements with Diamond Sports, the Mavericks and Pelicans will owe payments of $1.3 million and more than $297,000 respectively. These financial obligations highlight the complexities involved in transitioning broadcasting rights from one platform to another. The deals with the Mavericks and Pelicans are subject to court approval, indicating the legal hurdles that must be overcome in such transitions.
Diamond Sports has been struggling to navigate its way out of bankruptcy for the past 18 months. The company’s $8 billion debt load has made it difficult to compete in a changing media landscape dominated by streaming services and digital platforms. Despite launching a sports-only streaming service in 2022, Diamond’s financial challenges have persisted, leading to the termination of agreements with teams like the Mavericks and Pelicans.
As the NBA and NHL seasons approach, Diamond Sports continues to face pressure to develop a viable business plan and ensure that it can meet its financial obligations. The return of its networks to Comcast’s cable TV customers marks a significant milestone for the company, but challenges remain as it seeks to establish itself in a competitive market. The decisions made by teams like the Mavericks and Pelicans to move away from regional sports networks further underscore the need for companies in the sports broadcasting industry to adapt to changing consumer preferences and technological advancements.
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