SOUTHPORT, Conn.—Diamond Sports Group said it has emerged from Chapter 11 bankuptcy as Main Street Sports Group with a significantly deleveraged balance sheet.
The news follows a lengthy bankruptcy restructuring process that will see the new Main Street Sports Group, doing business as FanDuel Sports Network and operating regional channels with local TV rights to 13 NBA teams, eight NHL teams and eight MLB teams. During the bankruptcy proceedings, the company concluded a naming rights agreement with FanDuel to use the FanDuel Sports Network name for its 16 RSNs.
In the NBA those teams include the Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Detroit Pistons, Indiana Pacers, Los Angeles Clippers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Minnesota Timberwolves, Oklahoma City Thunder, Orlando Magic and San Antonio Spurs.
In the NHL, those teams include the Carolina Hurricanes, Columbus Blue Jackets, Detroit Red Wings, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues and Tampa Bay Lightning.
In the MLB those teams include the Atlanta Braves, Los Angeles Angels, Miami Marlins, St. Louis Cardinals, Detroit Tigers, Tampa Bay Rays, Kansas City Royals and Milwaukee Brewers.
As previously reported, the reorganization plan was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on Nov. 14, 2024. The plan received nearly unanimous support from its funded debt holders. Funds managed by PGIM Fixed Income, Hein Park Capital Management LP, Discovery Capital Management, Hudson Bay Capital Management LP, Alta Fundamental Advisers LLC and others, have received equity for their funded debt claims. The restructuring reduced about $9 billion of Main Street Sports’ pre-petition debt to $200 million.
Since commencing Chapter 11 proceedings in March 2023, the company reported that it has “resolved complex legal matters, completed its operational separation from [former parent company] Sinclair, and secured key go-forward agreements with its top team, league and distribution partners. Importantly, terms were also reached on prominent partnerships with Amazon’s Prime Video and FanDuel that bolster the Company’s platform and direct-to-consumer (DTC) offerings.”
“Emerging from this process is the culmination of over 20 months of incredibly hard work to transform our business and position us to better serve passionate local fans across our markets,” Main Street Sports CEO David Preschlack said. “I am deeply grateful to everyone who made this restructuring possible—our new owners, partners, advisers and especially our dedicated employees. With a stronger balance sheet, key partnerships, supportive new owners, we are modernizing our business to thrive in a changing media landscape.”
