Diamond Sports Group and cable giant Comcast have reached a new agreement that will restore around two dozen Bally Sports-branded channels to Xfinity TV systems across the country.
The deal, announced on Monday, clears the way for Diamond Sports to submit a critical reorganization plan to a federal bankruptcy court for its approval.
“Entering a new carriage agreement with Comcast, our third-largest distributor, is a critical step forward in our restructuring effort, and we are pleased that fans will again be able to access broadcasts of their local teams through Xfinity,” David Preschlack, the CEO of Diamond Sports, said in a press release.
The channels have been unavailable to Xfinity TV subscribers since late April, when a multi-year agreement between Comcast and Diamond Sports expired without a new deal or extension in place.
Creditors — including Major League Baseball — said the lack of distribution on Comcast’s TV system raised concerns about the viability of a plan submitted by Diamond Sports earlier this year that aimed to help the company emerge from bankruptcy. The plan was heavily contingent upon carriage agreements with pay TV distributors, though which Diamond Sports earns affiliate fees based on the number of subscribers reached.
At issue is whether Diamond Sports would agree to a request from Comcast to relocate its Bally Sports channels into a higher programming tier, which would ultimately result in Xfinity TV subscribers paying more to access the regional sports network. The agreement announced on Monday makes it clear that issue has been resolved, though it isn’t known if Comcast was granted the ability to move the channels as it wanted.
In addition to Comcast, Diamond Sports said it reached agreements with Fubo, Charter’s Spectrum TV, Cox Cable and DirecTV to keep its channels on those platforms for a while longer.
“With certainty on our distribution, we are focused on finalizing an agreement with the NHL and resolving our ongoing negotiations with the NBA. We are mindful that time is of the essence with basketball and hockey seasons fast approaching, and once agreements with our team and league partners are complete, we intend to move expeditiously to present a plan of reorganization to the Court,” Preschlack said.
