Thursday 5 September 2024

New York Post: Amazon nears major deal to broadcast NBA, MLB and NHL games on Prime streaming

Story from New York Post:

Amazon is in talks to become a major player in regional sports broadcasting for the NBA, MLB and NHL — with a surprise deal that could shake up the way fans have watched their local teams for decades, The Post has learned.

The Seattle-based e-tailing giant headed by Jeff Bezos is in late-stage talks for a contract to livestream on Amazon Prime this coming season all the Bally Sports broadcasts of 13 NBA franchises, as well as five MLB teams and nine NHL teams, sources close to the situation said.

With the new streaming service — which could launch next month with the start of the NHL and NBA seasons — sources said fans will pay about $20 a month for access to their home team’s local games through Prime.

Crucially, fans with the Amazon Prime service would no longer need a cable subscription to watch local games.

That could further accelerate cord cutting, sources noted, although Bally will continue to broadcast the games across cable networks nationwide.

Chatter has circulated for months about a deal between Amazon and Diamond Sports, the bankrupt company that owns the Ballys brand, the nation’s largest regional sports network.

Last month, Amazon reportedly pulled out of an agreement to invest $115 million in Diamond, leaving it unclear whether Amazon was ending all talks.

Financial terms of the Amazon deal currently under discussion couldn’t immediately be learned. A source said it is not exclusive, allowing Diamond to further expand its reach by signing deals with other platforms including YouTube.

Amazon, Diamond and MLB declined to comment.

Diamond, which has been in Chapter 11 since March 2023, is hoping that the Amazon streaming pact, along with other deals approved by a judge on Wednesday with the NBA and NHL for the new season, will be enough to persuade the court to allow it to emerge from bankruptcy in November, sources said.

Under the deal, Amazon would broadcast all NBA games that are not nationally televised for 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, and the San Antonio Spurs.

That’s on top of an 11-year deal Amazon announced in July with the NBA and the WNBA to be the exclusive streaming service for 66 nationally televised regular season games starting in the 2025-2026 season, an agreement that also includes playoff games.

Diamond has the digital streaming rights to five MLB teams on its Bally’s network: the Detroit Tigers, Kansas City Royals, Miami Marlins, Milwaukee Brewers and Tampa Bay Rays. Bally’s currently also broadcasts local games of the Cleveland Guardians, Minnesota Twins and Texas Rangers, with those contracts expiring at the end of the current season.

It’s possible that with an Amazon distribution deal, Diamond will be able to ink new streaming deals with the latter three teams, sources said. MLB has shown an interest in launching its own streaming network and has reserved the right to object to a Bally’s restructuring, sources said.

Still, if Diamond reaches this deal with Amazon it may be able to stop MLB even if it objects, sources said. Every baseball team has the right to negotiate its own media contracts. Amazon owns 15% of the YES Network locally and broadcasts one Yankees game weekly.

In the NHL, sources said Amazon is now in talks to broadcast all local games this season for the Anaheim Ducks, Carolina Hurricanes, Columbus Blue Jackets, Detroit Red Wings, Minnesota Wild, Nashville Predators, St. Louis Blues and Tampa Bay Lightning.

Amazon currently livestreams an NHL Prime Monday Hockey Night in Canada.

It also has a Thursday night game of the week NFL package, that includes a playoff contest.

To emerge from bankruptcy, Diamond needs to convince the judge it will be a feasible company going forward.

The argument would be that it can increase its subscriber base greatly by going through Amazon, sources said.

Diamond’s junior creditors including Prudential and Fidelity are expected to put money into Diamond and take over the business if it emerges from bankruptcy.

Diamond’s Bally’s is also expected to change its name after emerging from bankruptcy. Betting site FanDuel is said to be interested in a naming rights deal, sources said.

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