FanDuel Nearing Major Deal with Diamond Sports Group for Regional TV Networks

04.06.2024

FanDuel is reportedly close to finalizing a multiyear agreement with Diamond Sports Group to place its brand on 18 regional pay-TV networks currently operating under the Bally Sports name. As reported by Bloomberg, this partnership would also include FanDuel-related programming for these channels.

Deal Components and Benefits

The proposed deal, which is still being finalized, would see FanDuel resell Diamond’s streaming service to sports fans and acquire an equity stake in the company.

This would provide FanDuel with a direct connection to millions of fans as they watch their favorite hometown teams. For Diamond Sports Group, a partnership with FanDuel represents an opportunity as it works to emerge from bankruptcy court protection.

Background on Diamond Sports Group

Diamond Sports Group, a subsidiary of Sinclair Inc., declared bankruptcy last year and is currently reorganizing its business. The company acquired the regional sports networks from Walt Disney Co. for $9.6 billion in 2019, but has faced financial challenges as traditional cable-TV subscriptions decline.

The Bally Sports networks broadcast games for 38 major league teams across hockey, baseball, and basketball, including prominent teams like the Atlanta Braves and the Dallas Mavericks.

Originally launched as a daily fantasy sports service, FanDuel has grown into one of the largest online gambling operators in the United States. The division of Flutter Entertainment Plc, also operates a cable TV channel focused primarily on horse racing.

This potential deal comes as the agreement between Diamond Sports and Bally’s Corp. is set to expire at the end of the baseball season.

If the partnership with FanDuel is finalized, it could significantly boost Diamond Sports as it negotiates broadcasting rights with various sports leagues.