It’s official. Diamond Sports Group’s regional sports networks (RSNs) currently bearing the Bally’s Sports name will transition to FanDuel branding on Oct. 21.
The announcement from Diamond and FanDuel parent Flutter Entertainment (NYSE: FLUT) arrived a day after reports surfaced that the bankrupt broadcaster asked a court to expedite the move to FanDuel branding from Bally’s Sports. Diamond was pushing to move the RSNs’ labels to FanDuel because it’s agreement with Bally’s expires at the end of the 2024 Major League Baseball (MLB) season.
This partnership reinforces opportunities to further strengthen the close connection our RSNs have with local fans, including enhancing our direct-to-consumer (DTC) offering for a growing digital audience,” said Diamond CEO David Preschlack in a statement. “In the meantime, having finalized agreements with the NBA, NHL and our key distributors, we remain focused on moving our business forward and driving value for our team partners and our stakeholders.”
Starting Oct. 21, 16 RSNs that are currently Bally’s Sports networks will take on the FanDuel Sports Network mark.
FanDuel Could Get Equity Interest in Diamond Sports
Financial terms of the transaction weren’t disclosed, perhaps because Diamond is still working through Chapter 11 bankruptcy protection, but there are avenues through which FanDuel could reap economic rewards via the RSN deal.
Notably, the online sportsbook giant gains rights as a reseller of Diamond’s DTC offering as well as “additional economic and equity elements.” A Diamond filing with the with the US Bankruptcy Court, Southern District of Texas, noted FanDuel is paying “a significant rights fee payment” and that the gaming company could control up to 5% of the media firm’s equity when it clears bankruptcy.
Four years ago, Bally’s agreed to pay $85 million over 10 years to put its branding on the RSNs. The Diamond/FanDuel partnership is arguably more practical than the deal with Bally’s because FanDuel has broader reach.
“A large cohort of FanDuel customers are devoted RSN viewers and this agreement allows us to further cement the FanDuel brand with sports fans and provides a unique vehicle to reward our users,” said FanDuel President Mike Raffensperger in the press release.
Speaking of Reach…
Several of the Diamond RSNs that will soon take the FanDuel name broadcast in states where the operator is already the largest or second-largest in terms of online sports betting market share.
Some of the other RSNs are based in states that have yet to legalize sports wagering or jurisdictions in which FanDuel would like to enter. The full list is below.
These are the RSNs taking the FanDuel name: FanDuel Sports Network Detroit, FanDuel Sports Network Florida, FanDuel Sports Network Great Lakes, FanDuel Sports Network Kansas City, FanDuel Sports Network Indiana, FanDuel Sports Network Midwest, FanDuel Sports Network North, FanDuel Sports Network Ohio, FanDuel Sports Network Oklahoma, FanDuel Sports Network SoCal, FanDuel Sports Network South, FanDuel Sports Network Southeast, FanDuel Sports Network Southwest, FanDuel Sports Network Sun, FanDuel Sports Network West, and FanDuel Sports Network Wisconsin.
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