Report: Sinclair Broadcast ThisClose To NBA Streaming Deal

Sinclair Broadcast Group Inc.’s sports network unit is close to clinching deals to carry National Basketball Association games on its new streaming service and $600 million of financing to support the launch later this year.

Bloomberg reports the new loan for Diamond Sports Group’s venture could be announced along with local NBA streaming rights as soon as next week, according to people with knowledge of the matter. Diamond expects to roll out the offering in the first half of 2022, which will expand on its existing streaming service for regional TV subscribers, according to one of the people. They asked not to be identified discussing confidential negotiations.

The NBA deal will give Diamond regional digital rights to the basketball league in addition to the broadcast rights that the largest U.S. regional sports network operator already owns, according to one person. The streaming app will be financed with a new super-priority first-lien loan from an existing group of secured creditors.

A representative for Sinclair, based in Hunt Valley, Maryland, and Diamond declined to comment. The NBA didn’t immediately respond to a request for comment.

Debt Load

The launch could help Diamond break a slump in viewership and generate earnings to help manage the massive debts that stem from its 2019 sale to Sinclair. The sports network and Sinclair have been in talks with creditors for months over ways to manage its $8.1 billion burden and support the development of the consumer app, which is key to its future as the traditional TV audience erodes.

Hockey Rights

Diamond owed Sinclair $75 million in management services for the fiscal year ended Dec. 31, 2021 according to the company’s third-quarter earnings statement. One agreement contains an incentive fee that was $80 million for the nine months ended Sept. 30, 2021, according to the statement.

The sports subsidiary told investors in December that it had a renewed a key deal with the National Hockey League for local streaming rights for 12 NHL teams. Diamond is still negotiating with individual baseball teams.


Bloomberg Intelligence said in a report last month that the NHL deal and securing NBA rights should be sufficient to launch the new platform this year. Sinclair has TV rights for 16 NBA, 14 MLB and 12 NHL teams, according to BI.