No Deal For Comcast, DSG ‘Massive Disruption’ for MLB, NHL

 

A contract dispute between Comcast and Diamond Sports Group (DSG) has led to a significant blackout of 18 regional sports networks across the United States. DSG, which owns and operates these networks under the Bally Sports brand, failed to reach an agreement with Comcast, resulting in sudden blackouts for Comcast subscribers nationwide.

Here are the key details:

Background: DSG, previously making substantial progress in emerging from bankruptcy, faced a setback when it couldn’t finalize a new distribution deal with Comcast, the nation’s second-largest cable carrier. While DSG successfully reached a carriage agreement with Charter (the largest distributor in the U.S.) and is close to finalizing a deal with DirecTV, Comcast negotiations fell through, and a prior deal expired recently.

Impact on MLB and NHL Teams: MLB teams and their fans are among the most affected by this dispute. Local coverage of the Braves, Marlins, Tigers, and Twins has been disrupted due to the blackout. Additionally, an NHL playoff game between the Predators and Canucks was cut off during the third period due to the blackout.

Stakes for DSG: DSG’s reorganization plan hinges on its distribution revenue. Prior deals with Charter, Comcast, and DirecTV collectively represent about 81% of its total distribution revenue. A hearing to approve DSG’s reorganization plan is scheduled for June 18.

Comcast’s Stance: Comcast has been flexible with DSG during its bankruptcy proceedings, granting extensions and unilateral rights. However, Comcast no longer has the rights to DSG’s programming, and the blackout remains in effect.

Long-Term Outlook: Whether a new deal between Comcast and DSG can be reached is uncertain. Comcast has a history of keeping certain sports channels dark on its systems indefinitely if necessary. For instance, MSG Networks (which shows NHL’s Rangers, Islanders, and Devils, along with NBA’s Knicks) has been off Comcast homes in New Jersey and Connecticut since 2021. Similarly, Altitude, which airs NBA’s Nuggets, NHL’s Avalanche, and NLL’s Mammoth, has been dark on Denver-area Comcast systems since 2019 due to a bitter carriage dispute.