Amazon is backing out as a financing partner of Diamond Sports Group. But that move is not expected to either imperil the Bally Sports parent’s attempted reorganization from bankruptcy, or the streaming giant’s status as a potential distribution partner for the regional sports network operator.
The decision arrives about eight months after Amazon had agreed to provide $115 million in bankruptcy exit financing, in turn receiving 15% of the company. The deal was also set to establish Amazon Prime Video as DSG’s “primary partner” for fans to access the RSNs on a direct-to-consumer basis.
But DSG’s need for the funds has perhaps lessened. In addition to restructuring $450 million in debt, the company also settled a prior legal battle with corporate parent Sinclair, Inc. that involved DSG receiving an additional $495 million. DSG in recent weeks has also made major steps toward being able to emerge from bankruptcy, finalizing a new distribution deal with Comcast, the No. 2 cable carrier in the U.S., and completing revised rights deals with both the NBA and NHL.
After reaching those agreements, DSG conveyed a heightened confidence in being able to reorganize. But after a confirmation hearing set for July was postponed, a new date has not yet been set.
Amazon could remain involved as the DTC partner of DSG. As a result, the post-exit financing is not—and wasn’t ever—a singularly determinative factor in DSG’s bid to recover.
Meanwhile, Amazon continues to rack up additional sports rights, most recently landing a national package with the NBA that begins with the 2025–2026 season.
