FanDuel is solidifying its footprint in the media industry with a new naming rights deal.
The Flutter-owned sports betting and fantasy brand has reached a long-term commercial partnership with Diamond Sports for the exclusive right to name the media company’s regional sports networks (RSNs). As part of the deal, FanDuel has naming rights to Diamond’s portfolio of 16 RSNs that provide access to new markets nationwide.
“Collaborating with FanDuel provides a tremendous pathway for Diamond to elevate the fan experience and deepen the incremental value we provide for our team, league and distribution partners,” said Diamond CEO David Preschlack. “This partnership reinforces opportunities to further strengthen the close connection our RSNs have with local fans, including enhancing our DTC offering for a growing digital audience.”
The partnership allows FanDuel rights to resell Diamond’s DTC product, which will be rebranded as FanDuel Sports Network. The product provides FanDuel with linear and digital media placement opportunities for NBA, NHL and MLB games.
Long process for Diamond Sports
According to court documents filed earlier this week, Diamond has agreed to a naming rights deal with FanDuel as the company faces bankruptcy. In 2023, Diamond filed for Chapter 11 protection after missing payments on its debt, including a $140 million missed interest payment. Terms of the deal were not disclosed in court documents but Diamond will receive a rights fee payment.
Diamond will also profit from “certain media and advertising spending commitments.”
The deal provides FanDuel with the opportunity to purchase up to 5% of equity in the reorganized company. It also has rights to up to 5% of equity for performance warrants.
According to financial statements from earlier this year, Diamond had a debt of $8.6 billion as the operator of the Bally Sports brand. In 2020, Diamond secured a 10-year naming rights deal with Bally’s that was projected to generate $88 million in naming rights fees. Diamond will terminate the deal as part of its restructuring plan and sale to FanDuel.
As part of its deal, FanDuel has the right to resell Diamond’s streaming service to customers. It will also “deliver and license to the debtors certain content from FanDuel TV and the debtors will have the right and obligation to distribute such content on their services.”
Perfect timing for Diamond Sports
Diamond is taking steps to offload its RSNs as the MLB season comes to a close and the NHL and NBA begin the first half of their seasons. Diamond’s current deal with Bally’s is set to expire at the end of the MLB season, which could come on Nov. 2 at the latest.
Diamond expects the naming rights deal to help it emerge from bankruptcy by the end of 2024. The company has already begun offloading existing contracts with MLB teams to cut costs. It plans to sever ties with at least 11 MLB teams, excluding the Atlanta Braves.
Last year, Diamond saw several teams leave its RSNs including the Arizona Diamondbacks. The Sinclair Broadcast Group subsidiary hopes its broadcasting of NHL and NBA games will also help it stay afloat. Diamond has also renewed distribution deals with Charter Communications and DirecTV.
Meanwhile, Bally’s has lost what was the major linchpin of its marketing arm at a time when the operator is already struggling for market share. Despite being towards the bottom of the standings in terms of handle and revenue in most markets, the brand continues to expand though, launching in Tennessee earlier this week.
