Diamond Sports Group, the parent company of Cardinals and Blues broadcaster Bally Sports Midwest, is currently in the process of emerging from bankruptcy. The company is weeks away from a key hearing where it will present its case for being allowed to continue broadcasting professional sports. However, the MLB, NHL, and NBA have requested detailed financial information from Diamond regarding its contracts with cable distributors such as DirecTV and Charter. This information is confidential and cannot be released without permission from these companies or a court order.
Cox Communications and Charter, two cable distributors that pay fees to Diamond for producing professional sports telecasts, argued in court that the release of this information could harm them competitively. However, Judge Christopher Lopez overseeing the case stated that Diamond needs access to this information in order to make a strong case for emerging from Chapter 11 bankruptcy. During a recent hearing, Lopez indicated that certain aggregated financial figures related to business with cable distributors could be released, as well as key language from contracts on an anonymized basis.
Lopez made it clear that Diamond needs access to all relevant financial information in order to present its best possible case during the confirmation hearing. If this information were kept private, it would put the company at a disadvantage and limit its ability to argue for its business plan effectively. Lopez stressed that Diamond cannot be hamstrung in this process and must have access to all relevant financial details if it wants to move forward successfully.
