Amazon Pulls Offer To Invest In Local Sports Networks

The Diamond Sports Group bankruptcy continues, but part of the company's rescue plan now will not include Amazon.

Diamond Sports, the owner of the Bally Sports networks, has been fighting to emerge from bankruptcy and retain the rights to continue broadcasting sports on its regional sports stations. With Diamond needing hundreds of millions of dollars to continue operating, and Amazon looking to expand in the streaming sports world, it looked at first glance to be a match made in heaven. 

READ: Amazon Looks To Be King Of Streaming Sports With Reported Interest In Diamond Sports Group

Amazon clearly agreed, offering $115 million to secure partial ownership of Diamond Sports Group, along with several other interested parties that made offers. But according to a new report from Sports Business Journal, that offer has since fallen through.

Amazon's investment would have given it "local streaming rights to all 15 of Diamond's NBA teams," according to SBJ. Their report states that most within the industry viewed the offer as an opportunity for Amazon to "become a national RSN provider for the NBA if Diamond went under." 

But Diamond has apparently secured $450 million from other sources, which would be enough to remain solvent and submit a reorganization plan to the bankruptcy judge. Amazon's streaming takeover isn't quite finished yet.

(Photo by Nick Cammett/Getty Images)

Streaming Sports Still In The Cards For Amazon

Amazon still has invested over a billion dollars in streaming rights to NBA and WNBA games, with another separate sublicensing deal to stream some NHL games. 

They also retain their NFL broadcasting rights, and given their deep financial pockets, will likely be involved in future negotiations in all sports. Streaming services continue to battle for subscriber dollars, as competition increases and consumer spending decreases. 

Live entertainment has been the most valuable property for cable companies, for good reason, and many of the same incentives now apply to streaming companies like Amazon. Diamond may not be the current beneficiary, but sports leagues are sure to be.