Diamond Sports Group wants a mediator

Diamond Sports Group, the regional sports channel giant in bankruptcy since March, filed an emergency motion with the court last night seeking a mediator for its negotiations with creditors. With the NHL and NBA season right around the corner, Diamond in its filing painted an urgent picture.

“[T]he Debtors have been hard at work on an updated business plan to right-size their business and balance sheet given the tectonic shifts impacting the entire cable industry due to increased cable subscriber churn,” the filing reads. “Debtors are operating under a tight timeline and any mediators will need to immediately get up to speed and be in a position to assist the parties on the Debtors’ timeline, which requires that substantial plan progress occur prior to the start of the upcoming NBA and NHL seasons.”

Diamond is committed to airing the 12 MLB teams games its airs for the rest of the season, but no such commitment is tangible for the hockey and basketball seasons. Diamond’s RSNs operate under the Bally Sports banner, and air 28 NHL and NBA teams.

The creditors have previously asked for a mediator, only to be rebuffed. Diamond now asking for one appears to be a white flag on the issue, and a sign that for the RSN power to emerge from bankruptcy, it needs some outside assistance.

Chances are several of the NBA and NHL contracts Diamond will walk away from, and the teams and leagues need to be prepared with a Plan B for that eventuality.