Diamond Sports Group completed its financial restructuring and has emerged from Chapter 11 as Main Street Sports Group with a deleveraged balance sheet. The company will continue to serve fans under the FanDuel Sports Network name, through its naming rights agreement with FanDuel for its 16 regional sports networks.
The company’s plan of reorganization was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on Nov. 14, 2024. The plan received nearly unanimous support from its funded debt holders. Funds managed by PGIM Fixed Income, Hein Park Capital Management, Discovery Capital Management, Hudson Bay Capital Management, Alta Fundamental Advisers and others have received equity for their funded debt claims. Through its financial restructuring, Main Street Sports has reduced approximately $9 billion of pre-petition debt to $200 million and has a well-capitalized balance sheet.
Since commencing Chapter 11 proceedings in March 2023, the company has taken steps to strengthen its operational and financial performance and position itself for long-term success. In that time, the company has resolved legal matters, completed its operational separation from Sinclair and secured go-forward agreements with its top team, league and distribution partners. Importantly, terms were also reached on partnerships with Amazon’s Prime Video and FanDuel.
“Emerging from this process is the culmination of over 20 months of incredibly hard work to transform our business and position us to better serve passionate local fans across our markets,” David Preschlack, CEO of Main Street Sports, said. “I am deeply grateful to everyone who made this restructuring possible – our new owners, partners, advisors and especially our dedicated employees. With a stronger balance sheet, key partnerships, supportive new owners, we are modernizing our business to thrive in a changing media landscape.”
During the Chapter 11 process, Paul, Weiss, Rifkind, Wharton & Garrison, Wilmer Cutler Pickering Hale and Dorr and Porter Hedges served as the company’s legal counsel and AlixPartners served as the company’s restructuring advisor. Lazard, LionTree Advisors and Moelis & Company served as the company’s investment bankers, and Reevemark served as communications advisor to the company. During the Chapter 11 process, Paul Hastings and PJT Partners LP served as advisors to the “ad hoc crossholder group,” representing a majority of the company’s pre-bankruptcy funded debt and DIP financing. The members of the ad hoc crossholder group will receive a majority of the company’s equity pursuant to the plan.
