NHL team Arizona Coyotes are clashing with bankrupt sports broadcaster Diamond Sports Group. They are claiming over nearly $18 million following the termination of their telecast deal. As tensions escalate, the bankruptcy court has become the battleground where financial woes and contract disputes are unfolding.

Diamond Sports Group contends that it severed ties with the Coyotes due to mounting losses and escalating telecast costs. On the other hand, the Coyotes assert they are owed a substantial sum. From the looks of it, they’re very determined to claim what they believe is rightfully theirs.

Seeking Repayment in the Courts

The Arizona Coyotes are making their case in the bankruptcy court. They are arguing that Diamond Sports Group owes them approximately $18 million. This is a significant sum in the world of professional sports, and the Coyotes are not backing down. The termination of the broadcast deal was a pivotal moment, effectively ending Diamond’s broadcasting of Arizona’s major professional sports teams.

The financial strains that led to this dispute are not unique to the Arizona Coyotes. Diamond Sports Group also terminated its broadcast deal with MLB’s Arizona Diamondbacks earlier this year. Notably, they have also ceased broadcasting the National Basketball Association’s Phoenix Suns, after refusing to match a competing offer. These decisions have cast a shadow of uncertainty over the future of sports broadcasting in Arizona.

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Diamond Sports Group claims that the rights fees owed to the Coyotes “total tens of millions of dollars annually and increase yearly.” However, this claim falls under the category of unsecured debt. In the legal context, it is often repaid at significantly reduced amounts, often only a fraction of the original debt.

Broadcasting Uncertainty and the Coyotes’ New Path

Diamond Sports Group filed for Chapter 11 bankruptcy in March. As the regular seasons of the NBA and NHL get underway, they are making efforts to formulate a plan to emerge from their financial turmoil. This legal battle with the Arizona Coyotes adds complexity to an already challenging process.

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As regional sports channels struggle to maintain profitability, and as telecast agreements with professional teams become increasingly expensive, these clashes are likely to continue. However, the Arizona Coyotes are not sitting idly by. Earlier this month, the team announced a multi-year agreement with Scripps Sports. This agreement allows for local broadcast on free TV channels.

As the legal battle unfolds and the bankruptcy proceedings continue, the future of Arizona sports broadcasting remains uncertain. The outcome of this dispute could set a precedent for how bankrupt broadcasters and professional sports teams navigate the complexities of their contractual agreements. One thing is clear: the courtroom drama is far from over.

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