Diamond Sports’ 13-month bankruptcy odyssey appeared to hit its denouement yesterday morning when its Bally Sports channels went dark on Comcast cable systems. After all, Diamond C.E.O. Dave Preschlack had been given the unenviable, court-mandated task of saving the company from financial ruin by cutting deals with leagues and cable operators, all while convincing a bankruptcy court that the company could survive amid the dynamic and challenging regional sports network Big Crunch. Preschlack has already orchestrated new deals with Charter and DirecTV, which both offered him a glide path—or a structured, multi-year migration of Bally’s channels from the popular cable tier to a more expensive and less popular digital tier. Comcast, of course, would not move off of the cliff path, which would have cut Diamond’s revenues by so much that the bankruptcy court would nuke its plan.
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