The NHL has warned that it may ask the courts to assist with “necessary relief” as Diamond Sports Group was granted an extension to file its bankruptcy plan.
As part of Diamond Sports Group’s Chapter 11 bankruptcy, the company is expected to file a reorganization plan that details how it intends to deal with the situation. Diamond had previously requested an extension for the due date of that filing, and although not as long as Diamond wanted, the court today granted an 80-day extension.
However, according to Awful Announcing, the NHL today told the bankruptcy court that it requires some assurances, and soon. Specifically, the National Hockey League reportedly stated, that if reasonable certainly isn’t provided “in the near future,” it may come back to the court and request “any appropriate necessary relief.”
While necessary relief could mean a number of things, it could also include asking the court to end its agreements with Diamond Sports, unlocking the ability to agree new distribution deals.
Similar situations have recently unfolded with both the San Diego Padres and Arizona Diamondbacks, resulting in broadcast rights for both teams being returned to the MLB.
The extension granted to Diamond Sport extends the filing deadline to September 30. As the NHL’s counsel was noted explaining, while the regular season starts on October 10, preseason starts on September 23, a week before the newly granted extension ends.
Reading between the lines, it would seem as though the NHL is hoping to receive some assurances in the form of a deal before preseason starts. If it doesn’t get any by then, we may see the NHL make an attempt to try and reclaim broadcast rights for the 12 teams involved.
According to Sportico, Brian Hermann, the attorney representing Diamond Sports, argued “we totally understand the need for speed” and that “no one has to remind us of the clock.”
