A bankruptcy judge voided the Phoenix Suns and Mercury’s new media rights deal with Gray Television, Inc. and DTC service Kiswe, CNBC reported Wednesday afternoon.
Nearly two weeks ago, the Suns announced a deal with Gray and Kiswe to reach a wider audience within Arizona.
Phoenix said in a statement its media rights deal was “subject to the approval of the NBA and WNBA and any required resolution with the incumbent regional sports partner,” which is Diamond Sports Group. Diamond owns Bally Sports Arizona, which has broadcasted Suns games since 2011 (it was previously known as FOX Sports Arizona).
The Suns said their new media rights deal with Gray and Kiswe was expected to reach 2.8 million homes in Arizona. However, Diamond — which went bankrupt in March — filed an emergency motion for stay, putting the agreement in jeopardy.
Judge Christopher Lopez provided the following ruling that the Suns' new media rights deal be voided, according to Front Office Sports.
“The Suns shall continue to perform and comply with their obligations under the agreement [with Diamond Sports] in all respects.”
According to CNBC’s Lillian Rizzo, the Suns and Mercury did not uphold Diamond's right of first refusal in their contract.
Now, the Suns and Mercury must negotiate with Diamond to decide if it has the right to match a replacement deal. If Phoenix wins the ruling, its new media rights deal can be revived.
Suns and Mercury CEO Josh Bartelstein was reported to have provided the following statement to Front Office Sports:
“The Phoenix Suns and Mercury are excited to continue giving our fans everything they want for the best possible experience and making our games accessible to everyone. We are committed to working collaboratively on a fair resolution that will be in the best interest of our fans, our community, and our players.”
Gray Television, Inc. is home to CBS5 and 3TV.
Kiswe, a direct-to-consumer streaming option, may help the Suns reach a younger audience.
Follow Us
Subscribe