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The NBA's Phoenix Suns and WNBA's Phoenix Mercury announced a new media rights deal on Friday that could pave the way for local sports broadcasts following the much-publicized struggles of regional sports networks.
The Suns have partnered with Gray Television Inc., which includes three local TV affiliates, and Kiswe, which provides live streaming. Suns and Mercury games will be available for nearly 2.8 million households in Arizona, which the teams say more than triples the current number of Arizona homes both can reach.
Games will be available in the Phoenix, Tucson and Yuma media markets.
Diamond Sports Group, the largest owner of regional sports networks, filed for Chapter 11 bankruptcy protection in March. The move came after it missed a $140 million interest payment in February.
Diamond owns 19 networks under the Bally Sports banner. Those networks have the rights to 42 professional teams — 14 baseball, 16 NBA and 12 NHL, including the Suns.
The company has been current on rights fees payments to NBA and NHL teams, but it has missed payments for up to six baseball teams, including the Arizona Diamondbacks.
With Diamond struggling, teams have been searching for ways to adjust. Cord-cutting by cable subscribers is part of the reason regional sports networks have struggled.
“I’ve said from day one that our focus is our fans, our community and every member of our organization, and this deal checks every box,” Suns and Mercury Governor Mat Ishbia said. “By going entirely over the air and building our own DTC (direct-to-consumer) product, the Suns and Mercury will now be accessible to millions more fans in Arizona and globally.
"Success comes from new and innovative ways to invest in our players, continue our mission to build a world-class organization on and off the floor, and make our product available to as many people as possible.”
The Suns and Mercury say the new agreement is subject to the approval of the NBA and WNBA, along with any required resolution with the incumbent regional sports partner.
Diamond Sports says it plans to contest the new deal.
“The Phoenix Suns breached our contract and violated bankruptcy law, and Diamond Sports Group will pursue all remedies against any parties that attempt to exercise control over our property interests while we reorganize," the company said in a statement. "This is an improper effort by the Suns to change their broadcasting partner without permitting Diamond to exercise our contractual rights.”
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AP Sports Writer Joe Reedy in Los Angeles contributed to this report.