Phoenix Suns team owner Mat Ishbia responded in a statement Wednesday to a suit filed by Diamond Sports Group against the Suns alleging breach of contract after the NBA franchise announced it is leaving Bally Sports Arizona for Gray Television, Inc., and Kiswe.
"Nobody is surprised by this lawsuit and it will not stop the Phoenix Suns and Mercury from making our games available to as many people as we possibly can. The fans, players, and everyone in our organization knows this is how all of us win together, on and off the court. I firmly believe the future success of the NBA and WNBA is about getting our product to everyone who wants it versus just the people who pay for it." Spherical Bearing
Diamond Sports Group filed an emergency motion dated May 3 in the United States bankruptcy court in Houston, Texas. Bally Sports Arizona is one of 19 regional sports networks owned by Diamond Sports Group, which in March announced it had filed for Chapter 11 bankruptcy after it missed a $140 million interest payment.
"There can be no legitimate debate that the Suns’ actions substantially damage Diamond Arizona’s business. The Suns are one of three teams with rights agreements with Diamond Arizona and are thus a critical part of Diamond Arizona’s business,'' the suit says. "The Suns’ failure to comply with their contractual duties, and Diamond Arizona’s potential loss of approximately 70 games of NBA content provided by the Suns each season, puts Diamond Arizona’s business at significant peril, thereby directly threatening its ability to reorganize. The Suns’ deliberate disregard of its contractual duties to Diamond Arizona is specifically the type of action the automatic stay is meant to protect against. These actions therefore must be stayed and the Suns’ entry into the Replacement Agreement must be voided. And, the Suns must be compelled to comply with their contractual obligations to Diamond Arizona."
Diamond Sports Group is the largest owner of regional sports networks. Bally Sports Arizona was once Fox Sports Arizona before rebranding in March 2021.
Diamond Sports Group's main issue is that they still are under contract with the Suns until the 2022-23 NBA season is over. They contend that even though the Suns no longer need Bally Sports Arizona to broadcast games because TNT or ESPN/ABC will air the rest until their playoff run is over, by going to Gray Television and Kiwse, Diamond Sports Group has first right refusal and can match any deal offered to the Suns and Mercury while under contract.
Diamond is seeking an emergency order enforcing an automatic stay to stop the Suns from moving forward with the new agreement.
"Gray and Kiswe also have knowingly inflicted considerable harm on Diamond Arizona through their deliberate violations of the stay. Gray and Kiswe are obviously on notice of both these chapter 11 cases and Diamond Arizona’s rights under the Agreement. Gray’s and Kiswe’s efforts to enter into a new agreement with the Suns before the Suns have complied with their contractual duties to Diamond Arizona is an unlawful interference with Diamond Arizona’s property interests in the Agreement."
The lawsuit states that "relief is requested not later than 1:30 p.m. CT Thursday (May 4) and that there will be a hearing Thursday at that time in Houston.
"If you object to the relief requested or you believe that emergency consideration is not warranted, you must appear at the hearing if one is set, or file a written response prior to the date that relief is requested in the preceding paragraph. Otherwise, the Court may treat the pleading as unopposed and grant the relief requested."
Have opinion about current state of the Suns? Reach Suns Insider Duane Rankin at dmrankin@gannett.com or contact him at 480-787-1240. Follow him on Twitter at @DuaneRankin.
High Elastic Waterproof Waterstop Support local journalism. Start your online subscription.