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NBA team, Phoenix Suns, was revealed to have recently signed a partnership deal with TV and online streaming company, Gray Television and Kiswe tech startup for the exclusive broadcast of its future games. However, a US judge has voided the agreement because the deal violates the rights of its current broadcast partner, Diamond Sports Group, which has gone bankrupt.
The judge blocked the partnership deal between Phoenix Suns, Gray Television Inc. and Kiswe on Wednesday, May 10. It was noted that the National Basketball Association team has signed the contract in an effort to leave its bankrupt broadcasting network partner.
According to Reuters, it was only last month when the Phoenix Suns made an announcement about the airing of its basketball games in the future. It said that fans can stream and watch their games via the local broadcasting station, Gray TV.
The team was also aiming to end the traditional viewing of basketball games via cable channels, and the agreement was perfect for this plan. But then again, the judge said Phoenix Suns breached the bankruptcy code by entering into a deal without getting through the process of appraisal to know the higher valuation for the team’s media rights.
Thus, U.S. Bankruptcy Judge Christopher Lopez further ruled that the basketball team is not yet allowed to get out of its existing contract with Diamond Sports Group, which is a subsidiary of the Sinclair Broadcast Group.
Judge Lopez also pointed out that "The Suns are saying one thing outside the court and another thing inside it."
CNBC reported that in response to the ruling, Josh Bartelstein, the chief executive officer of the Phoenix Suns, said after the court hearing that the management “are committed to working collaboratively for a fair resolution that will be in the best interest of our fans, our community, and our players."
Photo by: RMTip21/Flickr (CC BY-SA 2.0)
