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A Texas bankruptcy judge on Thursday approved Bally Sports parent company Diamond Sports Group's (DSG) request to reject a broadcast agreement with the NHL Dallas Stars Nexing. This move marks the latest professional team to sever ties with DSG amid its ongoing financial restructuring.

 NHL Dallas Stars Nexing  : DSG Cancels Agreement with Dallas Stars

U.S. Bankruptcy Judge Christopher M. Lopez signed an order allowing DSG to terminate its agreement with the Dallas Stars. This agreement, established with the Bally Sports Southwest network in 2014, will end as the Stars transition to a new streaming service. The hockey team will now broadcast games on Victory+, a service under a seven-year contract with A Parent Media Co., according to a statement.

DSG's Financial Evaluation and Bankruptcy

Since filing for Chapter 11 bankruptcy in March 2023, DSG has been reassessing its television rights agreements to determine which ones are "burdensome and/or unnecessary." The company stated in a motion, "The debtors have determined that they lose money broadcasting games pursuant to the Stars agreement."

The NHL Dallas Stars Nexing is the latest in a line of teams, including the Vegas Golden Knights and Florida Panthers, to part ways with DSG following its bankruptcy filing. DSG's financial strategy includes a "comprehensive" debt-for-equity restructuring plan announced in January. This plan, worth $495 million, involves a settlement with its parent company Sinclair Inc. and a future streaming partnership with Amazon.

 NHL Dallas Stars Nexing  : Resistance from Major Sports Leagues

Despite DSG's restructuring efforts, the plan has faced opposition from major sports leagues such as the NHL, NBA, and MLB. These leagues have expressed the need for greater business certainty as they work to finalize broadcast agreements for the 2024-25 season.