A U.S. bankruptcy judge on Wednesday blocked the NBA's Phoenix Suns from moving ahead with a television and streaming rights deal for its basketball games, saying the team violated the rights of its current broadcast partner, the bankrupt Diamond Sports Group.
U.S. Bankruptcy Judge Christopher Lopez, however, ruled that the company could not yet move on from its existing contract with Diamond Sports Group, a bankrupt subsidiary of Sinclair Broadcast GroupU.S. bankruptcy law protects debtors from having their contracts modified or terminated without their consent, and Lopez ruled that the Suns' new TV deal was void because it interfered with the Diamond Sports' contractual right to negotiate contract extension.
The Suns' attorneys argued that its TV deal with Diamond expired with the end of the 2022-2023 regular season, and that the new deal would not interfere with Diamond's rights under its existing contract.
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