Main Street Begins Legal Winddown: Implications for Sports Businesses

The article digs into Main Street Sports Group’s formal steps to wind down operations. This includes WARN notices for employees and the looming possibility of liquidation—or maybe a last-minute strategic deal.

There’s a ripple effect here for the NBA and NHL broadcast world. DAZN’s sniffing around, hoping to scoop up rights, while leagues scramble for backup plans before the 2026–27 season.

The piece lays out a tug-of-war between saving jobs and preserving those valuable broadcast assets. Creditors, as usual, have the final say on when (or if) liquidation happens.

Overview of the Winddown and WARN Notices

Main Street Sports Group has kicked off a formal wind-down by sending WARN notices to every staff member. This move signals job eliminations about 60 days after the NBA and NHL regular seasons wrap up in mid-April.

CEO David Preschlack says these WARN notices could be revoked, so it’s not a done deal yet. At the same time, sources told SBJ that an immediate liquidation is still possible, which would shut down FanDuel Sports Network broadcasts and let staff go right away.

Maybe a strategic partner will swoop in and save some jobs, but no one’s announced anything yet. The situation’s changing by the day, with creditors holding the real power over any liquidation call.

Leagues and teams are watching closely, prepping for whatever comes next as they try to avoid chaos for fans and local markets.

Possible Outcomes and Timelines

Aside from liquidation, a few other scenarios are battling it out. There could be a sale of assets or a partnership that keeps broadcasts going, but only if buyers or equity partners like the terms.

If DAZN lands a deal, it could shake up the rights landscape. But teams might have to stomach rights fees dropping by as much as 40%—not exactly a small ask.

Timing’s everything. The end of the regular seasons is a pressure point for any wind-down or quick shift in distribution.

The NBA has told teams to avoid long-term contracts with Main Street or similar platforms. They want to keep options open for a possible buyer or partner and avoid locking teams into bad deals.

Broadcast Rights Landscape and Strategic Options

DAZN’s interested in the broadcast rights for 13 NBA and seven NHL teams under Main Street’s wing. But they’re pushing hard for steep rights-fee cuts, which might be the price for keeping live games on air.

The NBA’s advice to teams shows just how shaky things are. Nobody wants to get stuck with long-term obligations that could mess up a DAZN bid or any other strategic move.

Preschlack says Main Street plans to keep broadcasting NBA and NHL games through the end of the current regular seasons. Negotiations with possible partners are ongoing, and everyone’s hoping for a solution that keeps games on screens for fans.

Leagues are starting to brainstorm backup distribution channels and longer-term plans. The future of these platforms isn’t guaranteed, so everyone’s hedging their bets.

DAZN, League Guidance, and Rights-Holder Tactics

DAZN’s interest complicates things, especially when it comes to pricing and distributing in-market rights. The leagues have sent out guidance that could sway how teams approach any deals with Main Street or whoever comes next.

Leagues and teams are also sketching out contingency plans for the 2026–27 season, just in case this wind-down drags on or speeds up. The dance between creditors’ control and league strategy is going to decide what happens next.

Contingency Plans for 2026–27 and Beyond

Uncertainty’s the name of the game right now, so leagues and teams are mapping out possible futures. The NBA might stream in-market games through League Pass, while the NHL could roll out something like Game Center.

Local linear channels would still matter in some places, making sure fans can catch games on regular TV if distribution matches up with local needs. If a new rights deal doesn’t happen soon, hybrid models—streaming plus local broadcasts—could become the norm.

Some teams have already tried over-the-air broadcasts, with most clubs airing at least five games on local or broadcast channels. If money or contract issues stick around, even more games could move to OTA, keeping fans in the loop while talks drag on.

Creditors have the final word on liquidation, and both leagues have reportedly reached out to them about what could happen. Teams are being told to get their own broadcast solutions ready for 2026–27, just in case.

Implications for Fans, Clubs, and Investors

• WARN notices usually mean job impacts are coming soon, though there’s still a chance things could change if a solid alternative pops up.
• If liquidation happens, FanDuel Sports Network might just shut down overnight, unless someone swoops in to buy it.
• DAZN wants to grab rights but with much lower fees, which could totally change how teams earn money from broadcasts.
• Leagues are now pushing for more flexible ways to get games to fans, hoping to keep access open.
• Creditors get a big say in when liquidation actually happens, which leaves everyone else guessing.
• For 2026–27, folks are already sketching out backup plans, with streaming, local stations, and even over-the-air broadcasts all on the table.

 
Here is the source article for this story: Main Street begins legal process toward winddown