Diamond Sports, parent of Bally Sports Regional Networks, filed for Chapter 11 bankruptcy protection on Tuesday, but mentioned in a statement its 19 regional sports channels would continue to operate unimpeded. Here’s what you require to know:
- Diamond’s personal parent, Sinclair, staggered beneath much more than $eight billion of debt from its 2019 acquisition of the RSN, an unpropitiously timed deal that came just as cord-cutting took hold.
- Fears have swept leagues, specifically MLB, that its 14 teams carried by Bally would be abandoned by Diamond. That does not seem to be taking place.
- The prepackaged bankruptcy, which is nonetheless getting negotiated with creditors, is anticipated to minimize Diamond’s debt by $eight billion and sever the organization from Sinclair Broadcasting.
Diamond Sports Group “will continue broadcasting games and connecting fans across the nation with the sports and teams they appreciate,” David Preschlack, CEO of Diamond, mentioned in a statement. “With the assistance of our creditors, we anticipate to execute a prompt and effective reorganization and to emerge from the restructuring course of action as a stronger organization.”
Quite a few had anticipated Diamond to dump specific RSNs that have been not as economical, and for now that does not seem to be the case. Having said that, Diamond’s Arizona affiliate, Diamond Sports Net Arizona, filed its personal Chapter 11. It is unclear what that implies for the Arizona Diamondbacks, which was the 1 group not paid on time final week. Schyuler Carroll, a bankruptcy lawyer, mentioned all the RSNs should really individually file but had most likely not completed their paperwork
According to the Diamond Chapter 11, AZPB, the Diamondbacks parent, is the sports media company’s fourth biggest creditor at $30.eight million. No other group is listed. College sports media organization Raycom Sports Network is listed as owed $eight.five million.
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According to the Diamond Chapter 11 filing, there is a 4-individual “conflicts committee” assisting to run the organization throughout the Chapter 11: Preschlack, former NFL chief operating officer Maryann Turcke, former Fox Sports executive Randy Freer and former Vulcan Sports executive Robert Whitsitt.
Diamond Sports and AZPB’s petitions every lists assets and liabilities of among $1 billion and $ten billion. The circumstances are filed in the southern district of Texas bankruptcy court.
Diamond’s 19 owned-and-operated RSNs contain Bally Sports Arizona, Bally Sports Detroit, Bally Sports Florida, Bally Sports Fantastic Lakes, Bally Sports Indiana, Bally Sports Kansas City, Bally Sports Midwest, Bally Sports New Orleans, Bally Sports North, Bally Sports Ohio, Bally Sports Oklahoma, Bally Sports San Diego, Bally Sports SoCal, Bally Sports South, Bally Sports Southeast, Bally Sports Southwest, Bally Sports Sun, Bally Sports West and Bally Sports Wisconsin. The Bally Sports RSNs broadcast 42 NBA, NHL and MLB teams.
Big League Baseball issued a statement Tuesday evening saying there is “every expectation that (Diamond) will continue televising all games they are committed to throughout the bankruptcy process” and that the league is “ready to generate and distribute games to fans in their nearby markets in the occasion that Diamond or any other regional sports network is unable to do so as expected by their agreement with our Clubs.”
“Having streamed reside games on MLB.Television for much more than 20 years and made reside games for MLB Network because 2009, we have the practical experience and capabilities to provide games to fans uninterrupted,” the league’s statement continued. “In addition, we have hired added seasoned nearby media experts to bolster our capabilities in anticipation of this improvement. More than the lengthy term, we will reimagine our distribution model to address the altering media climate and in the end attain an even bigger quantity of fans.”
(Photo: Jerome Miron / USA Now)