Several Possible Bankruptcies May Cripple Local Sports Broadcasting (A Thread)

[Bobby Barrows]

Warner Bros. Discovery Regional Sports Networks May File For Chapter 7 Bankruptcy

The steady decline of cable networks, both basic and regional sports networks, has been apparent in recent years as cord cutting and cord shaving have been key themes amongst consumers.

www.forbes.com

The steady decline of cable networks, both basic and regional sports networks, has been apparent in recent years as cord cutting and cord shaving have been key themes amongst consumers. Although there have been a slew of indie cable nets that have gone dark in recent years, major cable networks and regional sports networks (RSNs) have seemed able to weather the storm until Friday when The Hollywood Reporter stated that Warner Bros. Discovery (WBD) is exiting the RSN business.

However, it won’t do so in the usual way—via putting the channels on the market and selling them to the highest bidder. Rather, WBD reportedly sent a letter to the owner of teams that it airs on its four RSN subsidiaries do not have the money to pay upcoming rights fees and WBD will not fund any shortfalls. WBD has proposed handing control of the RSNs over to the teams and leagues, or putting them into Chapter 7 bankruptcy.

It owns three AT&T SportsNet channels in Denver, Houston & Pittsburgh with a minority interest in Roots Sports in Seattle (with the Mainers owning the other 60%).

According to Sports Business Journal, WBD has notified 10 teams associated with the NBA (Blazers, Jazz, Rockets), NHL (Kraken, Penguins, Golden Knights) and MLB (Astros, Mariners, Pirates, Rockies) that they have until March 31 to negotiate a buyback of their rights. Sinclair Broadcast Group’sSBGI -2.6% Diamond Sports Group Subsidiary, which owns the Bally’s RSNs, is also insolvent. It has rights to 42 teams which translates into more than 50 teams which have their sports rights deals in limbo.

https://www.fiercevideo.com/video/sinclairs-diamond-sports-slides-towards-bankruptcy-rsn-fees-hang-balance-report

Sinclair Broadcast Group’s Diamond Sports, operator of nearly two dozen Bally Sports regional sports networks (RSNs), is reportedly prepping for Chapter 11 bankruptcy.

According to Bloomberg, Diamond is looking to restructure $8.6 billion in debt, and will likely skip $140 million in interest payments due mid-February. But the main question is how a bankrupt Diamond will pay out leagues and teams for broadcasting rights.

Bally Sports RSNs include over 40 teams across MLB, NBA and the NHL. Diamond would have the option to either end contracts with those teams or discontinue payments to the teams while keeping the contracts in place, said Bloomberg. One source told the outlet MLB is exploring taking back its local broadcast rights from Diamond.

Other sources commented Diamond expects to come out of restructuring by May or June, after which the company’s largest owners – likely a group of investment management firms – will seek to sell Diamond.

Reports of Diamond’s mounting financial problems emerged last September, suggesting Sinclair is thinking of divesting its regional sports subsidiary or selling it off to one of the leagues. Later that month Sinclair launched Bally Sports+, a direct-to-consumer streaming service that features 19 Bally RSNs.

 

[Vegeta]

Bally is what the Braves play on, Bally and Dish can't come to an agreement to show the games(and haven't since like 2019). So, I hope Bally fucks off and some new company takes over who will work out something with Dish. My cousin no longer has cable so I can't leech off him to watch the games anymore. I really don't want to have to stream the games from another soruce, but I will if need be.

 

[#Waddles]

I hear you B.

When I visit my girlfriend we watch the Bucks (when they're on, duh). She also has dish which sucks as well. Bally blows hard and they suck. Hopefully the go for broke.

 

[nickp1991]

MLS and Apple works out this year Could be a good model for other leagues to follow