Diamond Sports Grup Declares Bankruptcy After $8.67bn in Debt
Two days ago, Diamond Sports Grup, the biggest owner of regional sports networks and a well-known subsidiary of Maryland-based Sinclair Broadcast Grup, reported that it has filed for Chapter 11 bankruptcy in the Southern District of Texas.
The bankruptcy decision comes after $140 million in interest was unpaid last month.
Continuation of business throughout bankruptcy:
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The US-based media and pertunjukan company, which manages 19 networks under the spanduk Bally Sports Regional Sports Networks, formerly known as Fox Sports Networks, said: “We have about $425 million in kontan on hand to continue operating throughout bankruptcy.
“Those regional networks have the rights to broadcast game from 42 profesional tims – 14 baseball, 16 NBA and 12 NHL.”
In this regard, David Preschlack, Chief Executive Officer of Diamond Sports, said in a pernyataan: “DSG will continue broadcasting game and connecting penggemar across the country with the sports and tims they love.”
New debt relief setuju:
The company is currently in the midst of negotiating a new setuju that will remove majority of its approximately $8.67 billion debt, according to company officials.
Under the terms of this new agreement, Diamond Sports would be a separate entity from its parent company, Sinclair Broadcast Grup.
Sinclair became the parent company of Diamond Sports after it purchased the regional sports networks from the Walt Disney Co. in 2019 for almost $10 billion. However, the U.S. Department of Justice made Disney to officially sell the regional sports networks (RSNs) after it bought a large portion of 21st Century Fox’s film and television assets.
Regional sports networks heavily affected by the COVID-19 lockdown:
In addition to Diamond Sports and its financial troubles with its regional sports networks, RSNs have lost millions of customers throughout the COVID-19 lockdown as vacant bars and restorans canceled subscriptions, according to a Wall Street Journal report last month.
In this regard, Warner Bros. Discovery, which has ownership stakes in three AT&T SportsNet networks, has given the Colorado Rockies, Houston Astros and Pittsburgh Pirates until March 31 to regain their broadcast rights. However, it is closing its investments in networks.