Bally Sports regional sports networks are apparently heading to bankruptcy court.
The Bally Sports RSNs include broadcasts for 14 MLB teams, 16 NBA teams, and 12 NHL teams.
https://www.bloomberg.com/news/articles/2023-01-25/sports-broadcaster-diamond-faces-8-6-billion-debt-reckoning?sref=W6GJF3MS#xj4y7vzkg
Umm...
The Bally Sports RSNs include broadcasts for 14 MLB teams, 16 NBA teams, and 12 NHL teams.
https://www.bloomberg.com/news/articles/2023-01-25/sports-broadcaster-diamond-faces-8-6-billion-debt-reckoning?sref=W6GJF3MS#xj4y7vzkg
This seems not good for the sports leagues.America’s largest owner of local sports channels is heading toward a complex $8.6 billion debt restructuring in bankruptcy court as it stakes its future on a new direct-to-consumer streaming service.
After leveraging up to buy regional sports networks from Walt Disney Co. in 2019, Diamond Sports Group LLC is suffering from a decline in cable-TV subscribers, spurring negotiations with creditors and major sports leagues about its viability as a going concern. The outcome will have serious implications for the $55 billion world of sports-media rights: the company’s channels showcase Major League Baseball, National Basketball Association and National Hockey League games to fans from Detroit and Phoenix to San Diego.
With financial troubles mounting, the Sinclair Broadcast Group Inc.-owned firm will likely skip $140 million in interest payments due mid-February, kickstarting a 30-day grace period, according to people familiar with the matter.
This seems like it could have a big impact on sports broadcasts around the country. Could the leagues not get huge payments they were counting on?How all this goes down matters. If Diamond, which operates under the Bally Sports brand, files for bankruptcy, it could potentially put at risk crucial broadcasting-rights revenue for the likes of MLB.
“You’re looking at a potential rewrite of the entire regional sports business on the other side of this restructuring,” said Davis Hebert, a senior telecom analyst at debt research firm CreditSights.
Doesn't seem like good news for any teams, especially ones that just handed out big money long term contracts.Diamond’s financial struggles are a bad omen for the industry at large, given the amount of revenue from media rights influences how much players get paid, among other things. As the cable-TV business contracts, some sports and media executives are warning that teams and leagues will need to accept smaller rights payments going forward.
Umm...
I've tried watching some stuff on Bally, and the whole operation was trash-- hard to find games, crashing video, etc. Apparently they are hoping that sports fans will subscribe directly for $20 per month, but I'm skeptical that many will pay that much for what they offer.In a bankruptcy, Diamond would have the option of ending contracts with teams, potentially cutting off crucial industry revenue while also allowing teams to reclaim their media rights. The company could also halt payments to the teams while keeping the contracts in place. If a deal is not reached, both MLB and creditors are preparing for baseball teams not to be paid, according to two people.
Another person familiar with the matter downplayed the prospect that Diamond would discontinue rights payments in a bankruptcy, adding that the company is open to bringing in teams and leagues as equity partners in any restructured entity.
In an attempt to reach more cord-cutters, Diamond launched a streaming service across all its markets last September that allowed people to watch games online for $20 a month without a cable subscription. It’s now considering a new streaming service that would give fans the option to pay to watch individual games, or just the last few minutes. Diamond would work with teams and league partners, like offering subscribers perks like team merchandise or game tickets.