Bally Sports Proprietor Recordsdata for Chapter 11 Chapter

Diamond Sports Group, the biggest proprietor of regional sports activities networks, filed for Chapter 11 chapter safety on Tuesday. The transfer got here after it missed a $140 million curiosity cost final month.

Diamond owns 19 networks beneath the Bally Sports banner. Those networks have the rights to 42 skilled groups — 14 baseball, 16 NBA and 12 NHL.

The firm mentioned in a launch Tuesday evening that it expects to proceed to function throughout the chapter course of and that protection of video games shouldn’t be affected.

Diamond Sports additionally mentioned it’s negotiating a restructuring settlement with debt holders that can eradicate most of its debt. Under an settlement with collectors, it could grow to be a separate firm from Sinclair Broadcast Group.

“DSG will proceed broadcasting video games and connecting followers throughout the nation with the sports activities and groups they love,” Diamond Sports CEO David Preschlack mentioned in an announcement. “We look ahead to working constructively with our staff and league companions and all DSG stakeholders all through this course of and past.”

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Diamond mentioned in a monetary submitting final fall it had debt of $8.67 billion. The chapter submitting was made within the Southern District of Texas.

Sinclair Broadcast Group purchased the regional sports activities networks from The Walt Disney Co. for practically $10 billion in 2019. Disney was required by the Department of Justice to promote the networks for its acquisition of twenty first Century Fox’s movie and tv property to be authorized.

Diamond has practically $1 billion in rights funds, largely to baseball groups, due within the first quarter this yr. The firm is present on funds to hockey and basketball groups, but it surely would possibly withhold funds from some baseball groups the place it’s making an attempt to renegotiate a greater deal.

Major League Baseball has arrange a neighborhood media division in case it has to take over broadcasts for groups. Games would air domestically through MLB Network or streamed on MLB.TV in case that occurred.

Diamond Sports is not the one firm experiencing monetary woes with its regional sports activities networks. Warner Bros. Discovery, which has an possession stake in three of the AT&T SportsInternet networks, has given the Colorado Rockies, Houston Astros and Pittsburgh Pirates till March 31 to reclaim their broadcast rights. WBD Sports is ending its funding within the networks.

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