Bally Sports Owners on Brink of Bankruptcy ?

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Sinclair Broadcast Group's sports media subsidiary, Diamond Sports Group, is on the brink of bankruptcy due to huge financial losses. This would be one of the largest financial disasters in the sports media industry.

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Bloomberg reported that Diamond Sports Group, a $55 billion US sports media business, is likely to miss a $140 million interest-only payment due in mid-February as it prepares to file for Chapter 11 bankruptcy restructuring.

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In November, Sinclair reported that they had recruited advisers LionTree and Moelis & Co. to discuss debt reduction, collaborative efforts, and related matters.

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It was expected that one or more of Diamond's professional league partners from the NBA, NHL, or Major League Baseball would get involved as owners, or Sinclair would have to restructure in early 2023.

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Under Diamond's restructuring plan, Prudential Financial, Fidelity, Hein Park Capital Management and Mudrick Capital Management will become owners of the Bally Sports RSNs.

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Diamond Sports Group LLC has been affected by the drop in cable-TV subscribers since their acquisition of regional sports networks from Walt Disney Co. in 2019 and is now in talks with creditors and major sports leagues to ensure their future as a business.

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Diamond's $630-million first-lien loan is trading at 92 cents on the dollar. Subordinated creditors will face a near-total wipeout due to the trading of nearly $5 billion in lower-ranked bonds at less than 10 cents on the dollar.

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The Major League Baseball (MLB) recently appointed Billy Chambers as their Executive Vice President for Local Media. Chambers will be responsible for helping teams with finding the best ways to make games available to fans in their local areas.

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