Bally Sports Inches Toward Bankruptcy

For weeks now, there have been reports that Sinclair Broadcast Group’s sports division Diamond Sports Group, would declare bankruptcy. Now Diamond Sports Group has confirmed it will not make its $140 million payment due now.

Missing this payment would start a 30-day grace period that is expected to lead to a Chapter 11 bankruptcy, according to Cord Cutters News.

In total, Diamond has nearly $1 billion in sports rights payments due in the 1st quarter of 2023. Most of this is from the Bally Sports RSNs. It is being reported that bally does not have the cash on hand to cover all of its rights payments through 2023.

A chapter 11 bankruptcy does not mean Bally Sports will shut down. It seems that they are hoping to renegotiate their contracts with the MLB, NBA, and NHL. However, this could give leagues an option to try and get out of their contracts with Bally Sports.

Also,  it is reported that Bally Sports owes MLB teams bout $1 billion. A number that MLB commissioner Rob Manfred confirmed. If Bally Sports follows through on its bankruptcy plans, that could put payments to MLB teams at risk.  The MLB has made it clear they would prefer for Bally Sports to finish its contract, but if that can’t happen, they are ready with backup plans. The good news for MLB fans is that no matter what happens will still be able to watch their MLB games.

And reportedly if RSNs are unable to air NHL games, the NHL will follow in MLB's plans to offer in-market streaming through the NHL’s out-of-market streaming service.

Finally, according to a report from Sports Business Journal, the NBA has renewed its streaming rights deal with Diamond for another year, allowing the company to continue to stream games for the 16 teams in its portfolio through the 2024-25 season on its direct-to-consumer streaming service Bally Sports+. In January 2022, the two sides agreed to a one-year deal that would require Diamond to hit 13 different conditions in order to be renewed.