Diamond Sports, parent of Bally Sports Regional Networks, filed for Chapter 11 bankruptcy protection on Tuesday, but said in a statement its 19 regional sports channels would continue to operate unimpeded, reports The Athletic.
Diamond’s own parent, Sinclair, staggered under more than $8 billion of debt from its 2019 acquisition of the RSN, an unpropitiously timed deal that came just as cord-cutting took hold.
Fears have swept leagues, particularly MLB, that its 14 teams carried by Bally would be abandoned by Diamond. That does not appear to be happening.
The prepackaged bankruptcy, which is still being negotiated with creditors, is expected to reduce Diamond’s debt by $8 billion and sever the company from Sinclair Broadcasting.
Diamond Sports Group “will continue broadcasting games and connecting fans across the country with the sports and teams they love,” David Preschlack, CEO of Diamond, said in a statement. “With the support of our creditors, we expect to execute a prompt and efficient reorganization and to emerge from the restructuring process as a stronger company.”
According to the Diamond Chapter 11 filing, there is a four-person “conflicts committee” helping to run the company during the Chapter 11: Preschlack, former NFL chief operating officer Maryann Turcke, former Fox Sports executive Randy Freer and former Vulcan Sports executive Robert Whitsitt.
Diamond Sports and AZPB’s petitions each lists assets and liabilities of between $1 billion and $10 billion. The cases are filed in the southern district of Texas bankruptcy court.
Diamond’s 19 owned-and-operated RSNs include Bally Sports Arizona, Bally Sports Detroit, Bally Sports Florida, Bally Sports Great Lakes, Bally Sports Indiana, Bally Sports Kansas City, Bally Sports Midwest, Bally Sports New Orleans, Bally Sports North, Bally Sports Ohio, Bally Sports Oklahoma, Bally Sports San Diego, Bally Sports SoCal, Bally Sports South, Bally Sports Southeast, Bally Sports Southwest, Bally Sports Sun, Bally Sports West and Bally Sports Wisconsin. The Bally Sports RSNs broadcast 42 NBA, NHL and MLB teams.
Major League Baseball issued a statement Tuesday night saying there is “every expectation that (Diamond) will continue televising all games they are committed to during the bankruptcy process” and that the league is “ready to produce and distribute games to fans in their local markets in the event that Diamond or any other regional sports network is unable to do so as required by their agreement with our Clubs.”
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