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SINCLAIR BROADCASTING WANTS TO SCOOP UP BANKRUPT RSN GIANT DIAMOND SPORTS:
SOURCES

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Published Nov. 2, 2023, 2:40 p.m. ET
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McDonald's revenue soars as it hikes menu prices: '$18 Big Macs'




MORE ON: SINCLAIR BROADCASTING


 * MLB, NBA AND NHL UNLIKELY TO SAVE STRUGGLING TV REGIONAL SPORTS NETWORKS:
   SOURCES


 * WHAT JJ REDICK’S EXPANDED ROLE WILL LOOK LIKE IN ESPN’S NBA LINEUP


 * MLB, NBA AND NHL MAY BUY BIGGEST OWNER OF REGIONAL SPORTS TV NETWORKS:
   SOURCES


 * CHICAGO CUBS IN TALKS TO LAUNCH STREAMING SERVICE AMID RESISTANCE FROM MLB:
   SOURCES

Sinclair Broadcasting Group wants to pay pennies on the dollar to regain control
of a nationwide chain of regional sports networks — which it had paid $10.6
billion to acquire four years ago only to see it fall into bankruptcy this
spring, The Post has learned.

Sinclair, which owns 185 television stations in 86 markets, has offered roughly
$850 million in partnership with Bally’s owner Soo Kim to regain control of its
bankrupt subsidiary, Diamond Sports Group, which airs local games on TV under
the Bally Sports brand and owns the rights to 39 teams across MLB, the NBA and
NHL, sources said.

The deal looks like a last gasp to keep the decades-old regional sports networks
broadcasting on local TV. Diamond, which has been mired in bankruptcy court
since March and is looking to restructure debts of up to $8.6 billion, has asked
the court for another extension, from November 29 to Jan. 29, to present a
restructuring plan, the sources said.

But industry experts and the sports leagues say a delay only prolongs the
inevitable fate of the troubled RSN model, which suffers from continued
cord-cutting and dwindling advertising revenue.

“You need to stop putting a Band-Aid on the regional sports network problem and
come up with long-term solutions,” media analyst Rich Greenfield of LightShed
Ventures told The Post. 

4
Diamond which operates under Bally’s Sports has rights to broadcast 39 teams.
This map was made before it cancelled the Padres, Diamondbacks and Coyotes
contracts.Bally Sports

Those solutions involve finding deep-pocketed streamers like Amazon and Apple to
buy the rights, or reselling them to the individual teams, sources said.

Last month, MLB argued against the extension, saying Diamond has failed for
months to find a profitable operating model, Sportico reported. MLB said that
Diamond’s cash on hand declined nearly 90%” between March and August, leaving
its final reserves at about $22 million, according to the court record. 

“There is no reason to believe that the debtors will finally figure out a path
forward,” the league’s lawyers said in court filings

Diamond has been progressing in a deal with the NBA to cut the roughly $600
million it pays in annual rights fees by about 20% for two seasons. But the NBA
wants all its media rights back after the 2024-25 season – when its national
deals with Turner and ESPN expire, a source close to those talks said.

Commissioner Adam Silver plans to sell all the league’s streaming rights to a
tech giant like Amazon starting in the 2025-26 season, a source with knowledge
of those talks said.

4
Sinclair is trying to buy back its bankrupt subsidiary Diamond Sports that
carries Milwaukee Bucks games featuring its new star Damian Lillard. Getty
Images

Warner Brothers Discovery, Diamond’s biggest RSN rival, announced earlier this
year it was getting out of the regional sports network business altogether. It
sold its rights to the Astros and Rockets back to the teams and shut down other
operations. 

Locally, the Yankees and Mets control their own broadcasts through YES and SNY,
respectively. The Knicks, Rangers and Devils are televised by James Dolan’s MSG
Networks.

4
Sinclair CEO Chris Ripley wants to control Diamond Sports again if Diamond drops
its $1.5 billion suit against his company.AWNewYork/Shutterstock
4
NBA commissioner Adam Silver is willing to help Diamond Sports restructure if
the NBA gets back all media rights before the 2025-26 season.AP

As a condition of its deal, Sinclair wants Diamond to drop a $1.5 billion
lawsuit against the parent company that alleges it pulled out money from the
debt-laden subsidiary for management fees and dividends while knowing it was
insolvent.

Sinclair has presented its bargain-basement offer to Diamond’s junior creditors,
who hold about $8 billion of that debt and must decide whether to accept what
amounts to about four cents on the dollar or the chance to roll their stakes
into the new company, sources said.

Presently, the trading value of Diamond’s debt is about two cents on the dollar,
the sources added. 

What do you think? Post a comment.

Bally’s Sinclair, and the NBA declined comment.




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Filed under
 * adam silver
 * comcast
 * sinclair broadcasting
 * 11/2/23

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Diamond which operates under Bally's Sports has rights to broadcast 39 teams.
This map was made before it cancelled the Padres, Diamondbacks and Coyotes
contracts. Bally Sports
Sinclair is trying to buy back its bankrupt subsidiary Diamond Sports that
carries Milwaukee Bucks games featuring its new star Damian Lillard. Getty
Images
Sinclair CEO Chris Ripley wants to control Diamond Sports again if Diamond drops
its $1.5 billion suit against his company. AWNewYork/Shutterstock
NBA commissioner Adam Silver is willing to help Diamond Sports restructure if
the NBA gets back all media rights before the 2025-26 season. AP
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