With Sinclair-owned Diamond Sports continuing to lose millions, professional sports leagues MLB, NBA, and NHL could be the prospective buyers of the Bally Sports-branded regional sports networks.
A report from The New York Post suggests Diamond Sports could be forced into bankruptcy in the next three to six months if a buyer for the networks isn’t found. The company has reportedly told the 14 MLB teams, 16 NBA teams, and 12 NHL teams whose television rights it currently holds that if it is forced into bankruptcy, the networks will still be able to broadcast live games, but will not need to pay rights fees due to bankruptcy protection from its creditors.
Diamond Sports purchased 21 regional sports networks in 2019 at auction for $10.6 billion. Current estimates put its operating debt at over $8 billion. The Post reports Diamond Sports pays $450 million in interest payments on its bet, which is more than double its annual revenue from the networks.
The news of a potential sale comes on the heels of Diamond Sports announcing an over-the-top streaming service. Bally Sports+ is slated to debut on Monday, September 26th at a price of $20 per month for fans to watch in-market contests without a cable subscription. Thus far, Major League Baseball has only given the platform the rights to five of the 14 teams the regional sports networks hold the rights for.
