With a looming $140 million interest payment due this week, many are forecasting Diamond Sports Group’s regional sports networks — billed as Bally Sports — will declare bankruptcy. MLB has already begun making plans if the worst should happen.
Two people familiar with the situation told The Associated Press last week that Diamond Sports Group will miss its interest payment, triggering a 30-day grace period where the company could negotiate with creditors or simply begin Chapter 11 bankruptcy talks.
Bloomberg has estimated Diamond Sports Group currently holds more than $8.6 billion in debt, and the cable television home of over 40 professional sports teams could be in peril.
Major League Baseball Commissioner Rob Manfred told the AP that the league is in position to continue to make games available for baseball fans if Diamond Sports Group is unable to continue operating like normal.
“Our goal would be to make games available not only within the traditional cable bundle but on the digital side, as well,” Manfred said. “What we do is largely dependent on how Diamond and the creditors play their cards, what they decide to do.”
Speculation is that Diamond Sports Group could opt out of its contracts with the professional sports teams, which it will pay a reported $2 billion in rights fees for the calendar year, with nearly $1 billion being paid to MLB teams in the first quarter of the fiscal year.
The fledgling outlet had reportedly hoped an MLB, NBA, and NHL coalition would be interested in purchasing the 19 regional sports networks. However, that situation remains an unlikely solution to the debt problems experienced by the company.
