Diamond Sports Group — owner of the Bally Sports-branded regional sports networks — has officially skipped its scheduled $140 million debt payment that will start a 30-day grace period that many believe will lead to a bankruptcy filing.
“The company intends to use the 30-day grace period to continue progressing its ongoing discussions with creditors and other key stakeholders regarding potential strategic alternatives and deleveraging transactions to best position Diamond Sports Group for the future,” a press release from the company stated.
“Diamond Sports Group expects that its business will continue as usual, and it will keep broadcasting quality live sports productions for fans while it addresses its balance sheet.”
The insinuation that Diamond Sports Group will continue operating as usual could be seen as a relief to professional sports teams, as the regional sports networks own the television rights to 42 teams across the NBA, NHL, and MLB.
A report from Bloomberg late last month claimed a bankruptcy filing would trigger clauses in contracts with the franchises that could cancel contracts held by the television network.
The potential bankruptcy has the biggest chance of effecting Major League Baseball, as the network is to pay $1 billion in rights fees to 14 MLB franchises. MLB Commissioner Rob Manfred has remained optimistic that games will continue to be offered to fans one way or another.
“Our goal would be to make games available not only within the traditional cable bundle but on the digital side, as well,” Manfred said last week. “What we do is largely dependent on how Diamond and the creditors play their cards, what they decide to do.”
Prudential Investments is the network’s largest creditor a report from Sportico claims.
