After months of speculation, Diamond Sports Group, owner and operator of the Bally Sports regional sports networks, has filed for Chapter 11 bankruptcy protection.
The news of the company’s bankruptcy filings broke on Tuesday night. Diamond Sports had 30 days after it missed a scheduled debt payment to enter bankruptcy protection. The company currently owes more than $8 billion in debt.
Diamond Sports Group will go through a restructuring and eventually become a standalone company.
“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,” Diamond Sports CEO David Preschlack wrote in a statement.
It’s believed that Bally Sports will carry on with normal operations while the bankruptcy process plays out. If Diamond Sports misses a rights fee payment to one of the 14 MLB teams it has contracts with, the team would be free to break the deal.
MLB is preparing for any fallout that could result in local markets losing their RSN. At the start of March, the league announced it had established a new local media department, which would work with the teams to make sure games are aired both through MLB.TV and a cable channel to be determined.
Diamond Sports will inevitably cut ties with a few teams, as the company looks to ramp up its Bally Sports+ service to help build a sustainable business. The idea is that the platform would become a one-stop shop for streaming live games, buying tickets and merchandise and placing bets on games.
