Diamond Sports Group, the parent company of the Bally Sports networks, has filed for Chapter 11 bankruptcy.
The move was announced on Tuesday by Diamond in a press release. Via Business Wire:
“Diamond Sports Group, LLC (‘DSG,’ ‘Diamond,’ or the ‘Company’) announced that the Company is finalizing a Restructuring Support Agreement (‘RSA’) with holders of a majority of the Company’s debt and Sinclair Broadcast Group, Inc. (‘Sinclair’) to eliminate over $8 billion of the Company’s outstanding debt. To implement its restructuring, the Company filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas (the ‘Court’).”
The move, while certainly significant, is far from surprising, having seemed like a foregone conclusion for weeks.
Bally is one of the most prevalent regional sports networks in the country. Nearly half of Major League Baseball teams alone have their games broadcast on a Bally Network.
And for the time being, that will not change. MLB, as well as National Hockey League and National Basketball Association games will still be broadcast across the Bally RSNs.
“Diamond intends to use the proceedings to restructure and strengthen its balance sheet, while continuing to broadcast quality live sports productions to fans across the nation. DSG expects that its Bally Sports regional sports networks (‘RSN’) will continue to operate in the ordinary course during the Chapter 11 process. Diamond is well capitalized with approximately $425 million of cash on hand to fund its business and restructuring,” the announcement added.
That was reiterated by Diamond CEO David Preschlack.
“DSG will continue broadcasting games and connecting fans across the country with the sports and teams they love. 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.”