‘Slow-motion’ crash: How Diamond Sports’ bankruptcy will affect teams, fans

Diamond said in a statement on Tuesday that it expects to work out a restructuring agreement that will allow it to become a standalone company. Diamond said its top-tier secured creditors will not lose anything in the deal, while secondary and unsecured creditors will wind up with an equity stake in the new company.

In court filings on Wednesday, the Athletic reported that Diamond said it expected the restructuring to wind up by the end of 2023.

It all means that the lights are not at risk of going out, at least not immediately, on Bally RSN channels in most affected markets this baseball season. The situation in Cleveland, Cincinnati, San Diego, and Arizona is a little more muddled, but more on that later.

Most Bally broadcasts could very well go on as usual throughout the season.

“Lots of companies file Chapter 11 and go on their merry way working on their debt without anyone really noticing,” Markell said. “Sears filed Chapter 11. GM filed Chapter 11. Chrysler filed chapter 11. Schwinn Bicycle filed chapter 11. Even Chuck E. Cheese filed Chapter 11.

“The moment you shut down the business, you lose so much value, and it costs so much to start up again with so much uncertainty. The (reason) why you have Chapter 11 is to reduce the loss in value among the stakeholders.”

MLB to stream games for free amid looming Diamond Sports bankruptcy

Major League Baseball plans to step up to the plate to broadcast games of roughly a half-dozen teams from a bankruptcy-bound regional sports network provider so that fans don’t miss a single pitch, The Post has learned.

The teams in the red include the Cincinnati Reds, Cleveland Guardians, San Diego Padres and Arizona Diamondbacks, according to one of the sources. Presently, Diamond stands to lose $20 million annually on San Diego alone, the source added.

D-backs could be 1st team impacted by Bally Sports ownership bankruptcy

The Arizona Diamondbacks could be one of the first teams impacted as Diamond Sports Group prepares to file for bankruptcy.

The operator of the 19 Bally Sports regional television networks has continued to pay its rights fees to every Major League Baseball team with the exception of the Diamondbacks, reports John Ourand of Sports Business Journal.

Diamond released this statement: “We’ve been making our rights payments to teams with the exception of the Diamondbacks, where we have exercised a contractual grace period in order to maximize flexibility, especially given that we do not have DTC rights. We are continuing to broadcast games and are operating our business as usual.”

Ourand reports that the grace period to pay the D-backs ends at midnight on Thursday.

He adds that Diamond has not paid the D-backs because the deal is extremely team-friendly in comparison to other clubs. It also runs through 2035.

Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk

America’s largest owner of local sports channels is heading toward a complex $8.6 billion debt restructuring in bankruptcy court as it stakes its future on a new direct-to-consumer streaming service.

After leveraging up to buy regional sports networks from Walt Disney Co. in 2019, Diamond Sports Group LLC is suffering from a decline in cable-TV subscribers, spurring negotiations with creditors and major sports leagues about its viability as a going concern. The outcome will have serious implications for the $55 billion world of sports-media rights: the company’s channels showcase Major League Baseball, National Basketball Association and National Hockey League games to fans from Detroit and Phoenix to San Diego.

With financial troubles mounting, the Sinclair Broadcast Group Inc.-owned firm will likely skip $140 million in interest payments due mid-February, kickstarting a 30-day grace period, according to people familiar with the matter. A stark divide is emerging between would-be winners and losers: its $630 million first-lien loan is trading at 92 cents on the dollar, while nearly $5 billion of lower-ranked bonds change hands for under 10 cents — signaling a near-total wipeout for subordinated creditors.

How all this goes down matters. If Diamond, which operates under the Bally Sports brand, files for bankruptcy, it could potentially put at risk crucial broadcasting-rights revenue for the likes of MLB.