‘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.”