Diamond Sports Group Officially Bankrupt
Diamond Sports Group has officially filed for Chapter 11 Bankruptcy. In a move that has been anticipated for a while, the corporation which owns Bally Sports is restructuring in the Southern District of Texas. While many expected this, it’s still a sad and troubling sign for RSNs across the United States. While sports already in progress like the NBA and NHL are going to be remaining “business as usual,” the MLB actually has a lot at stake here. CEO David Preschlack noted that the company currently holds around $8 billion of debt. His full quote is below:
“The DSG Board of Managers has been evaluating strategic opportunities with the support of its advisors and in coordination with creditors to position the Company for long term success and has determined that the best path forward for the Company and its stakeholders is to restructure through a Chapter 11 process,” said CEO David Preschlack. “We are utilizing this process to reset our capital structure and strengthen our balance sheet through the elimination of approximately $8 billion of debt.”
David Preschlack via MLB Trade Rumors
Thankfully, Major League Baseball already has a response for this. The league will stream games for free amid all of the complications on Diamond’s end. Bally currently broadcasts games for 14 MLB teams. Obviously, Rob Manfred and co will have to find new alternatives to broadcasting games. One model that more than likely will not be adopted is the NFL, where every single game is put on a major network like Fox, CBS, or NBC.
What’s Next?
Bally has $425 million in cash to use in the restructuring process, but their work is cut out for them. Up to now, DSG tried many different ways to rub pennies together. One of which was shutting down DFS site Monkey Knife Fight. Now, the writing is on the wall. Diamond is already set to reject their contracts with the Diamondbacks, Padres, Guardians and Reds. All we can do for now is wait and see what kind of developments come out over the next few days and weeks.
It’s a sad day for the RSN. After nearly a decade of streaming taking over the television and sports industries, a major domino now falls. This is something as sports fans we should all keep a close eye on. The way we watch sports is about to change big time.
