Last week Bally Sport’s parent company Diamond Sports, which is owned by Sinclair, declared bankruptcy. Now the president of Diamond Sports and Bally Sports, Steve Rosenberg, is out.
With this change, leadership at Diamond Sports will be split between CFO David DeVoe who will now also be COO, and CEO David Preschlack.
For now, little is likely to change at Bally Sports as the Sports Business Journal reports that Steven Rosenberg was not a “big part of the highest-level negotiations with leagues and creditors.” It seems that CEO David Prechlack did most of that work.
Diamond’s CEO made it clear that the plan is to emerge from bankruptcy and continue operations as Bally Sports did before bankruptcy. The question now is will that be possible?
In total, Sinclair owes $55 billion in sports-media rights, according to Bloomberg. A bankruptcy could put payments to the NBA and NHL at risk. It is reported that Sinclairs Diamond sports group has about $585 million cash in hand but owes about $2 billion in fees to teams this year.
Do you think Bally Sports will make it through bankruptcy? Leave us a comment and let us know your predictions.