Last week it was reported that Sincalir’s Sports Channels are preparing for bankruptcy, including Bally Sports RSNs. Now Sportico has confirmed that Bally Sports will declare bankruptcy next week.
The company called Diamond Sports Group LLC, which runs Sincalirs sports channels, is reportedly $8.6 billion in debt. Sinclair is hoping to strike a deal to help them keep the channels operating thanks to bankruptcy.
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 being reported that Sinclair will skip a $140 million interest payment due in mid-February, starting a 30-day grace period for the company.
Since Sinclair bought Fox Sports RSNs, payouts from cable networks are reportedly drying up as companies are refusing to pay the high price Sinclair wants for its Bally Sports RSNs.
Sinclair will likely seek to end some contracts with teams and cut back on payments to others. MLB has already announced that if Sinclair is unable to air MLB games because of bankruptcy, they will take back the rights and stream the games online.
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.