Diamond Sports Group Files for Chapter 11 Protection, Says Bally Sports RSNs Will Continue To Broadcast Games
15/03/2023
Wednesday, March 15, 2023 - 10:19 am
Print This Story | Subscribe
Story Highlights
In a move that has been expected for several weeks, Diamond Sports Group (DSG), which owns 19 regional sports networks across the U.S., filed for Chapter 11 bankruptcy protection on Tuesday. The company says that it will continue to broadcast live sports productions as it finalizes a Restructuring Support Agreement (RSA) with holders of a majority of the company's debt and Sinclair Broadcast Group to eliminate more than $8 billion of the company's outstanding debt.
Diamond Sports Group owns and operates 19 Bally Sports RSNs throughout the U.S.
DSG will continue broadcasting games and connecting fans across the country with the sports and teams they love, says Diamond CEO David Preschlack. With the support of our creditors, we expect to execute a prompt and efficient reorganization and emerge from the restructuring process as a stronger company.
Diamond intends to use the Chapter 11 process to restructure and strengthen its balance sheet, while continuing to live sports production. It expects that its Bally Sports regional sports networks will continue to operate as usual. Diamond is well-capitalized, with approximately $425 million cash on hand to fund its business and restructuring. The filing comes after the expiration of a 30-day grace period to make a $140 million debt payment initially due on Feb. 15.
Although Major League Baseball has said it will be able to produce its own broadcasts, leveraging MLB Network and the MLB.TV app to show games, if necessary, DSG says it will continue to produce its own broadcasts. Earlier this month, the league hired three new staff members to its newly created Local Media department led by media industry executive Billy Chambers, who started on Feb. 1. RSN veterans Doug Johnson, Greg Pennell, and Kendall Burgess are set to join the newly formed department to help bolster MLB's capabilities in local media production, operations, and distribution.
MLB released a statement on the situation: Despite Diamond's economic situation, there is every expectation that they will continue televising all games they are committed to during the bankruptcy process. MLB is ready to produce and distribute games to fans in their local markets in the event that Diamond or any other RSN is unable to do so as required by their agreement with our clubs. We have hired additional seasoned local media professionals to bolster our capabilities in anticipation of this development. Over the long term, we will reimagine our distribution model to address the changing media climate.
Bally Sports holds the rights to 46 pro sports teams, and, according to Sportico, DSG owes a total of $1.9 billion in rights fees to the MLB, NBA, and NHL and more than $600 million in payments on its $8.6 billion debt this year alone.
Under the RSA that Diamond is finalizing with creditors and Sinclair, it will separate its business from Sinclair and become a standalone company. The RSA will further provide that Diamond's first-lien lenders will be unimpaired and other secured and unsecured creditors will equitize their debt in exchange for equity and warrants issued by the reorganized Diamond. Sinclair is expected to continue to provide management services during the proceeding and to provide transition services for a period after Diamond emerges from Chapter 11 protection.
The DSG board of managers, says Preschlack, 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. We are utilizing this process to reset our capital structure and strengthen our balance sheet through the elimination of approximately $8 billion of debt. The financial flexibility attained through this restructuring will allow DSG to evolve our business while continuing to provide exceptional live sports productions for our fans.
We deeply appreciate the hard work and commitment of our employees, who remain focused on producing high-quality sports games that our fans have come to expect, he continues. We look forward to working constructively with our team and league partners and all DSG stakeholders throughout this process and beyond.
Diamond has filed customary motions seeking a variety of first-day relief, including authority to pay employee wages and benefits and honor customer programs in the ordinary course of business and without disruption. To implement the restructuring, the company filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas. Additional information regarding Diamond's Chapter 11 proceeding, including court filings, and information about the claims process are available at https://cases.ra.kroll.com/DSG.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Wilmer Cutler Pickering Hale and Dorr LLP are serving as the company's proposed legal counsel, and AlixPartners LLP is serving as its proposed restructuring advisor. LionTree Advisors LLC and Moelis & Company LLC are serving as investment bankers and Reevemark as communications advisor to the company.
LINK: | https://www.sportsvideo.org/2023/03/15/diamond-sports-group-files-for-... |
See more stories from svg |
More from Sports Video Group
24/04/2024
Howie Schwab - Beloved ESPN Researcher, Producer, and Trivia Star - Dies at 63
Howie Schwab - Beloved ESPN Researcher, Producer, and Trivia Star - Dies at 63 By SVG Staff Wednesday, April 24, 2024 - 6:46 am Print This Story | Subscri...
24/04/2024
Miss the SVG Venue Summit at Allegiant Stadium? All Panel Recordings Now Available on SVG PLAY
Miss the SVG Venue Summit at Allegiant Stadium? All Panel Recordings Now Availab...
23/04/2024
Soccer's Appeal to Younger Audiences: Inside the Gamification of European Football Coverage
Soccer's Appeal to Younger Audiences: Inside the Gamification of European Fo...
23/04/2024
With NBA and NHL Playoffs in Full Swing, Never a Dull Moment for TNT Sports Production and Ops Teams
With NBA and NHL Playoffs in Full Swing, Never a Dull Moment for TNT Sports Prod...
23/04/2024
NAB 2024: AT&T Business's Scott Beckett Details Transmission Firepower With Robo Dog, Mini Copter
NAB 2024: AT&T Business's Scott Beckett Details Transmission Firepower With ...
23/04/2024
NAB 2024: Manufacturers Focus on Cinematic Look for Live Productions
NAB 2024: Manufacturers focus on cinematic look for live productions By George Bevir Tuesday, April 23, 2024 - 10:40 Print This Story With live sports pro...
23/04/2024
Save the Date: SVG Sports Content Management Forum Returns to NYC on July 24
Save the Date: SVG Sports Content Management Forum Returns to NYC on July 24 By SVG Staff Tuesday, April 23, 2024 - 4:05 pm Print This Story | Subscribe ...
22/04/2024
NEP Battles Weather to Keep the Going Good for Grand National Coverage
NEP battles weather to keep the going good for Grand National coverage By Adrian Pennington Monday, April 15, 2024 - 11:48 Print This Story The 2024 Grand...
22/04/2024
ITV Racing Under Starters Orders Live at the Grand National Festival
ITV Racing under starters orders live at the Grand National Festival By Adrian Pennington Friday, April 12, 2024 - 09:10 Print This Story The Grand Nation...
22/04/2024
Inside the Deal: EFL Fans to View Enhanced Broadcasts For the Next Five Seasons as IMG Becomes Official Production Partner
Inside the deal: EFL fans to view enhanced broadcasts for the next five seasons ...
22/04/2024
To 4G, or Not To 4G: EMG on Bringing the Iconic 2024 London Marathon to Viewers Globally
To 4G, or not to 4G: EMG on bringing the iconic 2024 London Marathon to viewers ...
22/04/2024
NAB Show 2024: Our Full Collection of Video Interviews From the Show Floor
NAB Show 2024: Our Full Collection of Video Interviews From the Show Floor Industry insights from key leaders on the NAB Show exhibit floor By SVG Staff Mond...
22/04/2024
PENN Entertainment Adds ESPN/Disney Exec Aaron LeBerge as CTO
PENN Entertainment Adds ESPN/Disney Exec Aaron LeBerge as CTO By SVG Staff Monday, April 22, 2024 - 3:18 pm Print This Story | Subscribe Story Highlight...
19/04/2024
NAB 2024 in Review: West Hall - SportsTech Buzz From AWS, Appear, Ateme, The Switch, TATA Communications, Telstra, TVU Networks, Verizon, and More
NAB 2024 in Review: West Hall - SportsTech Buzz From AWS, Appear, Ateme, The Swi...
19/04/2024
NAB 2024 Draws 61,000+ Attendees With More Than Half Attending the Show for the First Time
NAB 2024 Draws 61,000+ Attendees With More Than Half Attending the Show for the ...
18/04/2024
Ping Pong for the Masses: Bringing an Old Sport to a Brand New Audience With World Table Tennis
Ping pong for the masses: Bringing an old sport to a brand new audience with Wor...
18/04/2024
Fanatical Fans: IMG on Bringing the World of Table Tennis to a New Global Audience for WTT
Fanatical fans: IMG on bringing the world of table tennis to a new global audien...
17/04/2024
Live From NAB Show 2024: Zixi CEO Gordon Brooks on Live Cloud Production with the NHL and Version 17 of the Zixi Platform
Live From NAB Show 2024: Zixi CEO Gordon Brooks on Live Cloud Production with th...
17/04/2024
SportsTechBuzz at NAB 2024: Wednesday's Latest From Vegas
SportsTechBuzz at NAB 2024: Wednesday's Latest From Vegas By SVG Staff Wednesday, April 17, 2024 - 3:00 am Print This Story The NAB Show is in full sw...
17/04/2024
Live From NAB Show 2024: Zixi CEO Gordon Brooks on Live Cloud Production with the NHL and Version 12 of the Zixi Platform
Live From NAB Show 2024: Zixi CEO Gordon Brooks on Live Cloud Production with th...
16/04/2024
SportsTechBuzz at NAB 2024: Tuesday's Latest From Vegas
SportsTechBuzz at NAB 2024: Tuesday's Latest From Vegas By SVG Staff Tuesday, April 16, 2024 - 3:15 am Print This Story The NAB Show is in full swing,...
16/04/2024
Live From NAB Show 2024: Calrec's Henry Goodman, Solid State Logic's Tom Knowles on Audio in the Cloud
Live From NAB Show 2024: Calrecs Henry Goodman, Solid State Logics Tom Knowles o...
16/04/2024
Live From NAB Show 2024: The Switch's George Lopez on Remote Production, The Cloud, and the Future of Connectivity
Live From NAB Show 2024: The Switchs George Lopez on Remote Production, The Clou...
16/04/2024
Live From NAB Show 2024: LiveU's Steve Wind-Mozley on IP, REMI Solutions for Light Weight Production
Live From NAB Show 2024: LiveUs Steve Wind-Mozley on IP, REMI Solutions for Ligh...
16/04/2024
Live From NAB Show 2024: Blackmagic Design's Bob Caniglia on Upgrades to ATEM Production Switchers, Recent Work in Replay and IP
Live From NAB Show 2024: Blackmagic Designs Bob Caniglia on Upgrades to ATEM Pro...
16/04/2024
Live From NAB Show 2024: Canon's Staff Gives a Tour of New Lenses, Multi-Camera Control App, Enhanced Use of Free Viewpoint
Live From NAB Show 2024: Canons Staff Gives a Tour of New Lenses, Multi-Camera C...
15/04/2024
SportsTechBuzz at NAB 2024: Monday's Latest From Vegas
SportsTechBuzz at NAB 2024: Monday's Latest From Vegas By SVG Staff Monday, April 15, 2024 - 3:00 am Print This Story The NAB Show is in full swing, a...
15/04/2024
Live From NAB Show 2024: Vizrt's Nicholas Jameson on the Democratization of High-End Graphics Tech
Live From NAB Show 2024: Vizrts Nicholas Jameson on the Democratization of High-...
15/04/2024
Live From NAB Show 2024: Sony's Hugo Gaggioni on the Power of Sharing and Connecting Live Production Resources
Live From NAB Show 2024: Sonys Hugo Gaggioni on the Power of Sharing and Connect...
15/04/2024
Live From NAB Show 2024: Lawo's Andreas Hilmer Walks Through HOME Apps, Dishes Latest on IP
Live From NAB Show 2024: Lawos Andreas Hilmer Walks Through HOME Apps, Dishes La...
15/04/2024
Live From NAB Show 2024: AWS' Julie Souza on the Maturation of Live Sports Production in the Cloud
Live From NAB Show 2024: AWS Julie Souza on the Maturation of Live Sports Produc...
15/04/2024
Live From NAB Show 2024: FUJINON Lenses' Stosh Durbacz on the Debut of the Duvo HZK14-100mm Lens, Adding Cinematic Feel to Broadcasts
Live From NAB Show 2024: FUJINON Lenses Stosh Durbacz on the Debut of the Duvo H...
14/04/2024
SportsTechBuzz at NAB 2024: Sunday's Latest From Vegas
SportsTechBuzz at NAB 2024: Sunday's Latest From Vegas By SVG Staff Sunday, April 14, 2024 - 12:41 am Print This Story The NAB Show kicks off today, a...
14/04/2024
Live From NAB Show 2024: Program Productions' Bob Carzoli on Investment Growth and Supporting Freelancers with the ProCrewz App
Live From NAB Show 2024: Program Productions Bob Carzoli on Investment Growth an...
14/04/2024
Live From NAB Show 2024: Appear's Thomas Bostrm Jrgensen, Alex Pannell, and Ed McGivern on Backing the Continued Growth of Live Sports
Live From NAB Show 2024: Appears Thomas Bostr m J rgensen, Alex Pannell, and Ed ...
14/04/2024
Live From NAB Show 2024: Amagi's Dan Marshall on Migrating On-Prem Data Centers to The Cloud and the Exciting Growth of FAST Channels
Live From NAB Show 2024: Amagis Dan Marshall on Migrating On-Prem Data Centers t...
14/04/2024
Live From NAB Show 2024: Ross Video's David Ross on Celebrating 50 Years with Major Product Intros
Live From NAB Show 2024: Ross Videos David Ross on Celebrating 50 Years with Maj...
14/04/2024
NAB 2024: NHL, Verizon Business, and AWS Roll Out 5G-enabled Cloud Broadcasting Solution
NAB 2024: NHL, Verizon Business, and AWS Roll Out 5G-enabled Cloud Broadcasting ...
12/04/2024
Inside the MultiVersus NHL Face-Off' Live Animated Broadcast With the NHL's David Lehanski and Keith Horstman
Inside the MultiVersus NHL Face-Off' Live Animated Broadcast With the NHL...
12/04/2024
NAB 2024: Suppliers Continue To Expand Networked-Audio Offerings
NAB 2024: Suppliers Continue To Expand Networked-Audio Offerings New and updated products boast IP and ST 2110, software systems, virtual control By Dan Daley,...
12/04/2024
Amazon Prime Video Chooses Onsite Production Path for Its 27 NWSL Matches
Amazon Prime Video Chooses Onsite Production Path for Its 27 NWSL Matches The streamer made its league debut with the 2024 NWSL Challenge Cup on March 15 By Kr...
12/04/2024
ESPN Rides Wave of Women's-Hoops Momentum Into WNBA Draft Production at Brooklyn Academy of Music
ESPN Rides Wave of Women's-Hoops Momentum Into WNBA Draft Production at Broo...
12/04/2024
SVG New Sponsor Spotlight: Mimir's Andr Torsvik on Enabling Remote Collaboration Through the Cloud
SVG New Sponsor Spotlight: Mimir's Andr Torsvik on Enabling Remote Collabor...
12/04/2024
Inside the MultiVersus NHL Face-Off Live Animated Broadcast With the NHL's David Lehanski and Keith Horstman
Inside the MultiVersus NHL Face-Off Live Animated Broadcast With the NHL's D...
11/04/2024
Case Study: Inside ESPN's Monday Night Football AR Graphics Launch
Case Study: Inside ESPN's Monday Night Football AR Graphics Launch By SVG Staff Thursday, April 11, 2024 - 8:18 am Print This Story | Subscribe Stor...
11/04/2024
All Love: Creative Media Producer Jhalen Wingate on Capturing South Carolina Women's Basketball's National Championship
All Love: Creative Media Producer Jhalen Wingate on Capturing South Carolina Wom...
11/04/2024
Miami Marlins Leap Into Artificial Intelligence With 2024 Team Open
Miami Marlins Leap Into Artificial Intelligence With 2024 Team Open The Famous Group played a pivotal role in its third consecutive project with the club By Kr...