Bally Sports RSNs Are Reportedly Preparing For Bankruptcy

[Bruce]

The games don't exist via magic for broadcast. If Bally isn't producing the game coverage, the game coverage would need to be produced by others.

Better answer, I missed this when it was announced-

In February, commissioner Rob Manfred said he hoped to launch a national, in-market streaming package in 2025 with about half of the league’s teams. Bringing that to fruition would be a huge deal. Not because it would make a lot of money at the outset, or any money.

Manfred said in February he’d need at least 14 clubs to get it off the ground, a figure that still might leave sales lacking. But if Diamond is still in operation, he probably would have a maximum of only nine.

There are the three teams whose games MLB itself is producing this season: the Arizona Diamondbacks, Colorado Rockies and San Diego Padres.

For now, MLB's streaming plans hinge on Diamond Sports Group's bankruptcy case

If Diamond and its Bally brands survive bankruptcy — and that looks likely — MLB won’t have enough team rights to launch streaming in 2025.

theathletic.com

 

[Bruce]

Also, June 18 is the big Bankruptcy Hearing, so a little over the month to make a deal with Comcast, without them, losing a lot of revenue-

According to Sportico, the three MVPDs (Comcast, Spectrum, DirecTV) account for 81% of total affiliate revenue and collectively, reach 38 million household subscribers. In addition, the three MVPDs account for about 69% of total traditional pay-TV households.

Diamond Sports Negotiating Distribution Agreements As They Reorganize

Diamond Sports, has been busy with retransmission renewal negotiations and a plan to successfully emerge from bankruptcy including a streaming strategy. with Amazon.

www.forbes.com

 

[savarese04]

And around and around we go.....

MLB: Bankruptcy Court Needs to Finally Stop Diamond From Continuing to 'Stumble Through the Restructuring Process' After Its 'Failure' to Secure Comcast Distribution Deal

Loss of Comcast revenue renders Bally Sports RSN operator's restructuring plan 'unconfirmable,' league lawyers say in Tuesday court motion

www.nexttv.com

 

[Bruce]

And around and around we go.....

MLB: Bankruptcy Court Needs to Finally Stop Diamond From Continuing to 'Stumble Through the Restructuring Process' After Its 'Failure' to Secure Comcast Distribution Deal

Loss of Comcast revenue renders Bally Sports RSN operator's restructuring plan 'unconfirmable,' league lawyers say in Tuesday court motion

www.nexttv.com

This link has a little more information, primarily this-

The Amazon investment is “still dependent on, among other things: (1) the Debtors reaching satisfactory go forward arrangements with each of their three largest distributors—Comcast, DirecTV LLC (“DirecTV”) and Charter Communications (“Charter” and together with DirecTV and Comcast, the “Key Distributors”) and (2) the Debtors renewing their telecast rights agreements with NBA and NHL clubs to align with the economics they have assumed in the revenue forecasts underlying the Plan,” MLB wrote.

MLB warns Diamond Sports Group’s Chapter 11 reorganization plan is unfeasible

Major League Baseball warned Diamond Sports Group’s Chapter 11 reorganization plan, scheduled to go to a vote next month, is unfeasible given the regional sports channel company’s May 1 loss of coverage on Comcast systems. Diamond owns the Bally Sports Regional Networks, which televises 12 MLB...

awfulannouncing.com

 

[glrush]

Rob Manfred on Diamond Sports saga: 'There is no plan at this point'

MLB Commissioner Rob Manfred expressed skepticism with Diamond Sports' ability to emerge whole out of bankruptcy.

awfulannouncing.com

 

[Bruce]

Rob Manfred on Diamond Sports saga: 'There is no plan at this point'

MLB Commissioner Rob Manfred expressed skepticism with Diamond Sports' ability to emerge whole out of bankruptcy.

awfulannouncing.com

Everything in all these articles about Diamond, I have been posting here for about a year now.

The one thing not mentioned, even if Comcast makes a deal, followed by all the sports leagues, Cable/Satellite is still expected to lose about 7 Million subs this year, 8 Million next year, largely from Comcast, Charter and DirecTV, the main 3 providers that carry the RSNs.

That is a lot of per sub fees gone, too many for the majority of the RSNs to endure, they will be in Chapter 7 by then.

And yes, services like YTTV will pick up a lot of subscribers from those leaving the traditional services, but since it does not carry the RSNs, a moot point.

 

[Bruce]

Hearing was set for June 18, now delayed till the end of July, with hopes that it can get deals worked out with Comcast ( who is not budging it seems) the NBA and the NHL, those deals have basically expired.

They are also losing money on the Tiger’s TV contract, since Fox Sports Detroit’s viewing area is largely Comcast territory .

Diamond maintains the rights for 12 baseball teams, but the Cleveland Guardians, Minnesota Twins and Texas Rangers are under contracts that extend only through the 2024 season. Diamond also held the rights for 16 NBA teams and 12 NHL teams, but those deals expired at the end of the 2023-24 seasons.

Diamond Sports' reorg hearing ppd. to late July

Diamond Sports Group's confirmation hearing in which it will essentially be determined whether Diamond will emerge from Chapter 11 reorganization has been postponed.

www.espn.com

 

[Bruce]

More news, not good at all-

In a court filing last night, DSG’s investor-approved budget for between May 18 and August 16th was attached as an exhibit. Over that time period, the budget projects DSG will have net cash flow of negative $46.5 million.
In the budget through mid-August, cash flow from operations comes in at just negative $2.8 million. But adding debt and fees, including $27 million for restructuring professionals, leads to the $46.5 million of negative net cash flow.

So it is still losing money, even after basically restructuring all their debt with Chapter 11.

Before all the lawyers and other costs are added in, because of Bankruptcy, it still losses $2.8 Million in three months.

Then it looks like they are hiding information-

The three leagues complain that they do not have insight into DSG’s financial health, saying they have not been provided the details of distribution deal extensions with Charter, Cox, DirecTV and Fubo. And they further add DSG has been opaque about the status of talks with Comcast, which did not renew its distribution deal with Bally Sports when the contract expired last month. It’s unclear if the budget filed last night assumes a contract renewal with Comcast.

Diamond Sports projects budget deficit of $46.5 million in court filing

Diamond Sports Group claimed a significant budget deficit in a court filing as it still tries to navigate a path out of bankruptcy.

awfulannouncing.com