Bally Sports RSNs Are Reportedly Preparing For Bankruptcy

[navychop]

How did sports do during the Depression? Granted, salaries and costs were much lower then. But in a major recession, how would sports fare? Momma says the kids need to be fed. Choice between drinking and sports? Neither?

 

[Bruce]

How did sports do during the Depression?

Well, there were a lot less Paid Live TV Subscribers.

Granted, salaries and costs were much lower then.

If I remember history correctly, the majority worked other jobs during the off season, that continued into the late 60’s/70’s.

But in a major recession, how would sports fare?

During the almost depression of 2008, sports still had the TV Contracts, so guaranteed money.

Paid Live TV actually gained subs, +2 million from 2008-2009, continued to gain until 2016, 2017 was when the drop started

Momma says the kids need to be fed. Choice between drinking and sports? Neither?

Not my house, my mother always put drinking ahead of everything else, bills, food/clothes for us, etc.

 

[navychop]

Was she related to my father?

 

[Bobby]

Was she related to my father?

and my stepmother...

 

[Bruce]

Read this story from back home in Detroit, this part stood out-

Bloomberg reported the outlook for Diamond Sports Group, citing comments from the company's lead attorney. Attorney Andrew Parlen, for Diamond, told Bloomberg that the company could liquidate in 2024 if it can't find financial stability to keep broadcasting games of dozens of professional sports teams.

So does that mean they plan on staying under Chapter 11 Protection until the 2024 MLB is over, because to be able to leave Bankruptcy, you have to be able to show you are now financial stable.

The judge just needs to pull the band aid off, just end this so everyone can move on, including the teams, it is over for them, fat lady has sung.

https://archive.ph/2023.11.16-202314/https://www.detroitnews.com/story/sports/other/2023/11/16/bally-sports-detroits-parent-company-warns-of-2024-complete-shutdown/71607446007/

 

[Bruce]

Bally Sports Asks For An Extension Until May 2024 to Find a Way Out of Bankruptcy | Cord Cutters News

On November 15th a federal judge approved Bally Sports’ request for more time to file its plan to reorganize and re-emerge from bankruptcy, even as the troubled company indicated it would seek to file a third extension down the line, according to a person familiar with the situation. Now Bally...

cordcuttersnews.com

New date is now Nov. 29( today), but Diamond is going to ask for another extension.

There is a reason why they keep pushing the date, because there is no way for them to become profitable.

RSNs just lost over 1.2 Million subs in the 3rd quarter, the top three providers that carry them are the ones who are losing the most subscribers .

Top Live TV Providers that do or do not carry Diamond/Ballys
Comcast-Yea
Charter-Yes
DirecTV( with Internet/Stream/Uverse)-Yes
Dish ( w/Sling)-no
YTTV-No
Hulu Live-No

The top three alone lost, roughly, 1.3 million subscribers.

So with smaller companies added in, only about 55 Million can get the RSNs, but not all are in Diamond territories , then how many have packages that do no have the RSNs, like Entertainment with Direct.

 

[Yespage]

Yes, they are losing subs, but the problem isn't subs. It is interest rates and the fact they overleveraged themselves to take over these channels with the idea of selling gambling... a plan they under-researched. So sub drops are not helping, the problem is they didn't have the money to pull this off in the first place, and their business plan involving revenue from gambling was DOA.

I hate it when big corps or private equity destroy things they buy overleveraged, especially when those things are actually profitable (see Toys R Us).

 

[Bruce]

Yes, they are losing subs, but the problem isn't subs. It is interest rates and the fact they overleveraged themselves to take over these channels with the idea of selling gambling... a plan they under-researched. So sub drops are not helping, the problem is they didn't have the money to pull this off in the first place, and their business plan involving revenue from gambling was DOA.

I hate it when big corps or private equity destroy things they buy overleveraged, especially when those things are actually profitable (see Toys R Us).

While true and one of the main reasons of filing, the loss of subs is what is keeping them in Chapter 11 protection.

If they were just trying to get rid of the debt, they would be out already.

They cannot show a way out with so many per sub fees lost, the top three providers have lost alone over 4 Million subs this year alone, plus the 25 Million Cable/Satellite has previously lost over the 7 years.

Remember, in 2016, no streaming providers, Satellite/Cable had 100 Million subs, pretty much all of them had a RSN.

Loss of per sub fees is the main reason Warner got rid of their RSNs, no future, why NBC tried to sell their RSNs last year, no takers, again no future.

Just found this-

The regional sports broadcast business has become unprofitable in Cincinnati for Diamond and its Bally networks.

Diamond Sports Net Cincinnati LLC, the entity that broadcasts Cincinnati Reds, Cleveland Cavaliers and Columbus Blue Jackets games, posted a net loss of $17.7 million in the first nine months of 2023, according to a bankruptcy court filing. It lost $1.8 million in 2022, the filing states.

(The increase in loss is due to Cord Cutting and loss of advertising).

It’s not alone. Four of the five other Bally Sports entities that reported financial data in the filing posted net losses in the first nine months this year. Those handle sports broadcasts for teams in Kansas City, Mo.; Los Angeles; St. Louis; and San Diego, Calif.

Only the entity in Florida that handles broadcasts for the Miami Marlins, Orlando Magic and Florida Panthers turned in a net profit.

The reason is the distribution of regional sports networks has dwindled drastically due to cord-cutters – people who have dropped cable or satellite as other options such as streaming have proliferated. About a decade ago, regional sports networks reached about 80% of the population in Greater Cincinnati and in most markets.

https://www.bizjournals.com/cincinnati/news/2023/11/28/diamond-bankruptcy-bally-sports-could-drop-reds-tv.html

 

[Bruce]

As expected, filed another extension , this time for 120 Days, must be some high level people, that work for the company, who do not want their pay checks to go away.

It is dead, give it up, already their top 3 Providers have lost 4 Million subscribers this year, at least another million expected in the 4th Quarter.

There one hope that other providers will start offering the channel ( that was actually written in some of the court filings ), seems to be going no where, for example, what benefit would it be for YTTV to start carrying it, they have the only Paid Live TV Service that shows growth every quarter, without the RSN.

Why should Dish, their percentage of losses is less then DirecTV.

And DirecTV, who does carry it, in 2016, had about 22 Million Subscribers, Uverse had a tad over 5 Million.

Now they only have a tad over 11.8 Million for DirecTV Sat/Internet and Uverse, so while having the RSN and all other sports, they have lost , roughly, 15 Million.

Next year will be worse as history as shown, so they expect things will be better at the end of 120 Days, that is when this turns into Chapter 7.

Diamond Sports Group Files Motion for 120-Day Extension in Ch. 11 Bankruptcy

"The Debtors believe they have more than earned this extension through their hard work, diligence, and accomplishments to date."

barrettsportsmedia.com

 

[Bruce]

Big hearing on December 15-

Items to be addressed, MLB Teams‘ contracts with Diamond/Bally’s, DIRECTV’s request to reduce its payments to Bally Sports, Sinclair is asking the Judge to force Bally Sports to pay them for their management or terminate their contract.

Bally Sports May Lose TV Rights to MLB Next Week — Here Is Where the MLB TV Rights Would Likely Go | Cord Cutters News

On December 15, 2023, Bally Sports will have a critical hearing related to the future of MLB on its networks. Bally Sports offered MLB slightly lower pay for the 2024 season in exchange for all TV rights being returned to MLB at the end of the season. MLB rejected the offer and demanded full...

cordcuttersnews.com

 

[navychop]

The word for today is

Schadenfreude​

​

 

[Bruce]

The word for today is

Schadenfreude​

So you are enjoying this?

RSNs are a big part of why Cable/Satellite bills are too high, because of that, has contributed to the downfall of paid Live TV.

But also has helped contribute to the rise of streaming due to cord cutting, from those wanting to get away from the high prices ( looking right at the RSN fee),, so thankful for that.

 

[comfortably_numb]

So you are enjoying this?

 

[Bruce]

Schadenfreude​

enjoyment obtained from the troubles of others

 

[comfortably_numb]

Schadenfreude​

enjoyment obtained from the troubles of others

You don't get it. His comment was aimed at YOU. You get enjoyment from seeing the downfall of any sort of "traditional" TV service. I'm shocked that this has to be spelled out.

 

[Bruce]

You don't get it. His comment was aimed at YOU. You get enjoyment from seeing the downfall of any sort of "traditional" TV service. I'm shocked that this has to be spelled out.

Have you not read his past posts about the RSNs, he is gleeful at their collapse.

 

[comfortably_numb]

he is gleeful at their collapse.

And so are you... but not just RSN's... anything NOT related to streaming is passe in your opinion

 

[Bruce]

And so are you

Nope.

 

[Yespage]

Have you not read his past posts about the RSNs, he is gleeful at their collapse.

You are mistaking who's collapse they are popcorn eating over. The issue with the RSN's is awful but Sinclair is the one who did it all. Sadly bankruptcy courts shield Sinclair from their destruction of the RSN system.

 

[Bruce]

You are mistaking who's collapse they are popcorn eating over. The issue with the RSN's is awful but Sinclair is the one who did it all. Sadly bankruptcy courts shield Sinclair from their destruction of the RSN system.

The RSN system is just broken, the Sinclair part is a different issue.

For example, Bally Sports Ohio is losing millions because they do not have enough paying the per sub fee to cover the bills, nothing to do with what Sinclair did-

Diamond Sports Net Cincinnati LLC, the entity that broadcasts Cincinnati Reds, Cleveland Cavaliers and Columbus Blue Jackets games, posted a net loss of $17.7 million in the first nine months of 2023, according to a bankruptcy court filing. It lost $1.8 million in 2022, the filing states.

Warner owned RSN are gone, they tried to sell, no one wanted to buy, so parts were given away.

NBC put theirs up for sale last year, no buyers, they are trying to figure out a solution.

They just cannot just keep losing subscribers and expect to stay in business.

Take a look at this-

Total Top Cable Subscribers at end of 3Q 2023

34,878,281

Total Other Traditional/DirecTV/Dish/Fios/Frontier

21,894,000

So, basically, 57,000, then minus Dish 7,000,000, leaves 51 Million ( including Fubo), that is it for the RSNs and it is shrinking by 1.5-2 Million every quarter.

They cannot survive, even the teamed owned ones, when there is not enough to pay the per sub fee.

Just 7 years ago, they had 100 Million subscribers.

https://www.bizjournals.com/cincinnati/news/2023/11/28/diamond-bankruptcy-bally-sports-could-drop-reds-tv.html

Major Pay-TV Providers Lost About 465,000 Subscribers in 3Q 2023 - Leichtman Research Group

Durham, NH — November 14, 2023 — Leichtman Research Group, Inc. (LRG) found that the largest pay-TV providers in the U.S. – representing about 96% of the market – lost about 465,000 net video subscribers in 3Q 2023, compared to a pro forma net loss of about 385,000 in 3Q 2022. The top pay-TV...

leichtmanresearch.com