Author Topic: Sinclair/Diamond Sports bankruptcy watch  (Read 804 times)

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Offline nfotiu

  • Posts: 4426
  • Juan Soto aka Human Wildcat
Re: Sinclair/Diamond Sports bankruptcy watch
« Topic Start: October 23, 2020, 10:12:16 PM »
You read my mind!

https://www.bloomberg.com/news/articles/2020-10-22/hulu-drops-sinclair-s-regional-sports-networks-in-latest-blow

Here's another article written after the Hulu news.   I'm sure there are others that understand this better than I do.  Can Diamond sports go under without taking Sinclair with them?   What collateral would be backing the secured debt.   It looks like Diamond sports is financed entirely with expensive debt and owes more in sports contracts than they are bringing in, and that gap will escalate quickly.  It's kind of a joke that Sinclair has convinced creditors that there is a bright future for these networks.

With all that going on though, Sinclair's stock has been pretty stable for months.  So that leads me to think they've insulated themselves from Diamond sports and can walk away unscathed if and when they collapse.