Author Topic: Sinclair/Diamond Sports bankruptcy watch  (Read 1329 times)

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Offline nfotiu

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Re: Sinclair/Diamond Sports bankruptcy watch
« Reply #50: October 14, 2021, 02:24:05 PM »
I think the big independents like YES and NESN more or less rise and fall on the strength of their teams.  FWIW, NESN double its viewership from 2020 this year.  As for MASN, wouldn't it be hysterical if the Nats ended up with one of the better deals (relative to the 16 teams getting nothing).
Ratings are not overly significant.   Ad revenues are in the 7 digit range, while carriage fees are 9 digits.  The contracts are all complicated, but generally speaking the team owned RSNs should have a softer fall as cable subscribers decline.   NESN might go from 200 million-180-160.. etc.     A Sinclair station might be committed to paying a baseball team 70 million/year and a hockey team 40 million, and see their carriage revenue go from 140 mill-120-100-80 and it suddenly makes no sense to stay in business.   

Offline nfotiu

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Re: Sinclair/Diamond Sports bankruptcy watch
« Reply #51: September 01, 2022, 10:32:47 PM »
https://www.barrettsportsmedia.com/2022/08/30/diamond-sports-rsn-sale/

It looks like Sinclair is going to try to get rid of these.   

The only thing that could make any sense is for the teams to buy them at a big discount.   Teams can take them on, and have a soft landing as subscribers wind down vs losing their tv deals altogether if they go bankrupt. 

I still think this is going to be a seismic shift for mlb and nhl as there are many teams who get a very large portion of their revenues from RSNs.

Offline HalfSmokes

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Re: Sinclair/Diamond Sports bankruptcy watch
« Reply #52: September 02, 2022, 09:41:14 AM »
I'd love to see the Nats buy another team's rights

Offline imref

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Re: Sinclair/Diamond Sports bankruptcy watch
« Reply #53: September 02, 2022, 09:52:56 AM »
I'd love to see the Nats buy another team's rights

We should buy the Padres rights.

Offline nfotiu

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Re: Sinclair/Diamond Sports bankruptcy watch
« Reply #54: September 21, 2022, 09:28:26 AM »
https://nypost.com/2022/09/20/mlb-nba-and-nhl-may-buy-biggest-owner-of-regional-sports-tv-networks-sources/?utm_source=twitter_sitebuttons&utm_medium=site%20buttons&utm_campaign=site%20buttons

It looks like the leagues and teams are inevitably going to own these one way or the other.    Crazy that they were valued at 20 billion when Disney bought the Fox assets, only got 10 billion from Sinclair and now Sinclair is hoping to offload them for 3 billion.

It will be a complicated mess for the leagues to figure this all out though.   For the last couple years or so, they've been paying the teams more than they bring in in revenue, so how does the league balance that out when some teams (ie Angels) bring in much bigger rights than others without the revenue to back that up.


Quote
“They will offer it to all three leagues,” one source close to the talks said. “There is a reasonable likelihood this will all happen. That’s where this is heading.”

Sinclair CEO Chris Ripley
Sinclair CEO Chris Ripley
Sinclair Broadcast Group
If a deal isn’t reached in what is being described as a “grand solution,” there is a growing possibility creditors — mostly hedge funds that have scooped up Diamond’s distressed debt — could force Diamond and its Bally RSNs into bankruptcy in the next three to six months, sources said. 

While Diamond does have the cash on hand to survive through next year, it is technically insolvent and creditors could soon force it into bankruptcy, sources close to the situation said.
“I believe Diamond is getting pressure from hedge funds to call the liquidation question early,” a source close to Diamond opined.
Quote
Diamond has been telling the leagues in recent days if it goes bankrupt it will be able to keep broadcasting games, but will not need to pay teams their rights fees as it will have protection from creditors, sources close to the talks said.


Offline HalfSmokes

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Re: Sinclair/Diamond Sports bankruptcy watch
« Reply #55: September 21, 2022, 10:51:38 AM »
What happens with teams who have deals with other networks? Are they supposed to subsidize the Sinclair teams?

Offline machpost

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Re: Sinclair/Diamond Sports bankruptcy watch
« Reply #56: September 21, 2022, 11:21:49 AM »
Would MLB swoop in and buy them out? I seem to recall reading at some point that they would like to control all the broadcasting rights.

Offline nfotiu

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Re: Sinclair/Diamond Sports bankruptcy watch
« Reply #57: September 21, 2022, 11:36:25 AM »
What happens with teams who have deals with other networks? Are they supposed to subsidize the Sinclair teams?
It's going to be a mess to unpack, that's for sure.   

Take the Angels example, they currently get 150 million (probably more because these tend to escalate over the contract) for the next 9 or so years.    If the revenue they bring in is only 75 million (and falling) and production costs are 5 - 10 million, does the league say to them, they'll get 65 million and be happy they get that?   The alternative if the league buys them is they go bankrupt and maybe not pay the Angels at all.