Diamond Sports Group, Owner Of Bally Networks Once Run By Fox, Files For Chapter 11 Bankruptcy
deadline.comDiamond Sports Group, operator of the largest string of regional sports networks in the U.S., has filed for Chapter 11 bankruptcy protection.
The move, announced Tuesday night by the subsidiary of Sinclair Broadcast Group, had been expected for several weeks. The RSN model, which was a profit geyser for decades during the years when the pay-TV bundle dominated the media business, has come under intense pressure during the streaming era when more viewers pay for TV in piecemeal fashion.
Diamond, whose 23 networks are branded as Bally Sports, said it will continue to broadcast local games as it goes through the bankruptcy process in a Texas court.
The company’s goal is to eliminate $8 billion in debt and to restructure and strengthen its balance sheet, though Diamond maintained in a press release that it is “well capitalized” with about $425 million in cash.
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