Bally Sports owner goes into administration

Finance News

Diamond Sports Group, which provides local television broadcasts for nearly half of NBA, NHL and MLB games, filed for U.S. bankruptcy protection in Texas on Tuesday, caught between expensive broadcast rights agreements and sports viewers’ cord-cutting habits.

Diamond Sports, a Sinclair Broadcast Group (SBGI.O) subsidiary that operates the “Bally Sports” branded channels, listed assets and liabilities between $1 billion and $10 billion each in its Chapter 11 petition.

In March, Sinclair deconsolidated Diamond, separating the company from its financial accounting despite still owning it. Diamond removed Sinclair as an operator of its sports networks in December.

Diamond missed a $140 million interest payment and owes around $2 billion in media rights, namely to MLB, the NBA, and NHL, this season. The company had been in a 30-day grace period in which it can negotiate with leagues and creditors.