Diamond Sports Group, a collection of 19 regional sports networks (RSNs) doing business as Bally Sports, is planning to file for bankruptcy next week, according to multiple people familiar with the plan. The group currently controls the local broadcast rights to more than 40 teams in the NBA, NHL and MLB, and its bankruptcy would be a significant blow to the cable network model that has lucratively buoyed U.S. sports for the past 50 years.
Diamond is owned by
Sinclair Broadcast Group (Nasdaq:
SBGI), which bought the RSNs in a debt-heavy $9.6 billion deal back in 2019. Since then, it has struggled to right the business as consumers rush to abandon cable and Diamond struggles to define its digital future.
The group has $140 million in interest payments due next week. Instead of meeting them, it is planning to file Chapter 11 next week.