If the bankruptcy court judge simply voids the contracts and de facto shuts down the RSNs, what would there be to save?
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Bally RSN owner Sinclair looking at bankruptcy
- Thread starter Ccook55
- Start date
First of all, the league has its own network: The MLB Network. Just as all of the other pro sports have their own networks. So that framework already exists, and each network runs games from each of their teams.
Secondly, as I mentioned, some teams have started their own RSNs, such as NESN or MASN. All I hear Manfred saying is that they are prepared to do more of this, both through MLB Network and through teams starting their own nets.
In a Chapter 11, the intent is to restructure, not shut the company down. The judge voids the contracts so the company is able to start over. Typically, the company comes into the hearing with prepared contracts that will replace the ones being voided. But once again, since there has been no filing, we don't know what the company or judge is going to do yet.
We will see what happens. As I said, Manfred says they're prepared to step in where needed. He didn't say how. So we'll find out.
My guess is a cash infusion to keep things running.
Or rather that the new contracts will be written at a lower fee with a shorter term.
I could see a year long MLB rebrand to keep things afloat while they look for new suitors.
I don't see how. Bally also does NHL and college sports. I think they have a contract with the ACC. All are affected.
It would have to be a sub license? The majority of the content on these networks is baseball. Unless all the affected leagues go in equally.
College sports are usually syndicated licensed.
As I said, a chap11 begins with all contracts voided. Read this:
Chapter 11 - Bankruptcy Basics
BackgroundA case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy. Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow...
That’s why I’m wondering if the leagues can step in first and do a restructuring of the debt before it goes to bankruptcy. Can they take over the finances.
They can’t afford these networks to go belly up.
Therein lies the problem. If cable and satellite retransmission contracts are voided, who would the RSNs be broadcasting to? Themselves? Cable companies won’t keep running them by the honor system, not when they and the RSNs themselves have repeatedly played hardball in long carriage disputes.As I said, a chap11 begins with all contracts voided. Read this:
Chapter 11 - Bankruptcy Basics
BackgroundA case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy. Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow...www.uscourts.gov
He likely didn’t say how because MLB doesn’t know yet how to get out of this situation and might have no feasible or realistic solution. But he can’t tell people any of that as it would create even more of a mess.
Sounds like the leagues are in a bit of a conundrum. They want someone...Whether that be RSNs or another carrier to air their games, but on the other hand, Bally Sports, at least, seems short on cash - at a time when the NBA is about to renegotiate their TV and media rights.. If the recent, similar negotiations involving the NFL are any indication, the NBA may be hoping to greatly increase, perhaps double what they're currently getting. That's difficult to leverage if there's no networks or RSNs or carriers interested in or financially capable of doing it. While this article below doesn't mention games of individual teams and RSNs like Bally Sports, it does make it clear that the NBA is expecting a huge payday during the upcoming TV/broadcast/media rights negotiations:
NBA TV deal: League prepares to sell $1B exclusive streaming package
The NBA is preparing to sell a $1 billion-worth exclusive package under its next TV deal, Michael McCarthy from Front Office Sports reports.
basketnews.com
Those are national broadcast deals. ESPN/TNT. Not the deals each team has with the RSNsSounds like the leagues are in a bit of a conundrum. They want someone...Whether that be RSNs or another carrier to air their games, but on the other hand, Bally Sports, at least, seems short on cash - at a time when the NBA is about to renegotiate their TV and media rights.. If the recent, similar negotiations involving the NFL are any indication, the NBA may be hoping to greatly increase, perhaps double what they're currently getting. That's difficult to leverage if there's no networks or RSNs or carriers interested in or financially capable of doing it. While this article below doesn't mention games of individual teams and RSNs like Bally Sports, it does make it clear that the NBA is expecting a huge payday during the upcoming TV/broadcast/media rights negotiations:
NBA TV deal: League prepares to sell $1B exclusive streaming package
The NBA is preparing to sell a $1 billion-worth exclusive package under its next TV deal, Michael McCarthy from Front Office Sports reports.
Typically this is a two-step process, where the contracts are voided and immediately renewed. Judges don't just blow things up. That's counter to the goal of restructuring. But once again, we don't know what will happen until it's filed.
He didn't say how because the bankruptcy hasn't been filed. All he can say is they're prepared to do something.
Here's one example of what happened during the Cumulus bankruptcy. Their contract with the Chicago White Sox was deemed to be unprofitable, and was cut:
www.insideradio.com
Here's a follow-up from MLB:
www.mlb.com
Cumulus Files To End Deals With White Sox, Bulls And Merlin Media.
Play-by-play rights for the Chicago Bulls and the Chicago White Sox may be suddenly up for grabs. Rights holder Cumulus Media said Thursday it is seeking permission from U.S. Bankruptcy
Here's a follow-up from MLB:
White Sox seeking new flagship radio home
CHICAGO -- The White Sox and Chicago Bulls issued a joint statement on Friday regarding Cumulus Media and the future search for a new flagship station for both teams' radio broadcasts.Cumulus announced plans to drop the multiyear deals to broadcast White Sox baseball and Bulls basketball on...
www.mlb.com
Correct, and that was mentioned in my comments above. Point being, it seems the NBA and their teams expect to make $$$ from TV broadcast rights and the like, but Bally Sports at least, isn't in a place financially to make that happen and they're about to declare bankruptcy. At least in some markets, if Bally folds, your best and perhaps only option as a viewer would be to pay to see the games via streaming, unless someone can figure out how to make a go of it financially and otherwise.
Our Bally RSN which carries NBA and MLB games, fills a lot of their spot loads with buys from non-profits that they're probably not making much $$ on - Disabled American Veternans, St. Jude's, Shriner's Hospitals, save the animals and the like. They also have a few lawfirms and casinos here and there.
You can’t stream the games if there is no production of the games. They need a broadcaster to produce them. This is what the RSNs do.
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