As mentioned in one of my comments above (probably 2 pages back now as this thread has been busy), when watching NBA games on our RSN (Bally Sports), there are a few ads from casinos, law firms and the state lottery, but the majority of spots are from non-profits who probably paid very little, and there are a ton of them - Disabled American Veterans, Shriner's Hospitals, St. Jude's, save the animals, Wounded Warrior, Make a Wish, etc.
-
Get involved.
We want your input!
Apply for Membership and join the conversations about everything related to broadcasting.
After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
If you use a disposable or false email address, your registration will be rejected.
After your membership is approved, please take a minute to tell us a little bit about yourself.
https://www.radiodiscussions.com/forums/introduce-yourself.1088/
Thanks in advance and have fun!
RadioDiscussions Administrators
Bally RSN owner Sinclair looking at bankruptcy
- Thread starter Ccook55
- Start date
In the previous post, MLB's Manfred valued the fee at about $1 billion.
What complicates this situation is that Diamond is an LLC. So the creditors can't get their money from Sinclair or Byron Allen (the partners in Diamond). In fact, Sinclair is a creditor. The buck stops at Diamond. They specifically are on the hook for $8.2 billion, according to this:
Sinclair Broadcast Group to Acquire 21 Regional Sports Networks from Disney at a Valuation of $10.6 Billion - The Walt Disney Company
Byron Allen to Become Equity and Content Partner in RSN Holding Company BALTIMORE, MD and BURBANK, CA (May 3, 2019) — Sinclair Broadcast …Read More
thewaltdisneycompany.com
Here are some of the creditors:
That was a best-case scenario of two radio stations being available to assume the play-by-play rights immediately after the prior contracts with WLS were voided. Totally different situation when the contracts have to effectively remain with the RSNs, even in a temporary situation.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:
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. Bankruptcywww.insideradio.com
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
Someone is going to have to take a haircut and I’d be totally stunned if all teams and leagues have uninterrupted coverage.
Disney HAD to sell the RSNs in order to clear their purchase of 21 Century Fox. IIRC, Fox Corporation was offered the RSNs and didn’t want them.
Seems like the timing worked in Disney's favor.
You have the iceberg upside-down. According to their latest quarterly SEC filing, through 9/30/2022, Diamond made $35 million a month in advertising revenue, compared to $201 million a month in subscriber fees. Put the more standard way, about 15% of the company's revenue comes from advertising.
Year-on-year, subscriber revenue fell 11% and advertising revenue fell 9%.
Both hurt, of course, but the RSN business model has always been built on subscriber fees.
Sure, but ad revenue is directly tied to individual team seasons. No team to broadcast, no ad revenue, no sub fees.
i wouldn't be surprised if in the next 5 years, RSNs will be replaced with in-house production streams from the leagues with a option for broadcast in market for free on a MLB Network if it's MLB, NBA TV if it's NBA, or NHL Network if it's NHL, and as for other sports, they sell the rights to the first buyer say for an example, Texas UIL Hight School Football would be sold locally to a local TV station in Texas in a local syndication that only is available in Texas or streamed directly by the UIL on their site (UIL, or the University Interscholastic League is the sanctioning body for high school sports in Texas) with the help of a major Texas broadcaster. the RSN bubble busted first but sadly many TV related bubbles are busting at this moment.
And amazingly so. There was no way anyone could have foreseen March 2020 but it accelerated this endgame for Diamond.
No that’s not happening.
Diamond Sports the wing of Sinclair that owns the former Fox Sports Regional properties could file for Bankruptcy.
Bally RSN Parent Misses Payments, Enters Grace Period
The missed payments by Diamond Sports Group started a 30-day grace period that could be the prelude to a bankruptcy filing, which could lead to changes in how televised games are made available to viewers. Diamond said: "The company intends to use the 30-day grace period to continue progressing...
tvnewscheck.com
Bally Misses Payments for local rights of Sports Broadcasts.
I don't see "rights" anywhere in the report. What they missed were interest payments on outstanding loans.
Per this article, Major League Baseball already has a backup plan of sorts in mind:
sports.yahoo.com
Rob Manfred says MLB will handle team broadcasts if Bally Sports networks miss payments
Rob Manfred says MLB will handle team broadcasts if Bally Sports networks miss payments
The company that owns the Bally Sports networks is reportedly on the verge of bankruptcy.
However, all he's talking about is if Bally's misses payments to clubs. That's not what's happening. Diamond just missed a $140 million payment to its lender, which is a different situation. My sense is that Diamond will want to retain all team contracts and just reorganize the terms of its loan.
If they file bankruptcy does that negate the team deals?
That gets decided when they file.
Tampa Bay Times tries to read the tea leaves when it comes to the Rays and Lightning, but winds up in the same "Who knows?" situation we've been in here for the past week.
- Status