Bally Sports’ parent company will declare bankruptcy next week. Plus: Texas and Oklahoma finalize an agreement to leave the Big 12 early; ESPN becomes its own business unit in Disney reorganization.
Diamond Sports Group to declare bankruptcy
Sinclair’s Diamond Sports Group LLC, owner of the 19 Bally Sports regional sports networks, will declare bankruptcy next week according to a Sportico report. Instead of paying the $140 million interest fee payment, the group will file for Chapter 11. Currently, the company has only $585 million in cash on hand with TV rights payments to sports teams totaling $2 billion. The bankruptcy will have a large effect on NBA, MLB, and NHL teams, where local rights have been quite lucrative. Leagues have been planning for this eventuality for some time, with MLB commissioner Rob Manfred recently stating that the league is prepared to make the games available both through digital and cable.
Diamond Sports launched Bally Sports+, an over-the-top streaming service that allows consumers to watch their local RSN without cable for $20 a month in September 2022. At the year’s end, subscriber count was down 10%. A previous Bloomberg report indicated that Diamond Sports expects to emerge from bankruptcy court in May or June 2023. (Sportico 2.10)
Texas and Oklahoma to join the SEC in 2024
Texas and Oklahoma have finalized an agreement with the Big 12 to depart for the SEC a year earlier than planned, in time for the 2024 football season, according to a Sports Illustrated report. The deal includes $100 million in exit fees, to be distributed to the eight legacy Big 12 members. For some time, it looked like an agreement would not be reached despite a delay in releasing the conference schedule. While ESPN also holds SEC rights, and thus the Texas and Oklahoma rights when they move, Fox would only sign off with proper compensation. In the end, Texas’s non-conference game against Michigan in 2024 will now be held in Ann Arbor, moving the game to Fox as they carry Big Ten games. With Texas and Oklahoma’s futures settled, it is expected that the Big 12 will continue to be open to expansion. (SI 2.9)
ESPN becomes its own division in Disney reorganization
Disney CEO Bob Iger announced a reorganization of Disney that splits the company into three separate business units. ESPN, Disney Entertainment, and Disney Parks, Experiences, and Products will now form the three pillars of the company. The ESPN pillar will include ESPN+, eight linear networks, all international sports channels, and sports content for all of Disney’s platforms, domestic and international. ESPN chairman Jimmy Pitaro will now oversee a unit that will have full “operational control and financial responsibility,” which includes creative development, marketing, technology, sales, and distribution. (Front Office Sports 2.9)
