Bally Sports costs will plunge its parent company into bankruptcy. Plus: details on Comcast’s overpayment for the Pac-12; a prominent NFL sideline reporter announces her 2023 return.
Diamond Sports Group’s impending bankruptcy
Sinclair’s Diamond Sports Group LLC, owner of the Bally Sports regional sports networks, is facing an impending $8.6 billion debt restructuring in bankruptcy court, according to Bloomberg. The company is expected to skip a $140 million interest fee payment next month. Currently, the company has only $585 million in cash on hand with TV rights payments to sports teams totaling $2 billion. If bankruptcy were to occur, the MLB, NHL, and the NBA could all lose significant revenue should Diamond Sports decide to end those TV rights contracts. Per the report, a potential solution could be the leagues owning equity in the post-bankruptcy entity.
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%. Leagues have started to make alternative plans, with MLB recently hiring former Sinclair Sports executive Billy Chambers to hold the new position of VP of local media as it seeks to take more control of local rights. Diamond Sports expects to emerge from bankruptcy court in May or June 2023 according to the report. (Bloomberg 1.25)
Pac-12 fires two executives amid Comcast overpayment
Pac-12 CFO Brent Willman and Pac-12 Networks president Mark Shuken were fired after failing to disclose that that Comcast overpaid the conference by $50 million over the span of 10 years. A 2017 audit by the Pac-12 unexpectedly showed an overpayment of $5 million per year. While the Jon Wilner report from The Mercury News indicates this was met with widespread disbelief among Pac-12 officials at the time, it is unclear what exactly happened next, or what the motivation was for not revealing the information to Larry Scott, Pac-12 commissioner at the time. It is expected that Comcast will withhold payments for the next two years to make up the difference, which equates to approximately $2 million per school. (Wilner 1.25)
Pam Oliver to return for 29th season
Fox NFL sideline reporter Pam Oliver will return for a 29th season, according to The Athletic. Oliver spent most of her time at Fox with their top team of Joe Buck and Troy Aikman, but was moved out to other broadcasting booths starting in 2014. In 2022, she worked with Joe Davis and Daryl Johnston. Oliver, who in recent years has dealt with health challenges that include severe migraines, is under contract until the end of this year. (The Athletic 1.25)
