The Diamond Sports Group, the Sinclair-owned subsidiary that operates the Bally Sports RSNs, continues inching closer to bankruptcy.
Per Bloomberg, Diamond could skip an interest payment of $140 million due in February, which would result in a 30-day grace period and could lead to a restructuring and Chapter 11 bankruptcy.
This would appear on its surface to be a shocking development. Sinclair bought the regional Fox Sports networks less than four years ago in a highly-leveraged transaction that involved Sinclair bringing on nearly $10 billion in debt.
As you know, the TV landscape has changed significantly in those few years.