Despite filing for Chapter 11 bankruptcy just two weeks before the start of the baseball season, Diamond Sports Group’s broadcasting rights for 14 MLB teams won’t be affected.
Reports indicate that Diamond Sports Group’s Chapter 11 bankruptcy filing was a result of missing a $140 million interest payment last month, exacerbating its $8 billion debt. The company owns 19 networks under the Bally Sports brand, which has broadcasting rights for 42 professional teams, including the 14 MLB teams mentioned earlier.
Despite facing challenges like declining viewership and criticism over social issues, the MLB remains one of the most popular sports leagues globally. To recover from pandemic-induced losses, the league is pursuing several initiatives to boost revenue.
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Diamond Sport Group’s owner faces bankruptcy just two weeks before MLB season begins
The bankruptcy filing impacts a total of 14 MLB teams, including the Atlanta Braves, Arizona Diamondbacks, Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, Minnesota Twins, San Diego Padres, St. Louis Cardinals, Tampa Bay Rays, and Texas Rangers.
In a statement released on Tuesday, Diamond Sports Group reassured fans that they should not expect any interruptions in game coverage despite the Chapter 11 bankruptcy filing. The company is currently in talks with debt holders to restructure its debt, with the aim of eliminating most of it.
As the new MLB season is set to start in just two weeks, the timing of Diamond Sports Group’s bankruptcy filing is particularly challenging for the league. This comes as the MLB is still trying to recover from the financial losses caused by the COVID-19 pandemic, which resulted in a shortened season and a significant revenue drop.
The MLB has faced criticism for its handling of social issues like the Black Lives Matter movement and protests against police brutality. This has led to some fans boycotting the league, and the bankruptcy filing of Diamond Sports Group is unlikely to improve the situation.
Despite facing these challenges, the MLB continues to be one of the most popular sports leagues worldwide. The league aims to recover from the financial losses incurred during the pandemic by implementing various initiatives, including expanding the playoffs and introducing new rules to quicken the pace of the game.
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