Sinclair Broadcast Group took a huge gamble with its Diamond Sports Group subsidiary. It went head-to-head against MLB in a battle over broadcasting games in a multibillion-dollar bet that went bust on Thursday.
Diamond had gobbled up the regional broadcasting rights of the games of various leagues, including 42 teams across MLB, the NBA, and the NHL, that became part of its Bally Sports brand. The goal was to parlay those contracts into direct-to-consumer digital streaming rights that would eventually include sports betting. But Diamond got ahead of itself.
It racked up debt of more than $9 billion without ever having the digital contracts in place. MLB balked at the idea, crushing Diamond’s plans and leading it to bankruptcy. In a bankruptcy court hearing that wrapped up Thursday, a judge told the company it won’t be able to get off the hook that easily, Bloomberg reports.
Diamond had gobbled up the regional broadcasting rights of the games of various leagues, including 42 teams across MLB, the NBA, and the NHL, that became part of its Bally Sports brand. The goal was to parlay those contracts into direct-to-consumer digital streaming rights that would eventually include sports betting. But Diamond got ahead of itself.
It racked up debt of more than $9 billion without ever having the digital contracts in place. MLB balked at the idea, crushing Diamond’s plans and leading it to bankruptcy. In a bankruptcy court hearing that wrapped up Thursday, a judge told the company it won’t be able to get off the hook that easily, Bloomberg reports.