The Diamond Sports subsidiary of Sinclair Broadcast Group has reportedly skipped a $140,000,000 payment, causing widespread concern for NHL clubs.
Sinclair Broadcast Group is the entity behind Bally Sports, who currently holds the broadcasting rights for a dozen NHL teams - Los Angeles, Anaheim, Arizona, Dallas, St. Louis, Minnesota, Detroit, Columbus, Nashville, Carolina, Tampa Bay, and Florida.
According to Michael Russo, the NHL's Board of Governors is set to hold an impromptu conference call on Wednesday:
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Per
Sportico, this news formally starts a 30-day grace period in which SBG is expected to file for Chapter 11 bankruptcy.
In Wednesday's release, the SBG subsidiary stated that the 30-day grace period will be utilized "to continue progressing its ongoing discussions with creditors and other stakeholders regarding potential strategic alternatives and deleveraging transactions to best position Diamond Sports Group for the future."
Diamond Sports is reportedly $9 billion in debt, however in the meantime they are expected to conduct "business as usual." The immediate impact on the 12 aforementioned NHL clubs is not totally clear, but initial forecasts aren't great.
Source:
SporticoADS
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