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Catastrophe Strikes Again as NHL to Lose Another Regional Sports Network Partner

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Jon
February 25, 2023  (12:29)
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In the wake of bankruptcy filings for Diamond Sports - parent company for Bally Sports - news broke of another regional sports network set to cut ties with the NHL.

Warner Bros. Discovery has notified its NHL partners that it wants out of the regional sports network business entirely, per John Ourand of The Sports Business Journal. Warner Bros. Discovery acts as the parent company for AT&T Sportsnet, who carries NHL games for 3 NHL teams: the Pittsburgh Penguins, Vegas Golden Knights, and Seattle Kraken. AT&T Sportsnet also carries 4 MLB teams and 3 NFL teams.

Per Ourand's report, Warner Bros. submitted the following statement concerning its RSN partners: "AT&T SportsNet is not immune to the well-known challenges that the entire RSN industry is facing. We will continue to engage in private conversations with our partners as we seek to identify reasonable and constructive solutions."

The looming concern for the NHL is obviously the collective collapse of Bally Sports - who carries games for a dozen NHL clubs - and now AT&T. Diamond Sports missed a $140 million payment to the NHL which kickstarted their bankruptcy filings.

What this means for the NHL's immediate future is not fully understood, but the impacts are expected to be significant.

The NHL's salary cap was projected to increase after this season, but those plans have possibly been scrapped as a results. As far as replacing the broadcast partners for the 15 teams now without a host, nothing has been noted as of yet.

Surely, the league is still reeling from the news.

Warner Bros plan is simple: the company "has told teams that they have until March 31 to reach an agreement to take their rights back. If the RSNs can't reach deals with the teams, the channels eventually plan to move forward with a Chapter 7 liquidation filing."

This is singularly horrible news for the NHL, which already has a laundry list of financial problems stemming from the COVID-19 pandemic. Gary Bettman and company will need to act swiftly and decisively in order to avoid further catastrophe.

Source: The Sports Business Journal

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