Texas Rangers TV Broadcasts Uncertain in RSN Bankruptcy
The Texas Rangers could be among the MLB teams most affected by a potential bankruptcy of Diamond Sports Group, per a report in The Athletic on Tuesday.
DSG, owned by Sinclair Broadcasting, oversees Bally’s regional sports networks, which hold the television broadcast rights to 14 MLB teams, including the Texas Rangers.
The question takes on more urgency after DSG announced on Tuesday that it would commence with Chapter 11 bankruptcy reorganization.
There may be several teams DSG walks away from completely as it reorganizes.
From The Athletic:
Of Diamond’s 19 RSNs, a person close to MLB said the Sinclair Broadcasting subsidiary has indicated to the league that it plans to walk away from the ones that carry the Cincinnati Reds, Cleveland Guardians, Arizona Diamondbacks, and Texas Rangers. In a bankruptcy, Diamond is looking at the RSNs the way a bankrupt retailer would look at store leases: discarding the ones that don’t work economically and keeping the ones that do.
In announcing the bankruptcy, DSG is trying to eliminate or restructure $8 billion in debt. DSG insists that it has the capital on hand to continue to broadcast games during the restructuring.
“DSG will continue broadcasting games and connecting fans across the country with the sports and teams they love," David Preschlack, CEO of Diamond, said in a release. "With the support of our creditors, we expect to execute a prompt and efficient reorganization and to emerge from the restructuring process as a stronger company.”
MLB has already assured fans in any market impacted by a DSG bankruptcy that those team's games remain televised. That includes the Dallas-Fort Worth market and the Rangers. MLB is currently developing contingencies.
MLB commissioner Rob Manfred added that the league is building its own regional sports media division.
Diamond Sports Group skipped its $140 million interest payment in February, triggering a 30-day grace period as the company plots its next move. That grace period was set to end this week.
The Rangers are set to receive $100 million for 2023 in quarterly payments starting in March. If DSG is unable to make rights fee payments, it could impact how the Rangers are able to pay player salaries.
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