Diamond Sports Group, the company that broadcasts Milwaukee Bucks and Milwaukee Brewers games, filed for U.S. bankruptcy protection on Tuesday, according to CNBC.
The Sinclair Broadcast Group subsidiary operates "Bally Sports" and provides local television broadcasts for almost half of NBA, NHL, and MLB games. According to CNBC, the company intends to continue to air games despite its financial struggles.
In its Chapter 11 petition, Diamond Sports listed assets and liabilities between $1 billion and $10 billion each. Diamond has $425 million in cash, but owes $9 billion to its lenders. CNBC reports the company is stuck between expensive broadcast rights agreements and its customers moving away from cable and towards online streaming options.
Diamond is entering Chapter 11 with an agreement that $8 billion of its debt will be eliminated by transferring ownership of the company from Sinclair to Diamond's lenders. CNBC reports that a group of senior lenders will be repaid in cash. Sinclair bought the regional sports networks in 2019 from the Walt Disney Company.
As TMJ4 previously reported, the Brewers' contract with Bally is worth nearly $34 million per year over four years. The Bucks agreed to extend their contract in 2018 to seven years with Fox Sports Wisconsin, which is now Bally Sports Wisconsin.
In late January, Bloomberg first reported the news that the company was planning to file for bankruptcy because it couldn't pay its dues.
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