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Regional Sports Network and NHL Partner Headed for Bankruptcy

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Jon
January 25, 2023  (11:45 PM)
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According a report from Luke Bouma of Cord Cutter News, Sinclair's Sports Channels is preparing for bankruptcy proceedings. Under the Sinclair umbrella sits the regional sports broadcaster Bally Sports, who holds the broadcasting rights for the following NHL markets:

Los Angeles
Anaheim
Arizona
Dallas
St. Louis
Minnesota
Detroit
Columbus
Nashville
Carolina
Tampa Bay
Florida

Bouma writes: "The company called Diamond Sports Group LLC, which runs Sincalirs sports channels, is reportedly $8.6 billion in debt. Sinclair is hoping to strike a deal to help them keep the channels operating thanks to bankruptcy."

An unfortunate series of events - including paying a hefty premium for FOX's regional sports networks - led to Sinclair owing an obscene $55 billion in sports rights. Bouma includes that missed payments put both the NBA and NHL at risk at a point where vulnerabilities are exacerbated by the current financial ecosystem.

In Layman's terms, Sinclair paid way too much money for an outdated medium by which sports are broadcast and are now faced with debts in the multi-billions while only having ~$600 million in cash on hand. For all you non-business folks out there, that's not good.

The affect this news will have on the NHL can only be speculated to this point, but it's safe to say that the NHL will need to react diligently to avoid serious repercussions.

Source: Luke Bouma, Cord Cutter News