• Loading stock data...
Tuesday, July 16, 2024

Sinclair: DSG Will Likely Shut Down After 2024 MLB Season

  • Predictions rise of a forthcoming liquidation for bankrupt RSN operator.
  • Sinclair, MLB object to DSG's cooperation agreement.
Diamond Sports Group

The long-term outlook for Diamond Sports Group is increasingly dim.

It’s already facing the prospects of holding no major pro team rights after the 2024 MLB season, and during a U.S. bankruptcy court hearing Wednesday, lawyers for DSG parent Sinclair Inc. said that chances of a company liquidation next year are growing.

“To Sinclair folks who originally acquired Diamond, they’re kind of bummed. They’re bummed that this business that they put in a billion-and-a-half [dollars] of equity value in, is now going to be shut down,” said Sinclar lawyer David Seligman. “There’s going to be people losing their jobs … Diamond’s business is going to go away.”

DSG lawyer Andrew Parlen said a company liquidation may happen in 2024 if a new and profitable operating path can’t be found. 

But there remains plenty of anger and finger-pointing. DSG, the parent of Bally Sports, received court approval of its cooperation agreement, which will see it surrender its NBA team rights at the end of the 2023-24 season. It might also have to release its rights to the NHL and MLB. 

MLB, however, objected to that agreement, as did Sinclair, and the court tentatively plans to hear those objections early next month. 

“There is a deal with the NBA. And that’s great,” said MLB lawyer James Bromley. “We’ve been hearing that one might be coming for quite a while and there is not one yet with the NHL. We understand it’s on the way, but we have not seen it. And there is no deal with Major League Baseball. And there are a number of issues that need to be addressed.”

Among those issues is how many MLB teams DSG will carry in 2024 — with the Cleveland Indians and Texas Rangers the subjects of the latest rumors of potential DSG cuts — and what the resulting impacts on team payrolls will be. 

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Teoscar Hernandez Wins $1 Million at Home Run Derby

The Derby is one of the most lucrative skill contests in sports.
Jul 4, 2024; Bronx, New York, USA; New York Yankees right fielder Juan Soto (22) reacts after hitting a two run home run in the seventh inning against the Cincinnati Reds at Yankee Stadium.

The $500 Million Juan Soto Question Lingers at MLB’s All-Star Game

Yankees superstar could attract second-largest player contract in U.S. team sports history.

Colombian Soccer Federation President Arrested in Copa Madness

The 71-year-old on the FIFA Council was arrested alongside his son.
Apr 29, 2024; Baltimore, Maryland, USA; Baltimore Orioles shortstop Gunnar Henderson (2) swings through a first inning solo home run against the New York Yankees at Oriole Park at Camden Yards.

The Home Run Derby Has Become a Big Business Opportunity

New format, narrowing gap with All-Star Game ratings highlight the event’s importance.
podcast thumbnail mobile
Front Office Sports Today

Formula E is Powering Its Own Future

0:00

Featured Today

Jan 7, 2024; Nashville, Tennessee, USA; Jacksonville Jaguars wide receiver Calvin Ridley (0) reacts after scoring a touchdown against the Tennessee Titans during the first half at Nissan Stadium.

Without Hard-Line Bans, Pro Athletes and Personnel Will Keep Betting on Sports

Penalties often aren’t stringent or consistent enough to deter banned behavior.
Oct 2, 2021; Miami Gardens, FL, USA; NFL commissioner Roger Goddell speaks during the Don Shula Celebration of Life at Hard Rock Stadium.
July 13, 2024

The NFL Is Confident It Can Overturn the Sunday Ticket Verdict

The league may have good reason to believe it can win.
July 8, 2024

NFLPA Report Cards Have Become the ‘Talk of the Locker Room’ Across..

NFLPA report cards have become the ‘talk of the locker room.’
July 7, 2024

The New College Sports Insiders Are Graphic Designers

Joe Tipton and Hayes Fawcett have become premier news-breakers on social media.
July 11, 2024

Will They or Won’t They? TNT Must Match Bids or Say Goodbye to NBA

A spurned media partner has sued the league before.
July 12, 2024

Copa América Gets Near-Ideal Miami Final After Sometimes Rocky Tournament

Argentina and Colombia face off Sunday evening.
Sponsored

TopSpin 2K25 Brings the Legends of Tennis to Your Living Room

2K sports is reviving a classic with TopSpin 2K25.
July 10, 2024

‘Where’s truTV?’ March Madness Channel Is Now TNT Sports’ New Star

Warner Bros. Discovery will make its sports emphasis on truTV ‘even more pronounced and consistent.’
July 10, 2024

NBA Agrees to $76 Billion in Media-Rights Deals, but TNT Still Looms

Welcome back, ‘Roundball Rock.’ Farewell, ‘Inside the NBA’?
Stadium with NFL logo at the mid-field line
July 10, 2024

‘Nonsensical’: NFL Blasts Massive Jury Award in Latest Sunday Ticket Case Filings

The league asked for a new trial and called the damages ‘indefensible.’
May 2, 2015; Las Vegas, NV, USA; Referee Kenny Bayless (center) separates Manny Pacquiao (left) from Floyd Mayweather during their boxing bout at the MGM Grand Garden Arena. Mandatory Credit: Mark J. Rebilas-USA TODAY Sports
July 9, 2024

The Most Watched Boxing Matches Ever

The most-watched boxing match was the 2015 bout between Floyd Mayweather and Manny Pacquiao which drew 4.6 million PPV buys.