Goodbye ACC football and basketball! Another victim of Sinclair’s poor management.
https://www.nexttv.com/news/bally-sport ... ball-games
Sinclair competitor (and owner of WNEM) owns Raycom Sports, which produced the games for Bally Sports. It’s likely with Sinclair/Bally out of the way, Raycom will continue to air the games with other broadcast partners.
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Thank you for your patience!
- M.W.
Thank you for your patience!
- M.W.
Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk
Re: Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk
So this…
https://www.nexttv.com/news/sinclairs-d ... SmartBrief
The guy hired by Sinclair to run Bally Sports, drives the RSNs into the ground, it falls into bankruptcy, Sinclair fires him… and then it agrees to pay him a MONTHLY consulting fee of $109,000!
Part of that money is to pay off a $343,000 golf membership!
All while Sinclair shuts down local newsrooms.
When you think it can’t get any worse… it does.
https://www.nexttv.com/news/sinclairs-d ... SmartBrief
The guy hired by Sinclair to run Bally Sports, drives the RSNs into the ground, it falls into bankruptcy, Sinclair fires him… and then it agrees to pay him a MONTHLY consulting fee of $109,000!
Part of that money is to pay off a $343,000 golf membership!
All while Sinclair shuts down local newsrooms.
When you think it can’t get any worse… it does.
Re: Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk
It’s getting messy… Diamond Sports Group (AKA Bally Sports) is suing Sinclair for its financial mismanagement:
https://www.nexttv.com/news/bally-sport ... s+Articles
Let’s hope this goes to trial. Chris the Ripper and David “I love prostitutes” Smith need to answer for their decisions that left Bally Sports RSNs in ruin.
https://www.nexttv.com/news/bally-sport ... s+Articles
Let’s hope this goes to trial. Chris the Ripper and David “I love prostitutes” Smith need to answer for their decisions that left Bally Sports RSNs in ruin.
-
Martin Stett
- Posts: 116
- Joined: Sun Sep 06, 2020 1:01 pm
Re: Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk
Consultancy: If you don't have a solution, you can still make money off the problem.sinklair wrote: ↑Thu Jul 13, 2023 10:46 pm The guy hired by Sinclair to run Bally Sports, drives the RSNs into the ground, it falls into bankruptcy, Sinclair fires him… and then it agrees to pay him a MONTHLY consulting fee of $109,000!
Part of that money is to pay off a $343,000 golf membership!
All while Sinclair shuts down local newsrooms.
When you think it can’t get any worse… it does.
Re: Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk
Chris the Ripper won’t use Rosey. It is pure hush money to keep him quiet.
Re: Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk
Did Armstrong Willams & David Smith have prostitutes at 25/66 Sinklair LOL 
.
.Go Pistons, Let's Go Redwings.
Re: Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk
Nope. All the pros were safely on Dort Hwy.
Armstrong refused to get out of his rental car when he visited some of Flint’s finer neighborhoods.
Armstrong refused to get out of his rental car when he visited some of Flint’s finer neighborhoods.
Re: Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk
It's getting good... a lawsuit filed by Diamond against Sinclair says David Smith and other Sinclair board members milked Diamond Sports (Bally Sports) of more than a billion dollars. Shows you the "great" people running this company.
https://www.nexttv.com/news/sinclair-mi ... -suit-says
Sinclair 'Milked' Bally Sports Subsidiary Out of More Than $1.5 Billion, Diamond Sports Group Suit Says
By Daniel Frankel( NextTV )
They say you reserve your most hurtful haymakers for your family.
In that dysfunctional spirit, Sinclair Broadcast Group's estranged, bankrupt subsidiary, Diamond Sports Group, has more than a few choice words and phrases in the lawsuit it filed against the corporate parent from which it was spun off.
Also read: Bally Sports Bankruptcy Gets Bloodier: Diamond Files Suit Against Sinclair and JP Morgan, Tries to Claw Back $1 Billion Preferred Equity Repayment
The lawsuit is part of a campaign being waged by Diamond's secondary creditors to "claw back several billion dollars" that Sinclair allegedly "milked" from its subsidiary since it set up the operation in 2019, after its ill-fated $10.6 billion purchase of 19 Fox Sports Net channels.
Next TV first reported on the suit a month ago. Now we've seen the full (but redacted) complaint ... and Diamond's lawyers don't hold back.
"For years after Sinclair’s 2019 acquisition of the regional sports networks now owned by Diamond, Sinclair pursued a strategy of — in the words of defendant David Smith, Sinclair’s current executive chairman and former longtime CEO and the scion of its founding family — 'milk[ing]' Diamond for more than $100 million annually in purported management fees 'and whatever else I can take out of the company' before it filed for bankruptcy," Diamond says in its lawsuit.
Also read: Sinclair CEO Chris Ripley: Despite Diamond Disappointment, Sports Is Still the Broadcaster's Crown Jewel (Bloom)
Beyond allegedly over-charging its subsidiary for management fees, Diamond also contends that Sinclair manipulated events so that preferred equity partner JP Morgan Chase was made whole on $1.025 billion while secondary creditors have had to essentially pound sand.
To fund the $10.6 billion acquisition that became the Bally Sports regional sports network, "Sinclair caused DSG to incur $8.2 billion in new debt, which in turn imposed on DSG between $400 and $650 million in annual debt service (approximately a quarter of DSG’s current annual revenues)," Diamond's suit claims.
"Sinclair obtained additional financing by causing defendant Diamond Sports Holdings (a shell Sinclair subsidiary created for the acquisition) to issue $1.025 billion in units of what [was] purported to be preferred equity to JP Morgan Chase Financing, Inc. (JPMCFI). To induce JPMCFI to provide this financing, Sinclair guaranteed DSH’s obligations under the preferred units. DSG had no obligations whatsoever with respect to the preferred units, but Sinclair imposed on DSG the financial burden of making distributions used to fund periodic interest payments to JPMCFI and the repayment of principal well before the preferred units matured."
Speaking more broadly about Sinclair's "nefarious strategy," Diamond adds that during the approximately two and a half years that Sinclair "owned, controlled, and dominated Diamond in all material respects — stacking its board and management with senior Sinclair executives — Sinclair wrongfully caused Diamond to transfer more than $1.5 billion in cash and other consideration to or for the benefit of Sinclair. All of this was conceived of and implemented while Diamond’s business was, as Sinclair officers and directors knew or should have known, careening toward bankruptcy, and it continued after Diamond was unquestionably insolvent. Diamond now brings this action to recover for those fraudulent transfers, breaches of fiduciary duties, and other acts of misconduct by Sinclair and certain of its officers and directors who controlled Diamond’s affairs."
Reached for comment Wednesday, a Sinclair rep repeated the broadcaster's statement from 28 days ago: “Sinclair, Inc. has been informed of a lawsuit filed by Diamond Sports Group in connection with their ongoing bankruptcy proceeding. We firmly believe the allegations in this lawsuit are without merit and intend to vigorously defend against them.”
Meanwhile, a source working with Diamond's secondary creditors told Next TV that he fully expects Diamond to emerge intact from bankruptcy restructuring, despite seemingly austere challenges including multiple upcoming pay TV carriage renewal negotiations (with Comcast, Charter and DirecTV), as well as the soon-to-arrive deal-restructuring talks with select NBA and NHL teams.
https://www.nexttv.com/news/sinclair-mi ... -suit-says
Sinclair 'Milked' Bally Sports Subsidiary Out of More Than $1.5 Billion, Diamond Sports Group Suit Says
By Daniel Frankel( NextTV )
They say you reserve your most hurtful haymakers for your family.
In that dysfunctional spirit, Sinclair Broadcast Group's estranged, bankrupt subsidiary, Diamond Sports Group, has more than a few choice words and phrases in the lawsuit it filed against the corporate parent from which it was spun off.
Also read: Bally Sports Bankruptcy Gets Bloodier: Diamond Files Suit Against Sinclair and JP Morgan, Tries to Claw Back $1 Billion Preferred Equity Repayment
The lawsuit is part of a campaign being waged by Diamond's secondary creditors to "claw back several billion dollars" that Sinclair allegedly "milked" from its subsidiary since it set up the operation in 2019, after its ill-fated $10.6 billion purchase of 19 Fox Sports Net channels.
Next TV first reported on the suit a month ago. Now we've seen the full (but redacted) complaint ... and Diamond's lawyers don't hold back.
"For years after Sinclair’s 2019 acquisition of the regional sports networks now owned by Diamond, Sinclair pursued a strategy of — in the words of defendant David Smith, Sinclair’s current executive chairman and former longtime CEO and the scion of its founding family — 'milk[ing]' Diamond for more than $100 million annually in purported management fees 'and whatever else I can take out of the company' before it filed for bankruptcy," Diamond says in its lawsuit.
Also read: Sinclair CEO Chris Ripley: Despite Diamond Disappointment, Sports Is Still the Broadcaster's Crown Jewel (Bloom)
Beyond allegedly over-charging its subsidiary for management fees, Diamond also contends that Sinclair manipulated events so that preferred equity partner JP Morgan Chase was made whole on $1.025 billion while secondary creditors have had to essentially pound sand.
To fund the $10.6 billion acquisition that became the Bally Sports regional sports network, "Sinclair caused DSG to incur $8.2 billion in new debt, which in turn imposed on DSG between $400 and $650 million in annual debt service (approximately a quarter of DSG’s current annual revenues)," Diamond's suit claims.
"Sinclair obtained additional financing by causing defendant Diamond Sports Holdings (a shell Sinclair subsidiary created for the acquisition) to issue $1.025 billion in units of what [was] purported to be preferred equity to JP Morgan Chase Financing, Inc. (JPMCFI). To induce JPMCFI to provide this financing, Sinclair guaranteed DSH’s obligations under the preferred units. DSG had no obligations whatsoever with respect to the preferred units, but Sinclair imposed on DSG the financial burden of making distributions used to fund periodic interest payments to JPMCFI and the repayment of principal well before the preferred units matured."
Speaking more broadly about Sinclair's "nefarious strategy," Diamond adds that during the approximately two and a half years that Sinclair "owned, controlled, and dominated Diamond in all material respects — stacking its board and management with senior Sinclair executives — Sinclair wrongfully caused Diamond to transfer more than $1.5 billion in cash and other consideration to or for the benefit of Sinclair. All of this was conceived of and implemented while Diamond’s business was, as Sinclair officers and directors knew or should have known, careening toward bankruptcy, and it continued after Diamond was unquestionably insolvent. Diamond now brings this action to recover for those fraudulent transfers, breaches of fiduciary duties, and other acts of misconduct by Sinclair and certain of its officers and directors who controlled Diamond’s affairs."
Reached for comment Wednesday, a Sinclair rep repeated the broadcaster's statement from 28 days ago: “Sinclair, Inc. has been informed of a lawsuit filed by Diamond Sports Group in connection with their ongoing bankruptcy proceeding. We firmly believe the allegations in this lawsuit are without merit and intend to vigorously defend against them.”
Meanwhile, a source working with Diamond's secondary creditors told Next TV that he fully expects Diamond to emerge intact from bankruptcy restructuring, despite seemingly austere challenges including multiple upcoming pay TV carriage renewal negotiations (with Comcast, Charter and DirecTV), as well as the soon-to-arrive deal-restructuring talks with select NBA and NHL teams.
Re: Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk
Sinclair can't really believe their own PR -- they are asking Diamond Sports/Bally Sports to pay it $140-million for "management services" after it ran the company into the ground. Before bankruptcy, Sinclair officials held a controlling stake on Diamond's board of directors -- hence why the deal was structured to only benefit Sinclair as it drove Bally's into bankruptcy. Hopefully a judge sees through this shakedown and tells Sinclair to take a hike.
https://www.nexttv.com/news/bally-sport ... SmartBrief
Bally Sports Fight Gets Even Nastier: Sinclair Tells Its Bankrupt Diamond Subsidiary, Either Pay Us $140 Million For Our Management Services Or Don't Use Them Anymore
By Daniel Frankel( NextTV )
The acrimony is getting intense between Sinclair and the subsidiary it set up four years ago to manage its Bally Sports regional channels
Diamond Sports Group has accused its estranged corporate parent, Sinclair, of "milking" around $1.5 billion out of the subsidiary via means including an over-priced management services agreement.
On Monday, in the same jurisdictional setting -- the Houston bankruptcy court overseeing Diamond's troubled restructuring -- Sinclair Broadcast Group responded with a counterclaim.
The essential takeaway: "You don't want our supposedly way overpriced management services? Fine. Pay us the $140 million you owe us for them, and we'll be on our way."
In its counterclaim, Sinclair said it has held back on billing Diamond a portion of what it charges the subsidiary for management services since March of 2022 in order to "support Diamond's liquidity."
Diamond has so far run up an outstanding management services agreement (MSA) bill of around $140 million, Sinclair said.
And in the five months since Diamond entered bankruptcy, the subsidiary "still has not yet engaged with Sinclair regarding any comprehensive restructuring discussions about the MSA (or otherwise), nor has Diamond taken action to assume or reject the MSA, despite Sinclair’s repeated requests to engage in such comprehensive discussions," Sinclair claimed.
"The current situation is untenable," Sinclair concluded.
"To be clear, Sinclair is amenable to Diamond’s assumption and full cure of the MSA and is willing to negotiate over mutually acceptable post-assumption terms," Sinclair added in legalese. "However, Sinclair believes that Diamond will never assume the MSA (as its counsel has made abundantly clear), and therefore should be compelled to reject the MSA now or a number of reasons.
"First," Sinclair added, "if Diamond truly believes, as it said in its adversary complaint, that the MSA is a terrible economic deal for Diamond, assumption of the MSA would be starkly inconsistent with Diamond’s fiduciary obligation to maximize estate value."
Secondly -- for Diamond to keep using Sinclair's management services for the duration of bankruptcy, without paying for them, would be "highly prejudicial" to Sinclair.
Oh, and Sinclair sees a future "nowhere in sight" in which Diamond actually emerges from bankruptcy with a restructuring plan.
Privately, Sinclair says it has little to do these days with the subsidiary it set up in 2019 to manage the 19 regional sports networks it paid $10.6 billion to acquire.
Now there could be even fewer ties between Sinclair and Diamond.
https://www.nexttv.com/news/bally-sport ... SmartBrief
Bally Sports Fight Gets Even Nastier: Sinclair Tells Its Bankrupt Diamond Subsidiary, Either Pay Us $140 Million For Our Management Services Or Don't Use Them Anymore
By Daniel Frankel( NextTV )
The acrimony is getting intense between Sinclair and the subsidiary it set up four years ago to manage its Bally Sports regional channels
Diamond Sports Group has accused its estranged corporate parent, Sinclair, of "milking" around $1.5 billion out of the subsidiary via means including an over-priced management services agreement.
On Monday, in the same jurisdictional setting -- the Houston bankruptcy court overseeing Diamond's troubled restructuring -- Sinclair Broadcast Group responded with a counterclaim.
The essential takeaway: "You don't want our supposedly way overpriced management services? Fine. Pay us the $140 million you owe us for them, and we'll be on our way."
In its counterclaim, Sinclair said it has held back on billing Diamond a portion of what it charges the subsidiary for management services since March of 2022 in order to "support Diamond's liquidity."
Diamond has so far run up an outstanding management services agreement (MSA) bill of around $140 million, Sinclair said.
And in the five months since Diamond entered bankruptcy, the subsidiary "still has not yet engaged with Sinclair regarding any comprehensive restructuring discussions about the MSA (or otherwise), nor has Diamond taken action to assume or reject the MSA, despite Sinclair’s repeated requests to engage in such comprehensive discussions," Sinclair claimed.
"The current situation is untenable," Sinclair concluded.
"To be clear, Sinclair is amenable to Diamond’s assumption and full cure of the MSA and is willing to negotiate over mutually acceptable post-assumption terms," Sinclair added in legalese. "However, Sinclair believes that Diamond will never assume the MSA (as its counsel has made abundantly clear), and therefore should be compelled to reject the MSA now or a number of reasons.
"First," Sinclair added, "if Diamond truly believes, as it said in its adversary complaint, that the MSA is a terrible economic deal for Diamond, assumption of the MSA would be starkly inconsistent with Diamond’s fiduciary obligation to maximize estate value."
Secondly -- for Diamond to keep using Sinclair's management services for the duration of bankruptcy, without paying for them, would be "highly prejudicial" to Sinclair.
Oh, and Sinclair sees a future "nowhere in sight" in which Diamond actually emerges from bankruptcy with a restructuring plan.
Privately, Sinclair says it has little to do these days with the subsidiary it set up in 2019 to manage the 19 regional sports networks it paid $10.6 billion to acquire.
Now there could be even fewer ties between Sinclair and Diamond.
Re: Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk
What “genius” at Nasdaq thought it would be a great idea to have Sinclair’s The Tennis Channel ring the opening bell?
https://www.nasdaq.com/events/sinclairs ... ening-bell
The company is being accused of defrauding investors… yet they get the platform to open the trading day. Someone at Nasdaq needs to do a little more research… or at least learn how to “Google” Sinclair. Wowsers!
And in its lawsuit against Sinclair, Diamond also accuses JP Morgan Chase of helping Sinclair raid Diamond/Bally Sports of billions.
https://finance.yahoo.com/news/bankrupt ... 28603.html
And talk about a fluff piece… I’d expect better reporting from a financial organization like Forbes, but there’s little push back on Sinclair CEO Chris the Ripper on his financial mismanagement of Diamond, etc.
https://www.forbes.com/sites/dbloom/202 ... uture/amp/
It is interesting how he is putting Sinclair against federal regulators—AKA the FCC — to deregulate the broadcasting industry. Ripley believes local broadcasters can’t compete on the same level as the networks or big tech like Google, Meta.
While I agree with him on the point that local regulations capping local TV ownership at 39% of TV viewership is archaic, I don’t believe Sinclair is the mouthpiece the FCC is going to follow toward any regulatory reform.
https://www.nasdaq.com/events/sinclairs ... ening-bell
The company is being accused of defrauding investors… yet they get the platform to open the trading day. Someone at Nasdaq needs to do a little more research… or at least learn how to “Google” Sinclair. Wowsers!
And in its lawsuit against Sinclair, Diamond also accuses JP Morgan Chase of helping Sinclair raid Diamond/Bally Sports of billions.
https://finance.yahoo.com/news/bankrupt ... 28603.html
And talk about a fluff piece… I’d expect better reporting from a financial organization like Forbes, but there’s little push back on Sinclair CEO Chris the Ripper on his financial mismanagement of Diamond, etc.
https://www.forbes.com/sites/dbloom/202 ... uture/amp/
It is interesting how he is putting Sinclair against federal regulators—AKA the FCC — to deregulate the broadcasting industry. Ripley believes local broadcasters can’t compete on the same level as the networks or big tech like Google, Meta.
While I agree with him on the point that local regulations capping local TV ownership at 39% of TV viewership is archaic, I don’t believe Sinclair is the mouthpiece the FCC is going to follow toward any regulatory reform.
Re: Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk
I have a gut feeling before the end of the year, DSG goes "buh-bye" or Sinclair dumps some stations
Re: Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk
Steve: Diamond Sports has been spun off as its own entity… and Sinclair would rather cut stations back to the bone (like it’s Flint and Toledo stations) before giving up market share.
Re: Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk
This is a case of the Emperor has no Clothes.
But NO ONE surrounding Chris the Ripper and David “I love Prostitutes” Smith that they have a bad idea. Instead, they’ll ride this ship right into the ground.
MW: I agree with you on focusing on the core product. But would expand OTA with streaming. Sinclair has the STIRR streaming app which I think is one of the better local news streaming platforms.
But NO ONE surrounding Chris the Ripper and David “I love Prostitutes” Smith that they have a bad idea. Instead, they’ll ride this ship right into the ground.
MW: I agree with you on focusing on the core product. But would expand OTA with streaming. Sinclair has the STIRR streaming app which I think is one of the better local news streaming platforms.
Re: Sinclair’s Sports Channels Prepare Bankruptcy, Putting Team Payments at Risk
Bally Sports is asking the NBA and NHL to cuts its rights fees by 20% in order for it to continue broadcasting games:
https://www.nexttv.com/news/bankrupt-di ... SmartBrief
I'd say let Bally Sports fail -- go into bankruptcy -- and have the sports leagues buy what remains at a bargain basement price and take over broadcasting games themselves. I'd like to see Tigers, Red Wings, and Pistons games go back to free local broadcast stations, like the good ole days before they gave licensing rights to cable and satellite operators and a much smaller audience.
I doubt that will happen, because, well it's Bally Sports.
https://www.nexttv.com/news/bankrupt-di ... SmartBrief
I'd say let Bally Sports fail -- go into bankruptcy -- and have the sports leagues buy what remains at a bargain basement price and take over broadcasting games themselves. I'd like to see Tigers, Red Wings, and Pistons games go back to free local broadcast stations, like the good ole days before they gave licensing rights to cable and satellite operators and a much smaller audience.
I doubt that will happen, because, well it's Bally Sports.