Bally Sports and MSG RSN Are Reportedly Preparing For Bankruptcy

[glrush]

Diamond Sports completes improbable climb out of bankruptcy

After 20 months navigating through Chapter 11 bankruptcy, Diamond Sports Group has successfully emerged intact with their RSN business.

awfulannouncing.com

 

[Bruce]

Diamond Sports completes improbable climb out of bankruptcy

After 20 months navigating through Chapter 11 bankruptcy, Diamond Sports Group has successfully emerged intact with their RSN business.

awfulannouncing.com

From that article-

According to financial projections filed during today’s hearing, Diamond expects streaming revenue to rise from $63 million this year to $580 million in 2027.

No way that will happen, just not enough interest.

 

[prushing]

Diamond Sports completes improbable climb out of bankruptcy

After 20 months navigating through Chapter 11 bankruptcy, Diamond Sports Group has successfully emerged intact with their RSN business.

awfulannouncing.com

That's a lot of expense contracts when they expect to still be losing revenue in 2027 versus today, losing ~$800 million in linear and only gaining ~$500 million in streaming.

Round it to $600 million, so $50/mth.

~$10 from X million streaming​

$# from X DTC streaming​

​

$10 x 3 million streaming (Fubo, DTV, anyone else)​

$40 x .5 million DTC​

​

I could see them getting streaming part but I don't see how they pick up much from DTC. The DTC offerings have to be in market only as MLB.tv has the rights for out of market.

 

[Bruce]

That's a lot of expense contracts when they expect to still be losing revenue in 2027 versus today, losing ~$800 million in linear and only gaining ~$500 million in streaming.

Round it to $600 million, so $50/mth.

~$10 from X million streaming​

$# from X DTC streaming​

​

$10 x 3 million streaming (Fubo, DTV, anyone else)​

$40 x .5 million DTC​

​

I could see them getting streaming part but I don't see how they pick up much from DTC. The DTC offerings have to be in market only as MLB.tv has the rights for out of market.

I knew they would do that, claim that they hoped to make so much from streaming, but it would be unrealistic.

First, there is very little chance they would get many cord cutters to sign up, if cord cutters cared about the RSNs, they would of never become Cord Cutters.

Second, if we read the ratings, it shows very little interest in the RSNs.

I will use the Atlanta 77,000 Households rating as provided by Nielsen and Forbes.

If all of them lose access via paid live tv, signed up with a Diamond Streaming Service ( or Amazon/whatever), that is 77,000 x $20 a month.

That is only $1.54M a month, $18.48M a year, not even 20% of the Braves contract.

So, if they lost all of their per sub fees, would need a little less then 500,000 streaming subscribers, just to cover the Braves rights fees.

No way will that happen.

 

[lordodogg]

View: https://x.com/brewers/status/1874198991182979540?s=46&t=ipwp-zYuZiSEh9YQRuRmXg

 

[lordodogg]

Reds returning to FanDuel Sports Net for 2025

The Reds will return to FanDuel Sports Network for their TV broadcasts in 2025 after having joined MLB Network's platform in November.

www.sportsbusinessjournal.com

 

[Bruce]

MSG Networks is now $829 Million in debt, trying a hail mary, so to avoid bankruptcy.

Exclusive | MSG Networks in talks to avoid bankruptcy — possibly with help of Amazon: sources

MSG Networks, the embattled cable TV station that airs New York Knicks and Rangers games, is in talks to reach a deal to avoid bankruptcy as soon as Friday.

nypost.com

 

[Don in CT]

MSG Networks is now $829 Million in debt, trying a hail mary, so to avoid bankruptcy.

Exclusive | MSG Networks in talks to avoid bankruptcy — possibly with help of Amazon: sources

MSG Networks, the embattled cable TV station that airs New York Knicks and Rangers games, is in talks to reach a deal to avoid bankruptcy as soon as Friday.

nypost.com

So Dolan owns the network and the teams and is bankrupting one to feed the other.

 

[comfortably_numb]

So Dolan owns the network and the teams and is bankrupting one to feed the other.

 

[Bruce]

So Dolan owns the network and the teams and is bankrupting one to feed the other.

Yep, also trying everything he can to avoid bankruptcy, because the creditors could own MSG at that point.

What is going on with MSG, also happened to Ballys ( now Fan Duel), not enough subscriber’s fees due to cord cutting and Pay TV Providers no longer carrying the channel, then combine that with the debt most of these channels hold, just a total disaster.

No matter what they do, revenue will continue to decrease as cord cutting continues.

 

[Don in CT]

Yep, also trying everything he can to avoid bankruptcy, because the creditors could own MSG at that point.

What is going on with MSG, also happened to Ballys ( now Fan Duel), not enough subscriber’s fees due to cord cutting and Pay TV Providers no longer carrying the channel, then combine that with the debt most of these channels hold, just a total disaster.

No matter what they do, revenue will continue to decrease as cord cutting continues.

Amazon will most likely take a huge chunk of the network. I do wonder about Gotham Sports. It’s a joint venture with the Yankees.

 

[Bruce]

Amazon will most likely take a huge chunk of the network.

But it still needs subscribers, Amazon taking control does not make Optimum start carrying the channel again, or to slow down cord cutting and the per subscribers fees that are lost with that.

I do wonder about Gotham Sports. It’s a joint venture with the Yankees.

I have read that the streaming service has an estimated low number of subscribers, but do not have actual numbers, but if the subscribers’ count were good, they would be making the info public.

If one of the cable services drops YES, they would be having the same issues as MSG, YES is carrying a lot of debt also, due to the purchase and take over of the channel in 2019, believe the total costs was about $3.4 Billion.

Found it-

New York Yankees Buy Back YES Network For $3.47 Billion

The baseball team will be the lead owner and run the RSN.

www.forbes.com

 

[Don in CT]

But it still needs subscribers, Amazon taking control does not make Optimum start carrying the channel again, or to slow down cord cutting and the per subscribers fees that are lost with that.



I have read that the streaming service has an estimated low number of subscribers, but do not have actual numbers, but if the subscribers’ count were good, they would be making the info public.

If one of the cable services drops YES, they would be having the same issues as MSG, YES is carrying a lot of debt also, due to the purchase and take over of the channel in 2019, believe the total costs was about $3.4 Billion.

Found it-

New York Yankees Buy Back YES Network For $3.47 Billion

The baseball team will be the lead owner and run the RSN.

www.forbes.com

The Yankees has first rights to buy back the network if Fox Sold it. They went in with Amazon and Sinclair. The Yankees have majority stake. Now the Yankees are more successful than the Knicks and Rangers so they have a bigger cash flow. I don’t think YES is in trouble currently. As long as the team is good people watch.

 

[Bruce]

The Yankees has first rights to buy back the network if Fox Sold it. They went in with Amazon and Sinclair. The Yankees have majority stake.

I know all that.

Now the Yankees are more successful than the Knicks and Rangers so they have a bigger cash flow. I don’t think YES is in trouble currently. As long as the team is good people watch.

Being successful does not mean per subscribers fees, if Optimum dropped them also, when the contract is up, that is 1 Million per sub fees gone, if that fee is $10 a month, $10 Million per month, $120 Million per year.

Then the channel is still affected by cord cutting.

In 2017, Cable/Satellite had 100 Million Subscribers, all of them had the RSNs.

Now, due to Cord Cutting and Providers dropping the RSNs, about 30-35 Million nationwide still get the RSNs and then pay the per sub fees.

That affects YES, MSG, Diamond and all the others.