The potential $3 billion sale of regional sports network unit of Sinclair Broadcast (NASDAQ:SBGI) to professional sports teams may be in peril. Sinclair fell 1.1%.
Talks with MLB, NBA and NHL to acquire Diamond Sports Group, which operates 21 Bally Sports-branded regional sports networks, are said to be in trouble as the sports leagues no longer want to pay a premium in a buyout, according a New York post report on Sunday.
Now creditors may be willing to take their chances in a potential bankruptcy court in the first half of next year, the NYP said, citing sources close to the talks. Creditors are likely to use the courts to reject Diamond’s unprofitable contracts with sports teams.
Earlier this month, Diamond Sports appointed David Preschlack as Diamond’s CEO to succeed CEO Donnell Britt.
The NYP reported in September that major U.S. sports leagues were considering a buyout of Diamond Sports – the nation’s biggest owner of regional sports TV networks.
