Bally Sports owner Diamond Sports Group has asked that the U.S. Bankruptcy Court in Texas issue another extension to give the company more time to prepare its reorganization plan.
The court had previously issued an extension meaning that Diamond Sports had until September 30th to file its plan. However, under mounting pressure from leagues, teams and creditors, the company has now requested that this deadline be pushed to November 29th, with both the NHL and NBA seasons already well underway. This would give the company until January 29th to seek approval from its creditors once the plan is finalized and filed.
In its request DSG said:
“The debtors’ Chapter 11 cases are tremendously complex and are occurring while the cable industry is rapidly changing due to subscribers’ persistent ‘cord cutting’ as they move away from traditional cable and satellite multichannel video distributors.
Navigating these choppy waters requires discussions with, and cooperation from, many parties, including multiple creditor groups, sports leagues, teams, and MVPDs. With the NBA and NHL seasons almost here, and a key MVPD contract up for renewal, the debtors realize that time is short and each day matters.”
Just last month, DSG agreed a long-term rights agreement deal with the Los Angeles Kings of the NHL. The plan is that deals such as these will help with the company’s reorganization plan.
DSG is also embroiled in a legal battle with corporate parent company Sinclair Inc. The company has filed a $1.5 billion fraud claim against Sinclair and followed that up with a second lawsuit against JPMorgan Chase. DSG alleges that the firm facilitated the funneling of $922 million in dividend payments from DSG while the company was moving towards insolvency.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.