The largest owner of local sports channels in the country is reportedly heading towards bankruptcy.
According to a report from Bloomberg, Diamond Sports "is heading toward a complex $8.6 billion debt restructuring in bankruptcy court as it stakes its future on a new direct-to-consumer streaming service." The company reportedly took a significant hit as cord-cutting has grown.
The company might be forced to file for bankruptcy in the near future.
"Bloomberg has Diamond Sports going into bankruptcy within the next two months," sports business insider John Ourand said.
Here's more from Bloomberg:
After leveraging up to buy regional sports networks from Walt Disney Co. in 2019, Diamond Sports Group LLC is suffering from a decline in cable-TV subscribers, spurring negotiations with creditors and major sports leagues about its viability as a going concern. The outcome will have serious implications for the $55 billion world of sports-media rights: the company’s channels showcase Major League Baseball, National Basketball Association and National Hockey League games to fans from Detroit and Phoenix to San Diego.
It's unclear how this will impact funding to those local teams.