On the latest Sporticast episode, hosts Scott Soshnick and Eben Novy-Williams speak with media consultant Lee Berke about the mounting financial issues at Diamond Sports, the unit that holds Sinclair Broadcast Group’s family of 20+ regional sports networks (RSNs).
Days after taking a $1 billion impairment on the RSNs, Diamond voted to block Sinclair from day-to-day operations of the networks. There’s new leadership, and a growing chorus of people believe bankruptcy proceedings could be on the horizon.
Berke, the president of LHB Sports, Entertainment & Media, breaks down exactly how the RSNs reached this point, emphasizing the accelerated erosion of the cable bundle, heavy debt and the network’s slow approach toward embracing digital streaming options. He underscores that the problems at Diamond are not unique to Sinclair—the entire RSN business model is crumbling.
That will likely have major ramifications for fans and especially for teams, which rely heavily on rights payments from the RSNs as critical revenue. Should that money shrink, it would affect day-to-day operations at many teams and possibly franchise valuations. It will likely take months—even years, according to Berke—to understand the full impact.
Lastly, the two hosts talk about new investors coming to the NBA, a new media approach from the NFL and more NWSL teams up for sale.
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