Diamond Sports, a a subsidiary of Sinclair Broadcast Group, aka the regional Bally Sports Network, announced on Wednesday they will not make the interest payment of $140 million that were due today. Per their press release:
“The Company intends to use the 30-day grace period to continue progressing its ongoing discussions with creditors and other key stakeholders regarding potential strategic alternatives and deleveraging transactions to best position Diamond Sports Group for the future.”
Detroit Tigers owner Chris Ilitch is among several MLB owners who met a few weeks ago to discuss a long term strategy for their TV rights. It has been wildly speculated that the Tigers could start their own network, similar to the YES Network (Yankees, Nets) and Marquee (Cubs).
For now, Diamond Sports Group will be operating as normal “while it addresses its balance sheet” per their press release.