Bally Sports Southwest approaching bankruptcy with Sinclair’s regional sports networks

The company that oversees the Bally Sports regional sports networks, which broadcast local Mavericks, Stars and Rangers games, is reportedly on the brink of major financial overhaul.
Diamond Sports Group — which operates Bally Sports Southwest under Sinclair Broadcast Group — is approaching a potential $8.6 million debt restructuring in bankruptcy court, according to Bloomberg.
Consider this latest news on the imperiled broadcasting operator a macro-level issue on top of the local access headaches many Dallas sports fans have faced for the last few years.
The looming bankruptcy filing, according to Bloomberg, will help Diamond and Sinclair manage its debt toward about $2 billion owed to teams in broadcast rights fees this year as part of its deal to carry local game broadcasts for 21 markets around the U.S, including Dallas.
Bloomberg reported, citing anonymous sources, that Diamond will likely skip $140 million in interest payments due in mid-February and wants to turn much of its debt for the largest lenders into equity through a prearranged Chapter 11 process.
The changes and delay in payments could cause significant issues with its broadcast partners, which include the NBA, NHL and MLB.
Under Bloomberg’s reported plan, Diamond would finish a restructuring by May or June, the outlet reported. On that timeline, the Mavericks and Stars likely wouldn’t face significant in-season disruption to local broadcasts.
The NBA, for example, offers only national broadcasts after the first round of the playoffs, which ends in late April.
Still, that’s likely little consolation to the fans who’ve endured frequent turnover and access issues through several iterations of the Fox Sports Southwest-turned-Bally Sports Southwest drama.
Bally Sports Southwest is still not available on YouTube TV, Hulu Live or other popular streaming services. DirecTV stream.
Earlier this month, FuboTV reached an agreement to again carry Bally Sports channels but has not revealed when that will start. DirecTV Stream and traditional cable options DirecTV and Spectrum remain the only current options for local fans to receive the regional sports networks in part of a larger subscription plan.
Diamond unveiled Bally Sports+ this fall as a $20-plus a month subscription for the single Bally Sports channel available in a given region, and Bloomberg reported the company is considering a new service that would allow fans to pay for individual games or just the last few minutes.
But many Mavericks surveyed at the start of the season referenced the high price point for a single channel, technical issue on the app and disapproval of Sinclair as reasons they’ve declined to subscribe.
Find more Mavericks coverage from The Dallas Morning News here.