Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - The Looming bankruptcy of Sinclair sports networks

nfotiu · 10-22-2020, 01:13 PM

The former Fox Sports Networks look to be on inevitable road to bankruptcy and Sinclair is not a big enough company to save them.

https://www.bloomberg.com/news/artic...distress-surge

The article blames COVID, but it is much worse than that. COVID has quickly accelerated cord cutting, and those cord cutters won't go back. Hulu dropped all Sinclair sports nets today following YTTV's move earlier, so they won't be replacing the revenue of cord cutters at all any more. Even though services weren't making much of a dent anyway.

Most of the TV contracts go up by about 5%/year, and they already seem to be upside down on revenue to cover the TV contracts.

It seems very likely that half of the American NHL and MLB teams will lose their TV contracts within the next year if Sinclair declares bankruptcy. Some of these are primary sources of revenue for these teams, and will have a major impact on these sports.

10-22-2020, 01:13 PM	#1
nfotiu Franchise Player Join Date: May 2002 Location: Virginia Exp:	The Looming bankruptcy of Sinclair sports networks The former Fox Sports Networks look to be on inevitable road to bankruptcy and Sinclair is not a big enough company to save them. https://www.bloomberg.com/news/artic...distress-surge The article blames COVID, but it is much worse than that. COVID has quickly accelerated cord cutting, and those cord cutters won't go back. Hulu dropped all Sinclair sports nets today following YTTV's move earlier, so they won't be replacing the revenue of cord cutters at all any more. Even though services weren't making much of a dent anyway. Most of the TV contracts go up by about 5%/year, and they already seem to be upside down on revenue to cover the TV contracts. It seems very likely that half of the American NHL and MLB teams will lose their TV contracts within the next year if Sinclair declares bankruptcy. Some of these are primary sources of revenue for these teams, and will have a major impact on these sports.