[nfotiu]

Looks like the inevitable result of all of this is the leagues and teams will own what's left of Sinclairs RSNs. These cover the majority of US based NHL teams.

https://nypost.com/2022/09/20/mlb-nb...works-sources/

Now, insiders say Diamond might fetch $3 billion including its debt, which is currently trading at a heavily-discounted $2 billion. Sinclair is expected to propose giving over Diamond’s equity to creditors who would then sell most of the operation to MLB, the NBA and the NHL while Diamond retains a minority stake in the business, the sources said.

“They will offer it to all three leagues,” one source close to the talks said. “There is a reasonable likelihood this will all happen. That’s where this is heading.”

If a deal isn’t reached in what is being described as a “grand solution,” there is a growing possibility creditors — mostly hedge funds that have scooped up Diamond’s distressed debt — could force Diamond and its Bally RSNs into bankruptcy in the next three to six months, sources said.

While Diamond does have the cash on hand to survive through next year, it is technically insolvent and creditors could soon force it into bankruptcy, sources close to the situation said.

“I believe Diamond is getting pressure from hedge funds to call the liquidation question early,” a source close to Diamond opined.

Diamond has been telling the leagues in recent days if it goes bankrupt it will be able to keep broadcasting games, but will not need to pay teams their rights fees as it will have protection from creditors, sources close to the talks said.