Bally Sports' parent company Diamond Sports Group has filed for Chapter 11 bankruptcy protection which will trigger an immediate separation from Sinclair Broadcast Group, an agreement that began in 2021.
Bally Sports networks own the rights to 42 teams across the NBA, MLB and NHL in markets across the United States.
The company revealed details on the filing on Tuesday in a U.S. Bankruptcy Court for the Southern District of Texas.
David Preschlack, CEO of Diamond, said the company "has determined that the best path forward for the Company and its stakeholders is to restructure through a Chapter 11 process. We are utilizing this process to reset our capital structure and strengthen our balance sheet through the elimination of approximately $8 billion of debt."
Preschlack said, "The financial flexibility attained through this restructuring will allow DSG to evolve our business while continuing to provide exceptional live sports productions for our fans.”
The announcement comes just as the MLB is preparing to start its 2023 season, while the NHL and NBA are bringing their regular seasons to an end.