Bally Sports Heading For Bankruptcy
- Thread starter CrimsonCowboy
- Start date
Sucks we didn’t get to cash in on the TV rights bubble before it busted.
whomever in our organization took the bribes to lock us in with then Fox Sports for 20 years at way below market value should be shot and buried at Turner Field.
whomever in our organization took the bribes to lock us in with then Fox Sports for 20 years at way below market value should be shot and buried at Turner Field.
chop2chip
Well-known member
Where would the money come from for a more favorable deal for the Braves if all the RSNs are broke?
striker42
Well-known member
Its been a while since my bankruptcy classes in law school but I'll try to shed what light I can on what's going on.
It's not looking like the RSNs are going belly up. Their problem doesn't seem to be revenue as much as debt structuring. It's not uncommon for a company to have a viable business but to have saddled themselves with too much debt in the process of growing that they can't maintain it.
The bankruptcy being contemplated doesn't appear to be a liquidation but a restructuring. In the bankruptcy, some of the creditors (depending on priority) are likely to end up having their debt converted to equity and so be owners of the company that emerges from bankruptcy. Of course someone looking to take over the new company emerging from bankruptcy could buy the debt and so take over the company when the debt is converted to equity.
The company that emerges from bankruptcy could very well be strong and viable. If they don't have the debt obligations that Bally currently has then they might be able to turn a nice profit.
What this means for the Braves is less clear but I wouldn't expect the deal to change. The Braves deal is still incredibly friendly to any broadcast company that holds it. Even if the bankruptcy converted to a straight liquidation I don't think you see the deal change. That deal is an asset that could be sold to another company. Even if the RSNs go belly up there's some company out there somewhere that would buy that contract and show Braves games. More likely the RSNs will continue in some form with the Braves deal continuing as it has.
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JxnMissFan
Gwinnett Bound
I wonder if Liberty Media / Braves sees this as an opportunity?
This could be a huge blow to teams that depend heavily on RSN revenue. A team getting shares of a bankrupt company instead of cash could be devastating. Next offseason will teams be offering cash and stock in RSN's to players?
This could be a huge blow to teams that depend heavily on RSN revenue. A team getting shares of a bankrupt company instead of cash could be devastating. Next offseason will teams be offering cash and stock in RSN's to players?
Tapate50
Well-known member
Once their bluff was called, it was over
CrimsonCowboy
Moderator
Bally sports could lose MLB rights if it declares bankruptcy
https://cordcuttersnews.com/bally-sports-could-lose-mlb-rights-if-it-declairs-bankruptcy/?amp=1
https://cordcuttersnews.com/bally-sports-could-lose-mlb-rights-if-it-declairs-bankruptcy/?amp=1
Somebody get Ted Turner on the phone! Let’s go back to being America’s team with TBS broadcasting us coast to coast!!
Man, those were the days of dreams. Cubs on at 2, catch some Andy, then Braves at 7:05. Harry and Skip Caray every day all summer long.
Damn my childhood was magical —and I didn’t even appreciate it like I should have .
One thing that’s different about the Braves is their contract is much longer than what is typical for the business although we’re now in the last 5 years. I kind of suspect the deal MLS did with Apple TV because it would be much more accessible although the concept of individual teams’ market areas would be an issue. Then you could have some free national games to draw interest. I think the RSN model is actually hurting the long term popularity of the game.
The thing they need to do is get rid of the damn blackouts in Braves Country. Those blackouts don’t make people go to the ballgame. I strongly suspect it has absolutely zero impact on attendance. And people watch all the damn blacked out games on pirate streams anyway.
To me, blacking out the local team has to be the dumbest thing I’ve ever heard of. I mean the point of TV is to sell advertising, right? So, if I want to buy add space on a Braves game, don’t I want to be able to reach the most Braves fans ?
And if I’m the Braves, don’t I want to grow my local fan base ? You know, people within driving distance of the ballpark - that might turn into casual fans and start buying tickets and coming to the games ?
Hmmm…..
To me, blacking out the local team has to be the dumbest thing I’ve ever heard of. I mean the point of TV is to sell advertising, right? So, if I want to buy add space on a Braves game, don’t I want to be able to reach the most Braves fans ?
And if I’m the Braves, don’t I want to grow my local fan base ? You know, people within driving distance of the ballpark - that might turn into casual fans and start buying tickets and coming to the games ?
Hmmm…..
cajunrevenge
Well-known member
cajunrevenge
Well-known member
MLB made this impossible. First they required us to split the TBS money evenly with every other team. Then they said we had to significantly raise the price to a level no TV station could afford. And this was all done in the name of stopping the Yankees....... who it had no effect on.