Diamond Sports Group, the largest owner of regional sports networks, has filed for Chapter 11 bankruptcy protection in a Texas court, according to a statement released on Tuesday.
The subsidiary of Sinclair Broadcast Group had been expected to take this step for several weeks after it missed a $140 million US interest payment in December.
Diamond owns 19 networks under the Bally Sports banner, which have the rights to broadcast 42 professional teams, including 14 baseball, 16 NBA, and 12 NHL teams.
The RSN model, which was profitable during the days when the pay-TV bundle dominated the media business, has been under pressure in the streaming era, as more viewers prefer to pay for TV on an individual basis.
The company’s goal is to eliminate $8 billion in debt and restructure and strengthen its balance sheet, while continuing to broadcast local games.
The company also maintained that it is “well capitalized” with about $425 million in cash.
