Scoot McGroot wrote:
In deals that keep getting worse and worse….
I saw the original article from Bloomberg.
https://www.bloomberg.com/news/articles/2023-01-25/sports-broadcaster-diamond-faces-8-6-billion-debt-reckoning?utm_source=google&utm_medium=bd&cmpId=googleMy own opinion? Just like in most similar cases, it will be the secondary (or lower level) investors who get burned the worst. On one hand the leagues won't want to touch it because they don't want to try to run a money loser. On the other hand, they won't let it go under due to the obscene revenue it provides.
To me, one of the problems is the league's (read that as the players) refusal to put in a hard salary cap makes it impossible for a number of media companies to get involved. The players and owners are both guilty of feeding this monster of a situation. Then you have idiots like Sinclair whose greed overtook any common sense they may have had when they acquired these rights.
If it were not for the insane salaries, local stations would be able to take over the broadcast rights, similar to the way it used to be. Wouldn't it be great (in a dream world) if someone like WISH-TV in Indy could get the broadcast rights for the Pacers? But that ship sailed long ago.
The golden goose is just about fully cooked. They just won't admit it yet.
