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Diamond Sports Group, the Sinclair subsidiary that controls the regional sports networks for 42 teams across Major League Baseball, the National Hockey League and the National Basketball Association, announced that it has filed for Chapter 11 bankruptcy on Tuesday night, three days before the end of a 30-day grace period it entered into with creditors.

As part of a news release, Diamond, which has more than $8 billion in debt, said it “intends to use the proceedings to restructure and strengthen its balance sheet” and that the RSNs “will continue to operate in the ordinary course during the Chapter 11 process.” The company added that it possesses $425 million of cash in order to continue funding its business during the process.

MLB, whose teams draw significant revenues from its RSN deals with companies like Sinclair, is the most directly impacted by Diamond’s situation, given that its season will begin in less than three weeks. Diamond owns the rights to 14 major league teams and must continue to pay them their rights fees; otherwise, teams would be free to break their contracts, at which point MLB might take over broadcasting duties

To this point, Diamond has made payments to all its teams except the Arizona Diamondbacks, with whom they recently entered a contractual grace period. Other teams with Diamond, which run their broadcasts under the name Bally, include: the Detroit Tigers; Miami Marlins; Cleveland Guardians; Kansas City Royals; St. Louis Cardinals; Minnesota Twins; Cincinnati Reds; San Diego Padres; Los Angeles Angels; Atlanta Braves; Texas Rangers; Tampa Bay Rays; and Milwaukee Brewers.

MLB issued a statement on Tuesday night, calling the bankruptcy declaration an “unfortunate development” but assuring fans that they will not miss their team’s games this season.

“Despite Diamond’s economic situation, there is every expectation that they will continue televising all games they are committed to during the bankruptcy process,” the statement read. “Major League Baseball is ready to produce and distribute games to fans in their local markets in the event that Diamond or any other regional sports network is unable to do so as required by their agreement with our Clubs.”

The statement mentioned MLB’s experience with streaming live games on MLB.tv and producing games for MLB Network as proof of its capability “to deliver games to fan uninterrupted.”

“We think it will be both linear in the traditional cable bundle and digitally on our own platforms,” MLB commissioner Rob Manfred said of what it would look like if MLB takes on the responsibility of airing games in local markets at the onset of spring training. “But that remains to be seen.”

Sinclair, with Diamond acting as a subsidiary, purchased the RSNs from Fox in 2019, after Disney was forced to sell them off, for $10.6 billion. In the process, though, the company took on roughly $8 billion in debt, putting itself in a precarious position as the rate of cord-cutters increased.

Diamond, which initially began its grace period after skipping a $140 million interest-only payment to creditors in the middle of February, announced Tuesday it will now separate its business from Sinclair and become a standalone company. During bankruptcy proceedings, Diamond’s debt will turn into equity for its secured creditors.

The goal, a source familiar with the situation said, is for the company to acquire streaming rights for all 14 of its major league teams in order to broadcast games both through a linear cable model and on direct-to-consumer platforms. At the moment, Diamond has rights to stream the games to just five teams. It would have to negotiate the other nine with MLB, but MLB has previously been hesitant to sign off on additional rights for a company that has yet to prove itself financially sustainable.

Diamond’s filing was made through the U.S. Bankruptcy Court for the Southern District of Texas. In a statement, Diamond CEO David Preschlack wrote that the restructuring process “will allow [Diamond] to evolve our business while continuing to provide exceptional live sports productions for our fans.”

“With the support of our creditors,” Preschlack added, “we expect to execute a prompt and efficient reorganization and to emerge from the restructuring process as a stronger company.”

Diamond’s hope to building a sustainable business, a source said, is to prop up its Bally Sports+ streaming platform, ideally by making it a one-stop shop for fans to also purchase tickets and merchandise, place bets and read up on their teams. Diamond owns streaming rights for all 16 of its NBA teams and all 12 of its NHL teams, but for only about a third of its MLB teams.

Through the restructuring process, Diamond is widely expected to shed the contracts of its less-profitable teams. Not being able to acquire direct-to-consumer rights, which was part of the reason it entered into a grace period with the D-backs, will factor into which teams it chooses to hold onto.

MLB’s long-term goal, a source familiar with the league’s thinking said, is to control the rights for all its teams under one umbrella, a circumstance that could end the blackout issues that have plagued the sport in recent years. Diamond’s bankruptcy proceedings — in addition to Warner Bros. Discovery, which broadcasts the Pittsburgh Pirates, Houston Astros and Colorado Rockies, informing teams it will soon go through a liquidation — marks the beginning of that process.

In the short-term, MLB would broadcast the games of teams who end their contracts with Diamond both through their MLB.tv application and on a yet-to-be-determined cable channel. In anticipation of a development like this, MLB announced at the start of March that it had created a new local media department, headed by Billy Chambers, Sinclair’s former chief financial officer.

All team broadcasts, sources said, are expected to continue on as normal at the start of the season because Diamond is expected to keep broadcasting games while teams go through the court process of breaking free from their contracts after missed payments. The question becomes which teams Diamond will shed — the New York Post previously reported that the D-backs, Reds, Guardians and Padres will be among them — and how MLB approaches the situation thereafter.

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Effort to unionize college athletes hits road block

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Effort to unionize college athletes hits road block

The legal efforts to unionize college athletes appear to be running out of steam this month as a new Republican-led administration gets set to take over the federal agency in charge of ruling on employment cases.

A players’ advocacy group who filed charges against the NCAA, Pac-12 and USC that would have potentially opened the door for college players to form a union decided Friday to withdraw its complaint. Their case – which was first filed in February 2022 – was one of two battles against the NCAA taken up by the National Labor Relations Board in recent years. Earlier this week, an administrative law judge closed the other case, which was filed by men’s basketball players at Dartmouth.

The National College Players Association, which filed its complaint on behalf of USC athletes, said the recent changes in state law and NCAA rules that are on track to allow schools to directly pay their players starting this summer caused them to reconsider their complaint.

“[T]he NCPA believes that it is best to provide adequate time for the college sports industry to transition into this new era before football and basketball players employee status is ruled upon,” the organization’s founder Ramogi Huma wrote in the motion to withdraw.

The NCAA and its four power conferences agreed to the terms of a legal settlement this summer that will allow schools to spend up to roughly $20.5 million on direct payments to their athletes starting next academic year. The deal is scheduled to be finalized in April.

College sports leaders, including NCAA President Charlie Baker, have remained steadfast in their belief that athletes should not be considered employees of their schools during a period when college sports have moved closer to a professionalized model.

Some industry stakeholders believe that the richest schools in college sports will need to collectively bargain with athletes to put an end to the current onslaught of legal challenges facing the industry. Currently, any collective bargaining would have to happen with a formal union to provide sufficient legal protection. Some members of Congress say they are discussing the possibility of creating a special status for college sports that would allow collective bargaining without employment. However, Congressional aides familiar with ongoing negotiations told ESPN that influential Republican leaders in Congress are firmly against the idea.

The NLRB’s national board previously declined to make a ruling on whether college athletes should be employees in 2015 when a group of football players at Northwestern attempted to unionize. Jennifer Abruzzo, the agency’s leader during the Biden administration, signaled an interest in taking up the athletes’ fight to unionize early in her tenure. Abruzzo is not expected to remain as the NLRB’s general counsel during Donald Trump’s presidency.

Under Abruzzo, the agency’s regional offices pushed both the Dartmouth and USC cases forward in the past year. Dartmouth players got far enough to vote in favor of forming a union in March 2024, but were still in the appeals process when they decided to end their effort last month.

The only remaining legal fight over employee status in college sports is a federal lawsuit known as Johnson v. NCAA. That case claims the association is violating the Fair Labor Standards Act, which does not guarantee the right to unionize but instead would give athletes some basic employee rights such as minimum wage and overtime pay. That case is currently working its way through the legal process in the Third Circuit federal court.

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LSU’s Lacy facing charges related to fatal crash

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LSU's Lacy facing charges related to fatal crash

Louisiana State Police have issued an arrest warrant for former LSU receiver Kyren Lacy, who is accused of causing a fatal crash that killed a 78-year-old man on Dec. 17 and then fleeing the scene without rendering aid or calling authorities.

Louisiana State Police said on Friday that Lacy will be charged with negligent homicide, felony hit-and-run and reckless operation of a vehicle.

Police said they have been in contact with Lacy and his attorney to turn himself in.

According to a news release from state police, Lacy was allegedly driving a 2023 Dodge Charger on Louisiana Highway 20 and “recklessly passed multiple vehicles at a high rate of speed by crossing the centerline and entering the northbound lane while in a designated no-passing zone.”

“As Lacy was illegally passing the other vehicles, the driver of a northbound pickup truck abruptly braked and swerved to the right to avoid a head-on collision with the approaching Dodge,” a Louisiana State Police news release said.

“Traveling behind the pickup was a 2017 Kia Cadenza whose driver swerved left to avoid the oncoming Dodge Charger. As the Kia Cadenza took evasive action to avoid impact with the Dodge, it crossed the centerline and collided head-on with a southbound 2017 Kia Sorento.”

Police alleged that Lacy, 24, drove around the crash scene and fled “without stopping to render aid, call emergency services, or report his involvement in the crash.”

Herman Hall, 78, of Thibodaux, Louisiana, who was a passenger in the Kia Sorrento, later died from injuries suffered in the crash, according to state police.

The drivers of the Cadenza and Sorento also sustained moderate injuries, according to police.

Lacy played two seasons at Louisiana before transferring to LSU in 2022. This past season, he had 58 catches for 866 yards with nine touchdowns and declared for the NFL draft on Dec. 19, two days after the crash.

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Penn State star DE Carter entering NFL draft

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Penn State star DE Carter entering NFL draft

Penn State All-America defensive end Abdul Carter is entering the NFL draft, where he is expected to go early in the first round, his agent, Drew Rosenhaus, told ESPN’s Adam Schefter on Friday.

Carter, the Big Ten Defensive Player of the Year, recorded his 12th sack of the season during the Nittany Lions’ 27-24 loss to Notre Dame in Thursday’s College Football Playoff semifinal. He played in the game after recovering from an apparent left arm injury suffered in the quarterfinals against Boise State.

ESPN’s Mel Kiper Jr. has Carter as the No. 2 player available on his Big Board.

Carter was Penn State’s first consensus All-America selection since Saquon Barkley in 2017. He moved from linebacker to defensive end this season under new Nittany Lions defensive coordinator Tom Allen.

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