Sinclair (Bally Sports) Facing Bankruptcy.

[awbuzz]

Creating a revenue stream and maximizing a revenue stream are two different things. They go under, those ACC games won't go un-aired. Someone else will pick them up and hopefully at a higher $$ amount.

On ESPN+, ACCNx, or the ilk, I doubt ESPN coughs up more $. CBS sports FS1 etc. already have other conference's games.

 

[billga99]

On ESPN+, ACCNx, or the ilk, I doubt ESPN coughs up more $. CBS sports FS1 etc. already have other conference's games.

It depends on how much it would cost to pick up what Sinclair is doing now. I do think another network would pick things up if the price was right. No other network has a love for ESPN and the ACC would be far better off to have a second network involved to push the relationship with ESPN. I realize the tricky part is ESPN owns the ACC Network but in fairness ESPN dumped a boatload of dough to get the SEC.

 

[tsrich]

My inexpertise may be showing here but if one company paid too much and the word on the street knows what that amount is (assuming), why would someone pay more?

The problem isn’t so much the rates they were paying the conferences for content as it was that Sinclair paid way too much for the company and financed a lot of that. They can’t pay bills and service their loan. If some years picks up the pieces for a lot less, I don’t think the operations will be so badly in the red

 

[tsrich]

s

Do we get to bail on the ACC if the Sinclair contract goes TU?

At this point I hope not because we probably would not have a good landing spot if the acc implodes

 

[bobongo]

s

At this point I hope not because we probably would not have a good landing spot if the acc implodes

Hoping for the ACC's collapse falls under the category of being careful what you wish for, because you might get it.
We're lucky to be tethered to the ACC for a decade or so, because it gives us time to better position ourselves for its potential demise.
If the ACC fell apart today, chances are Tech would end up in something less than a P-5 conference. The GOR gives us time to improve our standing and avoid that probability.

 

[iceeater1969]

Hoping for the ACC's collapse falls under the category of being careful what you wish for, because you might get it.
We're lucky to be tethered to the ACC for a decade or so, because it gives us time to better position ourselves for its potential demise.
If the ACC fell apart today, chances are Tech would end up in something less than a P-5 conference. The GOR gives us time to improve our standing and avoid that probability.

I am "Not" for a quick collapse of ACC.
We are currently bottom feeders after TFP. The top of ACC = CLEMSON, FSU , Miami, UNC. They have 3 things we don't have that make them a very good TV market. These 3 things allow them to be consistently good ( quickly recover) which is great for long term advertising deals.

First they have generous alumni who donate ( SEE KNIGHT DATA BASE) Second they have academic pathways ( lower standards and more courses) to allow them to recruit portal IN ANYONE.
Third gt still has morals about giving students athletes a chance to devlope. They are a football factory.

IS TIME ON OUR SIDE?

CAN WE JUST BE KIND OF GOOD FOR A YEAR OR 2 AND THEN GO TO CRAP AGAIN? No because the ACC is getting way less tv $ than the expanding SEC and Big 10 and slightly less than the Big 12. Teams in these conferences get the bigger tv money so there donors can donate less but give bigger NIL deals. This is a very bad trend. More and more teams will get ahead of us.

While Gt location is a great advantage over most teams (We are in mega city and in area w great recruiting), we must show $&W progress in 23, good progress in 24, and not regress in 25

I think that espn has told the ACC to step it up. Angel has sure started the ball rolling. Batt needs to figure how to unite and awaken gt alumni about gt sports. Key and stsff needs to perform some magic during games.
OUT TIME IS NOW .

 

[bobongo]

IS TIME ON OUR SIDE?

It is, but we'd better get cracking. We have ~ 10 years to improve our standing before the ACC disintegration.

 

[gville_jacket]

My inexpertise may be showing here but if one company paid too much and the word on the street knows what that amount is (assuming), why would someone pay more?

I think it's highly unlikely they went out of business because they paid too much for ACC games. They also had deals with MLB. Their accessibility killed them. They could have easily been profitable with the deal they had if they could have gotten their channel in front of more eyeballs.

 

[cpf2001]

I think it's highly unlikely they went out of business because they paid too much for ACC games. They also had deals with MLB. Their accessibility killed them. They could have easily been profitable with the deal they had if they could have gotten their channel in front of more eyeballs.

As I understand their play from when they bought the Fox Sports RSN was to “overpay” because they believed the rights they had would be worth more to cable companies than they historically had been.

Seems like they were wrong, and the cable and streaming companies told them to pound sand. It’s not clear to me they could’ve covered their obligations that they incurred to buy the channels without getting those higher rates.

That’s not exactly the same as saying “acc is overpriced” or “these baseball team rights are overpriced” but it’s certainly a change form the past twenty-ish years’ gold rush bubble of rights values. Is it just a slowdown, a peak or plateau, or the start of a complete collapse? Too soon to tell.

 

[slugboy]

I think it's highly unlikely they went out of business because they paid too much for ACC games. They also had deals with MLB. Their accessibility killed them. They could have easily been profitable with the deal they had if they could have gotten their channel in front of more eyeballs.

They didn’t overpay for the rights directly. Sinclair overpaid for the company that owned the rights. The NBA and NHL got nothing when Sinclair overpaid—Disney got the extra $$$$$ and laughed all the way to the bank.

As I understand their play from when they bought the Fox Sports RSN was to “overpay” because they believed the rights they had would be worth more to cable companies than they historically had been.

Seems like they were wrong, and the cable and streaming companies told them to pound sand. It’s not clear to me they could’ve covered their obligations that they incurred to buy the channels without getting those higher rates.

That’s not exactly the same as saying “acc is overpriced” or “these baseball team rights are overpriced” but it’s certainly a change form the past twenty-ish years’ gold rush bubble of rights values. Is it just a slowdown, a peak or plateau, or the start of a complete collapse? Too soon to tell.

Largely what you said.

Here’s an analogy:

• Subway buys out Jimmy John’s sandwich shops nationwide
• The FTC says “you have to sell off the shops across the street from your existing stores so there is competition
• Subway finds a sucker company to buy the stores they aren’t keeping—let’s say their name is “Sinclair”.
• Sinclair pays a ton of money for about 1/4th of the Jimmy John’s. They think “we have great sandwiches, we’ll double the price”.
• Customers say “I don’t want a $22 ham sandwich”, which was Sinclair’s business model
• Sinclair took over Jimmy John’s multi year contracts with lunch meat providers that they continue to pay at the same rate, such as “ACC roast beef”.
• Sinclair goes belly up. The lunch meat providers are wondering if they’ll make the sale up elsewhere

 

[iceeater1969]

It is, but we'd better get cracking. We have ~ 10 years to improve our standing before the ACC disintegration..


The Sec had almost decade head start w espn deal = billions. With acc deal for accnetwork for brief period only a few 100 mill per year further behind Rect espn sec deal = billions more, but less than big 10.

We have 5 years max before we better be demanding the bottom half of acc get cracking.

 

[Techwood Relict]

They didn’t overpay for the rights directly. Sinclair overpaid for the company that owned the rights. The NBA and NHL got nothing when Sinclair overpaid—Disney got the extra $$$$$ and laughed all the way to the bank.


Largely what you said.

Here’s an analogy:

• Subway buys out Jimmy John’s sandwich shops nationwide
• The FTC says “you have to sell off the shops across the street from your existing stores so there is competition
• Subway finds a sucker company to buy the stores they aren’t keeping—let’s say their name is “Sinclair”.
• Sinclair pays a ton of money for about 1/4th of the Jimmy John’s. They think “we have great sandwiches, we’ll double the price”.
• Customers say “I don’t want a $22 ham sandwich”, which was Sinclair’s business model
• Sinclair took over Jimmy John’s multi year contracts with lunch meat providers that they continue to pay at the same rate, such as “ACC roast beef”.
• Sinclair goes belly up. The lunch meat providers are wondering if they’ll make the sale up elsewhere

Great analogy. It just made me hungry.

 

[Jacket4Life]

I wish the Braves would leave that damn network. I switch from YouTube TV to Direct Tv Stream during baseball season. Pain in the butt!

 

[TampaBuzz]

I wish the Braves would leave that damn network. I switch from YouTube TV to Direct Tv Stream during baseball season. Pain in the butt!

You could just pay for a stand alone Bally subscription and not go through Direct TV. That is how I watch Lightning hockey. I have Sling for other stuff.

 

[konabuzz]

Pretty sure stand alone Ballys stream does not include the Braves.

 

[TampaBuzz]

Pretty sure stand alone Ballys stream does not include the Braves.

I have a lot of family in ATL and they use Bally for the Braves. In Tampa, I get the Rays and the Magic also.

 

[GT33]

You could just pay for a stand alone Bally subscription and not go through Direct TV. That is how I watch Lightning hockey. I have Sling for other stuff.

Thanks for the tip. I didn’t realize Bally’s covered hockey

 

[SteamWhistle]

Can’t think of a reason this would be bad for Tech. Also thought this is what the ACCN was for and what they wanted to happen.

 

[ThatGuy]

As expected, looks like Diamond (who owns Bally) has filed for bankruptcy.

While the article linked above is focused on MLB, it does talk about how MLB teams will handle the situation if Bally stops paying fo broadcast rights. Will be something to keep an eye on for sure.

 

[SuperToe]

There was a quote from Diamond Sports’ COO in The Athletic that may be of interest:

“On March 1, 2023, as stakeholder negotiations continued, Diamond elected to enter the grace period with respect to a rights fee payment due under its rights agreement with the Arizona Diamondbacks,” DeVoe wrote. “Diamond similarly did not make a payment to Raycom on February 28 with respect to the rights to broadcast Atlantic Coast Conference college sporting events on certain RSNs. Diamond has made all other payments to its team partners and has continued to operate its business as usual.”

If Diamond Sports can’t make their payment in the 30 day grace period or renegotiate the deal, ACC broadcasts may be off Bally as soon as this fall.