Moody’s Investors Service has downgraded the credit outlook of Diamond Sports Group, the consortium led by Sinclair Broadcast Group that owns the 23 regional sports networks formerly run by F…
The view of the ratings agency turned negative due to increased debt levels likely over the next 12 months. All sports broadcasters are coping with a mass exodus of viewers and advertisers after the entire sports world ground to a halt since mid-March due to the effects of COVID-19. While national networks have amped up re-runs or unscripted fare and are also starting to get live overseas action back on the air, U.S. regional networks are suffering a direct hit from the pandemic.
Even before the pandemic, though, Diamond had been in a carriage dispute with Dish Network, a major satellite operator, and the networks have been off Dish since last July. Asked by Wall Street analysts in recent days about any progress in the discussions, Ripley said he had no update. Dish’s outspoken chairman Charlie Ergen, famous for drawing lines in the sand, has said it could be the permanent end of the line for the RSNs on Dish, especially with the company’s pivot toward wireless.L.A.
Moody’s expects that Diamond’s debt-to-earnings ratio will hit 7.9 times by the end of 2020. Even in the scenario of Dish resuming carriage of the Diamond networks by the spring of 2021, leverage levels will be at about 6.4 times.outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines have created a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects of these developments are unprecedented.
Despite the unfolding crisis, Ripley has asserted in recent days that Diamond is on solid footing. The Moody’s report noted it had $483 million in cash on its balance sheet as of March 31. Ripleya return by the NBA, NHL and Major League Baseball in July or August, which would be an immediate boost to the 15 Diamond networks carrying games from all three leagues.
A proposal from MLB owners is being debated by the players but would call for large-scale quarantines and risk mitigation measures that could make it a non-starter for some players. Markets like New York or Chicago, disproportionately suffering from the effects of the pandemic, would be unable to host games, meaning their teams would spend months on the road.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
5 strategies my husband and I used to get a credit score of 800 - Business InsiderBuilding credit with a credit card and using CreditSesame to monitor our scores were important tools for getting a credit score north of 800.
Lire la suite »
Fed policymakers are negative on negative ratesU.S. Federal Reserve policymakers say they will do what it takes to cushion an economy crushed by the widespread lockdowns aimed at slowing the coronavirus spread, but there's one thing they probably won't do: take interest rates below zero.
Lire la suite »
Event Designer Bobby Garza in Austin, in a Pandemic: 'It's Causing a Little Bit of an Existential Crisis'Bobby Garza, executive lead, creative + experience at live events company Forefront Networks, is navigating life during the pandemic after being furloughed.
Lire la suite »
This 28-year-old staff sergeant raised his credit score nearly 200 points by watching YouTube—here's his best adviceIn the next installment of CNBC Select's 'Credit Scores: Then and Now' series, we speak to someone who has raised his credit score from 604 to an excellent 797.
Lire la suite »
Divorce can cause your credit score to plummet—experts say take these 4 credit steps beforehandCNBC Select speaks to two experts about the four steps they recommend you take to protect your credit before getting a divorce.
Lire la suite »
The Global Support Ecosystem for Women Entrepreneurs and Investors340+ VCs, accelerators, angel networks, conferences, platforms, and communities supporting women innovators and investors
Lire la suite »