Bally Sports bankruptcy: NHL hints at availing emergency funds from court over non-payment 

At the threshold of the upcoming NHL season, Diamond Sports Group, operating as Bally Sports, finds itself navigating through turbulent waters. In a recent Texas hearing, U.S. Bankruptcy Judge Christopher Lopez extended Diamond's Chapter 11 bankruptcy timeline, allowing more time to address creditor issues. This development comes as Diamond prepares to broadcast NBA and NHL games.

The National Hockey League, which is set to kick off training camps on September 11 and the regular season on October 10, has expressed concerns about Diamond's financial predicament. While the league has engaged in constructive discussions with Diamond, time is running short. If no resolution is reached, the League might turn to the court for emergency funds and seek relief by terminating contracts.

Diamond's challenges are emblematic of a shifting industry landscape. Streaming options' emergence has disrupted game broadcasting's profitability, prompting Diamond to seek contract restructuring with its roster of 42 teams, including 12 NHL and 16 NBA teams.

Judge Lopez aptly described the case as "incredibly complicated," given the various leagues, teams, and contract timelines involved. As the countdown to the NHL season begins, Diamond's interactions with major cable operators like Comcast and DirecTV will be crucial. These negotiations will influence the fate of Bally Sports, especially considering that nearly half of the pay-TV market is served by these operators.

Amidst the uncertainty, the NHL's potential recourse to court for emergency funds due to non-payment highlights the gravity of the situation. As Diamond strives to secure its standing and navigate the challenges ahead, the sports broadcasting landscape stands at a crossroads, with implications for fans and the industry as a whole.

NHL Franchises That Weathered Financial Storms

Several league franchises have faced financial turmoil, leading to bankruptcy over the years. The Pittsburgh Penguins struggled in 1975 when owners Tad Potter and Peter Block couldn't settle $6.5 million in debt, resulting in IRS seizing assets. Similarly, in 1995, the Los Angeles Kings' owner, Bruce McNall, sold a majority stake due to fraud allegations, ultimately leading to bankruptcy protection.

The Ottawa Senators and Buffalo Sabres faced bankruptcy in 2003; the former was rescued by Eugene Melnyk, while fraud charges against Sabres' owner, John Rigas, prompted a sale to Tom Golisano. The Nashville Predators saw financial issues in 2008 due to owner William Del Biaggio's bankruptcy.

The Phoenix Coyotes, owned by Jerry Moyes, filed for bankruptcy in 2009, with relocation talks initiated by Jim Balsillie.