Sinclair Can’t Force Bankrupt Sports Unit to Pay Management Fees

Sinclair Inc. can’t force its bankrupt sports broadcasting subsidiary, Diamond Sports Group, to immediately pay millions of dollars in management fees, a bankruptcy judge ruled late Friday.

Judge Christopher Lopez said during a hearing that Diamond can put off paying Sinclair until it’s prepared to either restructure its business or shut down in Chapter 11, a decision Diamond might not make for several more months.

Fights over those payments have pitted Sinclair against Diamond, which is being run in Chapter 11 by independent advisers. Earlier this year, Diamond sued Sinclair, accusing its parent company of charging high management ...