Largest US Broadcaster of Local Sport Channels Goes Bankrupt (2)

America’s largest owner of local sports channels filed for bankruptcy after its efforts to pivot its business model were stymied by its unwieldy balance sheet.

Diamond Sports Group, which operates under the Bally Sports brand, sought Chapter 11 court protection on Tuesday in Texas. It marks a remarkably swift downfall for the Sinclair Broadcast Group Inc.-owned company, which loaded up on debt to buy 21 regional sports networks from Walt Disney Co. in 2019 for $9.6 billion. Sinclair shares were down 7.1% to $13.56 as of 11:15 a.m. in New York on Wednesday.

Its channels showcase Major League ...