Published: April 26, 2021, 8:58 a.m.
Last updated: April 26, 2021, 01:11 h.
The Sinclair Broadcast Group is looking to do more deals similar to the one media company it reached last year with casino operator Bally's Corp. (NYSE: BALY). Movements come as it tries to convert its debt load on its regional sports network (RSN).
Sinclair is reportedly actively involved in discussions with creditors of his unit, Diamond Sports Group LLC. These talks allegedly concern the possibility of new financing, with enhanced lender protection.
The media company acquired 21 RSNs in 2019 from Walt Disney for $ 10.6 billion, while this company was selling assets to obtain regulatory approval for the acquisition of 21 ul. Century Fox. At the time, RSNs were valued at 16 billion $.
Of this $ 10.6 billion paid, Sinclair only paid $ 1.4 billion in cash with the remainder coming from the sale of high yield bonds and loans. But the debt repayment will be in 2026 and 2027 released by Diamond Sports, which recently traded at difficult levels after the cable cut, some cable TV providers abandoned RSN and the sports shutdown forced by the coronavirus pandemic, all of which had an impact on RSN's bottom line.
Sinclair is in talks with two sports betting companies on marketing partnerships that resemble a broadcaster's deal with Bally's Corp. last year, "he reports Bloomberg , citing sources familiar with the case.
This pair of gaming companies has not been identified.
Can the Bally template be reused?
It is not yet clear how Sinclair's new deals with betting operators will be withdrawn or whether they will even come into effect.
However, a media company could look for acts that resemble an agreement with Bally's. Under the terms of this agreement, the Rhode Island-based gaming company pays Sinclair $ 85 million over 10 years for the naming rights in the aforementioned RSNs. Sinclair also obtained a 21 percent equity stake from the casino operator, which could grow up to 30 percent over time if specified financial goals are met.
It remains to be seen whether Sinclair can gain similar conditions with other gaming entities. But when it comes to the deal with Bally, Diamond Sports' creditors probably like it as the media firm has valuable assets that it can ultimately bring down to raise capital.
When the Bally Agreement was disclosed last November, the operator's market capitalization was around $ 913 million. Today it is $ 2 48 billion, which is Sinclair's 15 percent stake in the company more than doubled in value.
Wynn in the Mix
Following a Bally's / Sinclair announcement last November, it was reported that Wynn Resorts (NASDAQ: WYNN) was the company that lost to Bally.
While it's unclear if Wynn is one of the two operators the media company is currently talking to, two things are obvious.
First, the Las Vegas-based company is actively expanding its sports betting business. Second, it is one of the names in the space that currently lacks a marquee's media partnership.
Earlier this year, Macquarie estimates that gaming-media relations will bring in more than $ $ 30 billion worth of iGaming and sports betting revenue by 2030.