DALLAS — Diamond Sports Group, which operates the Bally Sports regional networks, has filed for Chapter 11 bankruptcy, the company announced in a press release on Tuesday.
In the release, the company said it made the decision in order to eliminate $8 billion in debt under a new restructuring agreement. The filing was made to a bankruptcy court in the Southern District of Texas.
Diamond Sports Group, whose parent company is Sinclair Broadcasting Group, and its Bally Sports networks have been under scrutiny from sports fans across the U.S. as access issues continue.
In the North Texas area in particular, Bally Sports Southwest, which used to be Fox Sports Southwest, has been the main broadcaster of the Dallas Mavericks, Dallas Stars and Texas Rangers on television, with few exceptions for certain games.
Since Bally Sports Southwest debuted in 2021, fans have voiced their complaints as ways to watch their favorite DFW teams began to dwindle.
Those with services such as Dish and YouTube TV have been unable to watch the network.
The subscription-based app Bally Sports+ was recently created, giving fans an option to watch their teams without a current cable or streaming service. In the Dallas area, a subscription costs $19.99 a month or $229.99 for a year.
In its bankruptcy announcement, Diamond Sports Group added that the Bally Sports networks "will continue to operate in the ordinary course during the Chapter 11 process."
"We are utilizing this process to reset our capital structure and strengthen our balance sheet through the elimination of approximately $8 billion of debt. The financial flexibility attained through this restructuring will allow DSG to evolve our business while continuing to provide exceptional live sports productions for our fans," Diamond Sports Group CEO David Preschlack said in a statement.
"DSG will continue broadcasting games and connecting fans across the country with the sports and teams they love. With the support of our creditors, we expect to execute a prompt and efficient reorganization and to emerge from the restructuring process as a stronger company," Preschlack added.