Sinclair Broadcast Group Inc. has just closed on a deal that makes it the largest operator of regional sports networks in North America, and it is already looking to expand its roster.
The station group was given the U.S. Department of Justice's approval Aug. 23 for its $9.6 billion purchase of 21 regional sports networks and FOX College Sports (US) from The Walt Disney Co. as a condition of the media conglomerate acquiring myriad assets from the sports services' former owner, 21st Century Fox Inc.
Sinclair CEO Chris Ripley indicated that the company would like to fill out its RSN footprint, according to a Wall Street Journal story Aug. 23.
AT&T has been looking to reduce its debt load by selling various assets, reportedly including AT&T SportsNet Pittsburgh (US), AT&T SportsNet Rocky Mountain (US), AT&T SportsNet Southwest (US) and ROOT SPORTS Northwest (US).
With the closing of the Disney deal, Sinclair will be adding the management of FOX Sports Regional Networks, led by the group's president Jeff Krolik, and its staffers, to its employee base.
As Sinclair awaited the deal's closing, the FOX Sports Regional Networks had continued to manage the channels, and on Aug. 21, completed a carriage renewal deal with Cox Communications Inc. for 15 RSNs within the cable operator's footprint.
On Sinclair's Aug. 7 earnings call, Ripley said the company, as part of its multiyear retransmission-consent agreement with Charter Communications, also secured carriage for the 21 RSNs, as well as Tennis Channel (US) and the Marquee Sports Network, a joint venture with Major League Baseball's Cubs franchise slated to yield an RSN with the club launching in February 2020.
Sinclair continues to face an impasse with DISH Network Corp. that has kept the RSNs dark on the satellite service and virtual provider Sling TV since July 26. Sinclair CFO Lucy Rutishauser on the earnings call said the company expected the RSNs "to be picked back up by DISH," but that was unlikely to happen until the broadcaster officially controlled the networks.
The closing of the deal for the FOX RSNs does not pertain to Sinclair's minority investment stake in the YES Network (US). 21st Century Fox had owned 80% of YES, the regional sports network home to MLB's New York Yankees and the National Basketball Association’s Brooklyn Nets, which had the right to sell its interest with a change of ownership.
Sinclair will handle distribution for YES, a source familiar with the deal said. The deal is expected to close before the end of the month.
Sinclair did not respond to queries and an interview request by press time.
