Sinclair's Regional Sports Network Bet Isn't Going Well
Sinclair Broadcast Group (NASDAQ: SBGI) made some sizable sports bets last year, and it's not looking like they'll pay out very well.
The media company partnered with the Chicago Cubs to develop the Marquee Sports Network, which just launched earlier in February. It bought a minority stake in YES Network, the home of the Yankees, Nets, and other New York sports teams. And its biggest deal was the acquisition of 21 regional sports networks from Disney last summer for about $10 billion.
Even though Sinclair ended up paying just around half the original estimated value of the regional sports networks (RSNs) when all its various purchases were said and done, it still might've gotten a bad deal. It's having a hard time getting distributors to renew their contracts for the high-priced cable networks, which means a steep decline in profits.
Source Fool.com
