Main Street Sports Faces Imminent Liquidation, Sources Reveal
Recent reports indicate that Main Street Sports Group may face imminent liquidation, potentially forcing its nine Major League Baseball (MLB) teams to seek alternatives. Sources suggest that without urgent financing, the organization might have no choice but to file for Chapter 7 bankruptcy as early as next week.
Main Street Sports Group Liquidation Threat
If liquidation occurs, broadcasts for the FanDuel Sports Networks, covering 20 teams in the NBA and NHL, could go dark. This would happen midseason after a short grace period, putting pressure on teams to find replacement broadcasting solutions.
Impact on MLB Teams
- Teams involved: Braves, Reds, Tigers, Royals, Angels, Marlins, Brewers, Cardinals, Rays.
- These teams may decide that staying with Main Street is financially unfeasible.
As the start of the MLB season approaches in 58 days, skepticism around Main Street’s financial health is rising. The group emerged from Chapter 11 bankruptcy just a year ago, with the expectation of reorganization. However, if all nine MLB teams withdraw, it is likely that potential buyer DAZN would also retract its interest, pushing Main Street closer to Chapter 7 liquidation.
Financial Struggles
Sources indicate that Main Street has been unable to meet its financial obligations, having already defaulted on January rights fee payments. The organization requested current teams to accept a 20% reduction in future rights fees and postpone payments until the second or third quarter of the year. This has raised doubts about the company’s ongoing viability.
Contingency Plans for the Leagues
NBA and NHL teams remain cautiously optimistic that Main Street will complete the season. However, decisions regarding the company’s fate will ultimately be made by its creditors. In the event of liquidation, both leagues are preparing contingency strategies to facilitate game broadcasts.
The situation surrounding Main Street Sports Group continues to evolve, with stakeholders keenly waiting for developments in the coming days.
