Sinclair Announces Global Settlement of All Diamond Sports Group-Related Litigation Issues, Including Agreement with Diamond on Management Services Agreement Amendment
17 Enero 2024 - 5:06AM
Business Wire
Sinclair, Inc. (Nasdaq: SBGI) today announced that it has
agreed, subject to definitive documentation and final court
approval, to a global settlement and release of all claims
associated with the litigation filed by Diamond Sports Group, LLC
(DSG) and DSG’s wholly-owned subsidiary, Diamond Sports Net, LLC,
in July 2023, which settlement includes an amendment to the
Management Services Agreement between Sinclair Television Group,
LLC (STG) and DSG.
The settlement terms include, among other things, DSG’s
withdrawal of its $1.5 billion litigation against Sinclair and all
other defendants, along with the full and final satisfaction and
release of all claims in that litigation against all defendants,
including Sinclair and its subsidiaries, in exchange for Sinclair’s
cash payment to DSG of $495 million, which is estimated to result
in a net cost to Sinclair of approximately $250-325 million after
considering corresponding tax benefits, additional Management
Services Agreement payments to STG, and other assets and value to
be received by Sinclair in connection with the settlement. The $495
million cash payment will be funded by cash on hand at Sinclair
Ventures, LLC, Sinclair Television Group, LLC and/or a loan backed
by Sinclair Ventures, LLC. Under the terms of the settlement,
Sinclair will provide transition services to DSG to allow DSG to
become a self-standing entity going forward.
The settlement is subject to definitive documentation, including
finalization of certain transition terms, and approval by the U.S.
Bankruptcy Court in Houston overseeing DSG’s chapter 11 case. A
motion for approval of the settlement is expected to be filed with
the Court next week.
The Company has entered into the settlement, without admitting
any fault or wrongdoing. If the settlement does not receive final
Court approval, Sinclair remains committed to vigorously defending
against the claims asserted in the litigation.
Forward-Looking Statements
The matters discussed in this press release include
forward-looking statements regarding, among other things, future
operating results. When used in this news release, the words
"outlook," "intends to," "believes," "anticipates," "expects,"
"achieves," "estimates," and similar expressions are intended to
identify forward-looking statements. Such statements are subject to
a number of risks and uncertainties. Actual results in the future
could differ materially and adversely from those described in the
forward-looking statements as a result of various important
factors, including and in addition to the assumptions set forth
therein, but not limited to, (i) the settlement is subject to
definitive documentation, including finalization of certain
transition terms, and Court approval; (ii) the timing of any final
decision by the Court; (iii) Sinclair’s ability to recognize the
intended benefits of the settlement offsetting its cash payment in
connection therewith, (iv) the impact of the settlement on
Sinclair’s financial condition, business operations, results of
operations and liquidity; and (v) any other risk factors set forth
in Sinclair’s recent reports on Form 10-Q and/or Form 10-K, as
filed with the Securities and Exchange Commission. There can be no
assurances that the assumptions and other factors referred to in
this release will occur. Sinclair undertakes no obligation to
publicly release the result of any revisions to these
forward-looking statements except as required by law.
About Sinclair, Inc.
Sinclair, Inc. (Nasdaq: SBGI) is a diversified media company and
a leading provider of local news and sports. The Company owns,
operates and/or provides services to 185 television stations in 86
markets affiliated with all the major broadcast networks; and owns
Tennis Channel and multicast networks Comet, CHARGE!, TBD and The
Nest. Sinclair’s content is delivered via multiple platforms,
including over-the-air, multi-channel video program distributors,
and the nation’s largest streaming aggregator of local news
content, NewsON. The Company regularly uses its website as a key
source of Company information which can be accessed at
www.sbgi.net.
Category: General
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version on businesswire.com: https://www.businesswire.com/news/home/20240116242855/en/
Christopher C. King, VP, Investor Relations Billie-Jo McIntire,
AVP, Investor Relations (410) 568-1500
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