Sinclair expands regional coverage with 20% stake in YES Network

When it comes to sports, fan engagement hikes when the action is live and live sports viewing remains a critical factor driving the sports broadcasting business. The year 2019 will prove to be a pivotal one for broadcasting service providers with sports sitting directly in the center of the action. The latest update from the sports business involves two of America’s leading regional sports networks.

Sinclair Broadcast Group, part of a Yankee Global Enterprises-led consortium, has recently declared that Diamond Sports Group has obtained a 20% equity stake in the Yankee Entertainment and Sports (YES) Network, valued at nearly $346 million over a total enterprise value close to $3.4 billion.

Evidently, Sinclair will manage YES Network’s traditional and virtual distribution relationships under the brand’s management unit.  

The YES Network is apparently America’s most-viewed regional sports network (RSN) that broadcasts a range of content including sports and specialty programs for the Brooklyn Nets, the New York Yankees, WNBA’s New York Liberty and the New York City FC.

With this investment, the Sinclair group now owns 23 RSN brands, including 21 brands Sinclair obtained from Disney a week ago and Marquee with the Chicago Cubs, noted Sinclair President and CEO, Chris Ripley.

Sources familiar with the matter reported that the transaction was funded as part of Sinclair’s initial investment into the Diamond Sports Group.

Some of the other investors in the YES Network include Amazon, Yankee Global Enterprises, RedBird Capital, Mubadala Capital and funds managed by Blackstone’s Tactical Opportunities business. Liontree and Guggenheim were the advisors for Sinclair, according to reports.

For the record, the YES Network has 118 Emmy Awards to its name since its establishment in 2002 and has consistently been rated as one of the most influential sports business brands across the globe.

Apart from regular season Yankees games, the brand also broadcasts two pre- and postgame programs which are the Yankees Magazine, a weekly show that features behind-the-scenes drama, interviews, player profiles and Yankees highlights, and Yankeeography, an Emmy award-winning biography show featuring past and present Yankees greats.

Sinclair had acquired 21 RSN channels from the Walt Disney Company in a transaction worth $9.6 billion recently. The deal was reportedly closed after gaining approval from the Justice Department.

Source credits:

https://www.prnewswire.com/news-releases/sinclair-acquires-20-interest-in-yes-network-300909204.html