Disney’s $71bn acquisition of a trove of 21st Century Fox media assets in 2019 remains controversial. However, Disney’s Bob Iger, as a part of the transaction, made one undeniably wise choice. Fox was also seeking to unload more than 20 regional sports networks that broadcast baseball and basketball games in local markets. RSNs were a lucrative concept that Rupert Murdoch had helped pioneer.
Disney decided to pass on the RSNs. They were ultimately acquired by Sinclair Broadcast Group, which was best known as an operator of local television affiliates scattered across the US.
Sinclair went on to put the RSN’s into a separate vehicle which it named Diamond Sports. The entity was thought to be so foolproof that its $10.6bn purchase of the Fox assets was funded with just $1.4bn of common equity.