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Sinclair Responds To $1.5B Fraud Claim Amid DSG Turmoil

Aug 21, 2023

Sinclair Inc.’s full response to Diamond Sports Group’s recent $1.5 billion fraud claim hasn’t been made public — but Sinclair believes it shouldn’t have to help fund its own subsidiary’s legal claim against it.

In a new court filing in a U.S. bankruptcy court in Texas, Sinclair said DSG has run up a tab of nearly $147 million in unpaid management services, while also paying Sinclair for other services at below-contracted rates. As a result, Sinclair has asked the court to compel DSG to either pay that bill or reject the companies’ management services contract entirely.

“Sinclair is being forced to shoulder the burden and expense of the [management services] at a significant discount, while effectively subsidizing Diamond’s litigation against Sinclair attacking those very same services,” Sinclair said in its filing.

Source: Front Office Sports

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