Sinclair Broadcast Group, Endeavor and Live Nation Entertainment are "among the prominent industry firms facing new financial pressure because of their high debt loads and vulnerability from the widespread shutdown of sports leagues, concerts and other live events," according to Cynthia Littleton of VARIETY. The timing of Sinclair Broadcast Group’s $9.6B acquisition of 21 regional sports networks from Disney "could not have been worse given the unforeseen sports blackout." Sinclair’s "biggest problem is the lack of readily available replacement programming for its regional sports networks." At the end of '19, Sinclair had $11.1B in total debt. Meanwhile, Endeavor, the parent company of UFC, WME and IMG, is "poised for a big hit as so much of its business revolves around sports tournaments, fashion shows, food and wine festivals and other types of gatherings that have been canceled or postponed." As for Live Nation, in Q4, the company had about $3.3B in "long-term debt." Live Nation "could be in for a credit downgrade if revenue tanks and its leverage ratio spikes beyond the five times EBITDA ratio" (VARIETY.com, 3/18).
