College Sports Valuations and Trends - College sports valuations are surging due to bigger media deals, expanded playoffs, and conference realignment [1] - The top 75 athletic programs are now worth a total of $512 billion, up 24% from 2024 [1][2] - The University of Texas at Austin is the most valuable athletic program, valued at almost $148 billion [2] - Increased media rights deals, such as the Big 12 doubling its agreement, are driving valuations [3] - The College Football Playoffs' new deal with ESPN will increase its value to $13 billion starting next year [4] Factors Influencing Valuation - Name, Image, and Likeness (NIL) rights and a pro sports business model are shaping the college landscape [1] - NIL money is becoming a significant factor and will be on the balance sheet starting next year [9] - Donor money, such as that used for stadium renovations, can cause year-to-year fluctuations in revenue [6][7] - Private equity is increasingly looking at college programs and conferences as investment opportunities [10][11] Concerns and Future Implications - There are concerns about the impact of professionalization on student athletes and less popular sports [12][17] - The increasing player movement and coach turnover reflect a shift towards a professional sports model [13] - Lockouts in sports like the WNBA could pose risks to valuations, especially with emerging competitors [19][21][22]

MLB Reaches 3-Year Media Rights Deals With ESPN, NBCUniversal And NetflixWhen ESPN and MLB opted out of their media rights deal that included Sunday Night Baseball and jewel events like the Home Run Derby and the Wild Card series, it left a gap between now and the end of the 2028 season. Today, MLB announced short-term media rights deals to bridge that gap.Read more:https://t.co/7WCsoAUMcb (Photo: Eileen T. Meslar/Chicago Tribune/Tribune News Service via Getty Images) ...

Major League Baseball has completed new three-year media rights agreements with ESPN, NBCUniversal and Netflix, the league is set to announce Wednesday https://t.co/rOfiRhJTyk ...

We believe um and and believed at that time that women's sports, tennis in particular, has been undervalued in the marketplace. And so one of the primary things that we were looking for in a television partner was a partner that was willing to invest that believed in um providing us with the value that we have earned and that our fans demand. Um, so I think Tennis Channel um came to the table and they were really ready to invest um at at at a very high level relative to some of the other biders um that we w ...

Big moves could be coming to the world of motorsports. CNBC has learned that Apple close to finalizing a US media rights deal with Formula 1 that's expected to be worth, if you're ready for this, $140 million per year. Our own Alex Sherman spoke to Apple's senior VP of services, Eddie Q, about the future of racing.>> I think in the US, everyone talks about how big Formula 1 is now. And and the reality is is because it was nowhere. Um, and so if you're nowhere, it's gotten huge.But the truth is, it's not hug ...

Alex Sherman: Mark, thanks for joining us. Pleasure being here. You have started a sports fund in 2024 let's start here.Why sports. And what are you thinking about investing in now. Well, I guess sports, because I've always loved it.I actually think as an asset class, it's something you want to be invested in. And I think you're literally in the first second inning. I think you can make a fortune of money investing in sports.So that was the reason why I started it. You just don't have that much competition ...

NFL Media Rights Renegotiation - The NFL is considering renegotiating TV rights deals earlier than expected, potentially as early as next year [1] - Commissioner Roger Goodell believes the NFL is "leaving money on the table" compared to revenue increases in other sports leagues like the NBA and NHL [1][2] - The NFL signed an 11-year deal in 2021, locking up media rights until 2033, but there's an opt-out clause after the 2029-2030 season [1] - The NFL believes its current media partners may benefit from negotiating early to secure more years of NFL rights beyond 2030 [2] - The NFL's popularity is highlighted by the fact that 72 of the top 100 shows last year were NFL games, and 93 of the top 100 the year before [3] - Early NFL game ratings are higher this year compared to last year [4] Potential Impact on Other Sports Leagues - The NFL's renegotiation could put pressure on Major League Baseball, whose rights deal expires after the 2028 season [4] - Media companies may not have enough funds to accommodate increased rights fees for both the NFL and MLB [5] - Baseball might try to accelerate its media rights talks to precede the NFL [5] Financial Implications - Sports investors are advised to "go long NFL" in the near term [6] - A significant increase in media rights revenue could further increase NFL team franchise valuations, which were already up 18% year-over-year [7] - Increased media rights revenue could also lead to a higher NFL salary cap [7]

Media Landscape & Strategic Partnerships - PLL inked a fresh 5-year broadcast deal with ESPN, with ESPN becoming a minority owner [1] - Potential media deal in the works, considering assets from Warner Brothers, Paramount, and Sky Dance [2] - Media conglomerates are positioning themselves in the tech awakening [3] - Connected TV is in 88% of homes, totaling 117 million homes, leading to a shift in viewership [11] - Streaming viewership eclipsed broadcast and cable viewership combined in May 2025 [12] PLL Growth & Performance Metrics - Pro sports is an amazing asset class with enterprise value moving from media to partnerships to live events [6] - Viewership across linear platforms is up significantly [13] - ABC broadcast viewership is up 55% [13] - ESPN viewership is up 81% [13] - All-Star game viewership is up 115% year-over-year [13] - Ticket sales are up 11% [13] - Sponsorship is up 20% [14] - Merchandise sales are up 10% [14]

NFL Team Valuations and Trends - The average NFL team is now worth $765 billion, an increase of nearly 18% compared to last year [1] - The Dallas Cowboys are the most valuable NFL team, worth $125 billion, almost $2 billion more than the next most valuable team [1] - Private equity investment in the NFL is increasing, setting a floor on valuations and adding liquidity [3][4] - Limited Partner (LP) stakes are now being valued close to control valuations due to the presence of private equity [4] - Teams like the Eagles and 49ers have seen record valuations for small pieces, at $83 billion and $86 billion respectively [5] - The New York Giants are considering selling a 15% stake at over $10 billion valuation [5] Financial Health and Revenue Streams - NFL teams are generally very profitable, unlike some NBA teams that are losing money [9][10][11] - Media rights are a significant driver of NFL team value, and the league's intellectual property is considered far from being fully exploited [8] - The LA Rams have a high debt percentage (28% of value) due to privately financing their new stadium, but they are generating significant sponsorship revenue, approaching $200 million [12] Market Outlook - The NFL's deal with ESPN involves giving the NFL 10% of the network to maintain the rights and facilitate the transition to streaming [9] - Investors are willing to invest hundreds of millions in NFL teams, anticipating future revenue growth and increased team value [7]

Financial Data and Key Metrics Changes - The company generated revenue of $1,308 million, an increase of 10% compared to the previous year [16] - Adjusted EBITDA was $526 million, reflecting a significant increase of 75%, with an adjusted EBITDA margin of 40%, up from 25% in the prior year [16] - The UFC segment reported revenue of $416 million, a 5% increase, while adjusted EBITDA was $245 million, a 6% increase [16][17] - The WWE segment generated revenue of $556 million, a 22% increase, with adjusted EBITDA of $330 million, a 31% increase [20] - The IMG segment saw a revenue decrease of 4% to $307 million, but adjusted EBITDA improved significantly to $29 million from a negative margin in the prior year [23] Business Line Data and Key Metrics Changes - UFC's partnerships and marketing revenue increased by 39% to $86 million, driven by new partnerships and renewals [17] - WWE's live events and hospitality revenue increased by 29% to $186 million, attributed to higher ticket sales and site fee revenue [20] - IMG's revenue decline was primarily due to the loss of FA Cup rights, partially offset by new production agreements [23] Market Data and Key Metrics Changes - The company set 36 individual market records for ticket sales in WWE, selling out 16 events during the quarter [9] - WWE's partnership with Netflix has shown robust growth, with over 280 million view hours since its launch [10] - The company anticipates strong performance in upcoming events, including the Canelo versus Crawford fight and the FIFA World Cup [14][30] Company Strategy and Development Direction - The company is focused on capitalizing on sustained demand for premium content and live events, raising its full-year guidance for revenue and adjusted EBITDA [5][29] - The strategy includes leveraging partnerships across multiple TKO properties, enhancing brand partnerships, and integrating IMG On Location and PBR [18][30] - The recent ESPN deal for WWE's premium live events is expected to create a high-margin revenue stream with attractive visibility and stability [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued momentum across UFC and WWE, highlighting strong operating performance and the potential for further growth [15][29] - The company is optimistic about the impact of the new ESPN deal and the integration of IMG, expecting to achieve significant savings and revenue growth [30] - Management noted that while there are challenges in the upcoming quarters, the overall outlook remains positive with strong demand for premium content [34] Other Important Information - The company generated $375 million in free cash flow, with a conversion rate of 71% [27] - The company ended the quarter with $2.769 billion in debt and $535 million in cash [27] - A share repurchase program of $2 billion is expected to commence in 2025, subject to market conditions [27] Q&A Session Summary Question: What are the implications of the new WWE deal with ESPN? - Management emphasized the importance of not putting all rights on one platform, highlighting the benefits of having multiple partners to maximize monetization and reach [42][44] Question: Why was the WWE PLE deal announced before the UFC deal? - Management clarified that the timing was due to simultaneous negotiations for multiple properties and confirmed that the UFC deal is progressing well [60][62] Question: What are the growth opportunities beyond the UFC media rights renewal? - Management highlighted the potential for increased profitability through partnerships, sponsorships, and the expansion of live events, indicating a strong growth trajectory [96][100]