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]

Media Rights & Revenue - MLB aims to consolidate national and local media rights to create more valuable packages for potential buyers, increasing national exposure and reach [6][7] - MLB is confident in securing significant rights fee increases in 2028 by having all content available, including playoffs and regular season games [2][3] - Centralizing media revenue and sharing it equally (1/30) among teams could reduce the need for local revenue sharing, appealing to large market teams [9] - MLB is close to finalizing a Sunday package deal with multiple bidders, including NBC, Apple, and ESPN [11][12] - International rights, especially concerning players like Shohei Ohtani, will be a significant component of future media rights deals [39][40] Competitive Balance & Player Relations - MLB acknowledges the significant spending difference between high and low-spending teams and is considering solutions to improve competitive balance [17] - MLB recognizes the players union's stance against a salary cap but aims to convince players that any system changes will benefit everyone [19][20] - MLB intends to address concerns about competitive balance, acknowledging fans' concerns in various markets [16] Game Integrity & Gambling - MLB emphasizes transparency in sports betting through partnerships and monitoring systems to defend the integrity of the game [42][43] - MLB's policy regarding players involved in gambling scandals allows posthumous Hall of Fame eligibility, distinguishing between living and deceased individuals [44][45] Fan Engagement & Growth - MLB attributes the spike in ratings to a better on-field product and rule changes that have made the game faster and more action-packed [22] - MLB is investing heavily in youth participation, with youth programming showing measurable returns and MLB becoming the fastest-growing major sport [55][56] - MLB is actively promoting its stars through multifaceted marketing programs, including social media engagement [25][28] Expansion & Future Initiatives - MLB is committed to resolving the situations with the Athletics and the Tampa Bay Rays before considering expansion [35][36] - MLB is considering expansion by two teams, ideally one in the Eastern Time Zone and one in the Mountain or Western Time Zone [37] - MLB anticipates expansion fees to be in the billions, given recent franchise value developments [38] - MLB is actively considering participation in the 2028 Los Angeles Olympics, viewing it as a marketing opportunity [50][51]

Sports Business Headlines - Yahoo Finance Sports Report analyzes sports business news, including team trades and billion-dollar deals, to inform investment decisions [1] - The report features high-profile trades, media rights deals, and financial plays shaping the sports business [1] Key Events & Deals - The report covers the Red Sox Rafael Devers trade [1] - Netflix's Canelo Alvarez versus Terence Crawford superfight is highlighted [1] - WNBA's broadcast rights extension with Scripps is discussed [1] Featured Personalities & Companies - Fanatics CEO Michael Rubin teases the 2025 Fanatics Fest in New York City from June 20-22 [1] - F1 Arcade US President Jon Gardner discusses the Formula One entertainment venue and racing league's growth in the United States [1] Yahoo Finance Resources - Yahoo Finance provides free stock ticker data, news, portfolio management resources, and market data [1] - The Yahoo Finance app is available on Apple and Android [1]

Group 1: NFL and Streaming Partnerships - The NFL is expanding its Christmas Day games to three, with Amazon securing one game and Netflix two, reflecting the league's commitment to its media partners [1][2][3] - Netflix has a three-year deal with the NFL, ensuring two Christmas Day games in 2024 and at least one in 2025 and 2026, marking a significant achievement for the streaming service [3][5] - Amazon has acquired various NFL rights, including Thursday Night Football and exclusive playoff games, enhancing its sports content portfolio [4] Group 2: Viewership and Market Impact - Netflix's Christmas Day games in 2024 averaged 24 million viewers, with 65 million Americans watching at least part of the games, indicating strong audience engagement [5] - The NBA's Christmas Day games in 2024 averaged 5.25 million viewers, an 84% increase year-over-year, showcasing the competitive landscape for holiday sports viewership [7][8] - The success of NFL games on Christmas could pose challenges for the NBA and its media partners, as the NFL is likely to continue this trend [8] Group 3: Stock Performance - Netflix's stock is currently trading at $932.12, reflecting a year-to-date increase of 5.1% and a 51.8% rise over the past year [9] - Amazon's stock is trading at $195.56, showing a year-to-date decline of 11.2% but an 8.3% increase over the last year [9]