Disney CEO Bob Iger said the company is in discussion with “a number of different entities” on an ESPN equity partnership — one of the most anticipated deals in all of sports media.

As the company reported its fiscal fourth-quarter earnings, Iger said negotiations are continuing with multiple entities on potential pacts that would aid Disney in offering a full direct-to-consumer version of ESPN. 

“There’s significant interest out there. There are obviously complexities to it, but not hurdles that are so high that we can’t jump over them,” Iger said in an earnings call. “We’re continuing to explore it, and I would imagine we’ll have more to say about this in the coming months.”

That equity discussion, initiated this past summer, has involved several major pro leagues, Amazon, and Verizon, among others, and is increasingly focusing on the NFL and NBA.

Disney’s “inevitable” plan to offer that DTC version of ESPN also remains on track, with a target debut date of 2025.

“Our plan is to have a soft landing, which is continuing to make ESPN available as part of the [cable] bundle … and at the same time on a true a-la-carte basis, serving the consumer in both a traditional way and in a new way,” Iger said.

Bristol Results

Core financial results at ESPN showed broad-based growth during the quarter, which coincided with the start of pro and college football seasons.

Overall sports revenue for Disney — a key part of its new reporting structure — was flat at $3.9 billion, but operating income rose 14%, due in part to lower programming, production, and marketing costs. Those results were part of two straight years of growth in domestic ESPN revenue and operating income.

ESPN+ subscriptions, which dropped for the first time in Disney’s fiscal third quarter, resumed their growth pattern in the latest period, rising from 25.2 million to 26 million, though average monthly revenue per user dipped for a second straight quarter to $5.34.

The figures highlighted a more optimistic quarter for Disney in which revenue grew 5% to $21.2 billion, operating income rose 86% to nearly $3 billion, and overall direct-to-consumer losses decreased 74% from $1.48 billion in the same quarter a year ago to $387 million. 

“While we still have work to do, these efforts have allowed us to move beyond this period of fixing and begin building our businesses again,” Iger said. 

Endeavor has no shortage of pressing issues, including a stock that is still down nearly 11% since its 2021 initial public offering, an actors’ strike cutting heavily into its Hollywood business, and new consideration of going private. 

But the company’s sports properties continue to be standouts on its balance sheet. 

In third-quarter earnings released Wednesday, Endeavor said its owned sports properties segment — which includes its majority interest in WWE and UFC parent entity TKO Group Holdings, as well Professional Bull Riders — posted a 19.3% increase in revenue to $479.7 million. Endeavor’s sports data and technology segment, led by IMG Arena and OpenBet, grew 167.2% in revenue to $124.8 million.

Those numbers exceeded Endeavor’s overall 10% revenue rise to $1.34 billion and a net loss that deepened from $12.5 million to $116 million.

Endeavor CEO Ari Emanuel declined to offer any additional details on the potential privatization, which last month sent Endeavor shares upward in expectation of a deal. But he cheered TKO’s progress as its own company, as it reported a 32% increase in quarterly revenue to $449.1 million but saw net income fall to $22 million from a comparable $129.7 million a year ago.

“Over just the first frame of our integration efforts, WWE and UFC have set live-event records, announced international expansion plans, increased media rights fees, and confirmed a significant new global partnership,” Emanuel said.

More TV Dealmaking

Less than two months after WWE completed a five-year, $1.4 billion rights agreement with NBC for the U.S. rights to SmackDown, the pro wrestling property made another big TV deal.

The latest move was a five-year pact with the CW Network to show developmental circuit WWE NXT. The latest deal represented a 70% jump in rights fees compared to the prior deal with USA Network, reportedly now worth in the neighborhood of $25 million annually.

For the CW, the deal adds to prior rights pacts with the Atlantic Coast Conference, NASCAR, LIV Golf, and “Inside The NFL.”

Adidas didn’t post a strong earnings report for its most recent fiscal quarter — but its association with controversial rapper Ye, formerly known as Kanye West, continues to stoke high interest among consumers.

Sales of the brand’s Yeezy shoes brought in $374 million during Adidas’ third quarter. After initially parting ways with the rapper in the wake of his antisemitic comments, Adidas had more than $1 billion worth of Yeezy stock remaining. The most recent report brings the total revenue from Yeezy sales past $800 million since the relationship ended. 

Instead of destroying the remaining Yeezy merchandise, Adidas decided to continue selling it and donate the proceeds to anti-hate groups. The company has yet to decide whether it will sell the remaining $320 million of stock next year or write off the inventory as a loss.

Overall, Adidas reported a significant decline in operating profits year-over-year, down 27.5% to $438 million — with the Yeezy saga a major factor in the business losses. Total revenue was down 6% to $6.41 billion, including a 10% dip in North American sales.

Adidas stock remains relatively flat, down less than 2% but not falling below $90, as of Wednesday afternoon.