May 9, 2024

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Warner Bros. Discovery president and CEO David Zaslav tries to strike an optimistic tone with regard to the high-stakes NBA media-rights negotiations. But plenty of other issues surround the TNT Sports parent. … Utah’s NHL franchise owner Ryan Smith takes the latest step in an extended effort to involve fans directly in the establishment of the team in its new home. … Plus: More on TKO Group Holdings, Raiders fans in Southern California, Everton, and NASCAR media.

— Eric Fisher [[link removed]] and David Rumsey [[link removed]]

TNT Parent’s CEO Vies to Secure NBA Rights As It Faces Financial Pressure [[link removed]]

Kirby Lee-USA TODAY Sports

On the heels of another sluggish quarter financially, a lagging stock, and rising pressure to retain the company’s NBA media rights [[link removed]], Warner Bros. Discovery president and CEO David Zaslav said he is now “hopeful” of keeping the coveted league content.

Speaking with analysts Thursday following the release of first-quarter earnings, Zaslav did not detail exactly where WBD stands in the ongoing NBA negotiations. But he confirmed the company’s existing rights [[link removed]] to match rival offers and sought to strike a more optimistic tone.

“We are in continuing conversations with [the NBA] now and we are hopeful that we will be able to reach an agreement that makes sense for both sides,” Zaslav said. “We have had a lot of time to prepare for this negotiation and we have strategies in place for the various potential outcomes.”

The comment was Zaslav’s second public one this week about the league after he said [[link removed]] Monday, “We love the NBA,” marking a particular reversal from a 2022 remark, “We don’t have to have the NBA.”

Comcast’s NBC Sports, which hasn’t held NBA rights since 2002, in particular is making an aggressive push to acquire rights to the league currently held by WBD’s TNT Sports.

Importance of the NBA

If WBD is able to keep its NBA rights in some fashion, it would almost certainly provide a meaningful lift to a company facing struggles in many areas of its operations, while losing them could amplify some of the broader issues as well as complicate future carriage discussions with cable and satellite operators.

Despite $86 million in adjusted earnings in its direct-to-consumer operations, following full-year profitability [[link removed]] in 2023 from streaming, WBD missed analyst targets with top-line measures of $9.96 billion in revenue, down by 7% from the comparable period, and a net loss of $966 million.

WBD stock was essentially flat in early Thursday trading. Shares in WBD have fallen by more than two-thirds since April 2022, when Discovery, Inc. and AT&T Inc.’s WarnerMedia completed a landmark merger, and by one-third since January.

“These are challenging times for our industry, there’s no question,” Zaslav said. “But there isn’t a more exciting moment to be in this business. We’re continuing to do the hard work to transform our company.”

More Streaming Bundling

Already working with both ESPN and Fox on a sports-focused streaming alliance [[link removed]], WBD has also entered into an additional bundling agreement with ESPN’s parent, Disney [[link removed]], in which the Max streaming service will be offered in a joint subscription with Disney+ and Hulu. Pricing has yet to be finalized but will be set at a discount. The commercial-free versions of those services currently cost $48 per month combined.

The Disney-WBD pact is yet another sign of how some major media companies are now willing to collaborate while they face a business undergoing historic levels of change, and it also shows the degree to which they are fighting churn among streaming subscribers.

“We’ve been saying for the last two years that the consumer experience [in streaming] is a real challenge, and ultimately, you have to follow the consumer,” Zaslav said.

That said, the rise of streaming bundling and a maze of different pricing offers—by WBD, Disney, and others—could present ultimately a different level of confusion for consumers.

SPONSORED BY GAINBRIDGE

Apply for a Parity Week Grant

Parity Week [[link removed]] is back and this year Gainbridge is making a true impact in partnership with Parity and the Women’s Sports Foundation.

In honor of Billie Jean King’s $5,000 check to start the WSF 50 years ago, Gainbridge is awarding $5,000 grants to deserving organizations and athletes that support girls and women through sports or education. In total, Gainbridge will award $150,000 in grants.

The application process [[link removed]] is now open so go apply today if you’re an organization or athlete benefiting girls and women in sports or education. Receive a Parity Week grant and your organization becomes part of the nationwide movement in November around the Billie Jean King Cup by Gainbridge tennis event, and The ANNIKA driven by Gainbridge at Pelican golf event.

Apply now [[link removed]].

Retail-Level Politics: Utah’s New NHL Team Owner Engages Fans Early On [[link removed]]

Kyle Terada-USA TODAY Sports

Ryan Smith (above, left), the owner of the NHL’s newly relocated [[link removed]] Utah franchise, repeatedly has pledged to involve local fans in the establishment of the franchise. A series of recent moves show he is making good on that, indicating the significant level of retail-level politics at play in the team’s early days in its new home.

Following prior promises to develop a fan survey to help select the team’s new name, Smith released late Wednesday a poll [[link removed]] with 20 possibilities for that forthcoming moniker. In keeping with Utah’s status as a haven [[link removed]] for skiing and other winter sports, as well its nickname as the “Beehive State,” many of the listed options tracked along those core areas and were initially compiled from a prior social media survey Smith issued.

Chill or Thrill: Nickname Themes

The latest options of names being presented include:

Skiing and snow: Black Diamonds, Blizzard, Powder, Squall More winter-oriented: Blast, Freeze, Frost, Glaciers, Ice, Yeti Bee-related: Hive, Swarm Various Western-oriented: Canyons, Mountaineers, Outlaws Other: Caribou, Fury, HC (for Hockey Club), Mammoth, Venom

The poll—developed with the aid of Smith’s feedback and experience management company, Qualtrics—will be open until May 22, with further voting rounds and other steps in that renaming process to be detailed this summer. For the 2024–25 season, the franchise will be known simply as “Utah,” with the rebranding going into full effect the following year. Branding agency Doubleday & Cartwright, which has worked with teams such as the NBA’s Bucks and Inter Miami in MLS, is aiding in that process.

Just the Start

Smith’s outreach to solicit feedback for the franchise name is just one part of a larger-scale push to root the team in Utah. On April 24, he hosted a free fan celebration at the Delta Center, attended by more than 12,000, in which fans meet team players and coaches. Also the owner [[link removed]] of the NBA’s Jazz and two local pro soccer teams, Smith has been on an extended run of national interviews, including with Pat McAfee, Canada’s SportsNet, and the NHL Network—to discuss the NHL franchise.

A newly announced plan for a permanent training and headquarters site, to be located at the site of a shopping mall in suburban Sandy, will include a community center and plans include a regular presence on the facility’s rinks for local youth and amateur leagues.

More than 29,000 season-ticket deposits were received just in the first week after the April 18 announcement of the team’s move from Arizona.

And Your Pick Would Be ...

Aaron Doster-USA TODAY Sports

Do you have a favorite name [[link removed]] for Utah’s new NHL franchise? If so, we’d like to know. Respond to this newsletter and tell us which moniker you prefer—whether it be one of the 20 in Smith Entertainment Group’s new survey [[link removed]] or something else of your own making. We’ll publish the best answers in a future newsletter.

AWARD

Established in 2017, the Front Office Sports Rising 25 Award [[link removed]] celebrates the brightest young stars in the business of sports.

Know someone whose innate passion and tireless dedication is making an impact? Recognize them by nominating them for the award.

🏆 Nominations are open now through May 17.

STATUS REPORT Two Up, One Down, One Push

Daytona Beach News-Journal

TKO ⬆ The newly public parent company of UFC and WWE beat [[link removed]] Wall Street expectations in its most recent financial quarter, reporting revenue of $629.7 million. That came despite a net loss of $249.5 million due to a $335 million antitrust settlement [[link removed]] with UFC fighters.

SoCal Raiders fans ⬆ The Las Vegas NFL franchise that played in Los Angeles from 1982 to ’94 has received [[link removed]] approval from the Costa Mesa city council to hold training camp in the Orange County, Calif., town this summer.

Everton sale ⬇ With no end in sight for the legal issues complicating [[link removed]] the efforts of 777 Partners to take over the English Premier League club, rival U.S. investment firm MSP Sports Capital is now said to be exploring the potential of buying control of Everton, according to Bloomberg [[link removed]].

NASCAR media ⬆⬇ Bad news first: The daily Fox Sports 1 show NASCAR Race Hub will end next month, according to Racer [[link removed]]. On to the good news: Amazon Prime Video and TNT Sports have confirmed that Dale Earnhardt Jr. (above) will serve as an on-air commentator for the broadcasters’ respective NASCAR Cup Series race coverage next year.

SPONSORED BY DICK’S SPORTING GOODS

Journey to the Starting Line

For this year’s 128th running of the Boston Marathon [[link removed]], the cutoff time was 5 minutes, 29 seconds faster than the qualifying standards, unfortunately resulting in more than 11,000 runners being turned away. But Dick’s Sporting Goods jumped in to give three of them a second chance to run Boston.

Dick’s Sporting Goods teamed up with Front Office Sports and the Boston Athletic Association to identify and chronicle three deserving athletes [[link removed]] to receive race bibs: John Neusch, Carly Curcuru, and CJ Reuland. These Boston locals, all of whom have qualified but have never run in the Boston Marathon, will now have the opportunity to achieve their long-sought-after goal.

Watch John, Carly, and CJ’s journeys to the starting line here [[link removed]].

Conversation Starters Charles Lee, a former Bucknell star with two Patriot League titles and the only two NCAA tournament wins in school history, has transitioned from playing overseas to coaching, and it’s going well. After serving as an assistant for his alma mater, as well as the Hawks, Bucks, and Celtics, Lee has been named the head coach [[link removed]] of the Hornets. ESPN has inked a media-rights deal with League One Volleyball for its debut season starting January 2025. The agreement [[link removed]] includes broadcasting 10 matches on ESPN’s linear networks and streaming 18 additional matches on ESPN+. Nebraska has unveiled “The Walk Through Room” for its football team. It features a 20-yard turf floor, an 11.5 million pixel screen roughly 100 feet in length, projectors used by NASA, and 26.5-foot-tall windows that overlook outdoor practice fields. Check it out [[link removed]]. Editors’ Picks Rick Carlisle’s Wild ‘Small-Market’ Rant Is the Pacers’ Last Shot [[link removed]]by Alex Schiffer [[link removed]]Carlisle blames officiating for the Game 2 loss at MSG. His players disagree. Former Ohtani Interpreter Pleading Guilty to Bank Fraud, False Tax Return [[link removed]]by Margaret Fleming [[link removed]] and A.J. Perez [[link removed]]Ippei Mizuhara faces up to 33 years in federal prison for his crimes. WNBA Commissioner Says League Will Finally Get Charter Flights This Season [[link removed]]by Margaret Fleming [[link removed]]Until now, the WNBA has mainly flown commercial. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Sports Careers [[link removed]] Written by Eric Fisher [[link removed]], David Rumsey [[link removed]] Edited by Matthew Tabeek [[link removed]], Catherine Chen [[link removed]]

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