November 4, 2024

Read in Browser [[link removed]]

POWERED BY

Fox Corp. tends to do very well during election years. But as the company unveiled its first-quarter earnings, it’s not news programming that carried the day, but sports. How did Fox more than double its net income from the same period in 2023? Two big soccer tournaments make up one big reason.

— Eric Fisher [[link removed]], David Rumsey [[link removed]], and Colin Salao [[link removed]]

Sports Drive Fox Corp.’s Revenue Despite Election Ad Overload [[link removed]]

Ron Chenoy-Imagn Images

Even in the heart of election season, sports was a critical revenue driver for Fox Corp.

The Fox Sports parent said it generated $3.56 billion in revenue during its fiscal first quarter, up 11% from the comparable period last year, with sports playing a significant role in that lift. The company in particular credited its “Summer of Soccer” coverage during the July to September period that included its airing of the UEFA Euros and Copa América tournaments and aided both advertising and sublicensing revenue.

Both tournaments generated record-level audiences for U.S. English–language broadcasts [[link removed]]. The previous year’s fiscal first quarter included the Women’s World Cup, but the United States team was eliminated in the round of 16.

Net income for Fox more than doubled from $407 million in last year’s comparable period to $827 million in the most recent quarter. That total easily beat analyst projections of $522 million, even as earnings were hit somewhat by higher sports programming expenses.

Of course, political advertising was also a major component of Fox’s revenues during the quarter, to the point that company executives acknowledged the heavy frequency of the ads during football coverage and its negative impact on viewers. That relentless placement owes to the fact that Election Day is Tuesday and the massive popularity of both college and pro football make those sports a particularly fertile environment for candidates to reach voters.

“I apologize to anyone who was enjoying their football over the weekend and was bombarded with political ads,” Fox CEO and executive chair Lachlan Murdoch said during an earnings call with analysts. “Sports has been the beneficiary of national political advertising.”

Championship Event Talk

Fox Sports will be airing the NFL’s Super Bowl LIX in February, and not surprisingly, the company said advertising is already sold out at unprecedented levels. Even as pricing for Super Bowl advertising has largely flattened in recent years across multiple networks [[link removed]], spending for the upcoming game is more than $7 million per 30 seconds.

“We still have a pretty robust football calendar yet to come, culminating with our broadcast of Super Bowl LIX, where we are already sold out and at record pricing,” Murdoch said.

Murdoch also highlighted during the earnings call the network’s performance during the recently concluded MLB postseason. That event fell outside the fiscal quarter in question but nonetheless generated across-the-board viewership increases, including the best World Series audience since 2017 [[link removed]].

Still Backing Venu

The company, meanwhile, is still firmly supporting Venu Sports, the streaming alliance with ESPN and Warner Bros. Discovery, even as it remains on hold amid a legal fight with Fubo [[link removed]].

“We continue to believe that Venu is a tremendous pro-consumer, pro-competitive platform, and we are excited to launch it when we have the ability to do so,” Murdoch said.

Saints Fire Dennis Allen: NFL’s Coaching Carousel Spins Early [[link removed]]

Scott Kinser-Imagn Images

The 2024 NFL regular season will reach its halfway point Monday night, but the league’s dramatic—and expensive—coaching carousel is already in full swing.

The Saints fired Dennis Allen on Monday, becoming the second team to make a change midseason, following the Jets dismissing Robert Saleh last month. Allen was in the third season of a four-year contract he signed in 2022 after Sean Payton stepped down (before ultimately having his rights traded to the Broncos in 2023). The value of Allen’s deal is unknown, but head coach contracts typically pay at least $3 million or $4 million annually—and New Orleans will likely be on the hook for the remainder of his pay this season and the next one.

Allen was 18–25 as the Saints’ head coach, including this season’s 2–7 start. His last game was Sunday’s 23–22 loss to the Panthers, who had one win on the season coming in.

It’s the first midseason firing for the Saints since the franchise was purchased by Tom Benson in 1985. Gayle Benson has led the team since her husband died in 2018, and longtime EVP and GM Mickey Loomis will continue to run football operations.

Crunching the Numbers

New Orleans named special teams coordinator Darren Rizzi interim head coach, but will in all likelihood hire a new full-time coach after the season. Most pressing for the next leader will be the dire salary cap situation the Saints are in.

The Saints are currently $77 million over a projected $273 million salary cap [[link removed]] for the 2025 NFL season—the highest in the league, according to Spotrac. That includes a team-high $51 million cap hit for quarterback Derek Carr, who is in the third season of a four-year, $150 million contract. Defensive end Cam Jordan has a $23.9 million dead cap hit, and it’s very possible he’ll retire before his age-36 campaign considering he’s collected two sacks since the start of the 2023 season.

Belichick Watch?

A second NFL head-coaching vacancy after just nine weeks of the season is a solemn reminder of the job’s high turnover rate. After last season, eight of the league’s 32 teams changed coaches.

Bill Belichick, whose 333 career wins (including playoffs) rank second to the late Don Shula’s 347, could be in line for a new job in 2025, after being fired by the Patriots in January and getting only one interview with the Falcons. The six-time Super Bowl–winning head coach is staying in the spotlight this fall [[link removed]], starring on the ManningCast, The Pat McAfee Show, Inside the NFL, and other media properties.

SPONSORED BY U.S. BANK

Bank Smarter. Live Bigger.

U.S. Bank has been making greatness happen since 1863. But not alone. We know above all else that there’s nothing we can’t do together. From buying a home to kick-starting a career, U.S. Bank [[link removed]] is there to support you every step of the way.

We’re dedicated to powering your financial future and, as a result, our collective future. We’ve been doing it since the beginning and are committed to continuing this legacy, and yours.

That’s the power of us [[link removed]].

All Eyes on Cooper Flagg As College Basketball Tips Off [[link removed]]

Jaylynn Nash-Imagn Images

NCAA basketball returns Monday, highlighted by the debut of one of the most anticipated recruits in recent memory: Duke’s Cooper Flagg.

Flagg, the projected No. 1 pick in the 2025 NBA draft, is the best college prospect since Zion Williamson, who played for the Blue Devils in the 2018–2019 season, or Anthony Davis, the National Player of the Year in 2012. Over the summer, Flagg was the only amateur player invited to Team USA’s training camp for the Paris Olympics, and he was reportedly one of the stars of the select team [[link removed]] that scrimmaged against the gold medal roster despite being the lone teenager.

The Maine native is already a trailblazer in the NIL (name, image, and likeness) space. Flagg’s $2.6 million NIL valuation leads all NCAA basketball players [[link removed]] and is $500,000 more than the second-ranked player, according to On3. He secured a shoe deal with New Balance in August [[link removed]]—despite Duke being a Nike school. The length of the deal is unclear, but it’s unlikely it would be just a one-year contract, meaning it will stretch into his NBA career.

Last week, Gatorade announced a partnership with Flagg [[link removed]] making him the brand’s first men’s college basketball endorser.

Bringing the Hype Back

The buzz surrounding men’s basketball dipped a bit over the last few years. Viewership for the men’s national championship game hit all-time lows for two years in a row [[link removed]], while the women’s title game smashed viewership records in back-to-back years [[link removed]], driven by the star power of Caitlin Clark. The former Iowa standout finished her NCAA career as the all-time scoring leader in Division I (across men’s and women’s basketball).

Several top U.S. prospects—like LaMelo Ball, Jalen Green, and Amen and Ausar Thompson—took alternative routes to the NBA to secure a salary before hitting the pro level. But the opportunities afforded by the NIL era have allowed prospects to take the college route and still earn six or even seven-digit paydays [[link removed]].

With Flagg and other projected top picks in the 2025 NBA draft like Rutgers duo Dylan Harper and Ace Bailey in the fold, expect more eyeballs and social media fodder around the NCAA men’s basketball division.

NCAA women’s basketball is looking to build on the momentum left behind by Clark and Angel Reese, with the projected 2025 WNBA draft class headlined by stars like UConn’s Paige Bueckers and USC’s JuJu Watkins. Read more [[link removed]] about the beginning of the NCAA women’s college basketball season from Front Office Sports reporter Margaret Fleming.

STATUS REPORT One Up, Three Down

Corey Perrine/Florida Times-Union

Jacksonville ⬆ The city announced a new contract to keep the annual Florida-Georgia college football game at EverBank Stadium from 2028 to 2031, following the completion of the $1.4 billion renovation project. The neutral-site rivalry game will be played in Atlanta in 2026 and Tampa in 2027 [[link removed]]. In total, the universities will receive a combined $82 million over the new four-year deal [[link removed]]—a big boost from their current payout, according to The Florida Times-Union. Additionally, Florida and Georgia will each receive $1.5 million payments from Jacksonville in 2026 and 2027, despite playing those games elsewhere.

Las Vegas Aces ⬇ The 2022 and 2023 WNBA champions continue to sustain major staff changes. The Chicago Sky announced Tyler Marsh as their new head coach Saturday, the second assistant from Becky Hammon’s staff who has departed for another WNBA franchise. Natalie Nakase was announced as the head coach of the Golden State Valkyries [[link removed]] in October. The Aces, who are also dealing with off-court investigations [[link removed]], decided to not renew the contract of GM Natalie Williams [[link removed]].

South Carolina ⬇ The school received a $250,000 fine from the SEC after fans rushed the field at Williams-Brice Stadium following the Gamecocks’ 44–20 win over Texas A&M on Saturday. It’s South Carolina’s second violation under the conference’s rules, which were amended in 2023 [[link removed]]. The first fine of $100,000 came after the Gamecocks men’s basketball team defeated Kentucky in January.

Formula One ⬇ The first half of Sunday’s São Paulo Grand Prix was moved from ESPN2 to ESPNU due to a rain delay that pushed the race’s qualifying from Saturday to Sunday. F1 had recorded only a marginal increase in viewership [[link removed]] on ESPN networks this year, and with none of the last three races scheduled to air on ABC, Sunday’s change could affect the season’s final viewership number.

SPONSORED BY GAINBRIDGE

Parity Week Paint Scheme Hits NASCAR

A meaningful paint scheme will be on display at the NASCAR Cup Series Championship on Nov. 10 at Phoenix Raceway, supporting Parity Week by Gainbridge [[link removed]], a partnership among Gainbridge®, Parity, and the Women’s Sports Foundation® (WSF).

Gainbridge® has awarded 21 grants and $150,000 in total funding to organizations that support girls and women through sports and education. The grant recipients [[link removed]] are listed on the rear of the No. 7 Chevrolet Camaro ZL1 that NASCAR driver Justin Haley will steer.

Each recipient is hosting an event this month supporting girls and women through sports and education [[link removed]]. There are 14 different states represented. The initiative was inspired by sports icon and equality advocate Billie Jean King, who started the WSF 50 years ago.

Gainbridge® and King are aligned through the Billie Jean King Cup by Gainbridge, which is also this month in Spain.

Conversation Starters The Nokia Arena, the site of the NHL Global Series in Finland, has a hotel attached to it with rooms that have a view of the ice. Take a look [[link removed]]. The get-in price for the Ohio State–Penn State game Saturday was $225, which was nearly 40 times more expensive [[link removed]] than the $6 to enter the UNC–Florida State game, according to TickPick. The 2024 World Series was Japan’s most-watched in history with an average of 12.1 million viewers [[link removed]]. Editors’ Picks Tom Brady Won’t Be Punished for Criticizing Packers-Lions Ejection [[link removed]]by Alex Schiffer [[link removed]]The “Brady Rules” faced their biggest test so far after Sunday’s broadcast. Mission Swing State: College Football’s Political Advertising Battle [[link removed]]by Amanda Christovich [[link removed]]Trump, Harris, and the PACs that support them are utilizing the sport. Grand Canyon University to Join Mountain West in 2026 [[link removed]]by Amanda Christovich [[link removed]]The Mountain West has added three new schools after the Pac-12 poached five from the conference. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Events [[link removed]] Video [[link removed]] Podcast [[link removed]] Written by Eric Fisher [[link removed]], David Rumsey [[link removed]], Colin Salao [[link removed]] Edited by Matthew Tabeek [[link removed]], Or Moyal [[link removed]], Catherine Chen [[link removed]]

If this email was forwarded to you, you can subscribe here [[link removed]].

Update your preferences [link removed] / Unsubscribe [link removed]

Copyright © 2024 Front Office Sports. All rights reserved.

460 Park Avenue South, 7th Floor, New York NY, 10016