The politics around the high-stakes race for TNT Sports parent company Warner Bros. Discovery will go a long way toward determining the future of the sports assets. 

A day after CBS Sports parent company Paramount tendered a hostile bid for all of WBD, the future of TNT Sports now hangs heavily in the balance—with two very different outcomes at play. The competing scenarios include:

• Netflix completing its $82.7 billion acquisition of WBD’s studios and streaming businesses, with a definitive agreement on that deal announced last Friday. In this scenario, WBD will first complete its planned split into two independent companies, with TNT Sports forming a core part of a forthcoming Discovery Global. Netflix did not bid on WBD’s sports assets, and it does not have an interest in them. This route is also closest to the status quo for TNT Sports, already in the midst of reshaping its rights portfolio. 
• Paramount succeeding in its $108.4 billion, all-cash bid to acquire all of WBD. In this scenario, CBS Sports and TNT Sports would combine operations, forming a sports media colossus spanning broadcast and cable television, as well as streaming. 

As a result, the implications of the final outcome, just within sports, are massive—and they will involve billions of dollars, and potentially large-scale shifts in personnel and the sports media rights held by the resulting company.  

The final decision surrounding WBD, however, will have very little, if anything, to do with sports.

The first meaningful venue will be WBD shareholders. Paramount is attempting to take its bid directly to those investors, and force a vote. WBD, for its part, said it will “carefully review and consider” the Paramount bid, which expires Jan. 8.

White House Influence

The second, and likely most meaningful venue, by far, will be the sway of U.S. President Donald Trump during a forthcoming regulatory review process. The White House, and by extension the Federal Communications Commission run by Trump ally Brendan Carr, has already proved itself to be a powerful entity in the U.S. media business. Trump and Carr rendered massive influence in how Paramount completed its $8 billion merger with Skydance Media this past summer. 

Thus far, the often-impulsive Trump has been more reserved in his public comments around the Netflix and Paramount bids for WBD, saying Monday, “None of them are particularly great friends of mine. I want to do what’s right. It’s very important to do what’s right.”

It’s widely expected, however, that relationships with Trump will carry significant weight in WBD’s future. Paramount—and chair and CEO David Ellison—already have a strong tie with the White House, particularly following the Skydance approval process. Affinity Partners, an investment firm led by Trump’s son-in-law, Jared Kushner, is also involved in helping finance Paramount’s bid.

Trump, however, is once more enraged with Paramount’s 60 Minutes after the long-running news program ran an interview Sunday with former political ally and now opponent Rep. Marjorie Taylor Greene (R., Ga.).

“My real problem with the show, however, wasn’t the low IQ traitor, it was that the new ownership of 60 Minutes, Paramount, would allow a show like this to air,” Trump said in a social media post. “THEY ARE NO BETTER THAN THE OLD OWNERSHIP, who just paid me millions of dollars for FAKE REPORTING.”

Netflix, meanwhile, is also waging its own charm offensive with the White House. Co-CEO Ted Sarandos met last week with Trump, prompting the president to then call him “a fantastic man.”

The future role of CNN, also set to be part of Discovery Global along with TNT Sports, could be heavily influential as well. Trump has long hated CNN, and the potential to remake that network within Paramount ownership could be an appealing prospect to him. Along those lines, The Wall Street Journal reported that Ellison has already promised “sweeping changes” at CNN if Paramount prevails. 

Private-equity firm Otro Capital will invest in a new corporate entity being formed by the University of Utah to manage revenue-generating athletic operations—in what serves as a possible blueprint for other schools to emulate.

The school’s 10-member board of trustees voted unanimously to approve the formation of the LLC during a meeting held Tuesday. The entity—Utah Brands & Entertainment—will be majority owned by the university, with Otro owning a significant minority stake. Its aim is to maximize all revenue streams, from ticketing and concessions to corporate sponsorships and other licensing deals.

The news was first reported by Yahoo Sports. A source familiar with the matter tells Front Office Sports the venture is expected to generate nine figures’ worth of revenue. 

While the vote was unanimous, the board discussed the proposal for more than an hour before voting. Among the questions raised were why Otro Capital was chosen, what will happen if revenue projections fail, and what risks are involved. University of Utah president Taylor Randall and AD Mark Harlan addressed the questions. Harlan called Otro the “perfect match.” Randall said the risk will be “shared” between the school and PE firm, and that the university can buy shares in the LLC back under certain circumstances, including whether Otro decides to move on. Randall also said the determination was that risks were greater if the school stood pat instead of taking this bold step.

The corporate structure has been done by schools before—Clemson University and the University of Kentucky each have such holding companies. But this marks the first time a private-equity firm is involved.

Brian Anderson, who co-leads the sports practice at law firm Sheppard Mullin, previously told Front Office Sports the corporate holding structure was a potential model for private-equity firms.

“PE can add a ton of value. It’s not just capital, it’s expertise,” Anderson said in August. “These funds often have portfolios of companies they can leverage to help schools commercialize stadiums, [secure] naming rights, sponsorships, fan engagement—all the things pro teams already do.”

The need for private capital in college sports has become heightened in the wake of the House v. NCAA settlement, which allows schools to share millions in revenue with players and offer extra scholarships. But it has been a crawl, due in part to sensitivities around putting private-equity money into schools, which are supposed to have an educational mission.

Before Tuesday, lending had been the route for private capital to be plugged into schools. Most major PE firms have private credit arms, and deals with those businesses are structured as loans: investors provide financing, collect interest, and get repaid.

Sports business consultancy Elevate is a prime example of private credit at play. Its $500 million initiative, announced in June, features money from private-equity firm Velocity Capital Management and the Texas Permanent School Fund—but rather than buying any stakes, Elevate offers loans on a deal-by-deal basis with negotiated repayment terms.

The deal with Otro, expected to be finalized in the coming weeks, represents a bona fide private-equity investment. The firm will own a stake in the LLC and infuse it with capital, with the idea being that this structure will alleviate a financial burden that has been growing since the House settlement. It will also benefit the school at large, and the PE firm, because Otro’s executives bring operating experience that is expected to result in revenue maximization.

Otro, whose portfolio includes the Alpine Racing Formula One team and sports-focused data analytics firm Two Circles, is led by cofounders Alec Scheiner, Brent Stehlik, and Niraj Shah. All three previously worked at RedBird Capital Partners. Prior to RedBird, Scheiner was an executive with the Browns and Cowboys. Stehlik is also a former Browns executive. A representative for Otro declined to comment Tuesday.

The deal is a significant step forward for private equity, which has been circling college sports without quite knowing the right entry point. Now that the University of Utah and Otro have taken the plunge, will others follow suit?

“The dam will break at some point,” Ben Fund, a partner at Carlyle Group, told FOS in June. “I hope it’s soon, because there’s a huge opportunity to generate returns and, I think, professionalize programs and invest in schools.”

One of the top free agents in Major League Baseball this offseason is now off the board.

The Phillies have reached a five-year, $150 million deal with Kyle Schwarber, according to multiple reports, keeping the star designated hitter and finalist for the National League Most Valuable Player Award in the City of Brotherly Love.

Schwarber hit 56 home runs this season, and he entered the offseason as one of the leading available talents in baseball. The contract is somewhat unusual in its size and length for a player as old as Schwarber—he turns 33 in March—and for one that doesn’t play in the field. The veteran slugger, however, has held a significant presence in the Phillies clubhouse since his 2022 arrival to the team, and he has shown a strong propensity for clutch hitting.

Additionally, Schwarber and his family have become deeply rooted in the Philadelphia area. The new pact follows a four-year, $79 million deal that Schwarber just completed. Schwarber received interest from several teams, including the low-spending Pirates.

As Schwarber completed his new agreement with the Phillies, he also was named on Tuesday as a member of the U.S. team for the 2026 World Baseball Classic. That squad will also include other superstars such as the Yankees’ Aaron Judge and Pirates’ Paul Skenes, and will compete in a loaded field that also includes defending champion Japan, to be led by the Dodgers’ Shohei Ohtani. Schwarber also competed for the U.S. team in the 2023 WBC.

Schwarber has also broken through in some ways into pop culture. He was featured recently on an episode of the hit ABC sitcom Abbott Elementary, with the show having the good fortune of filming at Citizens Bank Park on a night in August when Schwarber became the 21st player in MLB history to hit four home runs in a single game. 

Díaz Deal

The two-time defending champion Dodgers, meanwhile, made their own veteran signing on Tuesday, inking closer Edwin Díaz to a three-year, $69 million deal that retains his mark as MLB’s highest-paid reliever. 

Formerly with the Mets, Díaz opted out of the final two years and $38 million of his prior contract, gaining an additional year and $31 million of guaranteed money for that choice. After a somewhat rocky beginning to his tenure in New York, Díaz again asserted himself this year as one of the top relievers in baseball. 

After that opt-out, as well as declining a $22.025 million qualifying offer from the Mets, New York earlier this month signed Devin Williams to a three-year, $51 million pact, representing something of an insurance policy for its bullpen.