On The Rock
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Happy Sunday!
Welcome to Summer 2024 fellow investors. As the arena of sports media continues to evolve, legal battles and innovative sports ventures are reshaping the landscape.
Media
Diamond Sports' Bankruptcy Drama: A Battle for Information
The bankruptcy proceedings of Diamond Sports, owner of Bally Sports regional networks, have taken a turn. The company is seeking an emergency hearing to shield its pay-TV contracts from the prying eyes of the NBA, NHL, and MLB. These leagues, wary of Diamond's concessions to Comcast (CMCSA) and the potential activation of “most favored nation” clauses, are seeking insights into Diamond's distribution and viability. However, pay-TV providers like Cox worry that the disclosure of sensitive information could harm them in competitive landscape. This battle underscores the complex relationships and stakes involved in the distribution of sports content.
Furthermore, with Comcast's stock trading near its lows, this may be an opportune time for investors. While there are risks to broadband and media, the current valuation is compelling, coupled with trading at a near all-time low multiple, a buyback program, and ever-changing Hulu valuation.
The WNBA's Rising Star: Chicago Sky vs. Indiana Fever
The Chicago Sky and Indiana Fever WNBA matchup recently achieved a remarkable feat, drawing the largest audience for a WNBA game in 23 years.
This demonstrates the growing popularity of women's sports and highlights the league's potential for continued growth and viewership.
Netflix (NFLX) and NFL Sunday Ticket: A New Era in Sports Streaming
While Netflix has secured the domestic TV rights for two Christmas Day NFL games, the streaming giant now faces the task of assembling a production team and securing talent. Given the already demanding schedules of partners like CBS Sports, ESPN, and NBCUniversal, this effort may prove challenging.
Meanwhile, NFL Commissioner Roger Goodell has defended the high price of NFL Sunday Ticket in court, arguing that it's a premium product and that fans ultimately choose to pay for it. The outcome of this lawsuit could significantly impact the future of sports media rights and pricing.
New Streaming Players and Partnerships: Venu Sports
Venu Sports, a joint venture between Fox (FOX), Warner Bros. Discovery (WBD), and Disney (DIS), is building its team with key hires, signaling its intention to become a major player in sports streaming.
