The U.S. Department of Justice plans to expand its inquiry into NFL media rights to other leagues, including MLB; LIV Golf has funding for the rest of the season; the sports strategy at Netflix remains \u201cpretty much unchanged\u201d as the company reports earnings. Plus news on ESPN, Fox Sports, the Big Ten Conference and TNT Sports.<\/p>\n
DOJ plans to reportedly examine streaming rights of MLB, other leagues covered under SBA<\/p>\n
The reported U.S. Department of Justice inquiry<\/a> into whether the NFL\u2019s deals with streaming companies comply with the league\u2019s antitrust exemption will extend into other leagues covered by the Sports Broadcasting Act of 1961, according to a report<\/a> by Kelcee Griffis and Josh Sisco of Bloomberg. Major League Baseball, whose media rights deals include exclusive games on streamers Apple TV and Netflix, was specifically named in the report.<\/p>\n The NFL is the only league that requires games on cable or streaming to be simulcast on local over-the-air affiliates in the home markets. With the exception of games on Peacock that are simulcast on cable network NBCSN, streaming-exclusive MLB, NBA and NHL games are not available on any other platform.<\/p>\n In addition to MLB and the NFL, the NBA and NHL are able to pool and sell team media rights collectively under an antitrust exemption in the Sports Broadcasting Act of 1961. The legislation \u2014 which was passed into law long before cable, much less streaming \u2014 specifically applies to \u201csponsored telecasting of the games,\u201d and there has been some question as to whether it applies beyond broadcast television.<\/p>\n Fox Corporation<\/a> and Sinclair public comments to the FCC arguing against streaming platforms placing game broadcasts on what Fox termed \u201cpaywalled streamers.\u201d The debate is flaring up as the NBA prepares to carry playoff games exclusively on Amazon\u2019s Prime Video for the first time.<\/p>\n LIV Golf has funding to complete 2026 season<\/p>\n LIV Golf CEO Scott O\u2019Neil said Thursday in a since-deleted interview with TNT Sports\u2019 UK division that the league has funding to complete its 2026 season. Those comments followed a report<\/a> by Samuel Agini, Sujeet Indap and Arash Massoudi of The Financial Times on Wednesday that Saudi Arabia\u2019s Public Investment Fund was \u201con the verge of cutting its support for\u201d the property. O\u2019Neil sent a memo to staffers Wednesday ensuring that the season would proceed \u201cas planned, uninterrupted and at full throttle,\u201d according to a report<\/a> by Mark Schlabach of ESPN.<\/p>\n O\u2019Neil previously told<\/a> The Financial Times that LIV Golf was five to 10 years away from reaching profitability, projecting that four of the league\u2019s 14 events and 10 out of its 13 teams would be profitable this season. \u201cThe reality is you\u2019re funded through the season and then you work like crazy as a business to create a business and a business plan to keep us going,\u201d O\u2019Neil said, \u201cbut that\u2019s not different from any other private equity-funded business in the history of mankind.\u201d<\/p>\n Saudi Arabia\u2019s Public Investment Fund announced a new investment plan earlier this week that focuses on domestic spending. While attending the Masters Tournament last week, O\u2019Neil is said to have claimed that the league is funded through 2032, according to a report<\/a> by Rex Hoggard of Golf Channel. \u201cThis is private equity,\u201d O\u2019Neil said on the TNT Sports broadcast. \u201cThere is going to be some intensity, there\u2019s going to be funding. This is the world that I\u2019ve lived in a decade and then some, and it\u2019s what I signed up for and it\u2019s what I love.\u201d<\/p>\n LIV Golf has eight more tournaments on its schedule for this season, but a majority of those events will take place in the United States. The entity recently signed a multiyear media rights deal with Fox Sports that started last February after previously airing on Nexstar-owned CW. While golfers Brooks Koepka and Patrick Reed utilized a returning member program to rejoin the PGA Tour, LIV Golf has retained several other stars in Bryson DeChambeau, Jon Rahm and Cameron Smith.<\/p>\n Netflix sports strategy remains \u201cpretty much unchanged\u201d as company reports earnings<\/p>\n Netflix co-CEO Ted Sarandos said Thursday that the company\u2019s sports strategy remains \u201cpretty much unchanged.\u201d The streamer has largely focused on \u201ceventizing\u201d matchups and other league events, most recently presenting the first standalone MLB Opening Night matchup since 2015 \u2014 a telecast Sarandos included among several \u201csports successes\u201d along with the World Baseball Classic in Japan and NFL Christmas Day doubleheader.<\/p>\n Netflix is headed into the final year of its contract to carry Christmas Day NFL games, but Sarandos confirmed<\/a> the company is in discussions with the league and believes there is an \u201copportunity to expand the relationship.\u201d<\/p>\n Earlier in the quarter, Netflix declined<\/a> to amend its $82.7 billion offer for Warner Bros. Discovery when the company deemed Paramount had put forth a superior merger proposal. The company received a $2.8 billion termination fee funded by Paramount on behalf of WBD, which Sarandos told<\/a> Lucas Shaw of Bloomberg would be used to \u201ckeep investing in the business.\u201d<\/p>\n Netflix registered Q1 revenue of $12.3 billion, indicative of a 16% increase year-over-year, while net income finished up 83% YoY at $5.28 billion, part of which was attributable to the WBD termination fee. That helped the company\u2019s earnings per share rise by 86% year-over-year to $1.23, along with operating income surpassing projections. Sarandos reiterated Thursday that the WBD deal \u201cwas a nice to have, not a need to have,\u201d and added that the company remained confident in its \u201ccore business.\u201d Netflix also improved its operating margin from to 32.3% (+0.6% YoY) on operating income of $3.96 billion (+18% YoY).<\/p>\n Plus: ESPN, Fox Sports, Big Ten Conference, TNT Sports<\/p>\n