ESPN And NCAA Reach $920 Million, 8 Year Media Rights Agreement
Portfolio Pulse from Erica Kollmann
ESPN and the NCAA have entered into a $920 million, eight-year media rights agreement for NCAA championships, starting Sept. 1, 2024. The deal covers 40 championships, including the Division I men's basketball tournament. ESPN Chairman Jimmy Pitaro expressed excitement over the continuation of their long-standing partnership. The Walt Disney Company (NYSE:DIS), ESPN's parent company, saw its stock trend on WallStreetBets and is set to report Q1 financial results on Feb. 7, with expected earnings of $1.04 per share and revenue of $23.84 billion. DIS shares were down 1.2% at the time of the article's publication.
January 04, 2024 | 5:17 pm
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The Walt Disney Company, ESPN's parent, has secured a significant media rights deal with the NCAA, which could enhance its long-term revenue prospects. However, DIS stock is trending on WallStreetBets and is currently down 1.2%, with Q1 earnings report anticipated soon.
The new media rights agreement with the NCAA is likely to be viewed positively as it secures long-term revenue for Disney and reinforces its commitment to sports broadcasting, particularly women's sports. However, the immediate impact on the stock is neutral to slightly negative due to the current share price dip and the market's anticipation of the upcoming earnings report. The importance is high due to the substantial value of the deal and its duration, but confidence is not at the maximum because market reactions can be unpredictable, especially with pending earnings reports.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100