Sports

Closing Bell

Published

5 months ago

August 6, 2025

TKO beats expectations with Q2 earnings…Roger Goodell: ESPN eyeing other uses for RedZone name…U.S. Soccer signs snack company Kellanova as 20th corporate partner.

TKO Group’s revenue for Q2, which ended June 30, was $1.308B and after costs that was stripped down to $273.1M in net income and $526.5M in adjusted EDBITA. Getty Images

TKO Group Holdings sold enough tickets, sponsorships and other items around its premier properties like UFC and WWE to beat analyst expectations for its second-quarter earnings. TKO recorded $1.17 in earnings per share, beating the mean of predictions from analysts covering the company at $1.05 EPS, according to CNBC Pro data. Revenue for Q2, which ended June 30, was $1.308B and after costs that was stripped down to $273.1M in net income and $526.5M in adjusted EDBITA. That resulted in an adjusted EBITDA margin of 40%, up 15 percentage points from 25% the prior comparable quarter. Now included in TKO’s results are the assets it acquired from Endeavor in February in IMG, PBR and On Location. The company also started recording costs from its move into boxing. Powering the results were revenue streams in media rights, ticket sales and sponsorships for the combat sports properties, along with incremental gains in adjusted EBITDA at IMG. Site fees were slightly down for the comparable quarter because Q2 ’24 included a massive fee from Saudi Arabia, but those still continued to be a good business for TKO. For example, during the latest quarter, UFC held its first event in Azerbaijan, a Fight Night in Baku, which paid a hefty site fee to land the card, and announced a relationship with Visit Qatar to take fights to Doha. Both UFC and WWE already host events in Saudi Arabia and Abu Dhabi, and TKO is getting site fees from some cities in North America as well. Among the events that took place during the quarter on the WWE side were WrestleMania 41 at Allegiant Stadium, which had more than 120,000 fans across two nights and broke a score of business records for the property, according to TKO. On the sponsorship front, Slim Jim renewing with WWE was among the wins during the quarter.TKO was able to reduce its operating expenses for the quarter, from $1.078B in Q2 last year to $940.1M this year. As a result, TKO is raising its full-year revenue outlook by $140M on the low end, from a goal of $4.490B in its most recent prior quarter to now saying it is targeting at least $4.630B. On the upper end, TKO has increased its revenue goal from $4.560B to $4.690B. After announcing WWE’s new relationship with ESPN this morning for premium live events, TKO is now focusing on finishing up its UFC media-rights deal and executing its capital return program in dividends and share repurchases, and further integration of its new businesses. It will have a large business around next year’s FIFA World Cup through On Location. Despite TKO and ESPN’s excitement about the new media-rights deal for WWE, the street didn’t appear to be quite as enthused. Heading into the close of trading today, TKO’s stock was down 4.6%, or $7.48, to $156.14 a share. It’s still up 9.4% for the year to date. Disney’s stock was also down 2.1% heading into the close.NFL Commissioner Roger Goodell said as far as NFL RedZone, there will not “be any changes for our fans.” RedZone-asset RELATED STORIESNFL Commissioner Roger Goodell said ESPN has purchased the RedZone name, allowing the company to use it “for other sports, college football and other things,” which “could be an exciting thing for our fans.” Goodell said, “That is something that they now own and have the ability to do that.” He said as far as NFL RedZone, there will not “be any changes for our fans.” Goodell said the new ESPN/NFL deal is “going to be an unbelievable experience for our fans.” Goodell: “This is just going to make the experience for our fans even better as we evolve this relationship … when we see the innovation that ESPN always has and how we’ve grown together over the years and decades, this is really exciting.” Goodell said the NFL Draft — which ESPN also extended its rights to — has “become a staple of our off season, and frankly, one of the biggest sporting events in all of sports, and I think that’s grown in popularity in large part because of our partnership with ESPN.” He added the “continuing evolution of bringing our game to an international audience” is “really exciting, seeing more kids playing our game, both tackle and flag, and particularly young women playing flag.” Goodell also said NFL players being able to participate in the 2028 L.A. Games is “something that young women young men are looking forward to” (“SportsCenter,” ESPN, 8/6).

Disney CFO Hugh Johnston said from what he understands, conversations between ESPN and the NFL had “been ongoing for almost 10 years.” Johnston: “It’s been off and on for a long, long time. … From the NFL perspective, the belief that ESPN was really a good growth business, the timing just became right. As we know the NFL has been looking at options for the NFL Network and their media assets for a while. I think it finally was the moment where the there was an overlap enough in terms of their interest and our interest that we were able to bring it together” (“Squawk Box,” CNBC, 8/6).

U.S. Soccer has signed a multiyear sponsorship deal with food giant Kellanova, marking the conglomerate’s first corporate partnership for its entire portfolio of snack brands. The stable includes 16 brands, including Kellogg’s, Cheez-It, Pringles and Rice Krispies Treats. Financial terms of the deal, which U.S. Soccer negotiated directly with Kellanova, were not disclosed.

Kellanova joins U.S. Soccer as its 20th corporate sponsor ahead of next summer’s FIFA World Cup in North America and the 2028 Summer Olympic Games in L.A. The deal is the federation’s 12th since bringing its commercial rights in-house in 2023. U.S. Soccer earned $98.2M in commercial revenue during the 2024 fiscal year, a 61% increase from the prior year.

Kellanova’s brands will receive exposure in national advertising and across U.S. Soccer’s digital and social media platforms. The deal also includes retail activations, branded packaging, in-store displays and community events across the country.

The Athletic “swung to an adjusted operating profit” of $5.8M in the quarter as ad revenue “nearly doubled” to $14.1M. Getty Images

The Athletic’s revenue “increased by one-third” in Q2 to $54M. It “swung to an adjusted operating profit” of $5.8M in the quarter as ad revenue “nearly doubled” to $14.1M. The N.Y. Times, which owns The Athletic, said that it “ended the quarter with 11.3 million digital-only subscribers, of which more than six million were bundle and multiproduct subscribers.” The N.Y. Times “added about 230,000 digital-only subscribers” during Q2. Digital-subscription revenue “rose more than 15%” to $350M, while total subscription revenue “increased 9.6%” to $481.4M. Digital-advertising revenue “rose by nearly 19% in the second quarter,” and total advertising revenue “increased more than 12%” to $134M (WALL STREET JOURNAL, 8/6).

NEWTON, IOWA - JULY 13: #5: Pato O'Ward, Arrow McLaren Chevrolet during the NTT INDYCAR Series Sukup Race Weekend Race 2 at Iowa Speedway on July 13, 2025 in Newton, Iowa. (Photo by Perry Nelson/Lumen via Getty Images) — The car in the Homeland Security account’s X post carried the No. 5, which since 2020 has been the one used by IndyCar’s lone Mexican driver, Pato O’Ward. Lumen via Getty Images

Penske Entertainment said that it was “caught off-guard by the use of an IndyCar chassis to help announce the Trump administration’s plan to put ICE detainees in a northern Indiana detention facility.” The official Homeland Security account yesterday posted on X what “appeared to have been an AI-generated image of a white present-day Indy car” with ICE branding “all across the livery.” The facility also was dubbed the “Speedway Slammer” in the post. Penske in a statement said they were “unaware of plans to incorporate our imagery as part of (the Aug. 5) announcement.” Penske added, “Consistent with our approach to public policy and political issues, we are communicating our preference that our IP not be utilized moving forward in relation to this matter.” The company “fell short of publicly demanding any sort of retraction or issuing a formal cease-and-desist order.” The car in the X post carried the No. 5, which since 2020 has been the one used by IndyCar’s lone Mexican driver, Pato O’Ward. It was not immediately clear whether the use of the No. 5 was “purposeful to point to O’Ward or if it was happenstance” (INDIANAPOLIS STAR, 8/6).

The Bally’s Corp. logo will be featured on the men’s first team shirts and across Nottingham Forest’s City Ground during the 2025-26 season. SOCIAL Nottingham Forest City Ground

Premier League club Nottingham Forest and Bally’s Corp. have agreed to a new deal that will see the company become the club’s new front-of-shirt sponsor. The Bally’s Corp. logo will be featured on the men’s first team shirts and across Nottingham Forest’s City Ground during the 2025-26 season. The partnership was driven by club owner Evangelos Marinakis and began yesterday, as the club hosted Serie A club ACF Fiorentina in a preseason match. The sponsorship deal comes as Bally’s continues to expand in the U.K. market (Nottingham Forest). Nottingham Forest had “hoped to secure a figure in the region of” almost US$13.4M for the new front-of-shirt sponsor deal and — while they would not confirm the overall value or whether that target had been met — the club is said to “be ‘very happy’ with the outcome” (THE ATHLETIC, 8/6).

The TUDN Radio network includes 45 affiliate stations across 32 U.S. markets. TUDN Radio

TelevisaUnivision’s network of Spanish-language sports radio stations will carry live audio coverage of South America’s top club soccer competitions, Copa Libertadores and Copa Sudamericana, under a sublicensing agreement with BeIN Sports. The pact runs through the end of the current competition cycle in 2026, when BeIN’s rights deal with CONMEBOL expires. BeIN will remain the TV home of the competitions in both English and Spanish until that point.

TUDN Radio’s coverage of the CONMEBOL club competitions begins with the Copa Libertadores Round of 16 on Aug. 12. The station group, which includes 45 affiliate stations across 32 U.S. markets, will produce its own audio broadcasts of top matches throughout the competitions. Audio will also be available to stream through TelevisaUnivision’s Uforia platform.

IMG manages the commercial, sponsorship and media rights for CONMEBOL’s club competitions and is expected to take the U.S. media rights for the next competition cycle to market sometime this year.

Speed Reads…

GK Elite extended its longstanding sponsorship of USA Gymnastics and will serve as the apparel partner for the national development and Xcel programs through 2029. Under the deal, GK will provide apparel for the national governing body’s five development programs and support several events at that level (Rachel Axon, SBJ).

The Bucks Health and Wellness Program launched a new, 4,000-square-foot clinic in Schiltz Park where patients receive free and personalized obesity management treatment, along with customized fitness and nutrition regimens (Milwaukee Bucks).

Stanley 1913 has signed golfer Collin Morikawa as a partner (Stanley 1913).

The Vancouver Whitecaps have officially signed former Bayern Munich MF Thomas Müller (Vancouver PROVINCE, 8/6).

Around the World….

Disney+ is “set to show” one LaLiga game per week in the UK and Ireland during the 2025-26 season. Sources said that the games shown “would be on Saturday evenings,” starting with Valencia hosting Real Sociedad on Aug. 16 (THE ATHLETIC, 8/6).

The British and Irish Lions final Test against the Wallabies at Accor Stadium last weekend “netted just over” AU$20M (US$13M) in ticket sales, making it the “biggest single-day gate in the ground’s history,” beating the previous record held by musician Taylor Swift from February 2024 (SYDNEY MORNING HERALD, 8/6).

Rugby authorities have “no immediate plans to follow” the NFL’s banning of smelling salts over concerns they may mask concussion symptoms. The issue is “likely to be considered by World Rugby’s advisory panel of concussion experts at their next scheduled meeting in September” (BBC.com, 8/6).

EFL club Sheffield Wednesday said that it is working to open the North Stand for Saturday’s season-opener against Stoke City on Aug. 16, but added contingency plans are being prepared in case it cannot open in time (Sheffield Wednesday FC).

Social Scoop….

#Cowboys owner Jerry Jones was asked by @SlaterNFL how he could have a deal with Micah Parsons without anything in writing:

“I bought the Cowboys with a handshake. It took about 30 seconds. I gave the number, shook hands, the details we worked out later.” pic.twitter.com/AujA4bj1wC

— Ari Meirov (@MySportsUpdate) August 6, 2025

BREAKING: Outfielder Roman Anthony and the Boston Red Sox are finalizing an eight-year, $130 million contract extension, sources tell ESPN. The deal, which is pending a physical, includes a club option and will keep Anthony under team control through 2034.

— Jeff Passan (@JeffPassan) August 6, 2025

The NFL does. That’s my point.

Also, recall what I wrote about the Sports Broadcasting Act of 1961.

If the schools can get college football added to this — something smart people are trying to do — they’d have the juice to make something like this happen. https://t.co/rGKUsUANkB

— Andy Staples (@Andy_Staples) August 6, 2025

Ross Bjork told @WOSUAllSides today that he expects Ohio State vs. Penn State to be a noon game.

“I think we know the Buckeyes drive Big Noon Kickoff. That’ll be a high-powered game. So I think we probably know what’s going to happen around game time for that one,” Bjork said.…

— Dan Hope (@Dan_Hope) August 6, 2025

Daily Download….

Golfer Scottie Scheffler and NBC Sports’ Terry Gannon joined TODAY to discuss the 2025 FedEx Cup playoffs, with Scheffler also discussing his role in the “Happy Gilmore 2.”

Daily Digit….

$308M+ — Amount of money spent on sports and trading cards online in July, setting an industry record for the second consecutive month (CLLCT, 8/6)