Sports TV News
WWE Tried To Get Other Bidders to Partner Against Endeavor Offer
“The WWE drew considerable interest from the time it was put up for sale, with more than 60 counterparties exploring a potential acquisition.”
Last week, World Wrestling Entertainment, Inc. (WWE) divulged over 500 pages of files pertaining to its ongoing acquisition by Endeavor Group Holdings, Inc. and plan to merge with the United Fighting Championship to form a publicly traded company. Nick Khan, chief executive officer of the WWE, released a letter to stockholders regarding the transaction and the automatic conversion of WWE common stock shares.
It also revealed that WWE executive chairman Vince McMahon owned shares equivalent to approximately 81% of the voting power, and that a condition of the deal with Endeavor was that McMahon would have to remain with the company. McMahon resigned from the WWE last July during investigations into allegations of sexual misconduct, but returned to the company this past January. For now, the publicly traded company is known as New Whale, Inc.; however, it was revealed that the name will be changed at some point in the future.
The WWE drew considerable interest from the time it was put up for sale, with more than 60 counterparties exploring a potential acquisition. Some of these entities included strategic companies, sovereign wealth funds and financial sponsors, and they all explored buying and/or merging with the company. Twenty of the 60 counterparties inked confidentiality agreements pertaining to the transaction process in February and March, including Endeavor. The first proposal from Endeavor was made the day the confidentiality agreement was signed – Feb. 7, 2023 – a merger where it would own 57% of the WWE, a total valuation of $9.3 billion.
Additionally, the WWE received three proposals from entities who wanted to purchase the entire company, with one proposal valuing each share of the company between $95 and $100, but they all required some form of outside financing. Conversely, the Endeavor offer valued shares at $105.98 apiece, and, as a result, the WWE board tried to have two of the three aforementioned entities partner with one another to bid against Endeavor.
Later in March, McMahon and Khan met with Endeavor executives Ari Emanuel and Mark Shapiro where a proposal by the WWE was made giving Endeavor 51% ownership. The deal was ultimately completed when McMahon agreed to remain with the company as its executive chairman. During the weekend of Wrestlemania, the deal was officially finalized when the senior management and board signed off on it after being informed by its financial team that the Endeavor deal was conducive to the time frame.
Several WWE executives will receive compensation upon the completion of the Endeavor deal, including McMahon ($16 million) and Khan ($72 million). The deal will cultivate a $21 billion sports entertainment company with “global reach, impressive scale and omnichannel distribution.”
In fiscal year 2022, WWE and UFC generated a combined $2.4 billion in revenue, a 10% annual revenue growth rate since 2019. Emanuel will serve as the CEO, McMahon will be the executive chairman of the board and Shapiro will be the president and chief operating officer. Khan and Dana White will both remain as presidents of WWE and UFC, respectively. The new property will also hold about $150 million in cash to be contributed by the WWE and UFC, and also presumably be responsible for negotiating new media rights deals for both properties in the near future. The deal is expected to close in the second half of 2023.
Sports TV News
Judge Rules Diamond Sports Must Pay MLB Teams in Full
“As with the Padres, MLB will stand ready to make games available to fans if Diamond fails to meet its obligations.”
A judge has made his ruling has been reached in the caustic bankruptcy trial between Major League Baseball and Diamond Sports Group. Diamond Sports Group must pay the full value of the contracts with the four teams that are involved in the legal proceedings. These teams include the Arizona Diamondbacks, Cleveland Guardians, Minnesota Twins and Texas Rangers.
There was an additional caveat to the final ruling. The judge urged both sides to talk to one another, perhaps realizing the level of contemptuousness evident throughout testimony from both sides in the trial.
“Maybe market forces change terms of deals, but market risk is always there [and] inherent in every contract,” U.S. Bankruptcy Judge Christopher Lopez said in his ruling. “Knowing that I think the contract rate is the reasonable and the right rate, the way that teams are locked in [and] the evidence that’s presented before me, I’m going to find that the fees are the actual necessary cost of preserving the state. The teams can keep the 75% I believe they’ve already received and they should get the [other] 25%.”
Diamond Sports Group now has a decision to make regarding if it will oblige by the ruling and pay the four teams as directed. If not, they will be forced to relinquish the broadcast rights for those teams, just as the entity did for the San Diego Padres earlier this week.
Sources close to the situation have indicated that this represented somewhat of a breaking point between the two sides, and that the hostility will be too much to overcome for future deals. Diamond Sports Group is tasked with renewing rights for 28 teams across the NBA and NHL at the conclusion of next season, in addition to five Major League Baseball teams.
“MLB appreciates the ruling from the Federal Bankruptcy Court in Houston requiring Diamond to pay the full contractual rate to Clubs,” the league said in a statement. “As always, we hope Diamond will continue to broadcast games and meet its contractual obligations to Clubs. As with the Padres, MLB will stand ready to make games available to fans if Diamond fails to meet its obligations.”
Major League Baseball Commissioner Robert D. Manfred Jr. described a meeting he had with Diamond Sports Group’s management where the company threatened bankruptcy – despite having money in liquidity to pay the rights fees – in order to restructure itself and selectively reject contracts. He also divulged that the league will cover at least 80% of the payments the afflicted teams were supposed to receive from Diamond Sports Group, which operates as a subsidiary of Sinclair Broadcast Group. Major League Baseball says it is ready to take over production and dissemination of local broadcasts and prepared for this move in advance by strengthening its media division, including the hire of Billy Chambers as executive vice president of local media.
While Diamond Sports Group is technically a subsidiary of Sinclair Broadcast Group, the role of the latter has been diminished because of the former’s declaration of Chapter 11 bankruptcy. Creditors agreed to trade the debt they owe for equity in Sinclair Broadcast Group, rendering the management structure somewhat ambiguous. The company’s decision to engage in bankruptcy protection will aid in eliminating $8 billion of outstanding debt after Sinclair Broadcast Group acquired the regional sports networks from The Walt Disney Company in 2019 for $10.6 billion. Major League Baseball, in partnership with Liberty Media, bid nearly $9.6 billion for the networks ($3.5 billion in leverage), but ended up falling short. Diamond Sports Group has local broadcast rights for 28 teams across the National Basketball Association and National Hockey League, with all of those deals – along with five among Major League Baseball teams – set to expire at the conclusion of next season.
Sports TV News
Ernie Johnson: Death of Kobe Bryant Solidified Inside the NBA Crew’s Bond
“I’m in the fortunate position [of] getting us from point A to point B to point C with three guys who have been in every conceivable situation in a basketball game.”
As the Eastern Conference Finals concluded, Inside the NBA signed off for the final time of the 2022-23 season, officially closing the 33rd year of broadcasts led by Ernie Johnson. Kenny “The Jet” Smith joined the show on a full time basis in 1998, and Charles Barkley joined him two years later, creating a trio for the next 20 years.
They were joined by different fourth analysts over the years, including Reggie Miller, Magic Johnson and Chris Webber, but the company made a permanent hire in 2011 by adding Shaquille O’Neal. From that moment on, the four gradually blended into a family and now share a unique chemistry not often seen in television.
“Nobody tries to make themselves the show,” Ernie Johnson told Dan Le Batard on South Week Sessions. “They’ve never tried to make the show about themselves. I’m in the fortunate position getting us from point A to point B to point C with three guys who have been in every conceivable situation in a basketball game.”
Johnson undoubtedly knows his role on the show is to facilitate discussion and position the analysts in the best position possible to share their basketball knowledge gained through their playing years. He is a veteran studio host and broadcaster, contributing to TBS’s Major League Baseball coverage during the offseason, and is able to seamlessly transition between different sports over the course of the year.
“If you try to stray outside your lane and be something you aren’t, then it doesn’t work,” Johnson said. “The fact that we don’t rehearse and the fact that we just let it rip – there you go.”
The feeling is mutual between Johnson and his co-workers that they view each other as family and hold one another in extremely high regard. Le Batard acknowledged how he has heard Barkley talk about Johnson in such a venerated manner, and that he and the others give the impression that they would do anything for Johnson.
Johnson simply replied, “And I would do the same for them. We all would.”
Johnson vividly remembers when Kobe Bryant passed away and the Inside the NBA crew was doing a show from Los Angeles reflecting on his life and legacy. At one point on the broadcast, O’Neal addressed his colleagues and told them that he loves them, realizing that he does not say it enough. It was a heartwarming moment for Johnson, and one that brought their bond to light.
“I think one thing that whole moment of time taught all of us was that you don’t know how long you have,” Johnson said. “It behooves us to make sure that everything’s cool between us – not just between the four of us on the show, but between everybody in your life… If the unthinkable happens, do you want to leave that with, ‘Man I wish I had said this. I wish that silly feud; I could have stepped up and defused it.’… I think it was a pretty brutal reminder of that.”
Sports TV News
Dan Orlovsky: More Athletes Want to be in Media Now Because You Can Make ‘Real Money’
Players are used to making x amount of dollars and then you get into television and are like ‘I’m going to work more, but make less?’.”
Over the past few years, there has been a rise in former athletes joining one of the major television networks or starting their own podcast as they enter the sports media landscape. The world of sports media has changed and athletes are finding more platforms to get their voices heard.
ESPN NFL analyst Dan Orlovsky was on The Pat McAfee Show on Thursday and he gave a reason as to why more athletes are in the sports media world compared to when he got to ESPN.
“When I first got in 5 years ago, to my knowledge, there wasn’t a ton of money in it for ex-players. Players are used to making x amount of dollars and then you get into television and are like ‘I’m going to work more, but make less?’.”
However, as Orlovsky put it, there is a spot for athletes to join the media if they are willing to put the necessary work in due to all the money going into every sport.
“I think because of all the different platforms, because the television revenue or ads have gone up so much, if you are an ex-athlete and you are really good, you do the work, and you show up everyday and provide literal content, there’s real money to be made nowadays.”
Orlovsky added that an athlete talking about their sport can help change someone’s opinion on a topic or at least help them get a greater understanding of what they are seeing and hearing.
“For me, with the quarterback stuff, one of the things is always I wanted people to believe there were other great quarterbacks then Tom Brady. It was always Tom Brady and every other QB I feel like people would say would suck. Once you get more people talking about the realities of it, there’s a better appreciation.”
Ricky Keeler is a reporter for BSM with a primary focus on sports media podcasts and national personalities. He is also an active podcaster with an interest in pursuing a career in sports media. You can find him on Twitter @Rickinator555 or reach him by email at RickJKeeler@gmail.com.