Fox Would Consider ‘Rebalancing’ Sports Portfolio to Keep NFL

SAN FRANCISCO — Even before the NFL formally reopens its domestic television rights contracts, the potential ripple effects across the rest of sports media are unfolding.

Fox CEO and executive chair Lachlan Murdoch said Wednesday in an earnings call with analysts that the company is prepared to “rebalance” the network’s sports rights portfolio, if necessary, to help absorb what will almost certainly be elevated costs to remain in business with the NFL.

“It’s obviously tremendous, tremendous content for us. And they’ve been a really fantastic partner,” Murdoch said of the NFL. “We have the ability to offset a portion of any kind of cost increases because we look at our sports portfolio as a whole. We would certainly consider balancing or rebalancing our portfolio as we move forward, when those opportunities become available. So we feel pretty comfortable about the sports business.”

The comment is among the first public ones from a network head amid the growing likelihood of the league exercising opt-outs in its rights deals. Those options start to become available after the 2029 season, but NFL commissioner Roger Goodell has already said that talks with rights holders could begin as soon as this year.

Questioned about it Monday by Front Office Sports, Goodell said that maximizing both reach and revenue will remain critical for the league.

“What we focus on is ‘How do we reach the broadest number of people, on every broadcast? How do we make an event out of that?’” Goodell said. “We select our partners in part for that reason. Economics are obviously part of that, the value that’s created. But at the end of the day, we want partners who are going to broaden our audience.”

Rebalancing, in a corporate context like this, typically means some form of cuts. So the question is what other sports rights Fox might eliminate to move more money toward the NFL. Murdoch did not detail any potential moves, but the network has a wide array of rights that also includes MLB, the Big Ten Conference, NASCAR, FIFA, IndyCar, and UFL. 

As is also the case with other major media networks, there are additional factors that would come into any consideration of what stays and what goes—such as Fox’s ownership stake in UFL and IndyCar. Ultimately, though, there is the NFL and then there is everything else when it comes to attracting viewers. The league has no true rivals, regardless of genre, as it remains, by far, the most popular programming in all of U.S. television. Fox has been a fundamental part of what has been a historic season of viewership for the league, one that could culminate in another U.S. television audience record during Super Bowl LX on Sunday.

Broader Earnings

The company reported $5.18 billion in revenue for the fiscal second quarter, a 2% increase from the prior year. Advertising revenues were up 1%, mainly due to higher sports and news pricing, continued digital growth led by the Tubi service, and the impact of additional MLB postseason games, Fox said in its earnings release.

Fox, meanwhile, lauded the impact of historic World Series viewership during the quarter, which included a deciding Game 7 that was the most-watched World Series game since Game 7 in 2017, as big gains in NFL and college football viewership.

“These elements reinforce Fox’s position as a trusted destination for audiences today while building lasting connection with future fans,” Murdoch said.