Saturday, May 23, 2026

Will ESPN’s Financials Impact Its Search For Strategic Investors?

  • Operating profit and revenue declines for sports media giant
  • Newly released numbers are part of Disney’s new financial reporting structure
ESPN camera operator at a basketball game.
Ron Chenoy-USA TODAY Sports

It’s been no secret that ESPN and parent company Disney have been under growing stress.

The causes have been clear: layoffs, industry-wide cord-cutting, carriage battles, and a potential sale of all the company’s linear properties. But now, the public — and potential ESPN equity partners — can put a number on how much pressure the sports media giant is facing.

Disney said its sport division’s operating profit — deriving from ESPN itself and Star India — fell 20% to $1.48 billion in the first nine months of fiscal 2023 from $1.85 billion in the comparable period last year. Revenue fell by 1.3% in the same period to $13.2 billion.

However, ESPN specifically generated $11.49 billion for the first nine months of fiscal 2023 and $1.89 billion of operating income — figures that still show some relative health amid a fractured media landscape. 

The disclosures to the U.S. Securities & Exchange Commission mark the first time Disney has broken out its sports results in this fashion. They precede a corporate reorganization and new financial reporting structure that will take effect with the company’s fiscal fourth quarter of 2023. 

Wall Street analysts said that structure will provide potential equity partners a clearer picture on the state of the business, particularly as ESPN moves toward developing a full, direct-to-consumer version of the network. 

Already, the possible suitors include several top pro leagues including the NFL, Amazon, and Verizon

“The new reporting structure should help frame a more concrete debate around Disney’s strategic options and its valuation framework,” wrote Barclays analyst Kannan Venkateshwar in an investor note. 

A separate research note from Bloomberg Intelligence’s Geetha Ranganathan said Disney’s sports business could now be worth as much as $22 billion.

Disney is due to report its next set of quarterly earnings on Nov. 8.

This field is for validation purposes and should be left unchanged.

Sign up for
The Memo Newsletter

Get the biggest stories and best analysis on the business of sports delivered to your inbox twice every weekday and twice on weekends.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Big Money on the Line on Premier League’s Final Day

Arsenal has won the title, but millions are still at stake.

Southern Schools Silent on Proposed Black Athlete Boycott

The campaign asks Black athletes, fans to boycott several southern athletic departments.

Man City’s Pep Guardiola Is Leaving: ‘Don’t Ask Me the Reasons’

The six-time Premier League winner ends his epic run one year early.
Texas State mascot

Mascot-Reveal Videos Are the Newest College Sports Tradition

Student mascot unmasking videos are going mega-viral.

Featured Today

Charlie Pliner and Nikolas Rohrmann

How 2 Brown Undergrads Became Sports Dealmakers

An experimental project turned into a permanent course and business deal network.
May 14, 2026

NFL Rivalries Are Made on the Field, Mocked in Schedule Release Videos

Every year, teams find new ways to one-up themselves (and their rivals).
Bart Swings/Falyn Fonoimoana/Avery Poppinga
May 14, 2026

OnlyFans Is Paying Pro Athletes What Their Sports Won’t

The adult-content platform is a reliable income source for niche athletes.
May 13, 2026

How Sports Graphic Designers Are Grappling With the Rise of AI Art

The release of ChatGPT 2.0 Images sparked a conversation among sports designers.
May 16, 2026; Los Angeles, California, USA; Ronda Rousey (blue gloves) celebrates defeating Gina Carano (red gloves) after a women's featherweight bout at Intuit Dome. Mandatory Credit: Jayne Kamin-Oncea-Imagn Images

How Jake Paul’s MVP Plans to Build on Netflix MMA Debut

Saturday’s debut averaged 12.4 million viewers on Netflix.
May 20, 2026

NHL Playoffs Deliver Record Second-Round Ratings for ESPN, TNT

The Canadiens-Sabres series brought additional audience milestones.
May 21, 2026

CBS, TNT Sports Parents Face New Merger Scrutiny by Lawmakers

A group of six U.S. senators raises concerns about the proposed megadeal.
Sponsored

How Microsoft and the Premier League Are Making Fans Feel Closer to the Game

The Premier League reaches fans in 189 countries. Now, with Microsoft, it is making global fandom more personal through AI.
The University of Alabama showed off renovations to Bryant Denny Stadium Thursday, Oct. 1, 2020. Sports Illustrated covers decorate the walls inside the new press box. [Staff Photo/Gary Cosby Jr.]
May 20, 2026

Sports Illustrated Defends Its Standards After Plagiarism Incident

SI removed its prediction-markets affiliate following accusations of plagiarism.
Racin' With The Boys
exclusive
May 20, 2026

‘Bussin’ With the Boys’ Launching New NASCAR Show

Peyton Manning’s Omaha Productions will produce the show.
May 19, 2026

NFL Pushes Back on Criticism Over TV and Streaming Deals

The league remains steadfast in its overall media approach.
May 19, 2026

Is Sports Coverage the Solution to ‘Google Zero’?

The glossy mag is betting sports coverage can arrest a traffic decline.