A reported stalemate between college football commissioners as the CFP format deadline approaches; Paramount sues Warner Bros. Discovery and continues to pursue hostile bid; and Netflix is said to be paying Barstool over $10 million a year amid podcast launches. Plus news on the PGA TOUR, David Cone, NASCAR and Matt Ryan.
Big Ten, SEC commissioners reportedly in stalemate as CFP expansion deadline looms
There is “strong support” for a 16-team College Football Playoff that would begin early as this year, but the Big Ten and its commissioner Tony Petitti are said to be seeking a commitment that the format would only last two or three years before additional expansion to 24 teams, according to multiple sources cited in a report by Heather Dinich of ESPN. That requirement is said to be the cause of a “stalemate,” as even among those who support an eventual 24-team format, there is “strong reluctance to commit to it now.”
Petitti and his SEC counterpart Greg Sankey will ultimately decide whether the 16-team format will debut next season. If they are unable to come to an agreement, it will remain at 12. Sankey is potentially open to considering a 24-team format sans automatic qualifiers, per Dinich. There will also reportedly be conversations around the number of bowl games since there could be fewer teams available to participate if the CFP expands.
ESPN and the College Football Playoff previously agreed to move the deadline to decide the future CFP format to Friday, Jan. 23. Dinich reported that FBS commissioners, the board of managers and Notre Dame athletic director Pete Bevacqua will meet on Sunday in Miami, Fla. to review the season. At that meeting, a 16-team format and 24-team format are reportedly expected to be discussed. Dinich: “Some CFP leaders have become more open to the idea of a 24-team field — it’s not something people vehemently oppose — but there is a sense among many of them that it’s too significant of a leap to make at this point.”
The College Football Playoff first expanded to 12 teams in 2024, resulting in an 11-game slate that culminated in a national championship victory for No. 8 Ohio State over No. 7 Notre Dame. The upcoming National Championship Game pits No. 10 Miami against No. 1 Indiana.
Paramount sues WBD for information, pushes for board seats
Paramount has filed a lawsuit against Warner Bros. Discovery for failing to provide the necessary information for shareholders “to make an informed decision” regarding its hostile bid to acquire the entirety of the media conglomerate. In a letter addressed to WBD shareholders on Monday morning, Paramount chairman/CEO David Ellison said that WBD has not disclosed key information, including how it values the Netflix deal and the Global Networks stub entity that would be left behind. Paramount also noted that WBD has not provided information about “how the purchase price reduction for debt works in the Netflix transaction, or even what the basis is for its ‘risk adjustment'” of the Paramount offer.
Paramount officially filed suit in Delaware on Monday morning with in the hopes that the court would force WBD to provide the information, which Ellison referred to as a “customary financial disclosure a board is supposed to provide shareholders when making an investment recommendation.”
In addition to the lawsuit, Paramount is going to nominate “a slate of directors” that would “exercise WBD’s right under the Netflix agreement to engage on Paramount’s offer and enter into a transaction with Paramount,” effectively commencing a proxy fight. While Paramount did not adjust the financial terms of its $30/share all-cash bid that tabs WBD with an enterprise value of $108.4 billion, it also plans to propose an amendment that would require WBD shareholders to approve a separation of Global Networks. In a recent SEC filing, WBD valued the Paramount bid at $28.21/share, citing diminished value because of “immediate and near-term costs, combined with approximately $350 million of associated interest expense,” as noted by William D. Cohan of Puck.
Paramount’s current tender offer appeal directly to WBD shareholders is slated to expire at 5 PM ET on Wednesday, Jan. 21 unless extended. As it pertains to Netflix’s deal, Ellison reiterated that the Global Networks stub holds no equity value and that Netflix shares included in the transaction, which consists of $23.25/cash, would be worth $4.11 each as of close Friday. In a statement Monday, WBD called the lawsuit “meritless” and claimed that Paramount was attacking “a board that has delivered an unprecedented amount of shareholder value.” The board also restated points made in its recommendation against Paramount’s bid last week, noting that the company “has yet to raise the price or address the numerous and obvious deficiencies of its offer.”
Netflix begins sports podcast rollout while maintaining reported spending discipline
Netflix is waiting to gauge audience response to its acquisition of sports podcasts before investing more money into the effort, per Lucas Shaw of Bloomberg. The company “has been more comfortable spending in the six-to-low-seven figures,” according to Shaw, with notable exceptions. Barstool Sports is reportedly receiving “more than $10 million a year” in a deal that has brought some podcast video feeds to the streamer. The company also reached agreements with Spotify-owned The Ringer and iHeartMedia last fall to become the video home of its various sports podcasts, including Bill Simmons‘ eponymous show, which officially made its Netflix debut Sunday night.
Several shows are said to have rejected Netflix offers, deeming them “insufficient.” For example, the “All the Smoke” podcast hosted by Matt Barnes and Stephen Jackson reportedly chose not to accept an offer for “a couple million dollars.” Netflix is said to have increased its offer, but the two sides were unable to reach an agreement. Shaw noted that there is reluctance among podcasters to sacrifice audiences built on other platforms, including YouTube, “if they aren’t going to be paid substantially more money.”
Shaw added that interest from Netflix has “already encouraged Hulu and other streaming services to start taking meetings with podcasters as well.” In addition to its new offerings, the company launched the “Netflix Sports Club Podcast” last summer that discusses sports programming on the platform. Netflix is continuing its push into live sports this spring as it begins a new three-year deal with Major League Baseball to stream Opening Night, the Home Run Derby and other events.
During an appearance on “The Varsity” podcast last month, Netflix VP of sports Gabe Spitzer said that the company is in the early stages of its podcast strategy. Spitzer said not to judge the company too soon and later added that Netflix hopes it will grow as time goes on. Replying to a question posed by host John Ourand, Spitzer said that the Netflix algorithm, depending on the user, could potentially try and bring viewers to a sports podcast offering after watching a live sporting event.
Plus: PGA TOUR, David Cone, NASCAR, Matt Ryan
- The PGA TOUR has opened a returning member program that has allowed Brooks Koepka back into the organization while opening the door for former stars to return as well. PGA TOUR CEO Brian Rolapp outlined the parameters of this program in a note Monday, which has a limited application window and earnings restrictions, but renders reinstated participants eligible for event participation.
- Former New York Yankees pitcher David Cone estimates that he will probably call “up to 60 games to start with” on YES Network next season, according to a report from Anthony Rieber of Newsday. Cone, who recently departed ESPN after four years calling “Sunday Night Baseball,” said that he looks forward to “narrowing down my schedule and doing YES games” while remaining open to potential external interest.
- NASCAR is bringing back its “Chase” postseason format across the three national series starting this year to determine champions. With the decision to restore this system and brand such as “The Chase,” NASCAR will award titles based on points accrued over a 10-race series. In order to compete in these heats, drivers will need to finish in tranches consisting of 16 spots for the NASCAR Cup Series, 12 in the O’Reilly Auto Parts Series and 10 within the NASCAR Craftsman Truck Series.
- CBS NFL analyst Matt Ryan officially worked his final broadcast for the network Sunday, days after accepting the president of football role with the Atlanta Falcons. Ryan had been part of “The NFL Today” for the last two seasons after beginning his time on the air as a color commentator.
