DIS · 8-K · 20260805PR000056

Sports Cost Pressure

Walt Disney Co · 2026-08-05 · Importance 54 · Surprise 40 · From source text

Sports programming and production costs increased 10% to $3.050 billion from $2.762 billion in the third quarter. The increase reflected contractual rate increases, costs for new sports rights, and timing changes from the NBA contract renewal, partly offset by the absence of certain UFC rights costs. Sports selling, general, administrative and other costs increased $68 million to $344 million, primarily due to higher sales and marketing costs. Sports operating income fell $179 million to $858 million despite 8% growth in subscription and affiliate fees and 5% growth in advertising revenue.

Key facts

• Sports programming and production costs increased to $3,050 million in the quarter, a 10% increase versus $2,762 million in the prior-year quarter. source
• Sports segment operating income in Q3 was $858 million, down 17% from $1,037 million in prior-year quarter. source
• Sports operating income decline of 17% was modestly steeper than prior guidance of approximately 14%, contributed by four-game sweeps in early rounds of the NBA Playoffs and the impact of a network carriage dispute. source
• Sports segment subscription and affiliate fees increased 8% versus the prior-year quarter, with the NFL transaction representing approximately 4%. source

Impact estimates