Sinclair (SBGI) J.P. Morgan 2026 Global Leveraged Finance Conference summary

Advertising and political outlook

• Core advertising is guided to grow by 1% in 2026, supported by a strong sports broadcast calendar and digital initiatives.

• Political ad revenue guidance is at least $333 million, matching the 2022 midterm cycle, with potential upside as overall political ad spend is projected to rise 20%.

• Broadcast is expected to capture about half of total political ad spend, with key races in states like Michigan, Maine, Ohio, Nevada, and Texas.

• Digital and CTV platforms are seen as incremental opportunities, not threats, to political ad revenue.

• Marquee sports events like the Olympics and World Cup are expected to boost reach and reinforce advertising confidence.

Subscriber renewals, retransmission, and sports rights

• Major subscriber renewals (60-65% of base) are scheduled for next year, with network affiliate renewals occurring throughout this year.

• Stable subscriber churn is assumed in current guidance, with no significant changes expected in net retransmission economics.

• Rising sports rights costs, especially for the NFL, are influencing affiliate-network negotiations, with exclusivity and distribution value being key factors.

• Regulatory support is seen as important for maintaining affiliate health and local journalism.

Industry consolidation and regulatory environment

• The FCC is actively reviewing ownership rules and broadcast standards, with a supportive stance toward consolidation.

• DOJ is expected to consider broader competition, including big tech and media, in evaluating market concentration.

• The company is pursuing large-scale M&A opportunities and has been vocal about the current window of opportunity for consolidation.

• Recent JSA and LMA transactions are 70% complete, expected to contribute $30 million in EBITDA on a run-rate basis by the end of 2026.