Raphael Stevens

Spirit has an agreement with noteholders for up to $475 million in debtor-in-possession financing, the airline’s restructuring lawyer said in a court hearing.
The airline has also reached an agreement for $150 million from aircraft lessor AerCap.
The budget carrier last month filed for its second Chapter 11 bankruptcy protection in less than a year after high costs, weak demand and other lingering problems drove up losses.

A Spirit Airlines Airbus A320 taxis at Los Angeles International Airport after arriving from Boston on September 1, 2024 in Los Angeles, California. 
Kevin Carter | Getty Images News | Getty Images

WHITE PLAINS, N.Y. — Spirit Airlines is making “massive progress” to revitalize the airline, the carrier’s restructuring lawyer Marshall Huebner said in a court hearing Tuesday.
The struggling budget airline has reached an agreement with some of its debtholders for up to $475 million in debtor-in-possession financing, a lifeline that bankrupt companies can use to continue operating, as well as $150 million from a major aircraft lessor, Huebner said. The agreements are subject to court approval.

Spirit last month filed for its second Chapter 11 bankruptcy protection in less than a year after high costs, weaker demand and a host of other lingering problems drove more than $250 million in losses from when it emerged from its first bankruptcy in March through June.
The carrier has been racing to slash costs and recently announced plans to cut 40 routes and furlough about one-third of its flight attendants. The airline is in talks with its pilots’ union and is seeking about $100 million in cuts from that group. Last month, Spirit said it was drawing down the entirety of the $275 million in its revolver.
Huebner, a partner at Davis Polk & Wardwell, said in U.S. Bankruptcy Court on Tuesday that people who are pessimistic about the struggling carrier’s turnaround prospects should “say less” and observe what it’s doing.
Spirit said on Tuesday that it now has immediate access to $120 million in liquidity after a motion was granted to use cash collateral.

Read more CNBC airline news

Spirit is planning to reject leases on 27 Airbus narrow-body aircraft from Ireland-based leasing giant AerCap, 25 of them airplanes that are grounded or will be grounded for inspection due to a Pratt & Whitney engine defect, Huebner said in court. AerCap will pay Spirit $150 million as part of the agreement, under which Spirit would still plan to take delivery of 30 more airplanes, the company said.

AerCap did not immediately comment on the plan.
Spirit said it is also planning to reject 12 airport leases and 19 ground handling agreements as the carrier shrinks to cut costs, a plan the court approved.
Another hearing is scheduled for Oct. 10. If the debtor-in-possession financing is approved, $200 million would be available immediately.
“These are significant steps forward in a short period of time to build a stronger Spirit and secure a future with high-value travel options for American consumers,” Spirit CEO Dave Davis said in a news release later Tuesday. “While there’s more work to be done, we’re grateful to our stakeholders who have stepped up to support us during the restructuring.”
Senior secured noteholders at Spirit include Citadel Americas, Ares Management, AllianceBernstein, Arena Capital Advisors and Pacific Investment Management Company, according to a court filing.
Spirit’s competitors United Airlines, Frontier Airlines, JetBlue Airways and Allegiant Airlines have announced new routes in hopes of capturing Spirit’s customers. United CEO Scott Kirby went a step further, saying earlier this month that he expects Spirit to go out of business.
Spirit has struggled for years with an engine recall, a failed acquisition by JetBlue, higher costs and a shift in consumer tastes for more upmarket offerings. The Dania Beach, Florida-based airline has altered its business strategy to offer higher-end products in recent months. More

Nike on Tuesday posted quarterly earnings and revenue that beat Wall Street’s expectations, as sales unexpectedly rose from the prior year.
The company said revenue rose 1% in its fiscal first quarter, after previously saying it anticipated sales would fall by a mid-single digit percentage in the period.
Nike is executing a turnaround strategy under CEO Elliott Hill.

Pedestrians walk past a Nike store featuring a modern design and mannequins displaying winter apparel on December 5, 2024, in Wuhan, Hubei Province, China. 
Cheng Xin | Getty Images

Nike on Tuesday posted surprise sales growth in its fiscal first quarter but said it still has work ahead to execute its turnaround as it warned it expects sales to fall again during most of the holiday shopping season.
Nike expects sales during its current quarter, which runs generally from early September to early December, to fall by a low single digit percentage, in line with expectations of a 3% decline, according to LSEG. Without favorable foreign exchange rates, sales could come in even lower, as the company said its guidance includes a 1 percentage point of positive impact from exchange rates.

Nike has made progress in its turnaround plan, but the expected decline during most of the holiday shopping months would follow an 8% drop in revenue in the year-ago period. It’s a sign to investors that Nike’s recovery is moving slowly, even during the busiest time of the year for retailers.
Higher tariff costs are hampering Nike’s efforts to turn around its business. The company now expects tariffs to cost it $1.5 billion and hit its gross margin by 1.2 percentage points in its current fiscal year 2026. That’s up from the $1 billion and 0.75 percentage point gross margin impact it projected in June.
During its current quarter, Nike said it expects its gross margin to fall between 3 and 3.75 percentage points.
In a press release, finance chief Matt Friend warned that “progress will not be linear.”
“I’m encouraged by the momentum we generated in the quarter, but progress will not be linear as dimensions of our business recover on different timelines,” said Friend. “While we navigate several external headwinds, our teams are focused on executing against what we can control.”

Here’s how Nike performed during the quarter compared with what Wall Street was anticipating, according to consensus estimates from LSEG:

Earnings per share: 49 cents vs. 27 cents expected
Revenue: $11.72 billion vs. $11.0 billion expected

Nike’s reported net income in the three months ended Aug. 31 was $727 million, or 49 cents per share, compared with earnings of $1.05 billion, or 70 cents per share, in the year-ago quarter.
Sales rose to $11.72 billion, up about 1% from $11.59 billion a year earlier.
Revenue rose 1% during the quarter after Nike previously said it anticipated sales would fall by a mid-single digit percentage in the period. Still, Nike’s profits fell 31% while gross margin dropped 3.2 percentage points to 42.2% during the quarter — another warning sign to investors that its efforts to clear through old inventory are still ongoing.
In a statement, CEO Elliott Hill said the company is making strides in three key areas: wholesale, running and North America. During the quarter, wholesale revenue rose 7% to about $6.8 billion, while sales in North America climbed 4% to $5.02 billion — better than the $4.55 billion analysts were expecting, according to StreetAccount.
However, beyond those three areas, Hill acknowledged parts of the business are still struggling, primarily its China segment, Converse brand and its direct business, which includes stores and online sales.
During the quarter, Nike direct sales fell 4% to about $4.5 billion, while Converse sales dropped 27%. Revenue in China — one of the company’s most important markets — was down 9%.
“Greater China, as I mentioned on the last call, is facing structural challenges in the marketplace,” Hill told analysts on a conference call. “Seasonal sell through continues to underperform. Our plans require larger investments to keep the marketplace clean.”
The company said it expects revenue and gross margin headwinds to continue throughout fiscal 2026 in both China and at Converse. Nike does not expect its direct business to return to growth in fiscal 2026.
Since Hill took over nearly a year ago, he’s been working to get Nike back to growth and undo some of the work his predecessor John Donahoe implemented. One of the most important parts of that strategy has been reigniting Nike’s innovation engine and clearing through stale inventory to make way for new styles.
Though the strategy is crucial to Nike’s efforts to grow again and take back market share, it comes with pain in the short term. Clearing out old inventory has required Nike to rely on discounting and less profitable sales channels to move products, which has impacted its profitability.
During the quarter, inventories were down 2% compared to the prior year as units decreased, which was offset by increased product costs related to higher tariffs. Hill and Friend made it clear during the call with analysts that its inventory efforts are ongoing. While progress is going to depend on the respective geographies and channels, Nike said its expects its gross margin to benefit from less clearance in the second half of the year.
Beyond inventory management, Hill has also pledged to realign Nike’s corporate structure so it would once again segment teams by sport instead of by women’s, men’s and kids. In late August, the company started shuffling teams. As part of the restructuring, Nike said it would cut around 1% of its staff, and most employees would be moved into new roles by Sept. 21. 
The realignment impacted around 8,000 employees but is expected to drive growth as the teams get to work, said Hill. It is unclear how many of those employees were moved to new positions and how many were laid off.
“This new formation and ways of working will align our three brands, Nike Jordan and Converse into more nimble focused teams by sport. We’ll gain sharper insights to fuel innovation and storytelling and connect with the communities of each sport in more meaningful ways,” said Hill.
“Collectively, we’ll have a better coordinated attack with each brand forming a distinct identity and delivering a clear attention to serve different consumers,” he added. “In the marketplace, organizing by sport, gives us a much clearer point of view.”
Hill cited Nike’s “House of Innovation” in New York, a redesigned retail experience that segments the store by sports, as an example of how the strategy works. He said the refresh has led to double-digit increases in revenue and a similar, smaller-format approach in Texas showed similar results.
Hill has said a focus on sports over lifestyle will help the company win back its crucial athlete consumer, but lifestyle merchandise is still an important part of the strategy because it allows Nike to reach a larger consumer segment, and more women. Growing the number of female customers has been another important part of Hill’s strategy and Nike’s recent partnership with Kim Kardashian’s shapewear brand Skims is one of the ways it’s getting there.
NikeSKIMS, originally slated to release in the spring, officially launched last week. Hill told analysts the “early consumer response” has been “very strong.” More

1-800-GAMBLER has become the closest thing to a national hotline for problem gamblers. It prompted a brief but intense legal battle.
The National Council on Problem Gambling (NCPG) has been running the helpline since 2022, leasing it for $150,000 annually from the Council on Compulsive Gambling of New Jersey (CCGNJ).
The contract between the two groups ends Tuesday, and the New Jersey council wants the number back.

A DraftKings Sportsbook advertisement on an Outfront billboard on Jan. 25, 2025 in Kansas City, Missouri.
Aaron M. Sprecher | Getty Images

The booming business of betting across America has led to soaring concerns over problem gambling.
Generally, ads for legitimate, licensed casinos and sportsbooks carry some kind of disclaimer that gambling is supposed to be for entertainment. The small print might offer: “Gambling problem? Call 1-800-GAMBLER.”

That number is about as memorable and sticky as you can get. And it prompted a brief but intense legal battle over who has the right or the moral imperative to operate the closest thing the U.S. has to a national gambling hotline.
The National Council on Problem Gambling (NCPG) has been running the helpline since 2022, leasing it for $150,000 annually from the Council on Compulsive Gambling of New Jersey (CCGNJ), which had previously operated it since 1983.
Since the national organization took over, monthly call traffic has increased 34% and media mentions have soared more than 5,000%, leading to a third of Americans recognizing 1-800-GAMBLER as a national hotline, according to the NCPG.
Now the CCGNJ wants its number back.
The contract between the two groups ends Tuesday. The national group notified the New Jersey group of its intention to exercise its right of renewal and extend for another five years. CCGNJ refused.

“It’s our property, ” Luis Del Orbe, CCGNJ’s executive director, told CNBC. The group also owns 800gambler.org.
The National Council sued for an emergency stay this summer to prevent the New Jersey council from taking back operations, arguing that the local group doesn’t have the resources to staff or operate the hotline around the clock.
NCPG has significant financial backing from the NFL — more than $12 million over six years — and major sportsbook operators. The council spends $1.5 million annually providing infrastructure and connection for callers in 10 states and serving as a kind of call-in way station for dozens of other jurisdictions.
Lawyers for the national council argued that reverting it back under New Jersey’s operation would have devastating consequences.
“Thousands of individuals and families could suddenly find themselves without access to the only national lifeline for problem gambling,” said Amanda Szmuc, an attorney with Offit Kurman.
Del Orbe of the New Jersey organization said his staff is prepared for an increase in calls. When calls come into his office after-hours, they’re forwarded to a 24-hour call center in Louisiana — the same one that services many states and local jurisdictions that funnel through 1-800-GAMBLER, he said.
Del Orbe told CNBC his organization felt NCPG was “weaponizing the number,” demanding data on problem gambling from local councils and threatening to bar them from the hotline if they refused.
The NCPG collects and analyzes data from problem gambling calls, often to illustrate the danger of addiction to betting. But not every state that uses 1-800-GAMBLER shares its statistics with the national council.
The national council said, “Despite repeated outreach and offers of consultation, training, and stipends, two state councils declined to participate, and one failed to meet requirements.” It said it began rerouting calls from those states to the call center in Louisiana.
“Our greatest fear is that people in crisis will pick up the phone, or send a text, and find no one on the other end,” said Jaime Costello, director of programs at NCPG.
The NFL said in a statement to CNBC, “Under NCPG’s stewardship, 1-800-GAMBLER has been transformed into a vitally important national resource—making it easier for anyone, anywhere in the country to get quality care when they need it. Any disruption or degradation of that service is deeply concerning.”
On Monday, the New Jersey Supreme Court denied NCPG’s request for an emergency stay, a last ditch effort to keep the number from reverting to the local council.
The National Council on Problem Gambling says for now it will revert to using its old number, 1-800-522-4700, which isn’t quite as easy to remember. More

The Federal Trade Commission is suing real estate giants Zillow and Redfin, alleging the two illegally conspired to reduce competition in the online multifamily rental listing market.
Zillow- and Redfin-owned platforms such as Zillow Rentals, Rent.com and ApartmentGuide.com are used by millions of Americans searching for their next home, the FTC said.
Following the FTC’s announcement, shares of Zillow and Redfin parent Rocket Companies fell sharply in afternoon trading.

The stock market graphic of Zillow Group is displayed on a smartphone with the logo of Zillow in the background on Feb. 21, 2021.
Sopa Images | Lightrocket | Getty Images

The Federal Trade Commission is suing real estate giants Zillow and Redfin, alleging the two illegally conspired to reduce competition in the online multifamily rental listing market, the agency said Tuesday. 
In the complaint, the FTC alleges the companies violated federal antitrust laws earlier this year when Zillow paid Redfin $100 million to essentially re-host Zillow multifamily rental listings on Redfin and its sites.

Zillow- and Redfin-owned platforms such as Zillow Rentals and Rent.com are used by millions of Americans searching for their next home, the FTC said.
As part of the arrangement, the agency said Redfin agreed to terminate contracts with its existing advertising customers and assisted Zillow in acquiring that business. Redfin also committed to staying out of the multifamily advertising market for up to nine years and reduce its role to merely syndicating Zillow’s listings, making Redfin’s sites virtually identical to Zillow’s.
The FTC also alleges Redfin fired hundreds of employees shortly after the deal was signed and then helped Zillow selectively rehire many of them. 
“Paying off a competitor to stop competing against you is a violation of federal antitrust laws,” said Daniel Guarnera, director of the FTC’s bureau of competition, in a statement. “Zillow paid millions of dollars to eliminate Redfin as an independent competitor in an already concentrated advertising market—one that’s critical for renters, property managers, and the health of the overall U.S. housing market.”
Following the FTC’s announcement, shares of Zillow and Redfin parent Rocket Companies fell sharply in afternoon trading.

“Our listing syndication with Redfin benefits both renters and property managers and has expanded renters’ access to multifamily listings across multiple platforms,” a Zillow spokesperson said in a statement. “It is pro-competitive and pro-consumer by connecting property managers to more high-intent renters so they can fill their vacancies and more renters can get home. We remain confident in this partnership and the enhanced value it has delivered and will continue to deliver to consumers.”
Redfin did not immediately respond to CNBC’s request for comment.
The FTC’s lawsuit seeks to unwind the agreement and may include requirements for divestitures or restructuring to restore competition in the rental advertising market. More

Versant signed an 11-year media rights deal with the WNBA as it dives deeper into women’s sports.
The WNBA has seen rapid growth across all major categories.
The deal will kick off in the 2026 season and include at least 50 WNBA games annually.

Breanna Stewart, #30 of the New York Liberty, dribbles the ball against Napheesa Collier, #24 of the Minnesota Lynx, in the fourth quarter during Game Three of the WNBA Finals at Target Center in Minneapolis, Minnesota, on Oct. 16, 2024.
David Berding | Getty Images

Versant has signed a new 11-year media deal with the Women’s National Basketball Association, the company announced Tuesday.
The agreement kicks off for the 2026 season and includes at least 50 WNBA games annually and portions of playoff and finals games during select years, the company said.

Versant, the parent company of cable networks and brands soon to be spun off from Comcast, has been rapidly acquiring sports rights and diving deeper into women’s sports in particular.
The latest agreement expands upon a previous package between the WNBA and Versant’s USA Network signed in 2024. The coverage will include Wednesday night double-headers, a dedicated pregame show and a postgame studio show.
“We’re incredibly proud to expand our multi-year partnership with the WNBA,” said Matt Hong, president of sports for Versant. “USA Network will be a destination for WNBA viewers all season long, as we showcase the star power across the league.”

Get the CNBC Sport newsletter directly to your inbox

The CNBC Sport newsletter with Alex Sherman brings you the biggest news and exclusive interviews from the worlds of sports business and media, delivered weekly to your inbox.
Subscribe here to get access today.

For the WNBA, currently in its 29th season, the deal comes amid record-breaking television viewership, attendance, merchandise sales and team valuations.
“As demand for women’s basketball continues to rise, partnerships like this expand the visibility and accessibility of our game,” WNBA Commissioner Cathy Engelbert said in a statement.

The league signed an 11-year media rights deal with Disney, Amazon and Comcast-owned NBCUniversal last July as part of the NBA’s media rights negotiation. The WNBA’s deal is valued at about $200 million per year, CNBC previously reported. It also signed a new media deal with Scripps’ Ion in June.
Versant said production details, including studio commentary teams, will be announced in the coming months.
The new WNBA deal will mean that for eight months out of the year, women’s sports will be broadcast live on USA Network.
Earlier this month, Versant struck a multiyear deal with League One Volleyball to broadcast primetime games on Wednesday nights. In August, the company signed a deal to extend its rights with the U.S. Golf Association, worth $93 million annually, according to a person familiar with the deal who spoke on the condition of anonymity to discuss terms of the deal.
Versant also holds numerous golf rights through the Golf Channel, in addition to rights across Premier League soccer, WWE, NASCAR, Atlantic 10 college basketball coverage and the Olympics.
“We’re looking for sports deals that drive distribution, diversify ad sales and have a value,” Versant CEO Mark Lazarus told CNBC in May.  
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. Versant would become the new parent company of CNBC upon Comcast’s planned spinoff of Versant. More

President Donald Trump announced an agreement with Pfizer to voluntarily sell its medications at lower prices in the U.S., as his administration pushes to link the nation’s drug prices to cheaper prices paid abroad.
Pfizer has agreed to take measures to lower U.S. drug prices, including selling its existing drugs to Medicaid patients at the lowest price offered in other developed nations on a website the administration is calling TrumpRx.gov.
As part of the deal, Pfizer has also agreed to a three-year grace period during which the company’s products won’t face pharmaceutical-specific tariffs – as long as the drugmaker further invests in U.S. manufacturing.

U.S. President Donald Trump announces a deal with Pfizer to lower Medicaid drug prices in the Oval Office of the White House on Sept. 30, 2025 in Washington, DC.
Win McNamee | Getty Images

President Donald Trump on Tuesday announced an agreement with Pfizer to voluntarily sell its medications for less, as his administration pushes to link U.S. drug prices to cheaper ones abroad.
Pfizer has agreed to take measures to reduce U.S. drug prices, including selling its existing drugs to Medicaid patients at the lowest price offered in other developed nations, or what Trump calls the most-favored-nation price, according to the president. Pfizer will also guarantee the same “most-favored-nation” pricing on its new drugs for Medicare, Medicaid and commercial payers.

As part of the deal, Pfizer has also agreed to a three-year grace period during which the company’s products won’t face pharmaceutical-specific tariffs – as long as the drugmaker further invests in U.S. manufacturing. The company plans to invest $70 billion to reshore domestic drug manufacturing and research facilities.
Shares of Pfizer rose more than 4% on Tuesday after the announcement.
“Pfizer has agreed to provide some of the most popular current medications to our consumers at heavily discounted prices anywhere between 50% and even 100%,” Trump said, adding that those drugs will be available for direct purchase at a discount online on a website the administration is calling TrumpRx.gov.
Trump said he’s working with other drugmakers to secure similar agreements over the next week, adding that Pfizer is the first.
“If we don’t make a deal, we’re going to tariff them,” he said of the other companies’ drugs.

The White House confirmed with CNBC’s Eamon Javers that Eli Lilly is in negotiations with Trump for the next drug pricing deal, without providing further details on how far along talks are.
The deal comes as Pfizer and 16 other drugmakers face Trump’s Monday deadline to take steps to lower drug prices, as outlined in letters from the president. Trump in May signed an executive order reviving a controversial plan, the “most favored nation” policy, that aims to tie the prices of some medicines in the U.S. to the significantly lower ones abroad.
During the press conference, Pfizer CEO Albert Bourla said the company satisfied all four of the requests Trump outlined in his letter. Among the other steps is pursuing tougher price negotiations abroad and adopting models that sell its medicines directly to consumers or businesses.
“The big winner clearly will be the American patients, there is no doubt,” Bourla said. “They are the ones that will see a significant impact on their ability to buy medicines.” But he said “American innovation and and the American economy” will also be “winners” with the agreement.

Pfizer’s discounted drugs

Pfizer said it will offer a large share of its primacy care treatments and certain specialty branded drugs at discounts of 50% on average and up to 85%, according to a release from the company.
In a separate statement Tuesday, Pfizer said more than 100 million patients are impacted by diseases those medicines treat, such as migraines, rheumatoid arthritis, menopause and atopic dermatitis.
The company provided examples of discounted drugs under TrumpRx.gov. Duavee, a treatment for certain menopause symptoms, will be available for as little as $30 on the site, which is an 85% discount to its current price.
Patients will also be able to pay as low as $162 – an 80% reduction to the current price – for prescription ointment Eucrisa, which is used to treat mild-to-moderate eczema. Tovias, a medication for overactive bladder, will also be available on TrumpRx.gov for as little as $42, which is a 85% discount to the current price.
Pfizer said it also plans to offer products such as Abrilada for autoimmune diseases at a 60% discount, Xeljanz for rheumatoid arthritis at a 40% discount and the migraine drug Zazvpret at 50% discount.
Those drugs don’t appear to be significant revenue drivers for Pfizer. The company’s quarterly and full-year earnings reports only include product-specific revenue for Xeljanz, which generated $349 million in worldwide sales in 2024. Sales of the drug fell 29% operationally from 2023, primarily due to lower demand globally as well as lower net prices in the U.S.
The deal comes as drugmakers brace for Trump’s planned tariffs on pharmaceuticals imported into the country. Trump said in a Truth Social post Thursday that the U.S. will impose a 100% tariff on “any branded or patented Pharmaceutical Product” entering the country from Oct. 1.
The measure will not apply to companies building drug manufacturing plants in the U.S., Trump said. He added that the exemption covers projects where construction has started, including sites that have broken ground or are under construction.
In a note on Tuesday, BMO Capital Markets analyst Evan Seigerman said the deal is positive for Pfizer’s stock and the broader pharmaceutical sector, as it “adds certainty and shifts POTUS policies potentially away from Pharma tariffs.”
“Today’s deal seems to set a path for other pharmaceutical players to follow, allowing for headline pricing concessions and a Trump ‘win’ without more punitive implementation” of the most favored nation policy or tariffs, he added. More