Business

Lots of uncertainty surrounds Comcast’s spinoff of its NBCUniversal cable portfolio.
Comcast may be proceeding with a transaction as a signal to the rest of the media industry that consolidation is necessary.
Comcast shares posted modest gains Wednesday.

Nikolas Kokovlis | Nurphoto | Getty Images

Comcast shares posted modest gains Wednesday after the company announced its plan to spin off all of NBCUniversal’s cable networks, except Bravo, into a separate publicly traded entity.
Investors’ initial shrug at the proposed transaction underscores the uncertainty of the maneuver.

The hope for Comcast is that by shedding declining assets, the company’s shares will rise. Cable networks are still profitable, but they’re hemorrhaging subscribers and revenue every year as Americans cancel traditional pay TV for streaming services. That may be an anchor on Comcast’s shares. Wall Street typically doesn’t like assets with slumping revenue and profit.
Still, there’s plenty of uncertainty around the spinoff. It’s unclear if Comcast investors will care that much. The NBCUniversal cable networks are relatively small assets, generating about $7 billion in revenue over the 12 months ended Sept. 30, according to a Comcast news release. For comparison, the rest of Comcast took in about $116 billion in revenue.
It’s also unclear if the spun-off company will flourish as a publicly traded entity. If Comcast is shedding cable networks because Wall Street doesn’t like them, why would shareholders want a company that consists of declining assets?
There’s a reason Disney decided not to spin its cable assets. The company considered it and ultimately decided the earnings lost from spinning profitable networks would trump any potential multiple expansion from a spin. Still, Disney’s cable networks, including FX and Disney Channel, are more integrated with its streaming platforms than NBCUniversal’s cable networks are with Peacock, the company’s subscription streaming service.
The new company, temporarily called “SpinCo,” will generate cash and could pay a healthy dividend to shareholders looking to invest in declining cash assets. But that’s usually more of a private equity strategy. That may ultimately be where cable networks are heading — to private ownership willing to harvest them for cash.

It’s also possible some of the cable networks could find new footing outside of NBCUniversal’s ownership. SpinCo’s CEO-to-be, Mark Lazarus, may be able to strike new licensing agreements with other streaming services now that the cable assets aren’t purely a marketing and content distribution tool for Peacock.
Profits for SpinCo can be reinvested into businesses, including CNBC and MSNBC, instead of being diverted toward Peacock and NBCUniversal’s theme parks.
Another possible path for the spinoff is as a rollup entity for other cable networks. Comcast is purposefully structuring SpinCo with low debt. Perhaps the company could take on some of Warner Bros. Discovery’s debt and its cable networks. The same could be said for Paramount Global.

The bigger motivation

With so much unknown, Comcast probably isn’t doing this because it’s sure the spin will be a slam dunk for investors. Instead, Comcast’s motivations may be a signal to the media industry that it’s time to enter a new phase.
“There’s simply not enough revenue in these businesses to cover the costs anymore,” Kevin Mayer, co-CEO of Candle Media and a former Disney executive, said in an interview. “There has to be consolidation now. It’s Econ 101.”
That’s a sentiment Warner Bros. Discovery Chief Executive Officer David Zaslav addressed during his company’s earnings call earlier this month.
“This is an industry that really needs to meaningfully consolidate,” Zaslav said. “If the best content is going to win, there needs to be some consolidation in order to have these businesses be stronger and to have a better consumer experience.”
In other words, even if SpinCo flounders as a publicly traded company and Comcast doesn’t get any multiple expansion, simply signaling to the media world that it’s time for a change may be worthwhile. In the long run, perhaps trying something is better than trying nothing at all.
One more thing: If Comcast wants to attempt a large merger in a Donald Trump administration, such as buying U.S. cable company Charter or another telecommunications company, shedding MSNBC may not be a bad idea. The last time Trump was president, his Department of Justice blocked AT&T’s acquisition of Time Warner — reportedly because Trump was not a fan of CNN.
Comcast shares closed up 1.5% on Wednesday.
Disclosure: Comcast’s NBCUniversal is the parent company of CNBC. More

The new system will play a beep if a customer has a boarding group that has not been called yet.
Airlines offer their big-spending frequent flyers earlier boarding as a perk and are trying to prevent line cutters.
American Airlines tested the technology in Albuquerque; Tucson; and Washington, D.C., airports.

Haiyun Jiang | Bloomberg | Getty Images

Watch out, line cutters. American Airlines is rolling out new technology across the country to crack down on travelers trying to get on the airplane before their boarding group is called.
Customers who try to scan a boarding pass before their group is called will hear a two-note sound and be turned away, the airline said.

American Airlines has nine boarding groups, ranging from first-class customers and top-tier frequent flyers to travelers who purchased basic economy fares, or the least-expensive tickets. Airlines reward their high-paying elite frequent flyers with perks such as earlier boarding, and have been trying to keep it exclusive.
The new technology as of Wednesday is in more than 100 nonhub airports around the U.S. following tests over the past month at Albuquerque International Sunport, Ronald Reagan Washington National Airport and Tucson International Airport, American Airlines said.
The airline plans to roll it out to hubs later.

The technology will roll out just as American expects 8.3 million people to board its planes between Nov. 21 and Dec. 3, which it considers the Thanksgiving travel period, an increase of 500,000 customers over last year.
Other airlines have experimented with new ways to prevent gate crowding, which helps board planes faster while also trying to protect early boarding for the swelling ranks of elite frequent flyer loyalty program members.
United Airlines texts customers when it is time to board and provides live updates to customer’s iPhones and Apple Watches with a countdown-to-boarding clock. It also has digital signs showing which boarding group has been called.

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ASK ORDINARY Americans about Dallas and you are likely to elicit a few common responses. American-football fans will tell you that the Dallas Cowboys, once the country’s most formidable team, have seen better days. Soap-opera junkies, at least those alive in the 1980s, may reminisce about the long-running series named after the north-Texas city. The few who paid attention in history class may recall that it is where Lee Harvey Oswald shot John F. Kennedy. You will probably not hear breathless comparisons to the world’s industrial capitals. More

In less than four years the share price of Chegg, an online education service, has dropped by 99%. A post-pandemic slump in digital learning is partly to blame for its tumble. A bigger problem for the company, though, is artificial intelligence (AI). Its customers are mostly students who want help answering their homework assignments, which often involves the virtual support of a human tutor. The rise of ChatGPT and its kind have created a free substitute for that service. On an earnings call on November 12th Nathan Schultz, Chegg’s boss, admitted that “technology shifts have created headwinds”. The same day the firm said that it would fire a fifth of its workforce. More

A Cleveland group is submitting a proposal to bring a WNBA team to Northeast Ohio.
The Cleveland Cavaliers and the city of Cleveland believe they have right fan base and infrastructure to support a team.
The WNBA plans to grow the league to 16 teams by 2028.

Dan Gilbert Cleveland Cavaliers owner talks during a press conference introducing new head coach John Beilein at Cleveland Clinic Courts on May 21, 2019 in Independence, Ohio. 
Jason Miller | Getty Images

Dan Gilbert, owner of the Cleveland Cavaliers, wants to bring a WNBA team to Northeast Ohio.
Rock Entertainment Group, the umbrella company that hosts Gilbert’s sports and entertainment properties, told CNBC on Wednesday that it intends to submit a proposal for a WNBA expansion team.

WNBA Commissioner Cathy Engelbert has said she hopes to grow the league to 16 women’s basketball teams by 2028. As women’s sports continues its growth trajectory, a host of cities are coming to the table with their pitches.
Officials in Cleveland — home to professional teams like the NBA’s Cavaliers, NFL’s Browns, MLB’s Guardians and American Hockey League’s Monsters — believe they are well-positioned for a women’s franchise.
“We have this unique convergence of infrastructure, culture and these foundational pieces that we think make Northeast Ohio, and specifically Cleveland, a great opportunity to expand from a WNBA perspective,” Nic Barlage, Cleveland Cavaliers CEO, told CNBC.
As an example, he cited the Cavs recently announcing that they are joining forces with the Cleveland Clinic to create a new Performance Center to provide state-of-the-art training for both the Cavs and the public. The Cavs also have an existing practice facility in Independence, Ohio, which they said could be ready-made for a WNBA team.
Barlage said Cleveland also has a track record of passionate fans that support their teams in good times and bad.

“Cleveland is a real crazy sports town,” said David Gilbert, CEO of the Cleveland Sports Commission. “It’s so closely tied to the identity of the city that’s had, the last couple of generations, some tough times.”
The Cleveland Cavs are off to their best start in history, currently sitting in first place in the Eastern Conference with a 15-1 record.
Engelbert spoke about expansion last month ahead of the WNBA Finals, saying there is no shortage of competition for an expansion team, with at least 10 cities expressing interest.
Potential suitors also include Denver, Miami, Milwaukee, St. Louis and Philadelphia.
“The good news is we have a lot of demand from many cities,” she said. “I think the more people are watching the WNBA and seeing what we’re growing here and seeing these players and the product on the court, more people are interested in having it in their cities.”
With Englebert leading the way, the league has already seen some expansion. The WNBA’s 13th franchise, the Golden State Valkyries, will kick off their season in 2025, and Toronto and Portland, Oregon, were awarded the 14th and 15th franchises earlier this year.
“We’re not in a huge rush. We’d like to bring it in in ’27 or no later than ’28,” Engelbert said in regards to a timeline for a 16th team.
The league said it is looking at a wide range of factors in a city when it comes to picking an expansion team, including practice facilities, a committed ownership group, demographics and Fortune 500 companies.
The WNBA has tapped investment bank Allen & Company to lead the expansion process. Coincidentally, Allen and Company also helped Gilbert when he purchased the the Cavs in 2005.

Cleveland’s case

This would not be Cleveland’s first foray in the WNBA. The city hosted one of the WNBA’S original franchises, the Cleveland Rockers from 1997-2003. The team folded after seven seasons as the team’s owner, Gordon Gund, cited low attendance and said he could not find a way to make the team profitable.
“I have invested in it now for seven years trying to find a business model for it to work in our marketplace,” Gund said in 2003. “The fans we had were very enthusiastic and very supportive. We just didn’t have enough.”
The league was not able to find new owners, and Gund turned his attention to the Cavs and their pursuit of Cleveland’s hometown hero LeBron James.
Yet, a lot has changed in the 20-plus years since the Rockers folded, as the WNBA and women’s sports are seeing major upticks.
The WNBA last month delivered its most-watched finals game in 25 years. The league also saw fans coming out in droves, giving the WNBA its best attendance record in 22 years. And it’s translating to the wallet — merchandise sales are up more than 600% from 2023.
Cleveland itself has also gone through a resurgence, too, in part kicked off by James’ return to the city back in 2014. The Washington Post Editorial Board even published a piece in January calling Cleveland “America’s best example of turning around a dying downtown.”
“We firmly believe we sit at the nexus of the Mediterranean of the Midwest and there’s no reason why we can’t have and manifest all the same opportunities that some of the higher growth markets you may see in the southern half of the country have,” Barlage said.
Since 1994, the Cavs, Monsters and Rocket Mortgage Fieldhouse have generated $6.5 billion in total output, according to the Cavs 2024 Community Impact Report. The Cavs Rocket Mortgage Fieldhouse hosted more than 150 events this year, including the 2024 NCAA Women’s Final Four, helping to stimulate millions for the city.
“I just feel extraordinarily confident that, should a team be given to Cleveland, in part because of the city, in part because of what sports means here, in part because of the Cavs, it would immediately be a huge success,” Gilbert said. More

News, insights and analysis on what professional sports teams are worth.

The National Hockey League is commanding more respect when it comes to team values.
The average NHL team is worth $1.92 billion, according to CNBC’s Official 2024 NHL Valuations, and recent transactions come at revenue multiples that rival deals done in Major League Baseball.

What accounts for the league’s ascension?
Steady revenue growth combined with a hard salary cap and a leaguewide revenue-sharing system all but ensure profitability for the league’s 32 teams.
For the 2023-24 season, the NHL’s hockey-related revenue was $6.3 billion, 8.6% higher than the previous season, according to the league. The NHL also hit record national sponsorship revenue last season, bringing in $250 million, as well as record regular-season gate receipt revenue of $2.4 billion, the NHL said.
That growth, combined with richer media deals, is contributing to a better bottom line for professional hockey. The average NHL team posted EBITDA of $45 million on revenue of $223 million for the 2023-24 season, according to CNBC calculations.
Here is how the NHL’s 32 teams stack up:

CNBC’s Official NHL Team Valuations 2024

Rank
Team
Value
Revenue
EBITDA
Debt as % of Value
Owner(s)

1.
Toronto Maple Leafs
$4B
$324M
$139.5M
5%
Rogers Communications, BCE, Larry Tanenbaum

2.
New York Rangers
$3.5B
$317M
$80M
1%
Madison Square Garden Sports

3.
Montreal Canadiens
$3.1B
$302M
$111.2M
7%
Molson family

4.
Los Angeles Kings
$2.85B
$337M
$110.1M
4%
Philip Anschutz

5.
Boston Bruins
$2.75B
$280M
$78.8M
4%
Jeremy Jacobs

6.
Edmonton Oilers
$2.65B
$379M
$156.9M
3%
Daryl Katz

7.
Chicago Blackhawks
$2.6B
$265M
$103.3M
4%
Wirtz family

8.
Philadelphia Flyers
$2.25B
$247M
$39M
0%
Comcast

9.
Washington Capitals
$2.1B
$246M
$79.3M
9%
Ted Leonsis

10.
Detroit Red Wings
$2.05B
$239M
$34.3M
4%
Marian Ilitch

11.
New Jersey Devils
$2B
$267M
$50.4M
6%
David Blitzer, Josh Harris

12.
Vancouver Canucks
$1.95B
$226M
$31.1M
6%
Aquilini Investment Group

13.
Dallas Stars
$1.9B
$244M
$80.6M
8%
Tom Gaglardi

14.
Vegas Golden Knights
$1.85B
$221M
$49.4M
8%
Bill Foley

15.
Tampa Bay Lightning
$1.8B
$220M
$39.7M
12%
Doug Ostrover, Marc Lipschultz, Jeff Vinik

16.
New York Islanders
$1.77B
$207M
$29.2M
18%
Jon Ledecky, Scott Malkin

17.
Pittsburgh Penguins
$1.75B
$218M
$42.3M
11%
Fenway Sports Group

18.
Calgary Flames
$1.7B
$183M
$29M
5%
N. Murray Edwards

19.
Colorado Avalanche
$1.65B
$195M
$20.6M
21%
Stan Kroenke

20.
Seattle Kraken
$1.6B
$184M
$19.4M
29%
David Bonderman, Samantha Holloway

21.
Minnesota Wild
$1.55B
$202M
$31.5M
11%
Craig Leipold

22.
Nashville Predators
$1.5B
$192M
$27.8M
7%
Bill Haslam

23.
St. Louis Blues
$1.47B
$189M
$6.5M
9%
Tom Stillman

24.
Anaheim Ducks
$1.43B
$175M
$20.1M
21%
Henry Samueli, Susan Samueli

25.
San Jose Sharks
$1.4B
$168M
($3.3M)
4%
Hasso Plattner

26.
Florida Panthers
$1.35B
$181M
$6.6M
12%
Vincent Viola

27.
Carolina Hurricanes
$1.3B
$184M
$25.4M
15%
Tom Dundon

28.
Utah Hockey Club
$1.2B
$119M
($6.3M)
26%
Ryan Smith, Ashley Smith

29.
Ottawa Senators
$1.18B
$154M
$3.8M
23%
Michael Andlauer

30.
Buffalo Sabres
$1.15B
$169M
$15.8M
4%
Terry Pegula, Kim Pegula

31.
Winnipeg Jets
$1.1B
$163M
$1.3M
12%
Mark Chipman, David Thomson

32.
Columbus Blue Jackets
$1B
$148M
($1.5M)
13%
John McConnell, Nationwide More

TJX Companies beat Wall Street’s estimates and raised its full-year profitability guidance.
The off-price giant, which owns TJ Maxx, Marshall’s and Home Goods, said it was seeing a “strong start” to the holiday shopping season.
TJX is still managing to grow sales even as it laps tougher comparisons from the year ago period.

A sign hangs at the entrance of a T. J. Maxx store on February 28, 2024 in Chicago, Illinois. 
Scott Olson | Getty Images

TJX Companies touted a “strong start” to the holiday shopping season on Wednesday, but its shares slid after the fast-growing retailer offered guidance that appeared to underwhelm Wall Street.
TJX comfortably beat Wall Street’s expectations during its fiscal third quarter, but it’s expecting earnings per share for its holiday quarter to be between $1.12 and $1.14, behind expectations of $1.18, according to LSEG.

Here’s how TJX performed compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

Earnings per share: $1.14 vs. $1.09 expected
Revenue: $14.06 billion vs. $13.95 billion expected

The company’s reported net income for the three-month period that ended Nov. 2 was $1.30 billion, or $1.14 per share, compared with $1.19 billion or $1.03 per share, a year earlier. 
Sales rose to $14.06 billion, up about 6% from $13.27 billion a year earlier.
“Across the Company, customer transactions drove our comp sales increases, which tells us that our values and treasure hunt shopping experience are appealing to a wide range of customers,” CEO Ernie Herrman said in a news release. “The fourth quarter is off to a strong start, and we are excited about our opportunities for the holiday selling season. In stores and online, we are offering consumers an ever-changing and inspiring shopping destination for gifts at excellent values, and feel confident that there will be something for everyone when they shop us.”
Following a year of torrid growth, the discounter behind Marshalls, HomeGoods and T.J. Maxx is still increasing sales. It’s winning over value-seeking consumers who are trading down from department stores like Macy’s and Kohl’s, and making strides with younger shoppers who don’t see off-price shopping as a stigma.

Earlier this year, TJX’s European business struggled due to issues with its execution, but the division posted strong results during the fiscal third quarter. Comparable sales increased 7% in TJX’s international channel.
Before the company reported, some analysts were concerned that TJX and other off-price retailers like Burlington Stores and Ross Stores could be disproportionately impacted by the unseasonably warm weather in October. Off-price retailers tend to be affected by unfavorable weather patterns more than traditional retailers because lower-income shoppers typically buy things when they need them — not ahead of time, Bank of America analysts wrote in a research note.
During the fall months, retailers with heavy exposure to apparel, such as TJX, count on shoppers coming in to buy new coats and other gear for the cooler weather. If its lower income consumer held off on those purchases because the weather was warm, it could have dinged TJX’s sales.
However, warmer than expected weather didn’t appear to have a major effect on TJX’s sales. More

The NHL believes it can capitalize on the global popularity of hockey and improve its standing in countries where the league does not yet have as strong of a foothold.
The first two regular-season games of the 2024-25 season were played in Prague, followed by two more in November in Tampere, Finland, for this year’s NHL Global Series.
International expansion means more robust recruiting, a bigger audience and more revenue and sponsorship opportunities.

A general view during the 2022 NHL Global Series Challenge between the Nashville Predators and the San Jose Sharks at O2 Arena in Prague, Czech Republic, on Oct. 7, 2022.
Martin Rose | Getty Images Sport | Getty Images

If all goes according to plan for the National Hockey League, its popularity will continue growing well beyond the confines of the countries where its teams are based.
Through events both inside and outside the U.S. and Canada, the NHL believes it can capitalize on the global popularity of the sport of hockey and improve its standing in countries where the league does not yet have as strong of a foothold.

Much of that effort has so far centered on Europe, specifically countries such as Sweden and Finland where hockey is already a popular sport. The first two regular-season games of the 2024-25 season were played in Prague, followed by two more in November in Tampere, Finland, for this year’s NHL Global Series.
All four of the games were sold out, said NHL Deputy Commissioner Bill Daly.
“We think we’re uniquely positioned in hockey, in the NHL, because hockey is such an international sport and we have a strong tradition of high-level players being developed in Europe,” Daly said in an interview with CNBC. 
Executives from several of the teams that played in Europe this year said it was encouraging to see local support for American hockey teams.
“One of the more eye-opening experiences for me was seeing just how many international fans there were and how many Devils fans there were that are truly on a global and world stage,” New Jersey Devils President Jake Reynolds said in an interview. 

Jumping the pond

The NHL Global Series is not new. The event in its current form started in 2017, with a two-year hiatus due to the Covid-19 pandemic. Regular-season games in Europe date back even further, and the NHL has a long history of playing exhibition games against local teams abroad.
The league also hosts fan tours, this year from Aug. 31 to Nov. 2 across Europe, as a way for fans to engage with the NHL through games, prizes and a peek at the coveted Stanley Cup at some of the stops.
In February, the NHL will host its first-ever 4 Nations Face-Off, an international event where league players from Canada, Sweden, Finland and the U.S. will play for their native countries. 
In 2026, NHL players are planning to participate in the Olympics for the first time since 2014. The hope is that increasing exposure for NHL players on a global stage will be a tailwind for the league. 
“They are looking to make the game as global as possible because we operate in a global economy,” said Rick Burton, a professor at Syracuse University and co-author of “Business the NHL Way: Lessons from the Fastest Game on Ice.”
“So you can’t say, ‘Well, this game is only for North Americans.’ It simply isn’t,” Burton said.
Burton also said he would not be surprised to see an NHL team — or a few — launch in Europe in the future.
Daly did not rule out the possibility, but categorized it as a longer-term play if it were to ever happen.
Europe offers an obvious opportunity for NHL growth. Roughly 30% of the league’s players are European, Daly said, which is part of the reason for the warm reception to the Global Series and the strong turnout.
“Sometimes it gets lost how much fun it is,” Florida Panthers general manager Bill Zito said. “It’s really fun to go play hockey over there.”

Sam Reinhart, #13 of the Florida Panthers, prepares to shoot the puck against Miro Heiskanen, #4 of the Dallas Stars, during the third period of the 2024 NHL Global Series Finland game at Nokia Arena in Tampere, Finland, on Nov. 2, 2024.
Andre Ringuette | National Hockey League | Getty Images

This season’s Finland games, between the Dallas Stars and Florida Panthers, featured players Aleksander Barkov and Roope Hintz, who are both Finnish. When the New Jersey Devils played the Buffalo Sabres in the Czech Republic, both teams leaned into their past and present Czech players. 
“We brought some really good teams and some good European players back to their home markets,” Daly said.

Greater leverage

Taking the NHL’s product outside the U.S. and Canada to grow its audience will give the league more bargaining chips the next time it negotiates media rights, according to Irwin Kishner, a partner at Herrick Feinstein who has advised sports leagues on media rights, stadium financing and many other sports law pieces. 
“The more eyeballs you have, the more valuable the signal can be,” Kishner said. “And it’s more that you can drive on sponsorship, the more that you can pay for players, the richer the league becomes.”
The NHL’s current media rights deal goes through the 2027-28 season, and if recent sports media rights trends continue, the NHL would also be looking at a hefty increase in its contract value. Live sports have been one of the last pieces of appointment viewing holding together traditional pay-TV bundles, meaning media companies have been willing to pay a premium for the rights.
Revenue from the NHL Global Series, as well as most other international events, goes to the league’s hockey-related revenue, according to the collective bargaining agreement, which is split between the league and players.
There are also revenue opportunities at the individual team level through corporate sponsorships.
Dallas Stars President Brad Alberts said he is interested in exploring a partnership with Nokia, which has a large presence in the Dallas-Fort Worth area and is based in Finland. The New Jersey Devils swapped out their typical Prudential helmet decal with Prudential’s international arm, PGIM, for the European games, Reynolds said.
In all the initiatives expanding outside the U.S. and Canada, the NHL and the National Hockey League Players Association work together. 
The two parties are often at opposite ends of the table when negotiating labor contracts, but when it comes to making hockey and the NHL more popular, the organizations are aligned, according to both the NHL and the NHLPA.
“You see it in private sector. When unions and businesses work in the private sector to grow a business, you see a lot of success,” NHLPA executive director Marty Walsh said in an interview.
Despite many of the league’s efforts being focused on Europe, there is plenty of interest in other markets. 
Prior to the 2023 season, the NHL had preseason games between the Los Angeles Kings and the Arizona Coyotes in Australia, the first time the NHL played in the Southern Hemisphere. The Vegas Golden Knights, one of the newer teams in the league, have devoted resources to grow its fan base in Latin America.  More