Tuesday, the NFL will have an emergency meeting to talk about moving “past the anthem controversy.” For CBS, the NFL couldn’t move past the anthem controversy fast enough.
Credit Suisse reports CBS and the NFL television ratings are in a free fall, and it’s projected to make a direct hit on the company’s earnings.
Credit Suisse slashed the networks third quarter EPS estimates by 5-percent because of the struggling NFL ratings.
Credit Suisse analyst Omar Sheikh says:
“We expect third-quarter network advertising to decline 3 percent (previously +1 percent), driven by soft ratings for both the summer schedule and for the start of the NFL season. With only one of the three content licensing deals we expected for the second half announced in third quarter, we also expect content licensing revenue growth to be skewed to the fourth quarter.”
“Sheikh maintained his outperform rating and price target on CBS shares, which remains at $75, or 32 percent upside from Friday’s close. He cut his third-quarter EPS estimate to $1.08, below Street consensus estimate of $1.12 from FactSet.
“The analyst said CBS’ Sunday NFL ratings are down 17 percent year over year during the first several weeks of the football season, according to the report. Sheikh released a similar report last week on Twenty-First Century Fox’s earnings, which he also expects to disappoint thanks to weaker ratings by the NFL.”
So it completely makes sense that networks most recently stopped airing the anthem protests. A complete about-face from the start of the season when the anthem protests first started. Was it great for TV ratings? At first yeah because something controversial and newsworthy was happening. Also, because they agreed with Colin Kaepernick. Now… the Frankenstein they created turned on them.
Strange isn’t it…