Gray Media announced a six‑year agreement with the Ohio Valley Conference (OVC) to broadcast OVC men’s basketball games over the air in 20 markets across Tennessee, Missouri, Illinois, Indiana, and Kentucky, with a national simulcast on ESPN+ and the ESPN app. The deal covers games from December 18, 2025 through February 26, 2026, and positions Gray’s Tennessee Valley Sports & Entertainment Network, Matrix Midwest stations, and Indiana stations to carry the action in their respective regions.
The partnership is part of a broader ESPN media rights arrangement that will deliver at least 725 OVC events annually to ESPN+ and linear networks. By adding OVC basketball to its portfolio, Gray Media aims to deepen audience engagement in its core markets, create cross‑sell opportunities with local news and digital platforms, and add new advertising inventory during the regular season and playoffs.
Gray’s recent earnings report shows the company’s revenue fell 21.2% to $749 million in Q3 2025, a decline driven by a 4% drop in political advertising and a 10% decline in local TV advertising. Operating margin contracted to 13.6% from 26.3% a year earlier, reflecting higher cost pressures and a shift toward lower‑margin programming. Despite the revenue decline, the company beat earnings expectations by $0.24 per share, largely due to disciplined cost control that kept operating expenses $17 million below guidance.
Management highlighted that the OVC deal is a strategic move to offset the revenue weakness in its core advertising business. CEO Hilton Howell Jr. said the partnership would “strengthen our local sports footprint and provide new revenue streams through increased viewership and sponsorship opportunities.” The deal also supports Gray’s broader strategy of leveraging its digital distribution capabilities to capture audiences beyond traditional linear TV.
Analysts noted that while the OVC agreement adds value, the company’s guidance for Q4 2025 remains below market expectations, with revenue projected at $774.5 million versus analysts’ estimate of $813.3 million. The guidance reflects concerns about the cyclical nature of political advertising and the broader macroeconomic uncertainty that may dampen advertiser spending. Nonetheless, the company’s focus on cost containment and strategic content expansion signals confidence in maintaining profitability in the near term.
The OVC basketball rights deal is expected to generate incremental advertising revenue and strengthen Gray Media’s competitive moat in the local media market, positioning the company to capitalize on its existing sports rights and digital distribution infrastructure while navigating a challenging advertising environment.
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