media observer

Disney: Mickey Mouse Accounting

Accounting rules govern here.

These sports contracts are considered television programming that their networks will use over time. They probably don't start until some time in the future. Once the contracts become effective, Disney will carry the contracts as an asset (depending on the term, either short term or long term asset), and the contractual payments will show up as short and long term liabilities. In addition to the right to broadcast he sporting events, Disney gets the right to generate revenue through sponsorship and advertising. Aha.....yes, these rights are operating assets that will be amortized over time.

They will no doubt generate more cash flow and profits for Disney than all of their fiction and non-fiction programming combined. Would you feel better if Disney didn't have any sports programming contracts lined up?

It's the way the business works.