Good morning, everyone. I'm Steve Zenker, Vice President of Investor Relations for Sinclair Broadcast Group. I wanna welcome everyone to our 2022 Investor Day, those who are here in person and those attending via our webcast. Over the next 4 hours, biness leaders from many of our areas of our company will give you a deep dive into their businesses, discussing where we are today and where we are headed for the future. We will spend the first approximately 75 minutes on the current state of the company, concluding the first half of the event with a Q&A session. We will then break for a 30-minute lunch before launching the second half of the event, which will focus on Sinclair's future growth initiatives. We will then conclude the event with a second Q&A session. Please note that as we are trying to refamiliarize you with Sinclair, questions should be focused only on Sinclair and not on Diamond, which we have deconsolidated. Those of you listening to the webcast, you can submit your questions via the webcast platform. Before we start the presentation, I refer you to the safe harbor slides on page 3 and 4 of the slide deck. Also, I wanna remind everyone in the room to mute your electronic devices. With that, Chris Ripley, our President and CEO, will now present a company overview. Thank you, Steve. Good morning, and welcome to Sinclair's Investor Day. Sinclair has diversified assets encompassing news, sports, technology, and marketing services across multiple platforms. We have scale, audience reach, and financial strength, providing operating advantages to advertisers, audience, and employees. Our core business is being driven by growing advertising and net retrans trends. We have a focus on local news and an innovative culture, which have been key drivers for the company and its industry leadership position. Our growth opportunities in marketing services, multi-platform content, community and interactivity, and data distribution will fuel future growth. We have very significant free cash flow utilized to innovate, invest, and return value to shareholders. Last but not least, we have a strong balance sheet with no debt maturities until 2026 and liquidity of over $1.1 billion. Moving to our portfolio of assets and investments. Sinclair is comprised of broadcast stations producing award-winning local news, national and regional sports networks, streaming services, multicast networks, marketing solutions, innovative media technologies, and an investment portfolio worth approximately $1.2 billion. Sinclair has a rich history of innovation and industry leadership that is instilled in the DNA of the company. We were the first broadcaster to utilize partnership agreements such as LMAs to unlock multi-station synergies while still complying with single station ownership regulations. We were also the first broadcaster to broadcast a digital multicast in 2006, which has facilitated the creation of a large and vibrant multicast sector with dozens of free channels for consumers to enjoy and the industry to monetize. Most significantly, we were the first company to execute a per-subscriber fee cable retransmission consent agreement in 2005, spurring a multi-decade growth cycle for the industry. We were also the driving force behind the creation of ATSC 3.0, which led the U.S. and other countries to adopt the NextGen broadcast transmission standard. As you'll hear today, we're just getting started with several innovations powering our future forward strategy. Next up, I wanna spend a few slides talking about our strategy. We are not trying to be the best broadcaster we can be. Instead, Sinclair's strategy repositions the company out of legacy growth challenged markets into future forward growth markets utilizing strengths and core competencies it already possesses. It's based on four pillars or areas of focus: multi-platform content, marketing distribution services, data distribution, and community and interactivity. I will expand upon these pillars in the slides ahead, but you'll also notice them throughout today's presentations as common themes in everything that we do. In multi-platform content, we are evolving into multi-platform local content production centers. Every piece of content that we create is customized for multiple platforms, creating greater consumer touch points and monetization opportunities. You'll hear more about this in many areas, including The National Desk, NewsON, Tennis Channel, and our local news operations throughout the country. In marketing services, we utilize a suite of proprietary best-in-class tools to drive client business growth. We don't just sell spots anymore, we sell omni-channel solutions. There is no reason for our clients to go to any other provider. We've automated the provisioning, management, and reporting, making it more user-friendly and cost-effective. Now we offer this service to other local media companies and local agencies, leveraging sales forces across the country to access the massive digital marketing services marketplace. Examples of this strategy include Drive Auto, our dealership-specific advertising platform, other specialized ad units such as Compulse Legal, and of course, our white label SaaS platform for the industry, Compulse 360. In data distribution, we are becoming a wireless data distributor to fixed and mobile devices. We are sitting on 1.7 billion MHz-pop of beachfront spectrum that adds little to no value to the business today. ATSC 3.0 or NextGen TV will better monetize the OTA population through interactivity, data, and targeting, but will do so much more. Applications for mobile video, low latency sports, IoT device control, and enhanced GPS are just some of the use cases being developed that will unlock the true potential of our wireless spectrum. BIA recently estimated that the industry as a whole will have mid-case revenues of over $10 billion by 2030 from datacasting applications alone. In community and interactivity, we are creating community hubs where neighbors and fans can interact with each other through content, games, and commerce. Serving, entertaining, and informing communities is at the heart of what we do at Sinclair. Now, with new technologies, we have the ability to have a two-way relationship with those communities. First-party consent to data is a big value driver, but more than that, this allows for monetization opportunities from gamification and commerce. Areas in this pillar that you'll hear more about include our new consolidated customer database platform, giving us one view of the customer wherever and however they interact with us. Game centers and interactive elements we have rolled out to all of our properties and Watch & Bet that we are developing through our Bally's partnership for our various sports properties such as Tennis Channel. What does this all mean? Simply put, Sinclair is massively undervalued. Our broadcast and other segment has a market value alone of $35 per share, and that's just based on an industry multiple of 7x our prior two years approximate average EBITDA of $900 million. This segment also includes Tennis Channel, Compulse, and NewsON, which are expected to grow meaningfully in the years ahead and warrant a higher multiple than the broadcast business. Our investment portfolio has a market value of $17 per share. This is based on a fair market value of approximately $1.2 billion, consisting of real estate, venture capital, private equity holdings, and direct strategic investments valued at $764 million. Our strategic investment in Bally's Corp is valued at $211 million, and our Diamond Sports AR loan facility, backed by high-quality accounts receivable, is worth $193 million. There's our wireless spectrum, which has an estimated market value of $23 per share, and that's based on just the prior FCC auction values of similar spectrum, which yielded around $1 per MHz-POP. As you can see from the chart on the right, this sums up to an intrinsic value of $75 per share, which is multiples more than our current trading value. Now, I will turn it over to Rob Weisbord for an overview of the broadcast business. Good morning. Thanks, Chris. Future forward has always been in the Sinclair DNA. I've been lucky to work with the company for 25 years and have seen the large growth. It started with our chairman, David Smith. David, almost 20 years ago, indicated in a broadcast and cable article that at some point in time, the industry would be down to 7 broadcasters. You would think that he was talking about today's world, but this was over 20 years ago that David stated that. We were the first company, and it was a wild ride. Over three years, we made a lot of acquisitions, and it was done by design to diversify us across the country, as well as, diversifying our network approach, so where there wasn't any reliance on one specific network. I happened to live through the New World Fox days and New World with CBS, and one day, New World called CBS and said, "We're switching." They said, "What market?" They said, "All our markets." Overnight CBS stations became Fox stations, and it set the world upside down. We wanted to make sure that we diversified. Today we have 185 television stations in 86 markets. We control over 600 different channels, and what we're really proud about is our 2,500 hours plus of local news that we produce weekly. When you look at this diversification, as you can see in the left-hand pie chart, there isn't one network that counts for more than 30% of our revenue. It gets spread out, and obviously, we have the mass of ABC, Fox, CBS stations, and we have the power of the Big Four, along with duopolies in many of our marketplaces. When you see the middle chart, it shows that less than one-third of our revenue comes from networks. We've really controlled our destiny, and we will continue to control our destiny in the future forward through creative programming, additional news hours. We are focusing, and you'll hear from our head of news later, but really in that future forward strategy of focusing on not only the boomer generation, but the next generation of news viewers as well. In the last slide, which really is what we've addressed and what Chris stated, that we are not a legacy-thinking broadcast company, but we are a media company thinking about all the different pies of revenue. In political, the last couple cycles have been record year cycles, and it's projected the presidential cycle will again be record-breaking. We're positioned that way. We've created specialists in the political arena to be able to get to that revenue. As everybody wants to talk about digital, we think we have the best case scenario because we have the megaphone of our broadcast stations, along with many digital assets to be able to capture the TAM that I'll talk about that's available in our marketplace. When you look at how we've overcome adversity, it was unprecedented with COVID, kinda changed the world. Now we try to figure out as a hybrid return to work. I think everybody in this room faces that within your own companies. How's the culture growing? Despite that, on the trailing over two-year performance, you see we're projecting 2021, 2022 to be our best over five-year trailing years. That's because we're able to capture the digital and political revenue along with our core. We really wanna hit on this. When you look at the presidential growth of 79%, this midterm election will be anywhere from 29%-32%. Those are significant growth that we're able to capture, along with the compounding CAGR that you see with digital. We'll get into why we're bullish on this, because for the last eight years, we've been building our digital assets. I was lucky enough to start the digital division 15 years ago in a very perfunctory way. Eight years ago, we built our own content management system, our own video management system, which gives us agility to be able to publish and monetize through our unique visitors. Again, when you look at this TAM in the Sinclair markets alone, based on BIA/Kelsey, the market's expected to grow from advertising dollars by $11.1 billion or 18% by 2025. We are well-positioned that we don't think of ourselves as going after our competitors in the broadcast space, but we're going after the total addressable market. We've trained our sellers, we've trained our management, and we continue to educate them on how to secure what we call the share of wallet, which is the total available dollars from advertising, 'cause we have a solution for all advertisers. We have an AI machine learning product that actually learns over time what the best asset allocation is for the category, for the size of budget. We're gonna continue to bring in technology to make our sellers smarter to capitalize and acquire the total available dollars in the marketplace. We maximize this yield as well with cross-platform sellers. We have a house of brands team that sells across all our assets. Our Sinclair Media Network goes after network dollars in an unwired fashion where we've brought in other broadcasters. Our sports group unlocks the value of all our sports impressions across broadcast, Tennis Channel, as well as the RSNs and our digital sports network Stadium. As Chris mentioned, we went on this journey beginning about six years ago to go from general selling to specialization. We brought in a team from the automotive industry to launch Drive Auto and go after that tier 3 digital dollars. We are able to capture not only the broadcast dollars, but the digital money that the dealers were spending in our marketplace. Compulse Legal is able to create, and the everyone leading the legal team have law degrees, know how to speak the legal language, have taught our sellers how to speak that legal language and unlock not just the personal injuries, but all classifications in the legal field. Compulse Med, the same way. We deal with a lot with hospitals, we deal with the pharmaceutical companies, and we've hired from that field, again, to educate, to train, to speak their lingo. 10 years ago, everybody would be talking about HUTs and PUTs and rating points and impressions, and we've moved away from that speak and more to a marketing. Our sellers are known as marketing consultants, and they're true consultants versus account executives, which really doesn't state what their mission and goals are on a go-forward basis. There's $10s of millions in government RFPs, and we've set up a government RFP team as well to be able to answer the RFPs, which could be 50 to 100 pages, and be able to secure those dollars and unlock those dollars as well. We're focused, like I said, as a digital first organization to unlock our average revenue per user. We have anywhere between 80-90 million uniques a month on our broadcast websites, and we wanna unlock the value that those uniques bring. We'll unlock it through, and you'll hear later of what we plan to do on free-to-play games, on commenting sections, we will be in the e-commerce business, we'll be in watch and play, which is really real life betting. We're unlocking newsletters on broadcast and sports. We have the premium programming that will be digital only. I'm not gonna read every single word, but you could see all the various areas of entry to unlock and grow the average revenue per user. Again, if you wanna go to a very simplistic math, if we have 80 million uniques and we get a dollar unique, that's $80 million that we can unlock, and the multiples go up from there. Now I'll turn it over to Will Bell, our Head of Distribution. Again, some of these sections we're gonna go into in much more detail when those business unit leaders come up. Thank you. Thanks, Rob. Good morning, everybody. Our distribution revenue continues to grow primarily based on two important factors, the strength of our local news and our popular network programming. Scott Livingston will speak to our unrivaled news in a few minutes. Regarding network content, although we are certainly in an evolving marketplace with respect to where consumers watch, one constant is that the most in-demand popular content is on broadcast television. It is the bedrock of appointment television, and frankly, it, along with our news, is the single most important programming to viewers. In 2021, 95 of the top 100 individual programs were on Big Four broadcast television. I'll say that again. Last year, 95 of the top 100 programs were on our Big Four broadcast stations. From sports such as the NFL, Olympics, the World Series, NBA, and NHL finals, and much more, to event-based programming such as the award shows, Macy's Thanksgiving Day Parade, and the network's primetime lineups. The most in-demand events are on broadcast television. When it comes to ratings, broadcast dominates. As you can see from the charts on the right, the Big Four networks, the preeminent driver in ratings, outranking all cable networks in both primetime and total day in the 25-54 demo. When it comes to primetime, the average audience of the Big Four networks is more than 35% higher than ESPN, the highest ranking cable channel, and more than double Fox News, the second highest performing channel. This is driven both by the popular network primetime lineups, but also our successful local news lead-ins, which has proven to be a powerful tool in delivering a strong viewer base heading into the network programming. This local to national combination has proved successful for decades and is a symbiotic relationship we see continuing to thrive going forward. In total day, the dominance is even more pronounced. The Big Four stations outperform the number one cable channel by over 75% in terms of average audience in the 25-54 demo. There's a reason the NFL and Big Ten both recently signed long-term deals to ensure their premier product stays on broadcast television. They recognize the power of broadcast. This success has enabled us to grow our distribution revenue and annualized growth of over 9% per year since 2017, despite an overall decline in the number of paid TV households. This is primarily through increasing the consideration MVPDs pay us and capitalizing on the growing vMVPD market. In addition to our successful track record of growth, we believe there's still much more organic opportunity to grow both our gross and net retransmission revenue. Although programmers don't directly pay for ratings, the market has been rationalizing for years, and consumers were unwilling to pay for content they do not watch. This puts us as the providers of the most in-demand content in a strong position to grow our share. This chart on the left shows that broadcast currently accounts for 22% of the fees MVPDs pay programmers, yet it delivers nearly 40% of the ratings. As you can see, retrans as an overall percentage of the fees MVPDs pay has steadily increased from less than 5% in 2010 to over 20% currently. As the providers of the premier content on television, we strongly believe that our revenue share should be over-indexing our ratings as our programming is what gathers the viewers and brings them to the bundle. At a minimum, however, we expect to continue to grow our portion of the overall programming fees until a percentage of retransmission revenue is more appropriately aligned with our equivalent rating share. That goes to say we are still incredibly optimistic on the outlook of our distribution business, and we expect to continue to grow our broadcast distribution revenue. In 2023, we have over 50% of our big four MVPD subscribers up for renewal. When you expand this horizon to include 2024, that number increases to over 90%. We expect these upcoming renewals to positively impact distribution revenue in 2024 and 2025 and deliver a three-year CAGR in net distribution revenue in the low to mid-single digits. I'll turn it over to Scott Livingston, our SVP of News. Good morning. It's great to be here. You heard Chris and Rob talk about the transformation of Sinclair from a broadcast company to a media company. That's exactly what's happening in our newsrooms across the country. We're truly transforming our traditional newsroom to be content centers, changing workflows so we can be more agile to produce content on multiple platforms. We're seeing some great success. We're able to maintain our relevancy and our value on the linear side, where we're number one or number two in the AM and PM in 40 of our markets, and we're number one or number two in the PM in 43 markets. The real growth is on the digital and social side. As Rob mentioned, we have more than 80 million unique monthly visitors to our websites. On the social side, year to date, we have more than 1.9 million, excuse me, billion, that's with a B, 1.9 billion social video views across Sinclair and 180 million social engagements so far to date. We're doing this by changing our workflows. We've created a content hub at the corporate level, where we're producing content on the social, digital, and OTT platforms. We're also contributing content to the linear side, content for all of our newscasts across the country, and we're creating content for the national desk and the national weather desk. This buys back time. This allows our stations to focus on hyperlocal content. It allows our stations to focus on hyperlocal content on the social and digital platforms. We're truly transitioning our purpose and process for modern journalism. This slide showcases some of the interaction with our audience. It's now an interactive experience. It's not just sharing news, it's also communicating with news viewers and news consumers across the country. We do this by showcasing distinctive content. We really believe in unique content you can't find anywhere else, with a disciplined approach that allows for disruption. We define disruption as that growth on the digital and social side. Our news DNA, we're focused on stories of high interest, and we allow our journalists to dig deeper. We want to go more than a centimeter deep, and we want to make sure that we're producing content for the targeted platforms. We focus on holding government accountable, asking the tough questions our viewers would ask. We're relentless in our follow-ups. We're relentless with sharing content on all platforms. We really want to give a voice to the voiceless, follow the money, want to be that advocate for taxpayers as well. The bottom line is we want to have an impact in the communities we serve. We're not just focusing on being relevant today. We're spending a lot of time to make sure that we're still relevant in the future. In Dayton, Ohio, we have an ABC, Fox station, and our goal there is to be a real-time innovation lab. We're changing how we do things in real time so that we can be relevant down the road. So far we've adapted our newscast to be more snackable, to be faster paced, to be conversational, to really showcase our personalities on all platforms. We've seen some significant growth. In just the past few months, we're up more than 20% year-over-year with our ratings or based on Comscore data. We've expanded our content creation on the social platforms. We had a strong presence on Twitter and Facebook. Now we're adjusting and creating more content for YouTube, Instagram, and TikTok. We've created a TikTok following basically from scratch. We have over more than 13,000 organic followers in just 9 months. This is in one market. This is in Dayton, Ohio. We're also transitioning to the audio side to really understand how we can produce compelling content by creating a podcast. Using some of those great elements that we capture that we typically share in the newscast, now we're expanding them to long-form content on the audio side. A podcast we just released in Dayton was on a missing girl. In 1999, Erica Baker went missing in Dayton, Ohio. We produced a six-part series on that cold case. It's earned more than. I got an update over the weekend. That number is actually 100,000 downloads. Really impressive to see how we're changing things so, again, we can be more relevant in the future. Part of what we're doing is taking some of the great content that we have across Sinclair and creating a unique experience at the national level as well. 18 months ago, we launched The National Desk. It's a newscast of discovery. It's really built on the ground up. We're leveraging the resources and assets and content in our local markets to provide some clarity to emerging stories at the national level. The National Desk airs in 65 of our markets. We reach about 28% of the country. The audience is a little more than 2 million per week, so we're really pleased with that. When you do a comparison to one of our competitors, NewsNation, in the morning time period, we have 3 times the audience. It's also profitable after one year, that's always a good thing. When you look at the feedback from the audience, it's really positive. We've done 3 research projects with Magid. 85% of news consumers say they would keep watching The National Desk. They believe it's new, it's different, it's fresh, it's high quality, it has an unbiased approach. We're straightforward with the news, and they come away with their word, smart news, which again, all great attributes for a news product. We're also expanding The National Desk. You know, we own the weather space in the local markets. We have more than 200 meteorologists across the country. This is a real opportunity for us to leverage that content and that expertise and create a unique product both on all platforms. On linear, we just launched a 30-minute weather show last Monday. Our timing was perfect with the situation down south. But our real focus is on the social platforms. We're producing unique content for all the social platforms to really create a unique experience for consumers. It's not about forecasting, it's really about showcasing. I use the word cool weather stuff. It's all that great content that we have across Sinclair and also leveraging our expertise across Sinclair. I'm really proud that, you know, our newsrooms continue to get recognized for outstanding work, impactful reporting with a local focus. In the last six years, we've earned more than 2,000 awards, including 75 national awards, more than 200 Edward R. Murrow Awards, 500 Emmy Awards. It's just really great to see our commitment to quality journalism. You know, that success is built on our commitment to impactful journalism. I think KOMO in Seattle is one of our best examples. We really focus on keeping government accountable. Our focus there is a project that we launched, an initiative that we launched, which is a single topic initiatives, where we focus on key topics relentlessly on all platforms. In Seattle, we focus on Project Seattle, which is an in-depth look at the homeless situation. Operation Crime and Justice is looking at the crime issue and the quality of life issue. Our goal is not just to expose the problems, it's to expose those issues, but it's also to find solutions. I'm really proud of our effort in Seattle, and we've launched 25 other single topic initiatives across Sinclair. We're also making sure that we produce unique content for the social and digital platforms. We're not just producing content for the newscast, we are finding ways to connect with the viewer on the other platforms. For Project Seattle, we launched two documentaries. We produced two documentaries, Seattle is Dying and The Fight for the Soul of Seattle. We have more than 16 million views on YouTube and Facebook for our Seattle is Dying documentary. When we acquired KOMO 4 8 years ago, we were number 3 in the marketplace, and today we are number 1, and it's because we're doing significant distinctive content. The single topic initiative is part of the Sinclair DNA. We're doing that in 25 markets across the country. We're also really focused on giving a voice to the voiceless. Really proud of our work all across Sinclair. In Albany, New York, our anchor reporter, Anne McCloy, has been recognized for her great work during the pandemic, where she was relentless in her questioning of the former governor about unemployment benefits. Because of her reporting, checks were cut for thousands of New Yorkers, their unemployment benefits. Then in WGME in Portland, Maine, another proud moment for our news organization. Their newsroom discovered a problem with the veterans' suicide hotline. That hotline was connected to outdated websites. When emergency first responders would respond to an issue where a veteran may have been in crisis, it was connected to a wrong address. Because of our reporting, Senator King and Senator Collins introduced legislation that closed that loophole. We also were recognized with a national investigative award. Then WBFF is our flagship station in Baltimore, Maryland. Our investigative reporter, Mikenzie Frost, was honored as Baltimore's best TV reporter for her fearless reporting, really, asking those questions that our viewers would ask and focusing on being that advocate, alerting, protecting, and empowering. You know, the bottom line here is, you know, we continue to take significant steps to ensure we are relevant and distinctive on all platforms in the future. I'll turn it back to Rob, and Rob can highlight a little bit more about the broadcast and also talk about some of the new businesses. Thanks, Scott. As we get into a little recap before we get into our other businesses, it's one of the largest megaphones that we control, 185 stations in 86 U.S. markets, with four O&O networks that we have as well. No single affiliate derives more than 30% of our revenue, which allows us that diversification and not a reliance on any one network for our revenue. Non-network programming is more than two-thirds of our revenue. Again, we believe in controlling our destiny. Scott just went through that future forward and where we're going with our news. It'll allow us to be able to launch other types of content. The amount of content and B-roll we take over the year that doesn't even make it to on air is enormous. That B-roll can lead to docuseries, it can lead to numerous other long form that we will be focused on. Political and digital, I want you to keep this on the frontal lobe, are compounding and driving revenue and it leads us to sales specialization as well. The sales specialization allows us to unlock the TAM, and that focus of share of wallet is on everybody's frontal lobe, from our general managers, our corporate staff, down to our marketing consultants that are out in the field. We spend an enormous amount of time training our sellers to prepare them for that future forward and not living in yesterday's cost per point world. Net broadcast distribution, as Will spoke, revenue is positioned to continue growth through unrivaled popularity of the local and national programming. You could just recently look at when Amazon streamed one of the football games, half of their audience on that first exhibition came from two local broadcast stations. That couch, and watching from the fixed position TV is not going anywhere anytime in the near future. The flexibility in building a bridge to allow those viewers to watch how they want is there, and we've addressed that as well. We've addressed that a long time ago by creating our own OTT products, by creating STIRR and being able to have that flexibility through our own proprietary CMS and video management system. Our nationally recognized news, and big congratulations to Scott, have won enormous amount of awards. Our long form has broken through with Seattle is Dying, and we will continue to innovate and to be able to capture not only the boomer audience, but the next gen audience as well as we unlock different types of formats to bring them into the broadcast world. We are not of any belief that millennials on down do not wanna watch broadcast, but they wanna watch content that they like. They want long form content. They believe that the content gets cut and there's a biased view. We believe in showing the full content, and Scott and his team will elaborate as the years go on, as the months go on, to give that audience and that subset the content that they're looking for as well, and we'll bridge the gap between the boomers and the next generation audience. We will stay true to our strengths. We're actively transforming, building agility into that newsroom. I could tell you that Scott and I went on a journey over 10 years ago when we said we would break news first on social media. We were accused that the big J was being violated, and no longer is that the case. The expectations are you break on social, and you use our broadcast stations for the so what and bring that long form, the video, and bring their viewers out to whether it was the hurricane that we just covered or any presidential election. Scott's team does many town halls on relevant subjects. We hold people accountable, and that is what the next gen is looking for. I'll briefly get into some of our other businesses that we're very bullish on, and you'll hear from those business leaders a little bit later on today. Tennis Channel, I'll tell you a good story about. I'm a big tennis fan, big tennis player. I've been playing since I could walk. When we were looking at buying this asset, I wasn't actually looking at the balance sheet. I was looking at, can I get credentials, swag, and I said, "We'll figure out the revenue afterwards." But you know, what I'm bullish about tennis is the U.S. Open was just played here, you know, a month ago, and we saw the great champion, Serena's last match here in Flushing Meadows. I was asked on an analyst call last quarter, the aging of the big three of Nadal, Djokovic and Federer, who just retired at Laver Cup, where the sport was at. I happened to mention there was a young kid called Carlos Alcaraz, who is the next gen who will win the hearts. You know, it's sad to see the legends go, but the great thing about sports, there's always somebody coming up. Lo and behold, Carlos won the U.S. Open, you know, youngest champion at 19, youngest number one at 19. We're led by the biggest evangelist of the sport that you'll hear later, Ken Solomon, who lives, eats, drinks tennis, gets me my swag that I so desire. Our goal was to own the sport of tennis. The chairman even has a tennis court in his backyard, which is always nice for Ken when he comes to town. He gets to hit balls. Quickly after we bought Tennis Channel, we bought the URL Tennis.com because it's worldwide and international. In tennis, we always had wanted and had thoughts of going international, and Ken will speak to how many markets we've broken and that goal. We've also gone expansively. We've launched a FAST channel, T2, on Samsung. We gave them the first year as exclusivity. It'll branch out to other OEMs, and you're seeing matches and content you won't see on Tennis Channel. So it allows us to diversify that content and still give the main matches to the primary channel, Tennis Channel. You would have found Carlos Alcaraz when he was 16 on T2. There's a Carlos out there somewhere playing on T2 right now. Ken's group created this master linear channel in Center Court, and we could go worldwide to eight different tournaments if eight different tournaments are going on and pick the best match that's playing. It's always relevant to give the stars their due and the up-and-comers on T2. There's a big opportunity in e-commerce. We own it. The new gear is always launched, wrapped around the thousands and the Grand Slams. We're able to feature that better than anybody and really move the merchandise out the door. We are collecting data right now, and we're doing free-to-play, and the vision is watch them play and have betting on the sport. It's the number 2 betting sport in the world, and we think we can unlock that potential here in the United States. As I said, international is now operating in 7 countries and growing. Ken will talk about a trip to India, where we have a great ambassador sitting in India to help break us there. Audio is a big focus on our future forward, and TC is already into the podcast world with 18 owned or operated podcasts. They have 8 separate social media handles. We broadcast through OTT and TVE, the linear channel, and we own the world's number 1 tennis magazine called Tennis Magazine. The big takeaways on tennis is 300+ days of live tennis. There really isn't anybody that saturates a sport the way Tennis Channel saturates that sport. Over 1,800 matches a year are shown live, accumulating with 3,200+ of live matches. We are the home to the ATP and WTA tours. 93% of all live tennis is seen on Tennis Channel. We've already accumulated 1.1 million podcast downloads, and we have 340 million+ social impressions. You could see on this future forward that we are leaning in with a digital-first mentality just and that will amplify our broadcast opportunities. In the digital marketing world that Chris had alluded to earlier is Compulse, and you'll hear from Martin Kristiseter say that in a little bit. We brought Martin in to lead our innovation in building a platform that is meant for local advertisers as well as local agencies to be utilized. It is best of class. It focuses on local. It's transformative in the way we're changing how media is bought and sold, and it's very comprehensive based on the technology services and capabilities that enable us to go for a one-stop solution. You come in, you could have a proposal, you could have your buy. It all takes place in one ecosystem. We have the platforms, the O&O platforms that we're operating on, and Martin in the afternoon session will take you through the roadmap of where these platforms are going. This really will showcase unlocking that big pie that I showed earlier from BIA/Kelsey that where we're going for a share of wallet. We're not just focused on broadcast dollars, but we're focused on all advertising dollars in the marketplace. With our RSNs, we are the leading purveyor of local sports. We have 42 NBA, NHL, and MLB teams. We have 19 RSN brands, 15 of the top 25 DMAs. We have over 5,000 live professional sporting events. Really what unlocks this potential in the ad community is 8.8 billion linear ad impressions, adults 25 to 54. Our capacity currently before launching Bally Sports+ was 857 million digital impressions, and that will be growing as we unlock Bally Sports+ as well. We're really robust in not only that, but the cross-selling and unlocking all our sports assets from broadcast. We are home to the Super Bowl. We're home to the World Series. We're home to a plethora of college sports. We just went through the tennis slides and the 1,800+ matches. We've really saturated the sports world, and that was part of the future forward strategy. Also, the growth network's taken advantage of over-the-air television. It's really Scott Ehrlich is running that business, but it was really our way to think about giving viewers what was once called basic cable. Comet really is our home to sci-fi programming. CHARGE! is our action network, and TBD focuses on what's going viral. It's a little bit of everything for everyone, and we will continue to expand on those growth network opportunities as well. We're really bullish. They do really well from a revenue standpoint. They're profitable, and we believe that there is an audience for these growth networks. NewsON, this is an amalgamation. This shows you the power of local in no better terms. A lot of our broadcast brethren are part of this. It is the #1 local news on Roku. It always is consistently a top 5 total news app in the Roku Store. There's 2 billion digital ad impressions coming out of NewsON. We have 18 participating broadcast groups that have united together. What's really cool is the average session, which is over an hour. It's those that are into the long form and really are the news junkies. When the ad community is looking to make a purchase, this is one of the assets they look at due to the length of time that the audience is there. It's very hard to find a digital audience for over an hour, but NewsON does that. This will show you the depth and breadth of it. We cover 92% of the United States with our broadcast partners. We most recently signed on CBS News O&O stations and the Scripps group, and you'll see TEGNA, Cox, Hubbard, all participating. You see those major groups that all believe in the power of one unified news platform. We're really bullish on this, and we'll continue to iterate on this asset. Now I'm gonna turn it over to Lucy Rutishauser, our CFO. Thank you. Good morning, everyone. Before I start, I just wanna give a huge shout-out to Steve, Billie- Jo, Ethan, Suzanne, and our graphics department. These things are never easy to put together, so I think they did a fabulous job, and I wanna thank them for helping us today to put our story forward to all of you. Corporate social responsibility or ESG, it's an important topic for investors and consumers alike. At Sinclair, we're not only focused on being good corporate citizens, but working hard to instill those values in all that we do, and we are doing a lot. Let me walk you through some of those activities and initiatives. Led by our head of IR, Steve Zenker, we established an ESG committee that Chris, Rob, and myself, a few other executives, plus one of our board members participate on. Among one of the first things that we did was to establish mission statements around environmental, social, and governance and what they mean to us. Now, these are abbreviated here, but they can really be summed up as doing our part to improve the environment, our communities, our employees' experience, all while minimizing risk and increasing transparency for our investors. For the environment, we're implementing strategies to lower our carbon footprint by reducing electricity consumption, increasing recycling, using eco-friendly supplies, and limiting waste. Among some of the things that we have in process, and we have a lot that's in process, we're replacing, over time, our broadcast transmitters, building lighting, and HVACs with energy-efficient products. These steps not only reduce greenhouse gas emissions, but reduce our electricity cost as well. In the case of the LED lighting alone, early estimates are that we can save 14 GWh, which is the equivalent to the yearly electricity used by 1,300 homes. We also moved Tennis Channel and the West Coast RSN operations to a new state-of-the-art production facility, which not only gives us room to grow, but is green certified. We're increasing recycling across the company, including a company-wide battery recycling initiative. We use a lot of batteries for our news cameras, and we've run campaigns informing the viewers how to recycle household batteries. We're also purchasing eco-friendly supplies. In fact, last year, we were one of only 19 companies recognized by Office Depot for greener purchasing. Now, in addition to the items that are already in process, there are several others that we have on the horizon that we're evaluating, such as the deployment of solar panels to reduce reliance on supplied electricity and to also give us an additional hedge against rising electricity costs. We're also exploring opportunities to use land at our transmitter sites for solar or battery farm operators to help them generate and store renewable energy. We're evaluating the replacement of our news vehicles with electric vehicles, and we're better analyzing our energy usage and identifying opportunities to reduce energy consumption. You can see that even though our primary business is to sell airtime, we have many opportunities at cost-attractive ways to improve the environment. Supporting communities, it is at the core of what we do at Sinclair. As local broadcasters, it is where we shine the strongest. Our social responsibility takes many forms, such as delivering impactful news stories that inform, educate, and hold government accountable, by providing weather alerts and critical town halls. We take news seriously, and it shows in the over 300 awards that we won last year alone. We also support local charities through meaningful fundraising. We donate to charitable causes and disaster relief through our Sinclair Cares program, and we've distributed over a quarter of a million dollars through our Broadcast Diversity Scholarship Program. We've sponsored and helped collect meals, coats, toys, school supplies, and supported veteran, blood, and food programs. Not to mention the meaningful amount of airtime that we've donated to promote these important causes. Our TV stations and all of our business units are committed to the community now more than ever, and this year is already shaping up to be another incredibly impactful year. Sinclair, it's a great place to work, and it shows in our compensation packages, our rewards and recognition programs, and the resources that we have to enhance our employees' learning and development. We've worked hard to ensure a workplace where everyone can feel that they belong. We plainly state that our objective is to be the employer of choice in our industry. In 2021, we were recognized as a top place to work by the Baltimore Sun, and in 2022, recognized by LinkedIn as a top employer in media and entertainment. Our benefit packages are among the best in the industry, recognition that our employees are our greatest asset. We actively promote from within and support employees to take on new career opportunities within the company. Letting people know that they're valued is important to us. That's why we regularly recognize employees for their efforts and wins. We also take a strategic approach to talent development. We provide on-the-job training, foster a creative, collaborative work environment, and we even have a Sinclair University for training and access to a vast collection of learning and development content. Innovation is at the heart of who we are, and our employees are critical to that success. Our goal is to generate thoughtful ideas that move the company forward, eliminate inefficiencies, improve workflow processes, increase profitability, and challenge how we have operated historically. We encourage employees of all levels to participate in innovation because we truly believe that the next best idea can come from anyone. Now, today's Investor Day is to refamiliarize you with Sinclair and our strategy, but it's also to provide more transparency around some of the innovative things that we're doing and highlight some of the areas where we've strengthened, such as governance. In particular, in the past two years, we've hired several senior positions around security and compliance. We've added board oversight, and we've stood up ESG and risk committees. We've also added female and minority board members because we've recognized that a board with diverse thoughts, skills, and experience can be an important driver of innovation and profitability. I think you'll agree that we are doing a lot around corporate social responsibility and ESG. Going forward, you should expect even more from us as we establish, measure, and communicate our targets and outcomes for the benefit of the environment, our communities, our employees, and our stakeholders. Turning to the financial highlights, as Chris mentioned, Sinclair has a history of leading and innovating for the benefit of ourselves, but also for the industry. Throughout our years of consolidation, transformation, and investment, we have delivered consistently strong free cash flow that has strengthened the balance sheet and enhanced shareholder returns. Moreover, we believe there is meaningful upside opportunities in the stock price. Over the past decade, through organic and inorganic activities, we have delivered high-teens growth rates for our key financial metrics of media revenue, adjusted EBITDA, and adjusted free cash flow. More importantly, over half, and more recently, over 70% of our adjusted EBITDA has been converted into adjusted free cash flow, demonstrating our attractive cost of capital, tax planning strategies, and cash returns from our investments. Now, even though the mix of revenue and between advertising and distribution has changed over time, both revenue streams are growing. Total revenue has grown on recurring record political and strong digital revenues. Now, the recent leveling off of the ad revenues, we believe, is more of a function of COVID and the impact of the cyber incident last fall. Distribution revenue continues to grow and has meaningful rate expansion runway as the industry works to exceed parity for its audience delivery. As Will spoke about earlier, we continue to grow, expect to grow net retrans by low- to mid-single-digit% over the coming three years, but that is not going to be in a linear trend. Because 2023 distribution renewals are back-end loaded, we expect 2023 net retrans to be down low single-digit% and then increase in 2024 and 2025, such that over the three years, net retrans grows low- to mid-single-digit%. Now, for the Q3, early estimates indicate that we'll come in a little bit below our media revenues guidance due to timing of political monies, which we expect to capture in Q4, some softness in a few digital categories, but those categories are still up year-over-year, crowd out from select top political races and slightly higher distributor churn, although we still expect it to be within the mid-single-digit% range. While we have not yet closed on September's expenses, July and August preliminary expenses were favorable to guidance, such that broadcast cash flow for those two months came in better than our guidance indicated. Political is a consistent growth ad category for us. Even though we compare like years to like years, so a midterm versus midterm, the reality is that it has been growing every two years, representing an over 10% CAGR to our 2022 expectation. Now, this year is a midterm election year, and it has not disappointed. The first half of the year was a record period for us, double what we did in the same period in 2018, and 20% more than what we did in 2020. For Q3, political came in at approximately $89 million, and while that was slightly below our guidance of $95 million, it was still a very strong quarter. As I mentioned, we expect to recapture those dollars in the Q4. For the first nine months of the year, this is important, political was roughly on par with 2020's political for the same period. That's unheard of that a midterm election year would be on par for the first nine months of the year with the presidential year, which was already a record year. Third-party research is estimating 2022's political fundraising of almost $10 billion, which depending which research you look at is almost twice what it was in 2018. The best part is once those monies are raised, they have to be spent. They don't return them. When you look at our footprint, we overlap in states where there are toss-up or lean races. For the year, we're expecting political advertising of $325 million-$350 million, with the low end of the range more than 129% of 2018's midterm election, and the high end at an unprecedented matching of 2020's pre-Georgia runoff record presidential year. More importantly, early indications by third parties are that 2024 is going to be another record year. When you think about it, the strength of our political really speaks to the importance of our local news, our large audiences, diverse platforms, and messaging capabilities. We talked about the top-line growth, but how are we doing as it relates to expense management? Now, even though media expenses, adjusted for network programming fees, tennis rights, and one-time items, have increased an average of 4% per year over the past four years, we have actually reduced media expenses around the core. That's really coming from automation, workflow efficiencies, and general cost controls. Where the expense lift is occurring is from the initiatives that Chris, Rob, and others are speaking about today. While we've controlled and reduced costs on the core business, we are investing in initiatives to drive future profitability. Growth in the top line, growth in adjusted EBITDA with a very high conversion rate means that we're generating significant free cash flow. That has been used to enhance shareholder returns through opportunistic share repurchases and increasing dividends, to delever the balance sheet through debt repayments, but more importantly, to reinvest in our future through core acquisitions, non-media investments, and growth initiatives. Our free cash flow margins are roughly 20% of total revenue on average, and we're generating a 40% free cash flow yield, over a 40% free cash flow yield, compared to 5% on average for the S&P 500 for the past 10 years. Again, this is an indication of our free cash flow, our share repurchases, and our discounted stock price. As I've mentioned, we've used some of the free cash flow to return to shareholders through opportunistic share buybacks. Since 2018, we've repurchased almost 40% of the then outstanding shares. We're also delivering a meaningful dividend. Earlier this year, we increased the quarterly dividend rate by 25% to $1 per share annualized. At the end of June, that represented approximately 5% yield. With the decline in the stock market, it's even higher now. With our dividend yield increasing 19% on average over the past 5 years, we have consistently outperformed the S&P 500 dividend yield over the same period. While our yield grew 19%, the S&P 500 yield declined 3%. Within the broadcast space, our dividend yield is twice as high as the next broadcasters. When considering the number of acquisitions we've done over the years, several economic downturns, the pandemic, the cyber incident, investments in adjacent businesses, and shareholder returns, our total net leverage has been stable and in our target range of high 3s, low 4 times. The balance sheet is strong, especially when you consider that we have over $1 billion of liquidity, an attractive cost of debt, no debt maturities for the next four years, and an almost 6x interest coverage ratio. Should the economy worsen, we would enter that period with a strong credit and liquidity profile. As Chris covered this morning, our current share price of $18 trades at a significant discount to our sum of the parts. Assuming industry multiples, our core business should be approximately $35. When adding the value of our non-media assets, an estimated value of ATSC 3.0, that would imply a sum of the parts value of $75. You can see there is meaningful upside in our share price today. In summary, we are delivering on all key financial metrics and generating significant free cash flow, which we're using to reinvest in future-focused growth initiatives, to enhance shareholder returns, to reduce debt and de-lever the company, and to enhance our credit profile, all while having upside opportunity in the current share price. Okay, we've covered a lot this morning, from our history of innovation and leadership to our pillars of growth and strong financial drivers. With that, we're gonna take questions, then we're gonna break for lunch, and we're gonna come back for a deeper dive into the future growth initiatives. Now, for those listening to the webcast, you can submit questions via the online platform. If I can have Chris and Rob come back up. Okay. Once again, we'd ask you to keep your questions focused on Sinclair since that is the focus of today. We've got a mic here. Billie-Jo McIntire has a mic there for anyone in the room who has a question. Please raise your hand here in the audience, and ask your question, and we'll bring a mic over to you. Over there. Thank you. Hi, it's Barton Crockett from Rosenblatt Securities. I was wondering if you could talk a little bit about what you're seeing in the current macro environment in terms of the impact on your ad trends currently. You know, obviously that's top of mind in terms of concern for people. Sure. I'll let Rob speak about categories. As you heard from Lucy, the impact has been very mild so far in terms of macro concerns. We did see a little bit of weakness hit some digital ad categories here in the Q3, as Lucy indicated, and I'll let Rob kind of take you through a little bit more of the category color. Yeah. Due to the bullishness of the political, it's offsetting any deep dive we can do with the macro. I'll go with the positive and then where maybe the concern might be. The positive is we've come a full year cycle with automotive. They still have a chip shortage, but now they have a metal shortage. Toyota announced that it'll be maybe 18 months before they could produce a minivan. That was a new one to me that I picked up last week. We've come full cycle and the auto, that's the one category that's creating some growth opportunities for the digital side, even though digital was up. It's been up for the last 10 years and compounding growth. We're still bullish on the digital categories. The concern is, we'll be able to get a better feel once political, the election happens, and we come out of that and it becomes apples to apples. The one category that is off, we mentioned it on the last call, is the insurance category. Coming out of the hurricane, there'll be some depletion of some of those profits from the insurance industry. That probably will remain off for a while. Due to the fact that we're looking at the TAM, it helps offset any weakness because we've been prepared if there's some weakness just in the pure spot business that the other silos are picking up for that. We'll have more clarity coming out of the election and when the crowd out's not there. Okay. Next question. Hi, David Karnovsky from J.P. Morgan. Just, I was wondering if you could expand a bit on the net retrans outlook through 2025, what assumptions you've made in terms of churn, and I don't know how much information you give on your affiliate discussions, but how that kind of plays into your outlook on the net retrans side. Right. Our outlook, our long-term three-year outlook, which is new information today, is a three-year CAGR of low- to mid-single digits on net distribution revenues. That assumes mid-single-digit churn. On the gross retrans side, our expectation is that the growth will be slightly higher on gross distribution revenue versus net distribution revenue. I think just the other important point I'd make on that is that we, from a negotiating leverage point and an industry dynamic standpoint, we have seen a significant shift in the negotiating leverage between us and the networks. That's really made us a lot more bullish on our ability to manage reverse retrans, and we still have significant pricing power with the MVPDs as we really are the pillar within the pay TV ecosystem. Sorry. I'd love to hear you just speak a little bit more about that shift between you and the networks. Is that all just due to streaming and a lot of the content shifting over? Anything you can say more on that dynamic? I think, look, I can only tell you what we've experienced, empirically. The why part, we can, you know. Well, we all have different theories as to why, but certainly changes in exclusivity have something to do with that. Focus on streaming have something to do with that. But also, mathematics. I mean, we've had, we had a major period of catch up where reverse retrans was essentially implemented five years after gross retrans was invented, and there was this period of accelerated sort of catch up, if you will, that happened, and we're through that now. We're entering sort of a more stable period, as well. There's significant amounts of compensation that go towards the networks from the affiliates and, you know, the need to continue to increase that and then sort of the relative ability to increase that has leveled off quite significantly. Thank you. Any other questions in the room? Aaron? Thanks. Aaron from Deutsche Bank. Chris, you showed us some 10-year CAGRs on one of the slides for revenue and EBITDA. I'm just curious, as Sinclair evolves and you grow the opportunities you've outlined today, how does the margin and free cash flow profile look as you move along that 10-year horizon? In the end, how do you think it looks compared to what we're used to seeing from the legacy business? There's no doubt that a lot of our growth opportunities, which we'll be hitting in more detail this afternoon, have much lower margins because they're still in scale mode. In fact, some of them, like Compulse, for instance, has a negative margin. You're seeing that sort of impact our overall results. Many of our growth opportunities are starting to scale and their margins are improving over time. I think our target for most of them is 20%-30% sort of margins longer term as they scale, which historically I would say is a little bit lower than what we've seen in broadcast. We think in the long term, retrans, which is currently over 50% of our revenue, will reduce to below one-third once these new growth opportunities start to scale over the years to come. It's. They'll be significant contributors over, you know, say, four or five years from now. That's really that diversification is what we're after. I think it shouldn't be lost that the core business is in great shape. What I want to make sure wasn't missed today is the fact that political and digital are now both well over $200 million a year. In fact, political is, you know, $300 million plus, and those have been compounding. Not only are they large revenue numbers, but they've been compounding over the years. When they grow double digits, which is what they've been doing, they have accelerated the total ad business into growth. The fact this last 2021-2022 is a new record for our total ad business on the broadcast side. You've got a growing overall ad business powered by these compounding large revenue drivers in digital and political, and you've got growing net retrans for the next three years. I think the combination of that core trend plus scaling within our growth opportunities is going to result in a very advantageous financial outcome. Thanks. Chris, I have a couple from the internet. Okay. The first one is, can you detail your CapEx priorities going forward? Is M&A part of the plan? I'll let Lucy speak a little bit about our total free cash flow priorities. I'll just say on the M&A front, we are always active. I mean, Sinclair's DNA is a consolidator. It's a roll-up. Our priorities have shifted over time. Large scale broadcast M&A, we do not think is regulatorily a possibility at this point in time. But we continue to look to optimize the portfolio. We're very focused within our four pillars, multi-platform content, data distribution, marketing services, community and interactivity. Within each one of those, we've got various targets and opportunities that we're looking at because it's not just about organic growth, it's also about inorganic growth and how we can accelerate those pillars. We're looking in each of those areas on the acquisition front as well. Lucy, do you wanna talk about free cash flow? Sure. CapEx. Free cash flow and CapEx. The nice thing about broadcasters is the amount of free cash flow that they generate, and I went through that in the presentation. Which means that there is enough free cash flow to meet really all the stakeholders' needs. Whether it's been the opportunistic share repurchases, opportunistic debt repurchases, increasing the dividend, but more importantly, really reinvesting back in the company. Everything that we're talking to you about today with the initiatives is really to make the investment to grow us over the long term, make us more profitable over the long term, and to expand into the four pillars that Chris mentioned. Those will continue to be the priorities for us. On the CapEx side, you know, our base CapEx, you know, probably runs, you know, maybe about $50 million. Everything over and above that is really to go into the initiatives or to go into automation and technical, make us more secure, make sure that we have better workflow processes, and as you'll hear a little bit later, on our customer data platform, because data will be critical as we move forward. The CapEx priorities are really around the initiatives, security, as well as technical, enhancements and automation. Okay, I think I saw a hand up there. All right. Thank you. Avi Steiner at J.P. Morgan. You spent a fair bit of time talking about some investments and the value that's not being recognized, and I think you've talked about on conference calls as well. Thoughts around potentially monetizing that if the market doesn't accord that value that you see in those investments and maybe as the debt guy, how do we think about potential proceeds? Thank you. Sure. We do have regular monetization events within the investment portfolio. I think over the last five years, we've approached almost $300 million worth of realizations or distributions from that investment portfolio. A lot of those just happen because, you know, they're investments that mature, they get monetized. Oftentimes it's not necessarily distinctly our decision of when they get monetized. The investment portfolio is there for return. You know, we will exit positions as we seek to maximize that return. We do realize that it is an unusual thing for us to have on our balance sheet. We've spent a lot of time trying to educate people about that portfolio and the value, but it's not lost upon us that the value of our investment portfolio nearly equals our market cap today. That, of course, makes zero sense. We are looking to fix that, and we're thinking about how we can realize that value, at the very least, get shareholders to give us credit for that value. If it takes more than just education, then those are some of the things that we're looking at today. There's another question over there. Hi there. It's Barton Crockett again. I wanted to be respectful of the idea that this is Sinclair Television Group focused and not Diamond Sports Group focused, but there is an intersection between the two companies that I wanted to ask about. To this end, you know, there's been some reporting, it may be accurate, it may not, about capital structure evaluations at Diamond Sports Group. I was just wondering if there's anything happening there that could be impactful for the accounts receivable that you have at Sinclair Television or the Bally Sports stakes or anything that could require some meaningful incremental capital injection from Sinclair Television to Diamond. Sure. You know, referring to some press reports about the hiring of Moelis & Company and LionTree. Mm-hmm. Those two advisors have been working for Diamond for the last two years, and their efforts resulted in the financing we did back in March. They continue to work, and their focus is no different than it was two years ago when they got originally hired, which is, let's figure out ways to deleverage and strengthen the balance sheet and potentially bring in strategic partners. They continue to work on that, and we, along with Diamond, are very focused on those objectives. In terms of events that could affect Sinclair, certainly the AR facility. I mean, that I don't see any impact on the AR facility that there is a first lien on that facility on the AR directly, and there's only funding when that AR gets created. It's a very safe, high quality loan. In terms of future fundings, I don't see any fundings coming out of Sinclair to Diamond, if that's what you're asking. To the extent that there was one in the future, it would only be if there was a return for Sinclair. In terms of the Bally Sports stakes, is there anything that could impact in terms of deliverables for that you're obligated to do for some of those options to vest, some of the warrants to vest? Those warrants are triggered off of Bally's Corp users or first time depositors overall. Mm-hmm. They really do not tie back to specifically what happens with the Bally Sports regional sports networks or Tennis Channel or broadcast stations. They are tied to the overall performance of Bally's. Okay. Then one other question, just on your comment just a moment ago about evaluating options to highlight the value of your investments, to the markets. Can you elaborate on what types of structures one could contemplate, as you look at this process? I can't speculate. I'll just tell you that it's something that we're very focused on. You all are smart financial people. I'm sure you could figure out some of the things that we would be thinking about. You know, we recognize, A, that it's a bit of an unusual situation that makes it hard to get credit, full credit for. B, that it's become so absurdly lopsided that if the market won't recognize that, then we'll have to take steps to ensure that we do get credit for it. I have another one from the Internet. Can you give more detail on forecasts for mid-single digit subscriber churn with MVPDs reporting subscriber churn that is closer to 10%? That's correct. The traditional MVPDs have been showing on average about high single digits. When we quote mid-single digits, we're blending in the results from the virtual MVPDs, which have been growing. You add the two together, and that's what gets you to mid-single digits. I have another one from the Internet. Okay. To follow up on the prior retrans question, the broader group is forecasting net retrans to grow mid-single-digit% over a three-year period. You've called for low- to mid-single-digit%. Is there any reason why your forecast might be more conservative? Do you skew more virtual than the peer group? Investors have also asked if the RSN deconsolidation could ultimately lead to an acceleration or pickup in gross growth under the assumption that the stations could be negotiated separately now? Look, I do think our forecast is conservative. I can't give you a direct comparison. I don't know what their assumptions are in terms of their outlook. You know, that's fully burdened for mid-single-digit churn. You know, we wanted to give you a range since it's over three years. You know that a lot can change over three years. We think it's conservative. You know, without knowing their assumptions, it's really hard for me to compare to others. What was the second question, Steve? Investors have asked if the RSN deconsolidation could ultimately lead to an acceleration or pickup in gross growth under the assumption the stations could be negotiated separately now. Again, that's a speculative question that I probably can't, you know, directly answer. You know, there is significant amount of leverage that is used at Sinclair in order to keep the RSNs carried. That's a, you know, that's part of why Sinclair receives the management fee that it does. Whether not having to do that in the future will result in greater retrans for the stations is theoretically possible. I can understand why you would ask that question. Until it happens, it's not a question that's knowable. I'll do another one from the internet here. Is the shift in negotiating leverage relevant for all networks, or is Fox more difficult because it has not embraced streaming as such? Yes, it is. The statement I made, I think, applies to all networks. There's a cone of variance within the network. Some are in different positions. I say in general, our negotiating leverage and our ability to reduce increases that they have been asking for applies to all networks. Okay, I don't see any more questions. Why don't we wrap here and grab some lunch? We'll be back in the afternoon to talk about our growth opportunities, and there'll be another chance for more Q&A after that. Thank you. This is sort of like a spaceship. The doors are closing, and we're about to take off. Okay. We're gonna get started on the afternoon program, where we'll be focused more on the details on Sinclair's growth initiatives. This afternoon, you're gonna hear from Martin Kristiseter, who runs Compulse. You're gonna hear from Scott Ehrlich about multi-platform content and growth networks. You're gonna hear from J.R. McCabe on our community and interactivity initiatives. Ken Solomon on the Tennis Channel. Kevin Cotlove on our new customer data platform. Last but not least, from Del Parks on our media and technology transformation efforts. With that, I'll ask Martin to come to the stage to talk about Compulse. Thank you, Chris, and good afternoon. There we go. Quick overview on Compulse. Compulse at the core is a technology company. We provide an ad buying platform to local media companies, agencies, as well as brands. We offer them a platform to handle omni-channel media planning, execution, as well as reporting for the campaigns that they run on behalf of their customers. We talked about this a little earlier, but it's an industry platform, not just for Sinclair, but for the overall industry as well, that we bring this platform out to market. Quick look at Compulse by the numbers. We are early in the build. That said, we've gotten some meaningful traction already. We power about 27,000 advertisers already. We do north of 70,000 campaigns a year. Already got real scale here in the U.S. with north of 200 million consumers in our identity graph. We reach over 80 million unique CTV households. In the month of August, we had paid campaigns running in over 200 DMAs here in the U.S. We employ 189 people as of last week. We are projected to do over $100 million this year in gross billing. We are currently targeting a very large TAM. It's an exciting market to be in that Compulse is playing in. We're on both sides of this one, but looking at U.S. digital ad spend as a starting point. The total U.S. ad spend is estimated to be $290+ billion in 2024, which is nearly doubling what we did in 2020. This year, U.S. digital is up over 14% over last year. If you look at 2020, up 57%. Within digital, connected TV or CTV, we saw a very large increase in usage and revenue during the pandemic. If you dig into CTV spend or connected TV spend a little bit more, it is the fastest-growing digital channel, not just in the industry as a whole, but also here at Compulse. We estimate to reach $28 billion in the U.S. by 2024. This year, connected TV is expected to grow about 34% over 2021 and over a 100% increase over 2020. As you look at this one, this is probably not news to any of you guys, but if you look at the overall value chain of digital, even though it's a rapidly growing pie and there's a tremendous amount of dollars flowing into digital, we see a significant amount of inefficiencies in how the business is conducted, and within there lies a big opportunity. If you look at a dollar invested in media, only about $0.30-plus on every dollar that comes in from the advertiser actually goes towards working media. The lion's share or the majority of the spend actually disappears to all these middlemen in the middle, whether they're technology companies or managing services operations that basically siphon off the vast majority of the spend. Within there, we think there's a big opportunity because we don't see this model being sustainable in the long term. The way we wanna go to market and really change the arbitrage problem is in two ways. One is that the business needs a new business model, right? If 70 cents on every $1 is disappearing, we wanna go to market and basically put in place a more fair and equitable business model that brings more money back to both the publisher as well as the advertiser to make sure that we have a viable future-proof business. The way to do that is also through the product, to basically provide a vertical stack or a platform that can eliminate a lot of the middlemen that we see provide efficiencies as well as bring cost savings back to the customers. We offer our platform in two ways. One is self-serve for large companies that are out there that might have in-house teams that would like to have hands-on keyboards. They can utilize our platform to run their media in-house, and they can also take advantage of our managed services operation. In our managed services operation, we have about 80+ folks on the India side that do ad operations for most of our customers at, you know, ten cents on the dollar. For companies that would like to lower their fees accordingly, most of them are using us for managed service to actually run their overall digital operations. We buy the whole internet. Different than maybe The Trade Desk and some of the other DSPs you guys or demand side platform you might be following, we have our own demand side platform that we acquired about 18 months ago, but we also do omni-channel advertising on behalf of our customers. In addition to programmatic like OTT and display and online video, we also do search, social, streaming audio. We even just launched linear TV on behalf of our customers to enable them to grab a larger share of wallet. The way we go to market is through the Compulse 360 platform. This is our flagship platform, encompasses three core pillars. One is media planning, the other one is execution, as well as a reporting UI to basically visualize all the performance we're running on behalf of those campaigns. Digging into these a little deeper, the media planner is really unique. If you think of yourself, if you worked at a media company or an agency, putting together a media plan is very cumbersome to grab data from different systems to put in place a media plan that's actually gonna make sense to tie to an outcome. This platform is data-driven. It's automated, it's self-serve. By putting in a few inputs, a lot of the account executives at our customers' companies are able to generate a media plan in minutes versus what used to take hours or even days prior to this. What that means is more proposals out the door, higher close ratio. We build better campaigns from the get-go. As a plan comes through the system, we have our own demand-side platform, like I mentioned, we acquired this 18 months ago, that basically does the fulfillment on behalf of our customers. It's a DSP that's built for local. Compared to some of the larger national platforms out there like The Trade Desk, Xandr and others, this one is purpose-built for local, which is unique. We bring pre-negotiated deals to our partners that they can tap into. If you are a smaller broadcaster or even a smaller agency, they're saving upwards of 30% coming onto this platform because they get to tap into the economies of scale of Sinclair and our partners, where we are pre-buying a lot of the inventory from our partners. Last but not least, we have an omni-channel reporting UI that basically integrates over 100 different marketing technology companies into one single UI. It's white labeled. It's a marketing dashboard, not only showcasing the metrics on the campaigns you ran, but also insights to our partners. And it's MRC accredited. As we try to bring more trust and transparency into this black box of digital, we partner with Oracle to basically make sure that they verify every single campaign and every single impressions that we do. We think this one is important. Even though we're young, we already power some of the largest media companies and independent agencies in the U.S. Aside from Sinclair and Bally Sports, we are also the white label provider to large media companies like Univision, Estrella TV, on the radio side, Lotus, and many, many more. Just to highlight everything here that we just went through, at Compulse, we do provide a technology platform for local media agencies as well as brands. It's both self-service, managed service. We do omni-channel on behalf of those customers. Critical is that we bring to market not only the platform, but also a new business model that's more fair and equitable, where every dollar that gets invested, more of that goes towards working media and future-proof our company as well as our customers, and we're targeting a very large TAM. With that, Scott Ehrlich. Morning. Afternoon. Original content can be a broad and daunting undertaking. We're not trying to boil the ocean. Our focus in development is on content and formats that we already know well. And to that point, not necessarily in order of importance, our archives are full of rich stories. Everybody remembers Tiger King, it was an early pandemic hit on Netflix. Our Oklahoma station, KOKH, had interviewed Joe Exotic many times. As we look across our more than 75 news markets, every one of them has a compelling story, at least one, most of them have many, that can be adapted into the docuseries formats that are really, really popular on the streamers. To realize the opportunity, we've partnered with established top-tier storytelling talent. That was the missing link. People that could create high-gloss, high-production docuseries that we can bring to SVOD platforms and other premium content platforms, and the first of them will be headed out to market later this year. Earlier you heard from Scott Livingston about workflows that buy back time from the local content centers. We're also creating programming to help that effort as well. Currently well down the development path are a day-and-date topical talk show that'll draw heavily upon the news of the day that's produced by not just the stations but also the National Desk. And they'll focus on the engaging and entertaining stories of the day. As has been discussed earlier this morning, whether it's Missing Erica Baker, The Rally, Live on the Line, and featuring a lot of the talent that we have that has significant social profiles. We're already well along in creating original content here at Sinclair. We also see an opportunity on our own stations to create content for the time periods that historically have been filled with shows from third-party syndicators. Alongside the talk show, we're also creating a game show, a format we know very well. We've historically programmed game shows on the stations across prime access, late fringe, and other key time periods. The first game show we'll be bringing out leans in interactivity, has broad-based appeal, and we'll be unveiling that early in 2023. Moving on to the growth networks, or going back to our social talent. Within our own footprint, we have social talent that has massive followings. Kevin Cotlove is gonna talk a bit more about how we're building that business. Now, moving on to the growth networks. Comet, CHARGE!, and TBD have grown and continue to grow significantly. They've added more than 13 million homes in 2022 and are looking to continue that trajectory into 2023. In the aggregate, the stack, which is how we market the trio, we market them as a package to advertisers, they reach an unduplicated audience of more than 54 million, with each network individually reaching on average more than 35 million. As we always hope and expect in the network business, increased distribution leads to increased revenue. The premium content mix of the stack supports both general market and direct response sales against our Nielsen ratings and long-form advertising sales. There's a mix of content types, a mix of advertising types that we've been riding to success. Now, Ken Solomon. Thank you, Scott. How is everybody? We've got the post-lunch. First of all, how many have or have seen Tennis Channel in the room? There used to be a moment where we had to explain why we were even gonna do this, and now, we're a little bit further along. It's exciting to be here. Many of you know us from a prior life and the chance to bring what we had begun building to Sinclair. You heard it from Rob. It started on a tennis court with David Smith. I think I was 24 years old. He said, "I hope you got better," when I broached the idea with him, and he meant in tennis, not the network itself. It's been a fantastic journey. We're here to talk a little bit about the growth plans, and there's a lot of them. We were born in the crucible of a changing media environment, so we've always had to think about growth. We just finished three days of meetings where what you're going to see is actually being put into action right now or being put into overdrive. You heard about what we have already assembled, and we sort of have the full ecosystem covered for the sport, including about 93%-95% of the live tennis in the world. Just know that there's a building out in Los Angeles that Sinclair and Del Parks right here helped build that really was designed to do everything we could ever want. Every single match in the world that is televised is coming into that building, and something is being done with it to be maximized. No one has ever done that before. Whether it's linear, SVOD, podcast, social, it's happening 24/7, 365. In that building, if you show up at 3 in the morning, there's gonna be people with cameras on. I'm gonna just jump in. I don't know if everyone can see this, but the primary areas of growth are international. What we're doing here in the United States on two fronts, both FAST and with the launch of TC Direct, which we're incredibly excited about, betting and gamification, and then expansion into other categories, and other passion sports and taking the model to other places, including pickleball, which everyone seems to be wanting to talk about right now. We're gonna start with world domination. That is our fiendish plot is to bring what we have here, what you can enjoy, what everybody who raised their hands gets to do here in the United States. Guess what. No one else in the world can do. The reality is that before we started this, way back when I was begging Jackie to just consider what we were thinking about, the idea that you could see every match in the world, have a linear center to that that's telling you that storyline, and then pushing you through was crazy. People didn't even think it could happen. Now we have taken the New York, New York strategy of if we could make it here in the United States, we could make it everywhere. We have well made it here and are growing. We have already launched in during COVID, started in Germany, Austria, and Switzerland, said, "Hey, let's put it up there with an SVOD service." We partner with the local federations, the equivalent of the USTA in each one of these countries. We know them all well. We're in business with everyone everywhere on the globe. In fact, we've been in business globally. We've just only broadcast domestically. Tennis Deutschland was happy to be our partner and a huge base directly to their SVOD. And we've marketed SVOD there. This crazy thing happened. Samsung came to us and said, "You know, we're launching FAST channels in Germany." Next thing you knew, we were in 6 million homes in Germany. I don't think that's an official number, but I read it in the paper somewhere, and continued to grow. We are now rolling out. I just got back from India. As Rob mentioned, remarkable history of tennis there. Vijay Amritraj is our partner. I'm going back soon. That's all I can tell you. We've launched in India. We had millions of viewers in the first month without any real live tennis on even. So that's kind of a good indicator, a forward indicator. The goal ultimately is, by the way, we're in addition to Germany, Austria, Switzerland, Greece, the Netherlands and the UK, we really have begun discussions with the entire world. The hope and the goal is to take what we've done here and go with one sport, one world, one brand globally. We can do it with VOD. We can do it with all popular platforms. It's happening in a tremendous amount of in-language content that's being produced for each of these as well. Let's just come back here because we ain't done yet by any stretch. The growth has been precipitous. It's been breathtaking. Another tip of the hat to Sinclair. The best part is that the best is yet to come because we have been waiting for 20 years to be able to offer Tennis Channel directly to consumers. About 40% now of that cord-cutting, cord-never universe or a universe that we just never got to because our ascension was sort of coinciding with the softening of, and the, let's call it the right sizing of the MVPD universe. We've got the 60%. The 40% will be opened up beginning at the beginning of 2024. Virtually every single person in home who has a connection of any sort will be able to get Tennis Channel for the first time ever, opening up a massive opportunity of growth domestically in our basic subscriber model. That's the first half of what we're trying to do or what we will be doing in terms of growth here in the U.S., which has continued. The second half is something that's happening right now, which is, Rob mentioned T2. We saw FAST as an opportunity. In fact, I'll take a step back. We started eight years ago with our plus. I believe if you check me, everybody here is good on research, that we were the first plus in the history of the world of pluses, right? An SVOD service to complement our linear service. It’s done really well. However, I think we've all come to know what the limits of the growth of that universe is. It's not a replacement for television. It's not simultaneous mass viewing. It's a great complement. It's the home entertainment business. That's not the same thing as TV. We went to Samsung because in part of our experience in Germany and said, "What if we could give you a live professional always on second Tennis Channel exclusively for a year to help you launch Samsung TV Plus in the United States?" They didn't believe we would do it, and we did. I'd urge you, if you have a Samsung set, to take a look at T2. We launched in March in 30, this is 30 to 35 million homes. Now 35 million homes. Took me 16 years to get there the first time around. We did it on the first day. Those numbers will grow dramatically as our exclusivity with Samsung expires, mid-February of next year. You're going to see significant growth of this platform, free ad-supported T2 live tennis matches. It's not just young and up and comers. You know, we've got at any given time, four or five different events going on in different places all over the world with multiple courts at each. We have a tough time picking what's gonna get on Tennis Channel alone. The chance to be able to have a full linear second channel to then round trip audiences back and forth to a Tennis Channel is very exciting. This is really funnel opening for us. You buy the set, you put it on the wall, you plug it into your data, and the first sports network you're gonna see, and very often one of the first networks you're gonna see, because Samsung is using it as a Trojan horse, because they're showing you live sports and showing you that their service is relevant, is going to be T2. Very, very exciting as we move forward. You can bet on it. People ask us about betting in tennis and what's it like and what's gonna happen. It's about time is the answer for us. This is the only country in the world where they haven't been betting on tennis. We have traveled the world as we produce. You go to Wimbledon, and anyone who's been there knows that it's strawberries, creams, maybe a pint cup, and you're gonna make a bet, right? It's part of the game. The prop bet was, I think, born with the game set match sort of rigor that, or format that tennis has. We have been, for nine years, preparing for the moment that is now here upon us, and Sinclair has set us up beautifully. We are already, and you're gonna hear from J.R. McCabe in a minute, deep into every day making the fun engagement of betting part of what we do, or, you know, where it is, where it can be done, real money betting. Consider this. Tennis is the second most gambled upon sport in the world. Why? It's a universal standard. It's always on. We can have sustained, repeated engagement every day, 24 hours a day, 7 days a week. There's something to get excited about 'cause there's always a match being played and always another one, and they all inform each other. We have multiple parts to this business that are generating significant revenue growth. The first is obviously advertising. Where would you go if you would go to the place that has the number two most bet upon sport in the world completely, 24 hours a day, 7 days a week if you were looking to try to advertise your new betting or gaming company or service? We have, and we're in business with 4 of the top already and with literally as much room and inventory as we can create in that business. The second and the thing that we've been most excited about is the creation of original IP around betting. It's the creation of the games. It's another way to program. People say, "Well, how does that fit with tennis?" I will only tell you this. We're already broadcasting in a way that is very, very similar because what are our great analysts, the Jim Courier, the Martina Navratilova, the Lindsay Davenport, the Hall of Famers who live on our air every day doing? They're bringing their experience, and they're bringing their knowledge of the statistics to predict for you what may happen next. Sound familiar? Predictive analytics, owning our own data streams, when you have every match in the world coming into one building, it puts us into a very unique position to be able to create great games and engaging content. Again, you're gonna hear about all that we're doing right now to move forward ahead of everybody else and to lead the charge. The great news is that the model works not just for tennis. There are so many sports and passion categories that don't have the ability because their associations just don't quite have the lift. They can't quite get the advertisers. They certainly can't leverage to create their own channels. They may be stuck in a media time buy scenario that they can't do what we have done. The model for tennis of creating a destination across all platforms where people who enjoy that particular sport or vocation can go and then use that as a funnel opening opportunity makes sense for a very long list of other categories, and it's gonna start with this one here. It's already started. You can't get out of the way of pickleball, and we don't want to. We're right in the way of it. We're already broadcasting many, many, many hours on Tennis Channel. We are completely redefining how you broadcast it. We're partnering with the tours. We're even producing for the other platforms. The last that you may have caught on CBS, the tournament out at Riviera, the Skechers Open, we produced that. Why? Hub and spoke, just like Tennis Channel. We don't have to have everything. We wanna be the place that the person who loves that category comes 24 hours a day, 7 days a week, and if we don't happen to have it 'cause we're going to a larger platform to try to create broader awareness, we'll point you there and have you come back. It's pickleball today. Think about things like volleyball, surfing, skiing, equine sports, professional sailing, which is incredibly exciting. Drag racing on the water. Nowhere to go if you're a fan. Nowhere to go if you think you might like it. We're gonna be the place for that. Come out to Los Angeles and visit the new Sinclair-built facility that we have out there. It's 21 tents all in the cloud. It is absolutely beautiful. It's got Del Parks' name on it, all over it, and we will show you a very good time. This is really just the tip of the iceberg because falling off all of these categories, growth domestically with both FAST and with direct to the consumer and where we haven't been able to get to those subscribers before, taking the world and giving it the same approach that we've had here, capitalizing on what's inherently our birthright in betting and gamification, and then expanding the model to other sports has many dominoes that fall from that. The beautiful thing is that the infrastructures of what we had built at Tennis Channel dovetail so perfectly with Sinclair, what has been their business all along and, as you're seeing here today, where they've invested in growth. Very, very excited about that, and on to the next. J.R. McCabe, ladies and gentlemen. I wish Ken liked tennis. I wish he had some energy. He'd be better off. Good afternoon, everybody. You know, there's one thing Ken did say that I have to agree with, and pretty much all of it I do, but tip of the iceberg is really where we are. I think as I stand before you today, it's about how we activate and how we interact with the consumers that this company has brought together. You know, when you look at the Sinclair asset portfolio, it's fairly unique in how we reach consumers and the ability we reach them through authenticity, whether it's the Tennis Channel platform, whether it's our news product, whether it's our OTT offerings, our growth networks, and the local market credibility we bring. Really what we're looking to do here is super serve our consumer, that fan, that viewer, that user, and we wanna super serve them and surround them. Really interactivity and community as a pillar, as Chris talked about earlier, is how we're gonna engage them. We'll take you through a little bit of that today. For us, it's really about engaging these consumers in ways they haven't been engaged before. It's a very, very large audience. They're very disparate in their likes and dislikes, but those also give us huge opportunities. Fandoms gather, like-minded audiences gather, and we have the ability to take advantage of those. As you take a look at what we're doing, we're gonna be utilizing game mechanics, as Ken talked about a few times there, to really engage some of these consumers. Game mechanics as part of the overall games business is a very worldwide and well-known architecture around engaging a consumer. Yet what's interesting is in the last five years, COVID included, the games business overall has doubled in five years. It's a meteoric rise, but the session length, the time spent, the ability for people to participate with friends, with others, is fairly unique. The other part that's very, very interesting about this is that mobile hyper-casual games continues to grow, which suits our audience profile perfectly as we take a look at who our audience is, how we serve them today. Our whole goal here is to really surround the consumer. We really wanna offer them opportunities to play, participate, engage, and repeat the behavior. That's one of the things I think we're uniquely positioned to do. As you look at the opportunity for us to leverage our 80 million+ unique users in e-commerce, it's something else you'll hear us talk about in a moment and how we really get to that ARPU that Rob talked about before and generate revenue from a consumer by choice who has participated with us. They provided us consented first-party data, and they're now interacting with us and others like them. Let's give you an idea here and take you through a little bit of a journey of what an unregistered user would be and then how we try to convert them into a registered user utilizing game mechanics. If you will, we're trying to create pathways, right? I just wanna make sure that you get a sense. If you can't see that, certainly, we'll be able to leave it online, you can get a chance to take a look at the user journey. For us, it's really an example here of how you enter through any point of content that's interesting to you. Sports fandom, news, traffic, weather. Any way you can come in and begin your user journey at a Sinclair property is really what we're trying to begin here. What we try to do here is offer across the pathways, opportunities to interact and register. The persona we've given you here today would be Linda, and she's a persona who comes in. She comes in and has a chance to watch video content, in this case. She comes in, she's read articles. She's now coming through, and we may highlight for her or offer her other opportunities to participate in that content. As we do that and we go through this path, again, she's an unregistered visitor. So for us to offer her abilities along the way to register, she may wanna register if she wants to view more video. She may register if she wants to participate and play a game, and then she wants to post her leaderboard score. She may wanna register if she wants to challenge her friends. These may seem basic and simple methodologies, except when you take a look at our 80 million+ consumers, for us to gather that data, put it into our CDP, and then optimize that in the future, it's a very unique opportunity for us. As we take her throughout the way, she's increasing her journey, she's increasing her time spent with us, but we're also giving opportunities for advertisers to participate, and that's another commerce opportunity for us. All throughout the way, whether it's a game play, whether it's participation in content or sharing of that content, there are opportunities to take her through the path all the way to the time that she registers with us. If you take a moment and take a look at what happens when Linda just becomes a registered user, now she comes back to us and we now know a little bit more about her. She's come back in, she's chosen to come in. She may have been given an alert as she comes back to our one of our platforms. Now all of a sudden, she's also offered other opportunities. She's offered the ability to earn rewards. She's offered the ability to watch more content, maybe even create her own content and share it. As you look at this journey, again, you have another commerce opportunity for advertising. You have an opportunity to potentially have her rewards be something that are underwritten or sold. We also have the ability for her to participate with our partners or affiliates in other ways, which we'll talk about in a second on the e-commerce side and on the gaming side. When we talk about how she may play, how she may participate, you can take a look at some of the things we're doing across our portfolio today. Some of the things we're doing across our portfolio today are beyond just online, and they're on air, and they're over the air, and they're in-app. As Kenny just talked about, and you saw some of the images before, the watch and play opportunity in the free-to-play space is one something we did called Matchpoint Predictor with the Tennis Channel. Simple free-to-play opportunity for participants of any walk of life. You don't have to know games. You don't have to wanna bet. You don't wanna have to gamble. You can participate and you can play. The idea here is to create the interactivity, to create the ability to register and gather that data. The other one is on the, on the right side of the screen, is some of the interactive overlays that we've put into place earlier this summer. Some of these overlays specifically are watch and play, which could lead to watch and bet, as Chris talked about and Rob talked about earlier. The idea here is whether it's a stats, a statistics overlay, which you can see on some of these specific examples on the right, or whether it's an ability to connect with one of our partners like Bally's Corporation and the Bally's sites, for real money gaming. It offers you the ability to participate. Our tests so far over the last couple of months have shown an amazing amount of interactivity with both the stats product as well as the actual polling questions. Whether it's participating in predictor games, which are on the left side of the screen, whether it's watch and play or the potential for watch and bet, whether it's the ability for you to come in and navigate a site, return as a visitor because you received an alert, participate into our CDP, and potentially purchase or earn rewards. The ability for you to participate in our community now is growing with each and every interaction that we have across the Sinclair portfolio. All of this leads us into the ability for us to build community. Community is really where these folks gather together, and communities are not just in real life. Communities are gathering around in the Metaverse as well. For any of you who are actually taking a look at the marketplace today, the markets look at the next 84 months of projection of around an $8 trillion+ marketplace, some say up to $13 trillion, we'll see. The virtual worlds are real, and you can see us build in those specific environments. We're working on immersive experiences. We're working on the ability for people to participate there. The key for us here is these are incremental to our existing audience. They're not in place of our existing audience. Activities happen there. Art galleries, shopping center, malls, gameplay. We need to build from where those communities are. At the end of the day, nobody better than Sinclair because we're steeped in community. That's where we started. On local communities, we're better than anyone else to understand the community activation, and you'll see us do it there. From another gameplay and game mechanics opportunity, we're going to be utilizing the QR code opportunities for our local news. Working with Scott Livingston and team, we're gonna be starting game mechanics in our local news programming. We're gonna be incentivizing people to participate. From a QR code, you'll be initiated during a broadcast. You'll be offered a poll or a quiz or an opportunity to participate, which will lead you into regularity of that activity. Think of it as, a social streak for those of you in the social space mentality of coming back with regularity and participating in this type of game. Activating and creating a social opportunity and participation in news gives us a few things. It understands more about the data from our customer and our viewer, but it also allows us to build a bigger database and increase session length or viewership time. It really does go across the entirety of our business. Excuse me. As we look at incentivizing our behaviors and our viewership, we're looking at building a loyalty program. As we build and go into the CDP, we want to incentivize our consumers. We think those consumers that we touch wanna be rewarded, but they need to earn that reward. They need to be incented. They need to participate with us in ways that they may not have participated before. By building a loyalty program, which we'll announce in future sessions, we're able to do that, and we think it's gonna be an extraordinary way to engage and reward those folks. As we look at the revenue model, all of this leads into the ability for us to optimize and build toward ARPU. The ARPU for us is really based on what we just mentioned before the interactivity and the community side. What we're going to basically be doing is how we can trigger those opportunities for those consumers to participate with us. Ad commerce is one, but direct sales and physical goods and virtual goods is yet another. When we look at our audience profile, 70% of our users are mobile. When you take a look at the mobile purchase path today, and Snapchat talks about more than 20%, year-over-year growth in their purchases through their Snapchatters, we look at the social commerce model as one we're gonna take advantage of. We're going to be playing in the space where social and mobile activation is real, and it's ongoing each day. For us, as we look at building in this space, we're gonna take advantage of each opportunity we have to interact with that consumer on any platform upon which they live and work and consume content. Last but not least, in this space, we've actually built a proof of concept store where virtual goods and physical goods come together. So in the Shopify platform, you can find from us a store called Own Mine. Own Mine exists today. You can buy NFTs there. You can buy physical goods there. Going forward, it'll be exemplary of how we can put those together. For example, in the NFTs, we're not working on rarity and scarcity as a model. For us, it's collectibility and utility of how you can use those to unlock other experiences, give yourself rewards or earn rewards. Physical goods the same way. Excuse me. Sorry. Last but not least in that space, e-commerce partnerships is what we're working on as well. You can see through our partnerships and agreements how we will distribute and sell other products and goods and services to our consumers. As we look at this, you're really looking at us trying to capitalize on the value of gaming and game mechanics to entertain folks. We're gonna draw like-minded individuals together and really try to build them into interactive experiences. We're gonna build local fandoms and experiences for them, and we're gonna incentivize and reward our audience at the same time all driving our revenue, which will bring value to the company as well. I will leave you with that and introduce Kevin Cotlove. Good afternoon. All of these experiences that you've heard about so far today, whether it's our news programming, tennis, sports, digital products, OTT products, newsletters, all of those generate a lot of data. They also can leverage a lot of data. One of the unique things that we have from an opportunity perspective is we have these different lines of business, and we have large audiences on them already. We can move users from one line of business into another line of business, and we can move users deeper into existing lines of business. They can spend more time with us. They can do more valuable things with us. The way that we do that is by knowing what they're doing, knowing who they are, and having a good unified picture across the entire Sinclair ecosystem of everything that they're doing and what's valuable to them. We're investing in a unified customer data platform or a CDP that allows us to see and have that 360 view of everything that those users are doing on all of our assets. With the deprecation of third-party cookies, which has been aggressive on a lot of the mobile platforms and coming soon to most of the desktop browsers as well, having that view of first-party data is going to allow us to not only retain that opportunity for targeted advertising and targeted offers, but hopefully increase the value of that because those users are on our platforms. We're not just relying on third-party information that we have about them for purchase intent or things like that. We know who these users are. When J.R. talked about gamification and getting somebody to register, that registered activity is inherently valuable to the company beyond just the single service that they're registering for. Even without cookies, we can take that information, and we can enrich that profile about that user asynchronously and know much more about them. We can get the right offer for them in front of them at the right time, in the right circumstances, whether they're playing a free-to-play game or reading a newsletter, or they're a subscriber to a premium D2C service. This goes across everything. It's our next-gen broadcast apps. It's our OTT apps. It's our core websites and social that Scott mentioned. All those millions and billions of social interactions are just top of funnel for us to move people into more valuable services. Having that CDP because they are our users instead of just somebody else's users, allows us to capitalize on them more directly and move more money through the system. This is just a very brief example of a news viewer. We have tens and tens of millions of these on our linear and our digital products, and it's more than them just consuming news passively one way. They interact with us in lots of ways, but getting Sally Williams here to do something as simple as sign up for a newsletter where she may get more timely or exclusive commentary allows us to take that profile and do a lot more with it, not just in our direct interactions with her or a customer satisfaction survey. Seeing how she engages with us both on that platform and others, and knowing more about Sally or more about Sally's household allows us to drive increased rates, increased CPMs, even for the ad-supported experiences outside of the newsletter. When Sally's signed in, just because she got a newsletter, we can drive a higher CPM on all the display ads that we serve her across the entire ecosystem because that email address unlocked a lot of information about her that doesn't rely on third-party cookies and doesn't rely on other third parties. When we look at sports fans, that ultimate funnel is getting them into a premium subscription service. Ken talked a lot about Tennis Channel+. That doesn't start with somebody just signing up for Tennis Channel+ as their first action. We have tennis fans who move through that ecosystem. They download the app because they wanna get those player scores, they wanna get those alerts, they wanna learn more about that player, or get the interview that we had with them, right? We push that user into alerts, into personalized content, and into targeted advertising through our normal ad-supported lines of business. Ultimately, we get the right offer in front of that person at the right time for the right experience to get them into the premium D2C service. All the while, we continue to grow our CPMs and all the ad-supported experiences that person has on Tennis Channel, on our news products, or on any other Sinclair product. At the end of the day, the data powers this entire funnel. At the very top, we've got this giant audience across news, on our websites, on all our social ecosystem, and moving them down and across that value chain is not only supported by the data, and that's what the CDP is designed to do, but each step along the way enriches it. Even a user who doesn't move further in that funnel gives us information about how to better optimize for the next ones that come in so that we can do it for them. You have marketing, you have loyalty, and you have retention information that goes across all of this, and these are all Sinclair's first-party assets, whether they're on sports, whether they're on news, and we wanna move those users into these more valuable lines of revenue that the CDP supports. They don't all have to move through every step, and they're not all gonna go in the right way or, excuse me, in the same way. Having the CDP in place allows us to personalize those experiences for each of those users in the way that lets us get the most value from all of them and drive those ARPUs up higher and higher, starting with that 80 million uniques that we have today. With that, I'll turn it over to Del Parks to talk about next-gen broadcast and spectrum. Good afternoon. I'm gonna highlight two important activities that really are driving our technology future. The first is ATSC 3.0. Just as a show of hands, have you ever heard of ATSC 3.0 or NextGen TV. Wow. I'm shocked. Wow, that's a pretty good sample. ATSC 3.0 is really a breakthrough technology for broadcasters, for all broadcasters. It is bringing IP, Internet Protocol, over-the-air to receive devices. NextGen TV is a far more robust signal than what's out there today than ATSC 1.0. It can be received on mobile devices, cell phones, and virtually on very simple TV antennas inside your home. It's really important to understand that the consumer is mobile, and on a cell phone or in a moving car, 3.0 can be a very important delivery system for Sinclair and the industry. By the way, we have led the industry in deploying and building ATSC 3.0, unsurprisingly. Our ongoing transition to the cloud is also the centerpiece of our technical transformation. Together with the rollout of NextGen TV, it will power our future business opportunities as well as enhance our existing businesses. Many of those future business opportunities you just saw in the last, what, two hours or three hours. I wanna start with a short video of NextGen TV and how it's delivered over the air. The industry is in the process of rolling out ATSC 3.0 or NextGen TV. Today we're in 57 markets, and it's growing. Cover about 55% of the U.S. Probably grow to 70% in 2023. The important thing to notice here is that Pearl TV and BitPath, who are a consortium of U.S. broadcasters, of which Sinclair participates in both, have been largely responsible for this rollout. We're leading the industry in terms of deployment across the U.S. Looking at TV shipments, this is from the Consumer Technology Association. This is their projection of sets with NextGen TV capabilities. If you look at 2024, we reach an inflection point where 41% of total TVs sold will have ATSC 3.0 tuners in them. Sony, Samsung, and LG have more than 70 models available today, and Hisense just announced two new models starting at $800. The future really is bright for NextGen TV. On this slide, you can see the projections of the transition and understand it's well on track. The gray line is TV household. The gray line on the top is TV households. The black line shows households with a NextGen TV signal available in the market. The red line shows the households with available NextGen receivers. We think that by 2027, those lines will converge. What happens when you tune into a NextGen signal? When you tune into a NextGen signal, you're presented with, at least on the Sinclair stations, you're presented with our broadcast app, our broadcast application. On connected TVs, this app provides two-way communication between the viewer and the TV station. This is the first time we've ever had two-way communication between the TV station and the viewer. If you wanna pay attention to what Kevin just said, we can and are collecting that data right now. It's pretty small because the rollout is still in its early stages, but it also provides a valuable tool for advanced emergency alerting. You'll hear more about that in the next year or two. That allows us to better serve our community. For AMBER Alerts or for specific targeted weather alerts across the DMA, we can deliver those via this Sinclair Broadcast App. Here's our transformation goals. We think NextGen TV will provide us with many new business opportunities. You heard Chris say talk about data delivery as a service. For the first time, this interactivity with our viewers allows us to provide an enhanced viewer experience, so we can not only deliver better pictures, we can deliver different camera angles, we can deliver data, we can deliver a whole new viewer experience to the our consumers and viewers. The other kind of interesting thing is we have an international reach. We have been working steadily in India for the last several years, and India is focused. India is focused really on direct to mobile. That's important because in India, and I have to remind you, there's 1 billion people in India. Most of them have mobile phones, not many of them have big set TV sets. The Indian government and the Indian broadcasters realize that getting to that community over a mobile phone is really important. Well, why is that important for us? If India can get chips in mobile phones, that then can migrate to the United States and to other parts of the world. It would be our hope and our goal to have chips in phones, so we can address directly a cell phone with over-the-air ATSC 3.0. The other reason that's important is because ATSC 3.0 is completely integrated with and compatible to 5G. That is really important. When we designed the basic, what they call the physical layer of 3.0, it was purposely designed to be interchangeable with 5G. The other interesting thing is today we're working with two Korean broadcasters, major broadcasters, KBS and MBC, to explore new business models, and that's an active ongoing effort. As you can see here, this is a demo that KBS did in Seoul, Korea. What's unique about this demo is we were riding around Seoul, Korea, watching the program feed from an ATSC 3.0 signal, and we were getting commercials fed into that signal through a 5G telecom network. We were getting those commercials based on our GPS location. If you look at location-based advertising, using 5G to roll the commercials in based on programming from ATSC 3.0 that is received while the car is moving. I can tell you there are lots of other data that we can deliver to a moving car. For instance, in the U.S., we're working with BitPath to show what we call enhanced GPS. Chris mentioned it earlier. What is enhanced GPS? Currently, your GPS has an error rate of ±3 meters, roughly 10 feet. If you're driving in an autonomous vehicle, how would you like to have that error of ±10 feet? With enhanced GPS, we can bring that down to less than 10 centimeters. That's what this depiction on the right shows. The red is uncorrected, the blue is corrected, and this is done near Washington, D.C., around Arlington. It really is a game-changing technology that we are exploring with BitPath and MBC, which is one of our Korean entities that we're working with. On the left is a drone. We did this drone demonstration at NAB last year with MBC, another Korean broadcaster. Again, if you have plus or minus 10 feet and you order and Amazon wants to make a delivery, are they going to hit your porch? Well, maybe not. With enhanced GPS, they certainly could do that. Chris mentioned next-gen datacasting revenue. This is a BIA slide, and we use the middle case of $10 billion by 2030. What I can tell you is there are a lot of industries that are looking to use our multicasting, our data multicasting capabilities to enhance their businesses. Everything from logistics, transportation, to the Internet of Things. We have a bootstrap that we can turn on and turn off things and we can turn on your refrigerator, we can turn off your refrigerator. Not that we would do that. But that IoT, that Internet of Things is. You hear about it, but we are talking to the folks at Digital Cities, and we are talking to a lot of other industries that have really a lot of interest in data delivery as a service. Moving Sinclair to the cloud. This is really important. We've already started moving to the cloud. We continued our transition of our technical platforms, provides us with a really cost-effective way to run our business. It allows us to build and expand our platforms and links our future businesses to our content and operational systems that will be housed and are housed in the cloud. It also enables NextGen TV business models and powers our data distribution as a service business. As we move to the cloud, what are we talking about here? Currently, we are successfully operating. You've heard Scott talk about Comet, CHARGE!, TBD. We've been running them out of the cloud for the last two point five years. We distribute that video to our affiliates via an IP network. It's not on satellite. It's an IP network. Additionally, we now also archive our news content to the cloud. If you were wondering how all this content gets moved around the Sinclair ecosystem, that's the answer. Our syndicated program content is also managed and distributed from the cloud to our TV stations. This has improved efficiency across our operations. Content is only touched 1 time instead of 86 separate times. 2 more slides. A really important effort that Sinclair is doing in the cloud is our Unified Ad Sales platform or UAS. It's a groundbreaking platform that will provide our marketing consultants and sales access to a combined view of our digital and linear inventory. This will allow them to efficiently sell impressions and content across the entire Sinclair platform. This is especially important as we develop all these new sales opportunities you heard about today, in addition to NextGen TV. Another feature of the UAS is the integration of best-of-breed buy- and sell-side software platforms through APIs or application program interfaces. This integration improves the efficiency of the sales process and allows us to stay on the cutting edge of our sales technology. Here you see a timeline of how we will deploy and are deploying this UAS, Unified Ad Sales platform. You know, the development of sales tools is this software is being developed in what we call an agile mode, an agile software development mode, which means you're never done. Because it's in the cloud and it uses APIs, it can constantly be updated without breaking the system. This is a really important piece to the success of our future in both linear and digital. Thank you. Chris. All right. Thank you, Del. We are going to open back up for our second round of Q&A. Put on your thinking caps and get your questions ready. Rob and Lucy are gonna join me on the stage. We've got Billie-Jo McIntire with the mic and Steve on the Internet questions. Please raise your hand if you have a question. Hi. This is Alex Fuhrman from SM Investors. I have two questions which actually go to the $75 valuation and then ties to NextGen TV. On the first part, the valuation of broadcasting, you guys give a 7x multiple, trailing multiple actually. If I look at the most recent transactions, private market value, I see the multiple is higher. I understand the difference between buyers' and sellers' multiple, but I was wondering why wouldn't you use a higher multiple in your presentation? We use the 7x multiple: A, to be conservative, but B, that's sort of more reflective of a non-control public trading multiple. If we were to sell those stations in a control private sale, I would expect to yield a higher multiple to your point. Then the valuation of the ATSC spectrum. I understand that you're giving a valuation based on the recent auctions. You really can't sell that spectrum as of now, if I understand that correctly. Would I be correct to see this mid-$20 valuation as a sort of reconciliation on the incremental value, given coming from the business that's built on this ATSC, as we just saw now in the NextGen segments? Yeah. A couple things on that. One is, we're sitting on 1.7 billion MHz-POP. The last FCC auction, which is wholesale pricing, for a similar spectrum, yielded about $1 per MHz-POP. That's where the valuation comes from. Private market sales of spectrum after auctions tend to go for higher values, but they're not as reported on, so it's hard to get your hands on comps. Generally, the auction is sort of the lowest pricing that you can find in terms of asset pricing. I think of that as a floor valuation for ATSC 3.0. It's just the easiest way that I can convey to you that we're sitting on this latent asset value. As businesses develop and value-added services get added on to ATSC 3.0, I fully expect the value of that business to exceed the unrealized asset value of that spectrum. I think of it like a floor valuation and value-added services, and revenue and cash flow generated from that, which will be highly incremental 'cause we already have the most valuable piece of the equation, which is the spectrum, should increase the value from there. All right. Other questions? In the back of the room. Yeah. I was curious about the discussion on ATSC and the engineering of the product to be compatible with 5G. To what degree do you see a future where telcos would be- Utilizing ATSC spectrum in the 5G services that are on our cell phones. Mm-hmm. I understand it's just one way, but, you know, one could imagine that that might be possible. I'm just wondering if you could talk about that. Sure. Billie-Jo McIntire, why don't you bring the mic over to Del, who will surely wanna comment on that. I wanna point out, Del brought up a slide that had India on it. We're doing a lot of work with India, the Indian government, the public broadcaster there, Prasar Bharati, and Saankhya Labs, who's our technology partner that we've also invested in in India. We have a trial up and running in Bangalore and Delhi, and it's focused on direct to mobile, okay? That's really important. In India, it's such a blatantly obvious use case because consumption of mobile video over cellular networks is way higher than it is here in the U.S. There's little to no wired infrastructure and Wi-Fi in which to offload the cellular infrastructure, and density levels are much higher too. It's really an extreme case where you look at it and go, "Okay, cellular performance is massively reduced because of the massive consumption of mobile video. What's the solution?" Enter ATSC 3.0, broadcast spectrum provided by Prasar Bharati, the public broadcaster. You can offload significant volumes of mobile video off of the cellular infrastructure onto broadcast in a seamless way, already demonstrated by Saankhya Labs, already have prototype phones with the technology built in. We think if India adopts this standard, which they're making strides towards doing, that will spur mass adoption of 3.0 into mobile devices for the Indian marketplace, which will ultimately go global since most devices are global SKUs nowadays. That is just a great example of how 3.0 and our spectrum can be used to enhance the performance of conventional cellular networks, and we think it will come to the U.S. one day soon. Del, do you wanna add anything to that? Yeah, just one quick thing. I referred to a company called CAST.ERA. CAST.ERA is a joint venture between Sinclair and SK Telecom. SK Telecom is a very large telecom provider in South Korea, and they are very interested in 3.0 for offloading. When you're watching video on your cell phone and you either get it dropped, or you get the spinning icon, that means that the network, the telecom network, is starved for bits. That's why a telecom company may be very interested in offloading data to a one-to-many. Imagine the TV station is a one-to-many. You know, there's. On top of the World Trade Center, there are antennas, and if you live anywhere within 50 miles of New York City and can see the World Trade Center, you can put an antenna up, and guess what? You can get free TV. Not a lot of people know that. But that footprint, we are the most efficient deliverer of data, mass data, than anybody. You know, the example we use is Apple. If there are 100 million Apple iPhones in the U.S. and they send out an update, how many updates do they have to send out? 100 million. If they could do it once or twice over the air and reach half of that. By the way, they pay for that. If you wanna, you know, kind of imagine where cost savings can come through customers, that's one example. Same thing goes for vehicles. Yes, the telecom providers, even in the U.S. are looking at 3.0, and we do talk to all of them. Yeah. I'll just add on to that because, on the one hand, you've got India, which is just a very extreme example of acute need for this technology. Then on the other hand, Del mentioned South Korea, which probably has the most advanced cellular infrastructure on the planet. Their incumbent mobile operator is interested in using this for offload. If there's any country that didn't need it would be South Korea, and they're interested in how this can enhance their delivery. It's quite compelling, and we expect that to impact the mobile marketplace. Other questions? Steve, how about from the internet? Yep. Okay. How does Compulse differentiate from, say, Simpli.fi? It sounds like you're taking broader share with the SaaS versus the traditional wholesale model. How should we think about pricing now and margins now versus margins three years from now? Okay. I'm gonna let get the mic over to Martin so that he can answer directly on how it compares with Simpli.fi. In terms of our business model, and Martin can speak more directly to this, it is a lower margin business model, but we're a newcomer into the space, right? We're a disruptor. It's a huge marketplace, as Martin showed you, in terms of the TAM. There are lots of players like Simpli.fi and others taking massive margin out of the space. By bringing transparency in a fee-based arrangement and having people being able to ride our scale and other scales within the people on the platform, we think brings us a massive competitive advantage in gaining share. That was absolutely part of the strategy, and we wanted to be ahead of the market, and that's why we did it on a SaaS basis. Martin, you wanna speak to the other questions? Let me figure this out. There we go. A lot of similarities with Simpli.fi. Simpli.fi is a DSP. We buy the whole internet, not just the programmatic side. One of the things that we strongly believe is a big opportunity for us is, take Simpli.fi as an example. They're out there arbitraging. They might buy something that cost $12 in media and mark it up to $28 and resell that to a local media company. Local media company then goes out and marks that up to $40 to make sure that they have enough margin. Between $12 and $40, there's arbitrage. We strongly believe that a more fair and equitable business model, by bringing savings both to media companies as well as us as a vendor, as well as putting more of that investment into working media, that is a sustainable business model. Martin, also talk about the proposal system and the intelligence dashboard as well that differentiates. Absolutely. Being a DSP, they obviously have a reporting dashboard in regards to programmatic. Buying the whole internet, we bring everything into our UI. Whether you wanna showcase performance metric on a linear campaign you did with the measurement or say you ran programmatic, search, social, everything comes into one UI, so they don't have to go out and basically partner with numerous different vendors to run their omni-channel campaign. They can come to us in one-stop shop to get it all. In regards to the media planning tool on the front end, we really enable those media companies to go into one platform to build an omni-channel media plan, get the execution, and get the reporting from one place. If you partner with vendors like The Trade Desk, Viant, Simpli.fi, you name it, there's a bunch of these long tail DSPs out there as well, you will depend on having multiple different vendors, and we think there's a big opportunity consolidating that. I think there was a question around long-term margins for the Compulse business. Right now, the Compulse business is a negative margin. In fact, it reduces. Not a huge dollar amount, but it is losing money. When you add it back, the core business is actually more profitable. But Compulse is largely, given it's a technology company, it's a SaaS model, it is predominantly fixed cost business. As it scales, its profitability and its margins will accelerate meaningfully. I don't have a long-term margin target per se because the more it scales, the higher the margins will go. That's the nature of the business model, and we're just at the beginning of that cycle. The addressable market, on digital, continues to grow. That's where our sophistication of training and taking this to a SaaS to other broadcasters and tier two agencies come into play. Because of the core expertise we have, our sellers on the streets serving as a middleman for Compulse for those agencies that wanna take control and buy on their own. We are able to present our product to them. Again, we have long-term history in the marketplace, so when we're presenting this product, there's a level of credibility there. The dashboard alone allows the clients to track the performance. It's not just the DSP out there, it's also the tracking mechanisms that intrigue the potential clients and the clients that we have. Now the last thing I'll mention on Compulse, which shouldn't go unmentioned, is that we offer full managed service as well. There's lots of agencies and other local media companies that don't wanna staff up, don't, you know, want an easy sort of turnkey solution, don't want self-serve. We have a full managed service operation, and we have significant labor in India, a low-cost center in which to staff it. We think that's going to be a strategic asset for supplying local agencies and other local media companies that are having a tough time getting labor for this sort of managed service. 'Cause a lot of them, the way they do it today, not only don't they have the automation that we provide, but it ends up being a pretty people-intensive service when you don't have the automation and you're doing these types of omni-channel campaigns, you end up having to string together with a lot of people. So not only are we providing you greater transparency and lower costs, but we'll take your people problems off your hands too, and we'll be able to do it by outsourcing to a lower-cost country. Other questions? Over here. Thank you. Alan Gould, Loop Capital. A couple questions for Del Parks. I saw the BIA slide, but when do you think Sinclair will start generating revenue from ATSC 3.0? Secondly, is there any other spectrum, CBRS or other spectrum available that's unused spectrum that can do some of the same? Very, very good question. I'll take the first one, and you take the other spectrum one. We'd expect monetization, at least from a Sinclair perspective, to start in 2024. I'll let Del talk to the CBRS. Yeah. There is other spectrum, and we are looking at those opportunities also of using other spectrum. There is definitely private 5G networks that will be popping up, and there are other companies that are in that private network 5G space. Yeah, we have our finger on that pulse of the CBRS spectrum. Yeah. That's a very good question. I didn't expect that one. Steve, you got another question? Yep. Have you had any success in working with handset manufacturers to get the ATSC 3.0 chip installed on future mobile handsets? This would seem important to unlocking the consumer potential. Relatedly, are there any datacasting use cases in test? If so, can you discuss which industries? On the handset side, we do have prototypes, as I mentioned, made by manufacturers in India. There are already, you know, hundreds, if not thousands of handsets out there for the trial in India. We have active discussions going on with other manufacturers, like the Samsungs of the world, around putting this into not just mobile phones, but things like tablets, et cetera. What it's gonna take at the end of the day is a breakthrough, like in India, where the country adopts it specifically for direct to mobile. What's being talked about in Korea is also conversion to mobile, which when they first rolled out 3.0, it was not done for mobile. Now there's a big push to turn on mobile. As those things happen, you're going to see the market then react on the manufacturing OEM side. In terms of datacasting applications, as I mentioned, mobile video, low latency sports, IoT devices, and enhanced GPS. I think those four, to me, are the most near-term applications. Mobile video, obviously, the example in India and what's going on in Korea, and hopefully we'll be hitting here in the U.S. shortly, thereafter, is a great example of that. But one of the first datacasting applications that's going to happen that's outside of broadcast is gonna be enhanced GPS. You saw Del show a screen there, and it was kind of small, but if you looked closely, you saw that the uncorrected path of the car was basically off the road. Okay? The corrected one was right on the road. You know, this has lots and lots of applications beyond just autonomous vehicles, right? You know, if you are an e-scooter company, you get a fine if an e-scooter gets left on a sidewalk. If your error is three meters, you don't know whether you're on the sidewalk or not on the sidewalk. This service supplied by broadcasters already up and running in Korea by KBS. Live customers. A lot of them are farmers now. Farming is the first place where enhanced GPS has made inroads, but that is gonna be a huge sweep into urban environments, especially as things become more autonomous. I'll tell you another big application. Del mentioned drones. One of the things that happens with drones, with conventional services that might be supplied through cellular services that aren't nearly as robust and far more costly, they don't go above a certain height. So once drones get above a certain height of flying, their data gets unreliable through cellular systems. Not so with 3.0. So, it actually not only does it give a cheaper, better, faster method of enhancement for things on the ground, but also things flying up in the air. When you start really thinking about enhanced GPS, you start to quickly realize that just about everything that we will possess that has electronics in it is going to want to know where it is, and it's gonna wanna know with greater precision where it is. It is a great use case for 3.0. Del mentioned BitPath. They are already working on commercializing this opportunity here in the U.S. They have clients lined up. One of their test clients is out in Vegas, and they are a pipeline utility company, and they need to know where the pipe is in the ground, and they need to know within a small variance. The types of services that they use right now lose sync. They're expensive, they lose sync, and they're not really price sensitive. They just want reliability. That's another thing that we can offer in spades versus the traditional set of offerings. You know, my prediction within 3.0 is, I just gave you four things. Enhanced GPS. By the way, IoT device control is also a real world application. BitPath is working on a solution that utilities can control endpoint HVAC units when there is a shortage of power. Right? Tell everyone's HVAC unit or put out offers for people to reduce their power consumption. How do you know whether they took the offer? You can see whether the load on the energy system went down. If it didn't go down enough, send out a new offer with a richer discount. Right now that's done through text messages and a whole ad hoc basket of inefficient ways. This is, already a proven POC that is starting to roll. That's an example of IoT devices, right? There's going to be billions and billions of devices that are connected in some way to the Internet, and having a cheap, reliable way to communicate with them is essential. We're not saying 3.0 will solve all of those problems, but there are certain areas where it is undoubtedly the best way to do that. That's where we're focused on things like enhanced GPS or utility control. Mobile video, low latency sports. This is a great one. Not to drone on, but what was the number one thing everyone was talking about with Amazon Thursday Night Football? Was it how many people were watching? No, it was the poor stream quality, the ultra-latency. It really suffered from the quality side. That wouldn't be a problem using 3.0, and you could hit mobile and fixed devices. Especially in sports and big live events, high quality, synchronous streaming, where you have short delays. By the way, very important if you do watch and bet. You can't have a bet that happens a minute later when you see it. That doesn't work, right? You need instantaneous video, and you need it unbuffered, and you need everyone on the same frame. This is something they've known in Korea for a long time. When you're in Korea, your cellphone and your TV are always on the same frame. Something in the U.S., the U.S. market still hasn't caught up there, but synchronicity, low latency, these are things that are becoming much more important as this market develops. Those four applications that I just mentioned, my prediction is none of them will actually be the killer app. We don't even know today what the killer app will be, just as much as we didn't know what the best application or most high-selling application would've been when the App Store came out. We know we've got great opportunities in those four areas ahead of us, and as this system becomes more widespread, there's gonna be massive innovation put on top of it. What it's best used for, we'll have to see. Thanks. Question around tennis. What will dictate the pace of further geographic expansion, as you noted in Germany? Can you talk a little bit more about the process of acquiring rights, and the hurdles there, whether it be securing those rights from established players or competitors, and then just generally the escalating price for sports rights generally? We'll get the mic over to Ken here to talk more specifically. We are in 7 countries currently outside the U.S., and if you remember the slide, there are about 5 or 6 slated to launch over the next 12-24 months. We essentially wanna be in all territories that matter for tennis. Acquisition of live rights is an important part of this. As Ken mentioned, we're doing millions of viewers in India without any live rights. The first step is you enter a market, you partner with the local USTA, if you will, of the country. Then you start to move up market, like, just like we did here in the U.S., and you start to acquire rights. In Germany, Austria, Switzerland, we now have the WTA rights. When we build from there. Ken, why don't you pick it up from there? I'm glad we got the question, thanks. I thought it was gonna be on who's gonna win the year-end finals. Well, the first thing you should know is that wherever we get them, we can deploy them virtually instantaneously. We've built the global infrastructure already, and we've just got the lock on it by region. It's addressable locally. The entire Tennis Channel International experience, SVOD experience is available to theoretically everybody, to the whole world right now. We have no gating issue there. We have no gating issue because all the matches are already in our hand in the building. All of the content, thanks to Kevin and team, are in the content management system and accessible and dubbable. We're shooting in multiple languages. The question of rights itself is interesting because first of all, there's layers of rights. We can do as we did in Germany, we said, "Well, let's just try our hand. Let's go into Germany." I don't think we expected that 18 months later we would have 100% of the WTA library. We actually bought it away from DAZN, who you all must know and follow. DAZN is also the purveyor of those rights. DAZN realized what everyone has come to realize. It's the same reason why in the United States when we went head-to-head, regrettably, perhaps, although it worked out well, against Amazon and ESPN in an all-or-nothing battle for the ATP and the WTA, we won. They're bigger, a lot bigger, and they have more resources theoretically available to them. What they don't have is the ability to leverage those rights, because unlike every other sport, tennis isn't a big game scenario. It's not a tune-in three hours a week. As you well know, and Ben is apparently as well as anybody in the room. Thank you very much. It is the continuity of leveraging the entire story. Everybody here thrilled to the U.S. Open this year because they saw the entire story, sometimes for the first time, of Carlos Alcaraz and Sinner, or two years ago, Emma Raducanu. It's about maximizing those rights, all of them, every day, 24 hours a day. I got a picture of my television set at home. Before I left, this weekend, we were having the finals of Tel Aviv, Italy. We were in four different countries with four of the biggest stars in the world on the air in four different tournaments, two men and two women. We are making use of every single one of those matches. We are making every one of those matches available. It rolls out by market. The availabilities are not coterminous. It's worked to our favor so far. The other thing that's great and that we found, and the theory is we're taking a page out of Sinclair's book. This is a hyperlocal to regional to global strategy. It's not just. We're not just exporting a version of the Tennis Channel U.S. to Germany, Austria, Switzerland, to DACH. We're doing. We have Laura Siegemund doing shows in German, and we will be dual language at least, if not more, in every region soon. We also have Tennis.com, which is global. It's you saw that from Rob's presentation. Number one website, which allows us to be web and to be in every market with the number one URL and the social that comes with that to start servicing the market. Here's the other thing that's really fantastic. We have found that ratings for local league and local regional pro tennis can rate as high as the 1,000s from the tours if put in the right environment, right? That will never happen if it's not on a tennis-dedicated platform. Never. Even if it's on a big multi-sport channel, because people are gonna go, "I'm not gonna watch that." With the proper context, there's a young girl in Germany who is the equivalent just slightly off being the Coco Gauff of Germany. She rates like Roger did, I'm sorry to say. It's incredible. What we've been able to do is get Bundesliga matches in different territories and things you wouldn't see, and make those stories relevant. Then you got all the histories, right? You go to the Czech Republic, and everyone thinks that Jan Kodeš invented tennis with Martina Navratilova. You know what? If you're from the Czech Republic, he did. Every single part of the world has that. I mean, being in India with Vijay was like being with God. It went so far beyond tennis, and Prakash, who's on our air. You hear about these opportunities, with ATSC 3.0 there, and something I've spent a lot of time on in a past life, and I think of us hopefully as a Trojan horse, to take those rights and exponentially leverage them beyond the way that we already do to create real value with something that touches people regionally, nationally, and then globally. Yeah, great. Thanks, Ken. Okay. Just to sum it up, too, like, number one, we have a distinct advantage over a multi-sport property, and we're the only tennis-dedicated property of this size and scale globally. No one will be able to monetize the rights as well as we can to all the examples that Ken just mentioned. The other thing is it's fragmented on the rights owner side. That's also an advantage. Tennis is set up to be the consolidator in the value chain. The third thing is all of our rights are multi-platform and have been for quite some time. That hump has been crossed a long time ago. I do think although rights values, too, go up, and have gone up in tennis. Because of those three dynamics, we're in a favorable position. The fourth I should mention is that when you take a look at tennis globally, how much is paid for media rights versus the audience, it's a huge mismatch. Like, the media rights are so small compared to the audience it delivers. It's a very undervalued sport. There's one more really important point, which is the lesson that we learned here, which is what happens historically is that a broadcaster will buy the rights and warehouse 90% of it. We can actually go to that broadcaster and say, "Hey, how about we take those off your hands? Give you some value for those. We'll cross-promote with you. We want you to do well because all you really want to show is the semis and the finals on the weekend. You want the cream, but you're buying the whole cow. We'll take the cow, we'll run the farm, right? And then let's cross-promote back and forth, and let's build you a 24-hour platform." There's a natural symbiotic relationship, which we proved here in the United States. Frankly, we probably would've continued if everybody could've not gotten into an exclusivity war, because frankly, they didn't have to. You know, the finals are one match. Monday is, 64 matches at a Grand Slam and, 32 matches on the men's side and the women's side at a 1000 title event. None of those are being aired right now. They're being buried on SVOD, and no one's seeing them because it's a multi-sport SVOD flag. All right. Thanks, Ken. What you can't take for granted is, I'll just end on this explanation, is that Djokovic played Rafa in the quarterfinals. Prior to the Tennis Channel, that match would not have been seen in the U.S. It was the highest-rated match in the history of Tennis Channel. Internationally, Ken has a gentleman, Andy Reif, that works for him that's breaking country by country. We're doing this. The seven countries launch, Andy has done it country by country, and he'll continue to do it that way and work with federations first and get the classics, and then we'll worry about the master rights once we get launched and once we get a foothold in that country. Okay, go ahead. Thanks. I do have two. One is to continue on the Tennis Channel. I was just hoping that you could talk a little bit about the direct model. How are you thinking about that in terms of distribution, pricing, anything that needs to be done before the launch? And then Chris, back to you. You were talking about so many different applications for ATSC 3.0. How do you think about developing, the sales force to kinda go out into the community and gain traction on this? Is that your responsibility? Is that your partners'? Is there a consortium? You know, what has to happen between now and 2024 when you start seeing revenue on this? Sure. I'll take the Tennis side. You know, as we mentioned in the presentation earlier, we do expect to have a direct consumer product ready for Tennis Channel in 2024. It's a ways out, so pricing details, things like that are not yet available. It's important to understand that Tennis Channel+ that has existed, as Ken mentioned, it was the first plus out there. It is at times five channels deep because literally there'll be five matches or more going on. You know, eight. I'm sorry, Ken's saying more than that. Eight maybe. It does not include the main premium matches that generally go onto the main Tennis Channel today. When that goes direct to consumer in 2024, we think that'll be a massive growth driver where you've got that 40% of the population outside the bundle will be able to access our most premium programming directly. More to come on that as we get closer. In terms of your question around ATSC 3.0 it's really an industry-wide effort. We do a lot of prospecting. We formed a BitPath in cooperation with Nexstar, which is our spectrum aggregation consortium. They're on the street. Pearl TV is another organization out beating the bushes. We do a lot of work in other countries, quite frankly, 'cause every country has different dynamics. Getting breakthroughs in other countries and getting the bigger ecosystem around 3.0 will benefit everyone who uses 3.0. That's why we are so active in other countries. It's everyone's job. It's my job, it's Del's job, it's Rob's job, it's Lucy's job. You know, we are out there every day talking to people and making this happen. Brazil is another country that we haven't mentioned that we've been very active in, and we think has good prospects for converting to 3.0. The more countries we've got so far, it's Korea, it's the U.S. Those are the two big countries that have converted. If we can get India and Brazil and Canada and Mexico that are on 1.0 countries that should flip over, those will be big momentum shifts for the usage of 3.0. We do think that there's a big opportunity inside the auto vehicle in the infotainment space. Right now, the flavor of the day is to connect through CarPlay or the Android Auto. With the infotainment, with the bits that we could accumulate as broadcasters, there's ways to fire up music channels, television channels, and a complete infotainment. As you think down. Again, we're future forward, so in this autonomous car, the infotainment space is gonna be very competitive, but much needed as you're working and ingesting content in a driverless car. We have to think that far out. All right. Any last questions before we wrap up? Steve? Yeah, I got one more from the internet. Based on your value analysis, would you consider three separately publicly traded companies, or would you consider tracking stocks for the two entities which are not generating cash flow? Look, we'll consider anything. We like to think of ourselves as pretty creative. Tracking stocks personally, I'm not that crazy about. I don't think the market really likes tracking stocks either. That being said, as I've alluded to, we do recognize that, it's hard to get the market to give us credit for the way we're currently organized. We're not wed to anything. There are no sacred cows. If we need to reorganize in some way to yield the value that really is there, the intrinsic value that we pointed out, that $75 per share, then we will. I would say tracking stocks, unlikely. Okay. If there's no other questions in the room, I wanna thank everyone for joining us for the first investor day we've had in quite some time, a little post-COVID reboot. It's been a pleasure having you all, and we look forward to hearing from you as you dig into our story further. Thank you all. Thank you.