Buried within TEGNA's Q1 2024 earnings call lies a potential goldmine that seems to have slipped under the radar of Wall Street analysts: a strategic investment in women's sports that could be worth millions. While everyone's focused on the presidential election cycle and the Summer Olympics, TEGNA is quietly building a portfolio of women's sports rights, suggesting a forward-thinking strategy that could pay off big time.

The evidence is subtle but compelling. TEGNA CEO, Dave Lougee, highlighted multiple local rights deals for women's pro sports teams, including the Indiana Fever and WNBA rookie sensation Caitlin Clark. This isn't just a feel-good story about supporting women's athletics. It's a calculated business move that leverages a rapidly evolving media landscape and capitalizes on a significant audience growth trend.

Lougee himself pointed out the recent NCAA women's basketball final featuring Caitlin Clark drew a record-breaking 19 million viewers on ABC, surpassing the men's championship game for the first time ever. Importantly, that men's game aired on cable, showcasing the power of broadcast reach. Lougee noted, "Pro sports teams are now recognizing the difference."

TEGNA's strategy seems to be two-fold: acquiring rights for women's teams at a potentially lower cost than established men's teams while betting on the continued growth of the women's sports audience. This potential arbitrage play, if successful, could generate significant returns for the company.

Consider this: if TEGNA can secure exclusive broadcast distribution deals for rising stars like Caitlin Clark and leverage its strong portfolio of stations in major markets, it could attract a sizable audience, particularly among younger demographics who are increasingly tuning into women's sports.

Potential Revenue from Women's Sports

Let's look at some potential numbers. The recent NCAA women's final drew almost 20 million viewers. If TEGNA, with its strategic footprint and focus on local markets, can capture even a fraction of that audience, say 5 million viewers, across its multiple women's sports deals, the advertising revenue could be substantial.

Assuming a conservative CPM (cost per thousand impressions) of $10 for local broadcast advertising, 5 million viewers translate into a potential $50,000 per commercial break. With multiple games and commercial breaks throughout the season, this could easily generate millions in ad revenue for TEGNA.

Furthermore, the acquisition of Octillion Media and its integration into Premion positions TEGNA to capitalize on the growing trend of streaming and Connected TV advertising within local markets. This platform, with its expanded programmatic selling capabilities, offers a unique opportunity to reach women's sports fans beyond traditional linear broadcasts.

This strategy aligns with broader societal shifts. Women's sports viewership has been on a steady rise, driven by factors like increased media coverage, growing social awareness and the emergence of compelling athletes. This trend is only expected to accelerate, creating a lucrative market for companies like TEGNA who are positioned to capitalize on it.

TEGNA's Q1 2024 Financial Performance

While analysts are busy dissecting the usual suspects – political, Olympics, and cost savings – TEGNA's under-the-radar play in women's sports could be the real game-changer. It's a high-potential, low-risk investment that could reap significant rewards, making TEGNA a company to watch closely in the coming months and years.

"Fun Fact: The recent NCAA women's basketball final featuring Caitlin Clark drew a larger audience than the men's championship game for the first time ever. This historic viewership milestone underscores the rapidly growing popularity of women's sports."