Kevin Latek: The focus of the coalition is to encourage the FCC to reopen basically to request comment on a 2014 rule-making that was asking whether the FCC should update its rules to reflect potential arrival of virtual MVPDs. Comments submitted in 2014 are obviously stale in 2023. We are simply at this point, the ask us for the FCC to reopen the proceeding, let people tell the FCC what’s going on. That’s clearly where we’re at. There has been support on both sides of the aisle and the Senate, supporting the FCC to again, just open the window and let us — let the FCC hear what’s going on. And what has developed in the nine years since they — ask questions about an industry that literally did not exist at that time.
Alan Gould: Any time frame when we should hear whether the FCC chooses to open that window again?
Kevin Latek: It’s entirely up to the Chairwoman. So I don’t know. So it’s entirely up to Chairwoman.
Alan Gould: Thanks. And Jim, two questions for you. Easy one. Is that free cash flow estimate $115 million or $150 million? And on Diamond Sports, is that all behind us now? Or is there any potential liability remaining?
James Ryan: So free cash, as we define it, is approximately 1-5-0. And the issues with the Diamond bankruptcy and the impact on our historic agreement is behind us. Obviously, as we said, that technically, that’s a Q3 event, but you’ve got the numbers there, but it is all behind us at this point. And as we’ve said, we — as a result of the Diamond rejection of the contract, we were able to put a new contract in place with the CW for ACC games. And I would say that the — clearly, the net impact on the company with the ins and outs as we move forward is going to be a significantly immaterial number.
Alan Gould: Okay, thank you very much.
Hilton Howell: Thanks, Alan.
Operator: Our next question is going to come from Craig Huber with Huber Research. Your line is open.
Craig Huber: Thank you. I wanted to ask, first off, obviously, your core advertising numbers are much, much better than your peers out there. I wanted to give you a chance to just explain why you think you guys are outperforming their peers so much out there? I mean we all have our thoughts on, but like to hear your bullet points on why you think you’re outperforming so much on core, please.
James Ryan: Well, this is Jim. I’m going to start, and then I’m going to let Pat and Sandy jump in. I’m not going to comment on the peers only to acknowledge that, obviously, the results that we published today seem to be leading the peer group in core advertising, both in the quarter and year-to-date. You’d have to ask them — respectfully, I’m not going to comment on a peer. You should ask peers what their — why they think their results or their results. I certainly cannot and will not answer for them. Answering for Gray, I think it goes back to what we have been saying literally for decades. And Q2’s results, I think, again, is it many times in the past, prove it. We have the preeminent portfolio with asset quality in the television broadcast business, and we have had that for decades.
We have always had a focus on strong local operations with an exceedingly laser focus on strong local news operations. And when you’ve got a strong local news operation wrapped around a strong, larger overall television operation in most of the 113 markets you operate in, you have a chance to consistently form well to exceedingly well to outperforming the peer group. So what we’re saying in this quarter is really no different than what we have said lots of times and lots of other quarters.
Pat LaPlatney: I would add on that, it’s Pat. I would add at the risk of being a little bit repetitive. We talked about our new local direct efforts. We’re packing on north of $30 million a quarter in new business every quarter, and that’s growing. We talked a little bit about the Meredith impact, which we telegraphed back when we closed on Meredith. We thought there was revenue upside there, and there is, and you’re seeing the impact of that. Finally, and again, something I’ve talked about quite a bit on previous calls, our training efforts in our category-focused approach that’s paying great dividends. We have a really well-trained sales staff and we invest in category experts to move our business forward. And I think you’re seeing the result of all that right now.
Craig Huber: And my second question, if I could. Your comments earlier about the Phoenix Suns arrangement for games on your stations there. Just discuss if you would, what percent of the games or number of games you’re anticipating showing in your television stations in the season?
Pat LaPlatney: So we would guess it’s — the number is flexible depending on how many games go to the networks, but historically, somewhere on the order of 70 games.
Craig Huber: That’s a lot. Okay. Obviously, you’re trying to do more of these in other markets if the opportunity arises, I assume, because economics must be quite favorable to you.
Pat LaPlatney: Yes.
