E.W. Scripps's biggest risks in the FY2024 10-K
- Advertising revenue sensitivity and economic downturn risks dominate the company's risk profile.
- Heavy reliance on debt financing creates significant operational and financial constraints.
- Network affiliations and FCC regulations heavily impact television station operations.
The risks most specific to E.W. Scripps
- Risks Related to Our Businesses
We expect to derive the majority of our revenues from advertising spending, which is affected by numerous factors. Declines in advertising revenues will adversely affect the profitability of our business
Declines in advertising spending, which provides the majority of our revenues, will adversely affect our profitability.
- Risks Related to Our Businesses
If we are unable to respond to any or all of these factors, our advertising revenues could decline and affect our profitability
Direct content-to-consumer delivery channels fragment our television audiences, reducing advertising rates and retransmission consent revenues.
- Risks Related to Our Businesses
The loss of affiliation and carriage agreements or the costs of renewals could adversely affect our operating results
We rely heavily on network affiliations, including 18 ABC, 11 NBC, 9 CBS, and 4 FOX stations, and the loss or cost of these agreements could harm operating results.
- Risks Related to Our Businesses
As our retransmission consent agreements expire, there can be no assurance that we will be able to renew them at comparable or better rates. As a result, retransmission revenues could decrease and retransmission revenue growth could decline over time
Decreases in MVPD subscribers due to internet streaming reduce the revenue we earn under retransmission agreements.
- Risks Related to Our Businesses
We make investments in television programming ("content") in advance of knowing whether that particular content will be popular enough for us to recoup our costs. Additionally, if costs to acquire this content increase or this content becomes more difficult to obtain, our operating results may be adversely affected
We commit significant costs to television programming in advance without knowing if it will be popular enough to recoup costs.
- Risks Related to Our Businesses
We have issued $600 million in preferred shares, the terms of which restrict us from undertaking certain actions while such preferred shares are outstanding
Berkshire Hathaway holds $600 million of our preferred shares issued for the ION acquisition, which restrict certain actions and are redeemable starting January 7, 2026.
- Risks Related to the Ownership of Scripps Class A Common Shares
Certain descendants of Edward W. Scripps own approximately 93% of Scripps' Common Voting shares and are signatories to the Scripps Family Agreement, which governs the transfer and voting of Common Voting shares held by them
Certain descendants of Edward W. Scripps own 93% of Common Voting shares and control two-thirds of the Board of Directors.
- Risks Related to Our Indebtedness
We have substantial debt. The principal and interest payment obligations on such debt may restrict our future operations and impair our ability to meet our long-term obligations
We have approximately $2.6 billion in aggregate outstanding indebtedness, including senior unsecured debt, senior secured debt, and term loans.
- Risks Related to Our Indebtedness
Our variable rate indebtedness subjects us to interest rate risk, which could cause our annual debt service obligations to increase significantly
Borrowings under our Credit Agreement are at variable interest rates, meaning rate increases will significantly raise our debt service obligations.
All 20 risk factors
Headings as the filing states them, in filing order.
Risks Related to Our Businesses
- 01We expect to derive the majority of our revenues from advertising spending, which is affected by numerous factors. Declines in advertising revenues will adversely affect the profitability of our business
- 02and insurance industries. A disruption in advertising spend within these industries could adversely impact our revenue and we may not be able to secure adequate replacement advertisers
- 03If we are unable to respond to any or all of these factors, our advertising revenues could decline and affect our profitability
- 04The loss of affiliation and carriage agreements or the costs of renewals could adversely affect our operating results
- 05As our retransmission consent agreements expire, there can be no assurance that we will be able to renew them at comparable or better rates. As a result, retransmission revenues could decrease and retransmission revenue growth could decline over time
- 06We make investments in television programming ("content") in advance of knowing whether that particular content will be popular enough for us to recoup our costs. Additionally, if costs to acquire this content increase or this content becomes more difficult to obtain, our operating results may be adversely affected
- 07Our television stations will continue to be subject to government regulations which, if revised, could adversely affect our operating results
- 08modifications (including renewing the license for a term of fewer than eight years), it could have a material adverse effect on the affected station’s revenue potential
- 09The loss of skilled employees or an inability to attract and retain skilled employees could adversely affect our business
- 10Acquisitions, joint ventures and strategic alliances involve risks and, if said risks are not managed effectively, our operating results could be negatively affected
- 11We may evaluate strategic acquisitions and investments in the future, and there are various risks associated with an investment strategy
- 12We will continue to face cybersecurity and similar risks, which could result in the disclosure of confidential information, disruption of operations, damage to our brands and reputation, legal exposure and financial losses
- 13We have issued $600 million in preferred shares, the terms of which restrict us from undertaking certain actions while such preferred shares are outstanding
Risks Related to the Ownership of Scripps Class A Common Shares
- 14Certain descendants of Edward W. Scripps own approximately 93% of Scripps' Common Voting shares and are signatories to the Scripps Family Agreement, which governs the transfer and voting of Common Voting shares held by them
- 15We have the ability to issue preferred stock, which could affect the rights of holders of our Class A Common shares
- 16The public price and trading volume of our Class A Common shares may be volatile
Risks Related to Our Indebtedness
- 17We have substantial debt. The principal and interest payment obligations on such debt may restrict our future operations and impair our ability to meet our long-term obligations
- 18The agreements governing our various debt obligations impose restrictions on our operations and limit our ability to undertake certain corporate actions
- 19The agreements governing the Company's debt require us to comply with certain financial ratios and covenants; our failure to do so will result in a default thereunder, which would have a material adverse effect on us
- 20Our variable rate indebtedness subjects us to interest rate risk, which could cause our annual debt service obligations to increase significantly
Other E.W. Scripps 10-Ks
- FY2025 10-K risk factors19 risks1 new2 dropped6 reworded
Scripps added AI risks, disclosed $117 million in unpaid cumulative preferred dividends to Berkshire Hathaway, and detailed a $361 million accounts receivable securitization facility.
Filed Feb 27, 2026
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.