Fox Sports, which is airing the NCAA men’s basketball tournament on Fox Sports 1, could see its ad spending decline significantly if the sport continues to struggle financially, according to Fox Sports CEO Craig Smeltzer.
Fox Sports is airing its NCAA men�s basketball tournament with a $1.1 billion ad budget, which represents more than one-third of the network’s ad spend.
Fox Sports is expected to make a $200 million profit on its tournament, which ends this weekend, according a report from Bloomberg News.
“If we are not spending the money on the tournament, we are going to have a $100 million deficit,” Smeltz told Bloomberg News, adding that he expects that to be the case if the tournament continues to do poorly.
Smeltz cited the possibility of a negative ad spend of as much as $200 per game, a figure that would make it difficult for Fox Sports to maintain its profit margins, the report said.
In an email to Fox News, a Fox Sports spokesman said: “We are in a very competitive marketplace, but we have to continue to invest in the product to keep our competitive advantage.
As always, we believe we have the right products and we have found them to be very successful.”
The NCAA tournament will be Fox Sports� last major tournament.
It is expected that Fox Sports will lose money in its first three months of the tournament after ESPN lost $2 million per game during the first three weeks.