v3.26.1
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
15. FAIR VALUE MEASUREMENTS
The Group’s consolidated financial instruments including cash and cash equivalents, player deposits, accounts receivable, other current assets, accounts payable, player deposit liability, and other current liabilities are carried at amortized cost. As of June 30, 2026 and December 31, 2025, the carrying amounts of these financial instruments approximated their fair values because of their short-term nature.
The carrying amount of long-term debt outstanding under the Credit Agreement dated November 24, 2023, (as amended), approximates its fair values, as interest rates on these borrowings approximate current market rates. The fair value of the USD Senior Secured Notes, Euro Senior Secured Notes, and GBP Senior Secured Notes was $2,152 million, $1,539 million and $928 million, respectively, as of June 30, 2026 (December 31, 2025: $2,190 million, $1,603 million and $952 million, respectively). The fair values are based on quoted market prices.
The following tables set forth the fair value of the Group’s financial assets, financial liabilities and redeemable non-controlling interests measured at fair value based on the three-tier fair value hierarchy:
As of June 30, 2026
($ in millions)  Level 1    Level 2    Level 3    Total  
 Financial assets measured at fair value:
 Available for sale – Player deposits – Investments$5 $— $— $5 
 Equity securities – Investments— — 6 6 
 Derivative financial assets— 60 — 60 
 Total5 60 6 71 
 Financial liabilities measured at fair value:
 Derivative financial liabilities— 22 — 22 
 Fox Option liability— — 220 220 
 Total— 22 220 242 
 Redeemable non-controlling interests at fair value$— $— $269 $269 
As of December 31, 2025
($ in millions) Level 1  Level 2  Level 3  Total 
 Financial assets measured at fair value:
 Available for sale – Player deposits – Investments$17 $6 $— $23 
 Equity securities – Investments— — 7 7 
Derivative financial assets— 43 — 43 
 Total17 49 7 73 
 Financial liabilities measured at fair value:
 Derivative financial liabilities— 86 — 86 
 Fox Option Liability— — 560 560 
 Total— 86 560 646 
 Redeemable non-controlling interests at fair value$— $— $309 $309 
Valuation of Level 2 financial instruments
Available for sale – Player deposits – investments
The Group has determined the fair value of available for sale – player deposits – investments by using observable quoted prices or observable input parameters derived from comparable bonds/markets. Although the Group has determined that a number of the bonds fall within Level 1 of the fair value hierarchy, there are a class of bonds which have been classified as Level 2 due to the existence of relatively inactive trading markets for those bonds.
Derivative financial assets and liabilities – Swap agreements
The Group uses derivative financial instruments to manage its interest rate and foreign currency risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis of the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, such as yield curves, spot and forward foreign exchange rates.
As of June 30, 2026, the Group assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Group determined that its valuations of its derivatives in their entirety are classified in Level 2 of the fair value hierarchy.
Valuation of Level 3 financial instruments
Non-derivative financial instruments
Fox Option liability
On October 2, 2019, the Group entered into an arrangement with Fox Corporation (“Fox”), pursuant to which FSG Services LLC, a wholly-owned subsidiary of Fox, has an option (the Fox Option) to acquire an 18.6% equity interest of the then outstanding investor units (the “Fastball Units”) in FanDuel Group Parent LLC (“FanDuel”). In April 2021, Fox filed an arbitration claim against the Group with respect to its option to acquire an 18.6% equity interest in FanDuel seeking the same price that the Group paid for the acquisition of the Fastball Units (37.2% of FanDuel) from Fastball Holdings LLC in December 2020. On November 7, 2022, the arbitration tribunal determined the option price as of December 2020 to be $3.7 billion plus an annual escalator of 5.0%. Fox has a ten-year period from December 2020 within which to exercise the Fox Option, should it wish to do so, and should Fox not exercise within this timeframe, the Fox Option shall lapse. Cash payment is required at the time of exercise and the Fox Option can only be exercised in full. Exercise of the Fox Option requires Fox to be licensed.
The fair value of the Fox Option liability amounted to $220 million as of June 30, 2026 and $560 million as of December 31, 2025 which was determined using an option pricing model. As of June 30, 2026 and December 31, 2025, the option exercise price was $4.9 billion and $4.8 billion respectively. The significant unobservable inputs were the enterprise value of FanDuel, the discount for lack of marketability (“DLOM”), the discount for lack of control (“DLOC”), implied volatility and probability of Fox getting licensed.
The enterprise value of FanDuel was determined using an equal weight to the value indications of the discounted cash flow analysis and the guideline public company analysis. The discount rate used in the discounted cash flow analysis was 16.5% and 18.0% as of each of June 30, 2026 and December 31, 2025, respectively.
Additionally, management applied a combined 30.0% discount for lack of marketability and lack of control as of each of June 30, 2026, and December 31, 2025. A range of DLOMs obtained using various securities-based approaches was 13.9% to 22.2%. DLOC was estimated at 20.0% using implied discounts in previous observable transactions involving FanDuel’s equity ownership and data based on Mergerstat studies as of each of June 30, 2026 and December 31, 2025.
Management selected a discount rate of 30.0%, which lies in the first quartile based on the ranges considered by management.
The volatility was 40.0% and 32.0% as of each of June 30, 2026 and December 31, 2025, which was within the range of selected comparable companies. In developing the fair value measurement, the probability of a market participant submitting to and obtaining a license was estimated at 75.0% as of each of June 30, 2026 and December 31, 2025.
Changes in discount rates, revenue multiples, DLOM, DLOC, implied volatility and probability of Fox getting licensed, each in isolation, may change the fair value of the Fox Option liability. Generally, an increase in discount rates, DLOM and DLOC or decrease in revenue multiples, volatility and probability of Fox getting licensed may result in a decrease in the fair value of the Fox Option liability. Due to the inherent uncertainty of determining the fair value of the Fox Option liability, the fair value of the Fox Option liability may fluctuate from period to period. Additionally, the fair value of the Fox Option liability may differ significantly from the value that would have been used had a readily available market existed for FanDuel Group LLC. In addition, changes in the market environment and other events that may occur over the life of the Fox Option may cause the losses ultimately realized on the Fox Option liability to be different than the unrealized losses reflected in the valuations currently assigned.
Redeemable non-controlling interests at fair value
The terms of symmetrical call and put options agreed between the Group and NSX shareholders require exercise price to be calculated at fair market value without giving effect to DLOM and DLOC. The enterprise value of the Brazil reporting unit was determined using an equal weight to the value indications of the discounted cash flow analysis and the guideline public company analysis. For discounted cash flow the Group based discount rates on the Weighted Average Cost of Capital (“WACC”). The WACC combines the required return on equity based on a Capital Asset Pricing Model, which considers the risk-free interest rate based on yield of the 10-year Brazilian Government Bond, market risk premium, and small company premium with the cost of debt of 10.2%, based on BBB credit spread plus the Brazilian risk free rate, adjusted using income tax factor. The beta and ratio of weighted cost of capital was determined based on guideline public company analysis. The median of beta and ratio of equity to debt was 1.05 and 61:39, respectively. The arithmetic average of beta and ratio of equity to debt was 1.04 and 66:34, respectively. The calculation resulted in a WACC of 17.5%. The Exit revenue multiple used in determining the terminal value is based on guideline public companies and the profitability of the Brazil reporting unit was 1.3x. For market approach the equity value was arrived at by multiplying revenue by a revenue multiple of 1.4x based on the median of the Guideline Public company multiples and a control premium of 10% based on the lowest end of the Guideline Public Company Control Premium.
Changes in WACC, revenue multiple and control premium, each in isolation, may change the fair value of NSX redeemable non-controlling interest. An increase in WACC would result in a decrease in fair value, an increase in revenue multiple would result in an increase in fair value and an increase in control premium would result in an increase in fair value. In addition, changes in the market environment and other events that may occur over the life of the symmetrical call and put options may cause the fair value of the NSX redeemable non-controlling interest to be different from the fair value reflected in these unaudited condensed consolidated financial statements.
Movements in the three months period in respect of Level 3 financial instruments carried at fair value
The movements in respect of the financial assets and liabilities carried at fair value are as follows:
($ in millions)Equity
securities		Fox option
liability		TotalRedeemable
non-
controlling
interest at
fair value
Balance as of March 31, 2026$6 $(260)$(254)$(304)
Total gains or losses for the period:
Included in earnings— 40 40 — 
Included in other comprehensive (loss) income— — — — 
Attribution of net income and other comprehensive income:
Net loss attributable to redeemable non-controlling interest— — — 29 
Other comprehensive gain attributable to redeemable non-controlling interest— — — (2)
Acquisitions and settlements:
Acquisition of redeemable non-controlling interest— — — — 
Settlements— — — — 
Adjustment of redeemable non-controlling interest at redemption at fair value— — — 8 
Balance as of June 30, 20266 (220)(214)(269)
Change in unrealized gains or losses for the period included in earnings— 40 40 — 
Change in unrealized gains or losses for the period included in other  comprehensive (loss) income$— $— $— $(2)
($ in millions)Equity
securities		Fox option
liability		Total
Redeemable
non-
controlling
interest at
fair value
Balance as of December 31, 2025$7 $(560)$(553)$(309)
Total gains or losses for the period:— — — 
Included in earnings— 333 333 — 
Included in other comprehensive income(1)7 6 — 
 Attribution of net loss and other comprehensive income:———
Net loss attributable to redeemable non-controlling interest— — — 43 
Other comprehensive gain attributable to redeemable non-controlling interest— — — (21)
 Acquisitions and settlements:— — — 
Acquisition of redeemable non-controlling interest
Settlements
Adjustment of redeemable non-controlling interest at redemption at fair value— — — 18 
Balance as of June 30, 20266 (220)(214)(269)
Change in unrealized gains or losses for the period included in  earnings— 333 333 — 
Change in unrealized gains or losses for the period included in other comprehensive income (loss)$(1)$7 $6 $— 
($ in millions)Contingent
consideration		Equity
securities		Fox option
liability		TotalRedeemable
non-
controlling
interest at
fair value
Balance as of March 31, 2025$— $6 $(630)$(624)$(1,448)
Total gains or losses for the period:
Included in earnings— — (81)(81)— 
Included in other comprehensive income— 1 (39)(38)— 
 Attribution of net loss and other comprehensive income:
Net loss attributable to redeemable non-controlling interest— — — — (2)
Other comprehensive gain attributable to redeemable non-controlling interest— — — — (10)
 Acquisitions and settlements:
Acquisition of redeemable non-controlling interest— — — — (256)
Settlements— — — — — 
Adjustment of redeemable non-controlling interest at redemption at fair value— — — — (300)
Balance as of June 30, 2025— 7 (750)(743)(2,016)
Change in unrealized gains or losses for the period included in  earnings— — (81)(81)— 
Change in unrealized gains or losses for the period included in other comprehensive income (loss)$— $1 $(39)$(38)$— 
($ in millions)Contingent
consideration		Equity
securities		Fox option
liability		TotalRedeemable
non-
controlling
interest at
fair value
Balance as of December 31, 2024$(18)$6 $(810)$(822)$(1,567)
Total gains or losses for the period:
Included in earnings— — 124 124 — 
Included in other comprehensive income (loss)2 1 (64)(61)— 
Attribution of net income and other comprehensive income:
Net income attributable to redeemable non-controlling interest— — — — (5)
Other comprehensive loss attributable to redeemable non-controlling interest— — — — (10)
Acquisitions and settlements:
Acquisition of redeemable non-controlling interest— — — — (256)
Settlements16 — — 16 — 
Adjustment of redeemable non-controlling interest at redemption at fair value— — — — (178)
Balance as of June 30, 2025— 7 (750)(743)(2,016)
Change in unrealized gains or losses for the period included in earnings— — 124 124 — 
Change in unrealized gains or losses for the period included in other  comprehensive income (loss)$2 $1 $(64)$(61)$—