What Sinclair, Inc. told the SEC could break it.

Two customers (each possibly multiple entities under common control — likely MVPDs/ad buyers) accounted for 12% and 11% of SBG's 2025 revenue, concentrating distribution/ad revenue.

“For the year ended December 31, 2025, two customers accounted for 12 % and 11 %, respectively, of SBG's total revenue. For the year ended December 31, 2024, one customer accounted for 10 % of SBG's total revenue.”

Sinclair operates Cunningham Broadcasting's stations under LMAs/purchase agreements (paying the greater of 3% of net broadcast revenue or $6M annually) and transacts with its controlling Smith-family shareholders, creating related-party and FCC change-of-control risk.

“Pursuant to the terms of this agreement we are obligated to pay Cunningham an annual fee for the television stations equal to the greater of (i) 3 % of each station's annual net broadcast revenue or (ii) $ 6 million. The aggregate purchase price of these television stations increases by 6 % annually.”

FCC multiple-ownership rules, the national ownership cap, and DOJ/FTC antitrust scrutiny of LMAs/outsourcing agreements limit Sinclair's ability to operate multiple stations per market and could reduce revenue or force divestitures.

“The FCC's multiple ownership rules and federal antitrust regulation may limit our ability to operate multiple television stations in some markets and may result in a reduction in our revenue or prevent us from reducing costs. Changes in these rules may change our existing strategic approach to certain television markets.”

Sinclair relies on third parties for broadcast, entertainment, news and sports programming and competes for distribution rights; rising programming costs or loss of rights could materially hurt results.

“we rely on third parties for broadcast, entertainment, news, sports and other programming for our stations and networks. We compete with other providers of programming to acquire the rights to distribute such programming.”