Kimmel Backlash, Affiliate Fees Loom in Disney-Nexstar-Sinclair Standstill

A looming legal clash involving Disney, Nexstar and Sinclair could hinge on how Jimmy Kimmel responds to controversy over his remarks about Charlie Kirk's death. Nexstar and Sinclair own about 60 ABC affiliates that together reach roughly 22 million U.S. households, placing them at the center of a long-running dispute over how much influence local stations have over network programming and ad markets. ABC's local partners collect affiliate fees from the stations to carry the network's content, including primetime shows, national news and Jimmy Kimmel Live, with the stations selling local advertising around the programming. The broadcasters' posture toward Kimmel may be driven by the political alignment of many of their audiences, which skew conservative in significant red-state markets. If Nexstar and Sinclair perceive Kimmel as a partisan figure, they could withhold airings or pressure ABC to curb the host's content, raising the stakes for a potential breach of affiliate agreements and even litigation.

Disney and ABC suspended Kimmel last Monday after his comments about the assassination of conservative activist Charlie Kirk, with Tuesday marking his first day back under a careful reorganization of messaging. Disney has not publicly stated whether Kimmel will apologize; reports indicate he told CEO Bob Iger he would not. The sensitivity of the situation is heightened by the fact that Nexstar and Sinclair serve audiences that could tune out Kimmel if his remarks are perceived as partisan or inflammatory, which would in turn complicate local ad sales. People with direct knowledge of the matter say the broadcasters could withhold or alter carriage on ABC affiliates if Kimmel's on-air approach remains provocative. Some observers in the industry expect a courtroom confrontation if the affiliate agreements are deemed breached, a scenario in which Disney could sue the two groups to enforce or redefine carriage terms.

That potential legal showdown sits against a backdrop of a tight regulatory environment for broadcasters. Nexstar's roughly $6 billion bid to acquire Signa needs approval from the Federal Communications Commission, while Disney's plan to acquire the NFL Network also requires FCC clearance. Sinclair, already under regulatory scrutiny for growth moves, could see fresh liaison with regulators as it expands. FCC Chairman Brendan Carr has warned that broadcasters must adhere to the agency's public-interest standards, and some officials have argued that Kimmel's remarks fall outside those boundaries. If the affiliate agreements are breached, Disney could pursue legal remedies, while ABC could consider streaming Kimmel through alternative networks controlled by Disney or its affiliates.

Kimmel's value to Disney is as much about audience and advertising dynamics as about on-air ratings. The company has argued that the show still yields revenue through affiliate fees, online ads and sponsorships across platforms, even as some industry observers note that the program's ratings and direct ad sales have softened in recent years. Kimmel's reported annual compensation is around $16 million, and internally some executives acknowledge that the show may not be profitable in traditional terms, yet it remains a net contributor to the network's revenue through the broader ecosystem around the program.

Reps for Disney, Nexstar and Sinclair did not respond to requests for comment. The unfolding dispute illustrates how content disputes at the national level intertwine with local-market economics and regulatory oversight, laying out a potential path to legal fights that could redefine the terms of carriage and compensation in local broadcasting for years to come.