NFL, DirecTV Extend NFL Sunday Ticket In Eight-Year Deal

The NFL and DirecTV yesterday announced a multiyear agreement to extend and expand exclusive rights to carry NFL Sunday Ticket and its package of every Sunday afternoon, out-of-market game. The new agreement also expands DirecTV's rights to stream NFL Sunday Ticket live on mobile devices and via broadband, known as NFL Sunday Ticket.TV (DirecTV). The WALL STREET JOURNAL's Ramachandran & Clark reported the deal is for eight years, "clearing the way" for AT&T's $49B purchase of DirecTV. A source said that DirecTV "agreed to pay an average price" of $1.5B a year. That is 50% "higher than the satellite-TV provider's previous 'Sunday Ticket' deal, which called for average payments" of $1B a year over four years. A DirecTV spokesperson said that the new deal "includes a 6% increase per year." AT&T had previously "stipulated in its merger agreement with DirecTV that it could walk away from the deal if the satellite provider isn't able to renew the package on previously discussed terms" (WSJ.com, 10/1). MULTICHANNEL NEWS' Mike Reynolds reported DirecTV will also "continue to broadcast its Red Zone Channel and the new DirecTV Fantasy Channel, which it kicked off this year." As part of the "expensive extension, DirecTV subscribers also gain TV Everywhere access to the NFL Network" (MULTICHANNEL.com, 10/1). SportsBusiness Journal in August first reported the two sides were close to an extension.

BUSINESS AS USUAL: In DC, Mark Maske writes the "increase in the rights fee could signal that the NFL is not suffering major economic harm at this point while dealing with its recent controversies related to the off-field legal troubles" (WASHINGTON POST, 10/2). CSN Bay Area's Jim Kozimor said, "With the scandals and the Redskins' racism and the brain injuries, that was going to be the end of football." CSN Bay Area's Ray Ratto asked after the "nuclear summer" the NFL experienced, "how many sponsors actually left?" ("Yahoo Sports Talk Live," CSN Bay Area, 10/1). ESPN’s Adam Schefter noted the 50% rights-fee increase is "exactly why Roger Goodell has not lost support among so many owners." Schefter: "When you see revenues growing at this clip, that is the biggest thing that he has going in his support through ownership ranks. Owners can't quibble with Roger Goodell's results there” (“SportsCenter,” ESPN, 10/2).