Members of the Deal Makers panel at the '14 NeuLion Sports Media & Technology Conference agreed that broadcast rights deals will change dramatically. Just how, when and from whom those changes occur was a source of debate between panelists. The following are some quick topics from the session:
ON THE BALANCE BETWEEN MONEY AND OTHER FACTORS WHEN NEGOTIATING DEALS
* Desser Sports Media President Ed Desser : “Of course, team owners want as much money as they can get. But there are other factors: What’s the impact on ticket sales? What’s the impact on sponsorship? How much risk is involved and to what extent will I be shortchanging myself in the long term by taking that last dollar?”
* BHV Media co-Founder & CEO Chris Bevilacqua said, “Let’s talk about the Dodgers. They have all of their money guaranteed for the next 25 years… but they got killed this year. How much of a brand hit did they take over the past year? And it’s still going on. They have the money guaranteed, but it obviously came at a cost.”
ON THE NFL
* Sports Media Advisors Founder & CEO Doug Perlman said TV Everywhere "has become part of virtually every sports deal with the notable exception of the NFL, who does not allow their partners to stream to mobile devices.”
* Bevilacqua: “The NFL just has leverage. They have real currency… With that kind of leverage to sell rights by device rather than by platform. They’ve pretty much gone against the grain of where everybody else has bought into TV Everywhere.”
ON WHETHER GOOGLE, YAHOO, HULU AND OTHERS WILL PURSUE SPORTS RIGHTS
* Desser said, “They’re the guys who have the capacity to fundamentally change this industry. It hasn’t been a high enough priority to come along and do it yet. We’re closer than ever to that day coming.”
*Perlman: “I would say in this next cycle of deals, you’ll see those entrants into the marketplace.”
* Bevilacqua: “It seems that the rights to major properties are locked up for the next decade. It doesn’t feel like any of those players, it’s not worth it to them to dabble in sports because it’s go big or go home…It’s not something that you would do, I don’t think, on a local basis.”
* Desser: “I think it’s sooner… I think it’s entirely likely that the first place that we’re going to see some of these things happen is local because you don’t want to be the first mover on such a large scale that you’re making it up as you go along, and local deals might be the perfect place to try things out and see what works.”
