NFL owners yesterday formally approved nine-year extensions of their TV agreements with CBS, Fox and NBC through '22. The collective increase for the three networks is 7% per year throughout the deal, sources said. Fox will pay an average annual fee of $1.1B, while CBS pays $1.0B and NBC $950M. The vote guarantees that the NFL will remain on broadcast TV well into the next decade. The deal includes many components of TV Everywhere, which allows fans to watch games on most devices, including tablets (but excluding mobile phones) starting in '14. The deal also allows for what the NFL is calling "flexible scheduling" for its Sunday afternoon broadcaster starting in ’14 as well -- CBS will broadcast some games from the NFC and Fox will broadcast some games from the AFC. Starting next year, NBC gets the Thanksgiving night game that had been on NFL Network, while NFL Network will expand its package of Thursday night games. It is not known how many games will be added to that package. NBC exchanged one of its wild card playoff games for a divisional playoff game and it is likely that ESPN will wind up with that wild card game. In addition, NBC acquired Spanish language rights so that games could be shown on Telemundo. Among the deal’s highlights is the rotation of future Super Bowls. CBS, Fox and NBC will each televise three Super Bowls during the term of the agreements, continuing their current rotation (Kaplan & Ourand, SportsBusiness Journal).
* NBC will carry Super Bowl XLIX in Glendale in ’15, Super Bowl LII in ’18 and Super Bowl LV in ’21.
* CBS will broadcast Super Bowl L in ’16, Super Bowl LIII in ’19 and Super Bowl LVI in ’22.
* Fox will televise Super Bowl LI in ’17, Super Bowl LIV in ’20 and Super Bowl LVII in ’23.
PRICE INCREASE: USA TODAY’s Michael Hiestand writes the new deals are “the latest whopping price hikes for NFL games, which this fall TV season accounted for 23 of the 25 highest-rated shows.” CBS, Fox and NBC, now “collectively paying the NFL about $1.93 billion annually, will pay a total of about $3.1 billion -- a 60% jump.” CBS Sports Chair Sean McManus said that the network “hasn’t finalized streaming plans.” But he added, “We have to respect regionalization of games” (USA TODAY, 12/15). The NFL said that it “has yet to be determined if the broadcast carriers will be able to stream their games live” (MULTICHANNEL.com, 12/14). In L.A., Joe Flint notes the three networks will “pay a total of nearly” $28B in fees over nine years, which breaks down “to an average of $3.1 billion a year.” Keeping the “bulk of regular season and post-season football, including the Super Bowl, on broadcast TV for almost a decade will also buy the NFL some goodwill with fans and lawmakers who fret about major sports events migrating to pay-television.” Fox “pays the biggest bill” for the NFL, with the amount expected to “jump to an average of $1.1 billion per season under the new arrangement.” CBS “will pay an average of a little more than $1 billion for rights” to the AFC, and NBC will pay “an average of about $950 million per season” (L.A. TIMES, 12/15). Fox Sports Media Group Chair David Hill discussed this network’s extension and said, “It’s a strong increase, but you’re not talking about normal things. The NFL transcends everything, as it has soared to astronomical heights” (N.Y. TIMES, 12/15). Listed below is a breakdown of the years and average annual value of the current NFL rights deals with Fox, CBS and NBC, compared to the deals announced yesterday (THE DAILY).
| NETWORK | CURRENT DEAL
(AVG. ANNUAL VALUE) | NEW DEAL
(AVG. ANNUAL VALUE) |
| Fox | 8 years ($720.3M) | 9 years ($1.1B) |
| CBS | 8 years ($619.8M) | 9 years ($1.0B) |
| NBC | 8 years ($603.0M) | 9 years ($950.0M) |
| | | |
DEALS PROVIDE SECURITY: CBS President & CEO Les Moonves said, “The deal continues CBS’ ability to be profitable with the NFL throughout the coming decade and beyond.” Wells Fargo Securities Managing Dir Marci Ryvicker indicated that there are “positives for the networks, including the length of the agreements.” Ryvicker: “Getting the extension done early improves the networks’ position as it negotiates for retransmission and reverse compensation fees from pay-TV providers and affiliate groups. ... We expect that any increase in rights fees will be paid via incremental retransmission consent and reverse compensation revenues” (
VARIETY.com, 12/14). In L.A., Tom Hoffarth notes the nine-year terms are “the longest for NFL TV deals with over-the-air broadcast partners.” CBS, Fox and ABC had eight-year deals from ‘98-’05. He adds the new deals secure the league “with plenty of more comfort and financial joy now that their collective-bargaining agreement has been settled.” (
L.A. DAILY NEWS, 12/15). NFL Commissioner Roger Goodell said when announcing the deals, "It will continue to allow us to grow our audience, and I think it's a tribute to the players and De Smith for extending our labor agreement for ten years. I think that kind of stability gave us the ability to get these contract extensions." When asked whether the Thursday night package was exclusive to NFL Network, he said, “Those are decisions that will be made by the Broadcast Committee going forward. No final decisions on that today. We discussed it today. The committee has the authorization to do that” (
NFL Network, 12/14).
WIN-WIN FOR ALL: Patriots Owner Robert Kraft, who chairs the NFL’s broadcast committee, said, “When we made our CBA deal with the players we promised if they worked with us, they would be the big beneficiary -- and they’re getting 55 percent of the TV money.” In N.Y., Richard Sandomir writes the NFL for each network represents “nearly irreplaceable programming -- especially for Comcast-owned NBC.” NBC “swapped one of its wild-card playoff games, which the league will try to sell to ESPN for as much as $100 million each.” NBC also will “have three Super Bowls, instead of the two in the current eight-year contract.” A recent meeting between Kraft and NBC Universal President & CEO Steve Burke “began the process of negotiating the enhancements NBC needed to justify a far higher payment.” Burke said Kraft told him, "'Think of ways to add value to the existing package.' So we did it until we got to a place where we were basically at break-even.” The league told NBC that it “could get more money for ‘Sunday Night Football’ from cable networks.” Burke: “That was a little bit scary.” Sandomir notes a group of Turner execs “attended a New England game last month.” Meanwhile, there is speculation the league might sell a packet of eight early-season Thursday night games, but Kraft said selling a new octet of games “is not on our agenda right now” (N.Y. TIMES, 12/15). BROADCASTING & CABLE’s Tim Baysinger noted “most of the changes in the new deal come with NBC,” as the network receives “a total of 19 games per year, 17 Sundays and 2 Thursdays.” NBC Sports Network also "will air a Sunday-morning NFL pregame show" beginning in '14 (BROADCASTINGCABLE.com, 12/14).
THUMBS UP: On Long Island, Neil Best writes the NFL “reaffirmed its status as the crown jewel of sports television” (NEWSDAY, 12/15). The WALL STREET JOURNAL’s Futterman, Schechner & Vranica write the deals confirm pro football as “the driving force in an industry facing fundamental change.” Including deals with ESPN and DirecTV, the NFL “will collect about $6 billion a year in total TV revenue beginning in 2014, a figure that will likely increase the following year after the DirecTV deal expires” (WALL STREET JOURNAL, 12/15). However, in N.Y., Claire Atkinson writes it “may be football fans that end up footing the bill.” Davenport media analyst Michael Morris said, “In general, rising sports costs are a big pressure on the networks. They’re being passed on to distributors.” A source said, “There is not a cable, satellite or telecom who will let the margins slide because of an NFL deal.” Atkinson notes a “variety of cable and satellite operators declined to comment on NFL’s new deal” (N.Y. POST, 12/15).
