Discovery's 12-year deal begins in '19 and includes TV and online rights to PGA Tour eventsGETTY IMAGES
Discovery has agreed to pay $2B for "long-term international TV rights to the PGA Tour, part of the media company's push to become a global force in live sports," according to Gerry Smith of BLOOMBERG NEWS. The 12-year deal, which begins next year, "includes TV and online rights" and the "development of a Netflix-like video service." The deal also "covers more than 140 tournaments a year, including about 40 PGA Tour events." Discovery is "focused on becoming a global TV sports giant." It has "acquired a trove of intellectual property, including the European rights to the Olympics" through '24 for $1.4B. Former NBA Senior VP/Global Media Distribution Alex Kaplan was "hired by the company last year," and will "oversee Discovery's business with the tour." Discovery President & CEO David Zaslav said, "The PGA Tour is the most compelling international sports IP in the world." Smith noted Discovery will air Tour events "on its regular TV channels and use them to attract more viewers to its online service, Eurosport Player, which has more than 1 million subscribers." The deal "could help the tour reach new fans around the world." Half of the top 50 golfers in the world are from "outside the U.S." (BLOOMBERG NEWS, 6/3). VARIETY's Stewart Clarke notes as with the Olympics, Discovery is "expected to sub-license the PGA golf rights in some territories." The deal "excludes the U.S." (VARIETY.com, 6/4). Golf reporter Robert Lusetich writes this is a "smart move" for both the PGA Tour and Discovery. The Tour "gets more than they'd get cutting deals in individual markets," while Discovery "gets content & control, like its Olympics deal." The BBC's Iain Carter writes it is "interesting to see where this leaves Sky from 2022 onwards."
FOREIGN FOCUS: The WALL STREET JOURNAL's Keach Hagey notes the deal "marks a continuation of Discovery's strategy of investing in sports rights outside of its home market of the U.S., where it has long been priced out of the top sports." As cord cutting has "pinched all media businesses in the U.S., Discovery has been among the most aggressive in diversifying into international markets where pay-TV is far less mature and still growing" (WALL STREET JOURNAL, 6/4).
