NBC’s agreement to continue as the AFL’s network partner through 2006 is virtually identical in terms to their existing deal except for one significant change: NBC opted to extend the deal by two years instead of four, as outlined in the original agreement.
Network officials said the reason for the shorter commitment, announced last Tuesday, is so NBC can wait for continued signs of growth from the AFL before agreeing to a longer-term deal. The AFL this year was averaging a 1.1 television rating as of last week, the same as last season, which was the first year of the NBC-AFL partnership.
“[A two-year agreement] was the minimum that was fair in terms of growing the league, so two years made more sense,” said NBC Sports President Ken Schanzer. “But the key is that we are extending the deal. It could have been zero years, but it isn’t.”
|
Baker |
Other terms of the deal, which carries no rights fees, did not change. The agreement includes a revenue-sharing agreement between the AFL and NBC that splits ad revenue after NBC is reimbursed for its productions costs. NBC also receives 5 percent of team sales over $12 million.
Schanzer declined to disclose revenue figures but said the AFL deal is profitable.
“You don’t want to be leaving when there are some good things happening,” he said. “In year one, there was a concern that the AFL wasn’t legitimate, and we dispelled those issues. Now, you don’t get the snickering about the league, and there is increasing respect for the product on the field. Our view was that it was much too early to give up on it. There are a lot of increasing vital signs.”
|
Schanzer |
Through May 17, the AFL’s average attendance had increased by 6.2 percent, to 12,103 per game, compared with last season. The league this year features teams in new markets Philadelphia, New Orleans, Columbus and Austin, Texas. It’s expected that the AFL will expand again next season, with a final determination to be made in June.
“The important thing is that we both anticipate a deal for a long time,” said AFL Commissioner David Baker. “It really is a more important announcement than two years ago. Now, they are coming back and our focus is on a long-term partnership.”