NFL signs new $110 Billion deal with Networks and Amazon

[Aviano90]

I understand the NFL is still a huge draw, but networks make money on ads and the value of ad time is based on ratings. If ratings are down you can bet the networks are not going to be able to charge more for TV time than they charged when ads are up. The networks may have gotten too far over their skis on this deal, but we will see. If ratings continue to drop I suspect some network execs will have some "splaining" to do.

Consider the notion that ratings for NFL games were down while the country was partially, or mostly, locked down because of the pandemic. People were stuck in their homes and yet they still did no turn on football games. Should the NFL be worried this will become a trend? Should the networks?

Yeah, I know the ratings dropped in 2016 but was under the impression they rebounded in 2017 but they really didn't. They are on a downward trend for sure. Here is a link to just the SB and I was shocked to see such a sharp decline this year for the exact reason you mentioned...with the lock downs there wasn't much to compete with the SB as there normally is. I would have thought the numbers would skyrocket just out of sheer boredom alone.

https://www.sportsmediawatch.com/super-bowl-ratings-historical-viewership-chart-cbs-nbc-fox-abc/

 

[HungryLion]

No, they shouldn’t be worried. Cause if they did turn on their TV it was more likely for the NFL than other programming making them more valuable with declining numbers meaning their dominance grew.

As far as advertising dollars it’s very bad news for any programming not associated with the NFL.

And during the pandemic the only segment that had an increase in viewership was Cable News networks which had incredible increases of 200-300% which totally reflects where Americans focus was.

Historical trends show that NFL ratings decline during presidential elections. It’s happened I think the last 4 or 5 election cycles.

easy to see how that would be magnified the last year given the pandemic, the etc.

 

[Creeper]

Yep

If they rebound to the 16 billion then add in the 4.7 billion that puts them close to 21 billion. I’d say that’s getting much closer to the 25 billion goal which doesn’t include the Sunday Ticket deal.

I’m sure in the next 10 years we’ll also see increased ticket prices , parking, merchandise , etc not to mention stadium sponsorship , fantasy football and potentially the next windfall of casinos and gambling interjected legally.

I can definitely see the league closing the gap closer in the next 10 years to the 25 billion goal.

I still don't understand the NFL's losses due to COVID. The claim is revenues dropped from $16 billion to $12 billion. They get about $1.7 billion total from ticket sales. So where did the rest of the loss come from? Merchandise sales? I am sure some comes from merch, but it can't be all of it.

In any case don't forget they will be renegotiating a new deal for NFL Sunday Ticket soon too. AT&T claims they ae losing money on it but the NFL will find one of more new partners willing to pay more than AT&T.

 

[HungryLion]

I still don't understand the NFL's losses due to COVID. The claim is revenues dropped from $16 billion to $12 billion. They get about $1.7 billion total from ticket sales. So where did the rest of the loss come from? Merchandise sales? I am sure some comes from merch, but it can't be all of it.

In any case don't forget they will be renegotiating a new deal for NFL Sunday Ticket soon too. AT&T claims they ae losing money on it but the NFL will find one of more new partners willing to pay more than AT&T.

I would imagine concessions, parking, etc. ticket sales are just one piece of the pie when it comes to revenue from people physically going to the games.


Think about how much money a 70,000 person stadium makes just on selling food and beer.

 

[Diehardblues]

I still don't understand the NFL's losses due to COVID. The claim is revenues dropped from $16 billion to $12 billion. They get about $1.7 billion total from ticket sales. So where did the rest of the loss come from? Merchandise sales? I am sure some comes from merch, but it can't be all of it.

In any case don't forget they will be renegotiating a new deal for NFL Sunday Ticket soon too. AT&T claims they ae losing money on it but the NFL will find one of more new partners willing to pay more than AT&T.

I’m not sure what the financial implication is from ticket sales but they dropped from 17 million to only 1 million tickets sold .

And there has to be collateral damage associated with loss of parking, concession and merchandise related revenue . Not to mention Stadium sponsorship .

 

[aikemirv]

I understand the NFL is still a huge draw, but networks make money on ads and the value of ad time is based on ratings. If ratings are down you can bet the networks are not going to be able to charge more for TV time than they charged when ads are up. The networks may have gotten too far over their skis on this deal, but we will see. If ratings continue to drop I suspect some network execs will have some "splaining" to do.

Consider the notion that ratings for NFL games were down while the country was partially, or mostly, locked down because of the pandemic. People were stuck in their homes and yet they still did no turn on football games. Should the NFL be worried this will become a trend? Should the networks?

As well as the fact that over 1 million people per week were not going to the games either - you would think that would impact ratings in a positive way.

 

[Qcard]

Interesting how the decline in viewership helped the leagues negotiations as they distanced themselves from other live sports and network programming increasing their value to the networks.

They also added additional games being broadcast with ESPN sharing double headers with ABC on Monday nights.

And with the league expected to add a 17th regular season game in addition to their added playoff games with a 7th team in each conference.

Looks like the league not only recovered from this little set back but has set a course on record revenue in the next decade.
Well done Roger Goodell!!

Like I said.....Cap Hell is a myth

 

[Vanilla2]

Further evidence that Dak's cap number will not stop this team from building around him.

only the joneses are in the way now

 

[Tussinman]

Interesting how the decline in viewership helped the leagues negotiations as they distanced themselves from other live sports and network programming increasing their value to the networks.

Viewership numbers are misleading since they don't always include streaming viewers. Technically the viewership on channels like fox and nbc are slightly down but if you have millions of viewers not getting reported (because there using the fox sports or nbc sports apps) then viewership technically isn't truly down

 

[BlueStar22]

Each teams gets in excess of 330M of tv money EVERY YEAR. So stop being pro ownership when players want to get paid. If anything, we should be anti-salary cap.

 

[DeaconMoss]

So fans will be forced to sign up for Amazon Prime to watch games. other than the "select" games NFLN will air. This is BS. It is not like ST for games outside of your market.

I guess Disney paid the price. Especially if ESPN Plus gets the ST package fro DTV. Then they can have people sign up for their pay per view site, then pay a huge price for ST.

This entire deal is a set back IMO.

Who doesnt have amazon prime?

 

[Rockport]

Well everyone was told that the salary cap was going to go up next several years because of the new TV deals. Some people just didn't get it.

 

[jazzcat22]

Who doesnt have amazon prime?

Apparently I am the only one.

I had a trial 2 different times. But recently been thinking of suspending Netflix, and going to AP. Maybe I will wait until football season.

 

[DeaconMoss]

Apparently I am the only one.

I had a trial 2 different times. But recently been thinking of suspending Netflix, and going to AP. Maybe I will wait until football season.

The amazon truck comes down my driveway more than I do

 

[Diehardblues]

Viewership numbers are misleading since they don't always include streaming viewers. Technically the viewership on channels like fox and nbc are slightly down but if you have millions of viewers not getting reported (because there using the fox sports or nbc sports apps) then viewership technically isn't truly down

I believe the overall viewership reflects streaming. Except for those tapping in illegally or without subscriptions.

 

[jazzcat22]

The amazon truck comes down my driveway more than I do

I rarely order from Amazon.

 

[Aviano90]

The amazon truck comes down my driveway more than I do

I am in the same boat. We'll get multiple deliveries a day. My recycle bin is a bunch of folded up Amazon boxes with a few cans/bottles.

 

[Fla Cowpoke]

After the pandemic resulted in a major financial hit for the NFL, the league announced new TV deals with ESPN/ABC, FOX, NBC and Amazon. The new contracts will run through the 2033 season, with the networks paying roughly a combined $110 billion, per the Sports Business Journal.

As part of the deal, Amazon’s streaming service will be the exclusive home of Thursday Night Football, marking the first time in history that the NFL signs a contract with a provider that will exclusively broadcast over-the-top. The deal takes effect for the 2022 campaign. The NFL Network will also air select Thursday matchups throughout the season.

ESPN’s Monday Night Football broadcasts will also be different, beginning with the 2023 season. There will be six Monday doubleheaders each season, with the early game on ESPN followed by the late matchup on ABC.

Amazon’s deal will begin in 2022, while ESPN/ABC, NBC, FOX and CBS’s new packages start in 2023.

The NFL’s current deals brought in a combined $5.9 billion per season. The new contracts will bring in roughly $10 billion a year, meaning we should see a big jump in the salary cap moving forward. This will provide NFL teams with some much-needed flexibility after the cap dropped by roughly 8 percent for next season.

Full story below..
https://www.msn.com/en-us/sports/nf...th-espn-abc-fox-nbc-andamp-amazon/ar-BB1eJC0J

@gjkoeppen guess you were wrong about the network deals. LMAO.

 

[CouchCoach]

So fans will be forced to sign up for Amazon Prime to watch games. other than the "select" games NFLN will air. This is BS. It is not like ST for games outside of your market.

I guess Disney paid the price. Especially if ESPN Plus gets the ST package fro DTV. Then they can have people sign up for their pay per view site, then pay a huge price for ST.

This entire deal is a set back IMO.

The home markets of both teams will be broadcast on local free TV.

 

[Diehardblues]

The home markets of both teams will be broadcast on local free TV.

I think it will be broadcast on NFL Network to home markets? Which isn’t necessarily considered free network.
I stand corrected.