Tuesday, April 13, 2021

NFL Signs Media Deal Worth Over $ 100 Billion

The NFL signed new media rights agreements with CBS, NBC, Fox, ESPN and Amazon, which equaled nearly $ 110 billion over 11 years, doubling the value of its previous contracts.

The contract, which will take effect in 2023 and last through the 2033 season, will cement the NFL’s status as the nation’s most lucrative sports league. They will also set the stage for making league owners good Plan to expand the regular season Incorporating the 17th game and charging more for broadcast rights.

The league’s growing revenue will help with far-reaching plans for the next decade, a period when team owners hope to expand the NFL’s already strong calendar, make deep inroads into overseas markets and football through streaming services Increase the audience. The NFL is poised to make up for about $ 4 billion in losses incurred by not having maximum capacity attendance in games in 2020.

Commissioner Roger Goodall said in a statement, “With our recently concluded Labor Agreement with the NFLPA, these distribution agreements bring an unprecedented era of stability to the league and will allow us to advance and improve our game.”

According to four people familiar with the agreements that requested the NFL because they were not authorized by the NFL to speak publicly about the deals, CBS, Fox and NBC each hold $ slots for holdings on their slots. Will pay more than 2 billion, with NBC paying slightly less. CBS and Fox. ESPN will pay $ 2.7 billion annually to continue Monday Night Football, but will also be added to the rotation to broadcast the Super Bowl to begin in 2026. The agreement with ESPN begins a year earlier in 2022, as its current contract becomes one. Years earlier than others.

Each of the broadcasters’ deals includes agreements for their respective streaming platforms, while Amazon will air the Thursday night games on its Amazon Prime Video service.

“In the last five years, we started migration for streaming. Our fans want this option, and the league understands that streaming is the future.

The NFL has not yet announced who will be broadcasting Sunday Ticket, a subscription service that lets fans watch weekend games not broadcast nationally. DirecTV has rights to that service until 2022.

The jump in revenue will not initially change the fortunes of the players, who are sealed in a 10-year collective bargaining agreement in March 2020. Under the terms of that labor deal, players will see a bump in their share in the NFL’s revenue. By 48.5 percent of 47, while team owners negotiated the option of adding the 17th game for the regular season in 2021, some players had protested for a long time.

This would be the first major expansion of the NFL season in more than four decades, when teams began playing 16 games from 14 to 1978.

The player’s salary will increase marginally over the next few years as most media agreements graduate, with the first year of a new deal being only marginally higher than the final year of a termination deal.

NFL team owners are expected to formally approve the additional game at their annual meeting in late March, when there is likely to be little dissatisfaction. Once the additional game is approved, players and team owners will work calendar logistics, which may include that one of the four presensor game teams is required to play and for each of the 32 team schedules Add a second bye week.

Several other competitive issues also have to be resolved, as extending the regular game by one game may also affect other fixtures in the NFL calendar that were adjusted last season due to the coronovirus epidemic. The owners voted to make the extra game an interconnection matchup on 16 December so as not to affect the playoff tiebreaker. But there is still time for unresolved off-season workouts, The Start training camps dates And regular season start and end dates.

The league was able to complete its 2020 season on schedule as it worked with the NFL Players Association to create a raft of Kovid-19 protocols and other regulations.

The union’s executive director, DeMorris Smith, has said that “nothing we have learned this year will be taken without a decision.” “March and April 2018 of 2021 and March and April of 2019 are not going to look like this,” he said.

Labor deal included A. Extended playoff format, With an additional team added to each conference, more limited training camps and relaxation of rules governing marijuana use.

Many players initially spoke of the idea of ​​a longer regular season, which they said increased their chances of injury. But team owners were eager to extend the regular season to entice the league’s national television partners to pay more for broadcast rights.

All of the NFL’s national media agreements – which have an average annual value of approximately $ 8 billion in total – were set to expire in the next two years. ESPN’s deal to show the Monday night game was scheduled to end after the 2021 season, while agreements with CBS, Fox, NBC, DerekTV, Verizon and Amazon were in place during the 2022 season.

Before the coronavirus epidemic, many television and digital media executives said NFL had the upper hand in negotiating The large increase in rights fees was because the league had a long-term labor deal and because its programming was lower than hit ratings compared to other broadcasts of US-based games during the epidemic. Ratings fell for regular season football Only 7 percentCompared to, 20 percent for prime time broadcast television and a big drop for other marquee sporting events such as the Masters, NBA Finals and Stanley Cup Finals.

NFL games are also the most watched programming on television by far, making 76 of the 100 most watched television programs in 2020.

Other leagues have also signed new agreements during the pandemic, with larger ones. Southeast Conference increased nearly six-fold While in money for his marquee college football game NHL will assure to double its media payments When he finishes selling his rights.

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