NFL Announces Massive 11-Year $105 Billion Media Rights Deal
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It came out Thursday afternoon that the long-rumored and hinted at NFL media-rights renewal deal was inked and completed. However, while many had rumored that the numbers would be astronomical, and like nothing we have seen before, the deal still surpassed expectations.
The NFL deal will secure rights through the 2033 season and includes all programming such as Sunday afternoon games, Sunday Night Football, Monday Night Football, and Thursday Night Football. This will go into effect in 2023, and the total cost of NFL media rights for 2023-2033 will be $105 billion dollars.
The Deals
The best way to breakdown this deal is by time slot. The numbers were broken down courtesy of Sportico in their article regarding the details given out by the NFL.
Sunday afternoon
Previous Deal: Fox – $1.13B / year
Previous Deal: CBS – $1.03B / year
New Deal: Fox – $2.03B / year
New Deal: CBS – $1.85B / year
The first slot that will be carrying the majority of NFL games is the Sunday afternoon slots. This slot saw almost a 100% increase in cost as Fox will be paying over $2 billion a year to carry NFL games, and CBS reached $1.85 billion. This increase was astronomical and goes with the theme of doubling the price of carrying NFL games for the next several years.
There does not seem to be any hinted change in terms of coverage, and the viewer most likely will not notice a difference in their Sunday afternoon football. Fox and CBS will continue to split games and prioritize the local markets.
Sunday Night
Previous Deal: NBC – $950M / year
New Deal: NBC – $1.71B / year
While NBC will be maintaining Sunday Night Football, they will be doing so for over $1.7 billion a year. This is the second most-watched primetime spot next to Monday Night Football and only includes a single game a week, yet NBC is shelling out near $2 billion a year to keep hold of this game. I think that this deal puts into perspective how important live sports have become to TV stations.
Monday Night
Previous Deal: Disney – $1.9B / year
New Deal: Disney – $2.55B / year
Disney seemingly got the lowest increase in yearly dues; however, they were already paying substantially more than other slots were for Monday Night Football. Interestingly enough, this deal also includes awarding Disney/ESPN with Super Bowl coverage in 2026 and 2030. These games will be on Disney’s owned ABC. The last time ABC hosted a Super Bowl was 2006. So, it will have been 20-years since the last time the network got to host the Big Game when they do so in 2026.
Thursday Night
Previous Deal: Fox – $660M / year
New Deal: Amazon – $1.32B / year
The largest percentage change in yearly dues is coming with Amazon’s acquisition of the Thursday Night Football media rights, doubling what Fox paid previously and reaching over $1.3 billion. This is a huge deal for the NFL, and it will make Amazon Prime the go-to place to watch Thursday Night games. It is unclear if Amazon is looking to partner with a TV station or they will be showing the game exclusively on Prime, Twitch, and other streaming services.
What About Sunday Ticket?
There has been no report regarding Direct TV and the NFL Sunday Ticket deal. However, there are a small number of rumors floating around that ESPN+ has gained the rights and Direct TV has lost them. This is not confirmed nor extremely reputable. However, the Sunday Ticket deal will most likely also be a ridiculously high price for whoever wants to be awarded the package. For now, we are waiting and seeing what develops here.
Sports Betting and TV Deal
One thing to note here is that this TV Deal very may well have been influenced by the rise in sports betting. Sports betting is flooding the country as state after state legalizes single-game sports wagering.
The reason that sports betting is so beneficial to TV deals is that it keeps viewers engaged in an otherwise boring game. When you bet an over/under or the spread as a bettor, you are going to watch the game all the way through, even despite a borning or blow-out game. This is because the game still has real implications for you as a bettor.
This TV deal & the NFL have sports betting to thank for a portion of this rate increase.
