NFL to renew broadcast deals, expected to generate extra 60pc annually in TV rights fee – NFL News
The National Football League (NFL) is set to earn up to $24 billion from broadcasters in TV rights fee as result of renewal of contracts with all broadcasters expected to be finalized in a month time.
The NFL office is reported to be close to renewing its deals with broadcasters which will give an about 60 per cent increase in TV rights fee.
Each broadcaster is expected to pay an average $1 billion to have rights to broadcast NFL games. The NFL is projected to fetch $24 billion to be paid by Fox, NBC, CBS and other over the span of eight years.
The Sports Business Journal (SBJ) has reported that the deals which are expected to be finalised later this month will run through 2021. Current deals are expiring in 2013.
After the deals are finalised with all broadcasters, the SBJ reported, that the NFL starting from 2014 will be earning $7 billion per year. The NFL revenues from these deals are expected to go up 60 per cent.
Further reports said that the deals will be renewed across-the-board. The rise in the fee is expected to be in line with the ESPN's contract, which had brought in 63 per cent rise in the fee. The ESPN deal was signed in September
The NFL earning figure is seen more than what had been projected by a number of analysts. The financial rating agency Moody's Investor Services has projected in their analysis on NFL media income that the league office should be
able to generate $8 billion annually over the next two rounds of renewal. The NFL is expected to generate average $7 billion under its forthcoming first round of renewals, well before Moody’s projection.
The new deals terms with all broadcasters are expected coming similar to those the NFL has reached with the ESPN. All deals will run through for consecutive eight years, until 2021.
However the broadcasters are being seen benefiting more from these deals in term of getting more inventory. They for example will be able to show matches on tablets for the first time as part of the US television industry's policy
and initiative of 'TV Everywhere.' This allows fans to watch TV where ever they are, on tablets and mobile phones.
Broadcasters are also expected to push for rights for streaming games on mobile phones. However, an agreement is said to have not been reached between them and NFL office yet. The NFL had sold the rights to wireless game streaming
to the US telecoms company Verizon exclusively last year.