[opendtv] News: NFL Grabs $11.5B in Rights Blitz
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 9 Nov 2004 09:31:24 -0400
http://www.broadcastingcable.com/article/CA479039.html?display=Breaking+News&referral=SUPP
NFL Grabs $11.5B in Rights Blitz
By Allison Romano -- Broadcasting & Cable, 11/8/2004 6:07:00 PM
Fox and CBS will ante up $8 billion to keep the National Football
League on their networks through 2011. The early renewal comes as a
something of a surprise.
The NFL unveiled another big re-signing on Monday, extending its
Sunday Ticket out-of-market deal package with DirecTV through 2010
with a new $3.5 billion deal.
The exclusive deal means cable operators are shut out of the
out-of-market package once again, missing out on a feature analysts
have said could help drive cable penetration and video on demand.
The league's current TV package - which also includes deals with
Disney's ABC and ESPN - does not expire until after the 2005-06
season and negotiations weren't expected in earnest until after the
current season.
While CBS and Fox moved early to sign new six-year extensions, the
NFL has not reupped ABC or ESPN yet. "As we've said, our intent is to
retain the Monday and Sunday night packages, and we will continue our
ongoing conversations towards that end," ABC/ESPN said in a statement.
As part of the new deal, CBS and Fox will carry two Super Bowls each.
"This happened quickly, ahead of where we thought it would happen,
but [we're] thrilled with the deal we made," said Viacom co-COO and
co-President Leslie Moonves, who said negotiations have being going
on for several months.
Moonves declined to say how much of the $8 billion rights CBS will
shoulder, although he did note that his network's American Football
Conference package is less expensive than Fox's National Football
Conference deal.
Under the current deal, CBS pays about $500 million a year, 10% less
than Fox's fees. As part of a new agreement, CBS and Fox will
eventually offer every game in high definition. The CBS deal also
includes "a provision to discuss flexible scheduling," CBS Sports
President Sean McManus said.
DirecTV's new deal also includes technological and programming
enhancements. DirecTV will offer a premium package with interactive
features and extra programming. It will also offer all games in HD
and by remote access on broadband and wireless devices.
The new deal includes two other interesting wrinkles. The NFL has the
option to create a late-season, eight-game package to sell to cable
or satellite programmers or distributors. The package would be carved
out of the other broadcasters' packages and DirecTV's games. It could
be used as a Thursday or Saturday night package for new buyers, say
Comcast, NBC Universal, ESPN or TNT.
Also, to sweeten its Monday Night package, which has suffered from
some weaker contests, the NFL retains rights to shift some strong
Sunday games to Monday nights, particularly late in the season.
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