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Broadcasting

NFL Telecast Contracts: A Multi-Billion Dollar Deal, No Change in Game Delivery

Strategic Insights

— 1 min read

As the new NFL telecast contracts are signed, fans can expect to see a familiar game delivery format, despite the staggering sums changing hands. The NFL's tried-and-true formula of 17 Sundays, Mondays, and Thursdays, with regional schedules and playoffs, remains unchanged. However, the networks will be shelling out billions, and viewers will be footing the bill through increased subscription fees, more expensive "Sunday Ticket" packages, and higher ad rates.

Key Takeaways:

  • The NFL has signed an 8-year, $4.8 billion deal with Disney for Sunday night games on ESPN.
  • Cable systems will raise their per-subscriber monthly fee, which will be passed on to customers, making "Sunday Ticket" packages more expensive.
  • CBS will charge affiliates like WDBJ more for the NFL's return, and ad rates will rise both locally and nationally.
  • The number of commercials in a regular-season telecast will increase from 30 to 31.5 minutes, with another 90 seconds added to the regular season's total commercial time.
  • Fox still dominates the Roanoke-Lynchburg market with Washington, Dallas, and Carolina games, while WJPR/WFXR will continue to carry the Redskins, Dallas, and Carolina games.
  • Fox will retain the NFC rights for $4.4 billion and is trying to hold onto John Madden, who may sign with ABC.
  • The new contract may help corporate productivity on Tuesdays, as "Monday Night Football" moves up one hour on ABC.

Statistics:

  • The NFL's salary cap will exceed $50 million in 1998, up from $41.45 million in the 1997 season.
  • Each NFL team received $41 million in network TV money in the previous season and will receive $73.3 million on average annually thereafter.
  • CBS will pay the NFL $4 billion from 1998-2005, making it a significant player in the college football telecast market.
  • The Big East's current deal with CBS is $56.1 million, and its deal with the SEC is $84 million, dwarfed by the NFL deal.
  • The four "Super Alliance" bowl games are already signed by ABC, as well as the Florida Citrus Bowl and the SEC and Big 12 championship games.
  • The NFL has paid networks a total of $17.6 million in rights fees.

Sources:

  • AP
  • "Roanoke Times & World News" (no exact date or publication date provided)
  • WDBJ-TV, CBS affiliate in Roanoke, VA

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