Monday, November 15, 2004

On the NFL TV Deal: Last week the NFL announced that it had renewed its contracts with CBS and FOX for another six seasons, until 2011. This announcement came as a bit of a surprise, because there were no open negotiations and bidding wars that we have come to expect for television rights deals. Fox will keep the NFC and CBS will remain the network of the AFC, for a reported $8 billion.



The big news coming out of this deal was the implementation of a flexible schedule for the final seven weeks of the season. This would allow the league to move key games to prime time on Sundays and Mondays, and in some cases on Thursdays or Saturdays, to maximize ratings. This should mean that the best games of the week will be shown to a national audience, preventing such crappers as Cowboys-Seahawks and Patriots-Dolphins taking up valuable TV time while only a part of the country gets the game of the week.



This will have the added advantage of muffling some of the criticism directed at the DirectTV deal (which was also renewed). If the best games are going to national audiences or predominantly national audiences, then many fans will be happy. I hope like many that one day all fans will be able to get all games, but this is a step in the right direction. Mainly, the people with a beef will be the displaced die-hard fans of the 1-8 teams.



But what does this mean for ESPN and ABC? These two networks were not part of this latest extension and still have to work out their deals. The NFL understandably will want an increase of the rights fee paid last time by the two networks, which are both owned by Disney. But will they pay it? ABC has faced declining ratings on the NFL (albeit due to the bad match-ups that often pop up) and ESPN overpaid by a large amount last time to keep the NFL. Will these networks pony up the dough the league wants?



If not, who will step in? I would not be surprised to see Fox make a run, since Rupert Murdoch apparently made an offer to the NFL to have Fox and its affiliated networks televise all of the NFL games. It could move some games to Fox Sports Net and keep some on the flagship network. You could also possibly see NBC. NBC got out of the NFL game in 1994 because of increasing costs and a prime-time schedule busting with hits. The network may change its tune now. Not only would it be getting a very attractive primetime package of mostly all great games, its primetime schedule is lagging after many years of greatness. Adding the NFL in 2006 could provide a much needed boost. Could the NFL also choose to keep some games for its NFL Network?



The Sports Business News also has an interesting article on the effect this NFL deal will have on the television rights for NASCAR.



Update: The Sports Business News also points out that this flexible schedule is not good for many fans, especially those that travel great distances to attend games. It is another example of the networks' tail wagging the NFL's dog. But for $8 billion, what do you expect?

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