After the media offers are closed, NFL sees greater than $ 100 million a 12 months in its knowledge rights
New York Giants wide receiver Sterling Shepard (87) caught a pass in the first half at MetLife Stadium in front of Pittsburgh Steelers strong security Terrell Edmunds (34) and linebacker Devin Bush (55).
Vincent Carchietta | USA TODAY Sports
About 30 minutes after the National Football League announced their new 11-year media rights deal this week, New England Patriots owner Robert Kraft praised commissioner Roger Goodell.
Kraft, the chairman of the league’s media committee, had many reasons to congratulate Goodell. He has just given more than $ 100 billion in media rights fees to NFL team owners. Kraft was so excited that he said working with Goodell on these negotiations was “one of the most enjoyable experiences of my professional career.”
Kraft added, “He regards his position as the steward of the league’s long-term best interest. Coupled with his unique strategic business acumen, we can achieve results like this. We are very happy to have him as ours.” Commissioner. “
Goodell has completed a decade of NFL labor peace and TV deals. Now he will oversee the league’s data rights that fuel sports betting. The NFL could seek over $ 100 million a year for its new data rights agreement, according to people familiar with the situation.
People said the NFL was trying to reconcile its new data rights deal with media contracts. The individuals spoke to CNBC on condition of anonymity for privacy reasons. One respondent said the NFL could charge as much as $ 250 million as its data rights continue to lead U.S. sports betting transports.
The NFL currently has a data agreement with Sports Radar and has a stake in the company since 2015. The terms of this agreement are unknown, but the parties are currently in talks to extend the agreement.
Sportradar is a data and integrity company that collects sports data such as live play-by-play and manages the NFL’s next generation stats using Amazon technology. The company has entered into contracts with sports game companies to provide data that will be used to set betting odds. Sportradar uses the SPAC (Special Purpose Acquisition Company) route to enter the public market.
The company also renewed its contract with the National Basketball Association last October. As part of his previous contract, she paid the NBA about $ 41 million a year. Chicago-based Stats Perform is also one of the best-known data companies.
The NFL did not provide an officer to discuss the matter and Sportradar declined to comment.
With regard to the broader agreement on media rights concluded on Thursday:
In this photo illustration, an Amazon Prime Video logo is displayed on a smartphone.
Mateusz Slodkowski | SOPA pictures | LightRocket via Getty Images
Amazon video ads could increase with NFL
Networks that had the NFL’s Thursday package aren’t going to lose the game entirely, as the two teams playing in the game have the competition on the air and Amazon has to pay the cost of production.
This can get expensive, but Amazon’s video ads will benefit from it. In a statement to customers, Morgan Stanley analysts wrote that Amazon’s video ads are the fastest growing part of the company’s advertising revenue of around $ 20 billion. And now that it’s all football, rates could go up. The tech company only tracks Google and Facebook to get market share for digital advertising.
“The Amazon deal is particularly interesting because it shows the importance of live sports content in the streaming wars,” Bill Wise, CEO of advertising software company Mediaocean, told CNBC via email. “It also shows Amazon’s continued foray into advertising and, with it, its unique ability to close the loop between screens and purchase.”
“For advertisers, the imperative is clear,” added Wise. “You need to think about omnichannel and consistently market your brands across screens to connect with fragmented audiences.”
Disney gains access to Super Bowl money
With Disney back on the rotation to broadcast Super Bowls, it will now be able to take advantage of the most watched U.S. sporting event and money that comes with it.
The 2021 Super Bowl commercials were around $ 5.5 million per ad. For the 2020 game, Fox raised more than $ 400 million from Super Bowl spots. Once it’s time for Disney in 2026, that rate could top $ 7 million per slot. Disney will also have a Super Bowl worth $ 2.7 billion a year in 2030 under its agreement.
The NFL’s Covid-19 Super Bowl in February drew 96.4 million viewers who saw the Tampa Bay Buccaneers defeat the Kansas City Chiefs 31-9. Although NFL attendance has declined, the game remains a draw for marketers.
“Linear television continues to be a major pillar of the branding budget and the Super Bowl offerings are reaching a reach like no other event in the world,” said Wise.
A FOX Sports TV cameraman during the Week 5 NFL game between the Atlanta Falcons and the Carolina Panthers at Mercedes-Benz Stadium on October 11, 2020 in Atlanta, Georgia.
David J. Griffin | Icon Sportswire | Getty Images
Fox was able to see effects after cutting TNF
Had Fox kept Thursday’s package, it could potentially have paid nearly $ 3 billion for NFL rights, counting the $ 660 million per year it currently spends on the TNF package. Advertising data company MediaRadar estimates that Fox’s 2020 NFL games generated around $ 2 billion worth of national advertising, largely from Sunday afternoon games.
“It’s the weakest of the packages,” longtime television manager Neal Pilson said of TNF. “No surprise that none of the networks wanted it, and it’s no surprise that Amazon stood up for it.”
However, unloading NFL rights comes at a cost to Fox. Deleting TNF could impact Fox stations ‘network of distributors and subsidiaries’ retransmission fees in 2024, which may have to pay less on Thursdays without the NFL.
Morgan Stanley said, “We assume that Fox’s existing retransmission agreements will not be affected by the loss of this content. Once these agreements are in place and Fox begins negotiating new distribution agreements with MVPDs and Fox station subsidiaries, the release of TNF cause costs. “
But one of the interesting parts of the new rights deal is that the network’s FoxBet gambling asset will become an official league sportsbook “when and when the NFL approves official sports betting operators for their officially licensed intellectual property,” according to one Fox Sports press release.
This puts Fox in the best position to take advantage of the popular NFL betting as the league continues to explore the sports betting arena and also help network partners. And once the NFL has organized its role in the sports game, Kraft’s praise for Goodell should only increase as more revenue is generated.
“We’re going to find ways we can appeal to fans through legalized sports betting,” said Goodell of media companies’ support for gambling. “But we have retained these rights and will see where these opportunities lie and how we work with our network partners. However, we assume that they will be involved in all of our activities in the future.” . “