With their NFL rights agreement up in 2022, FOX continues to be in the “very, very early discussions” of negotiating a renewal according to Deadline.
Because of COVID-19, timing isn’t great for the NFL to lure multiple suitors, but with most of their rights contracts extending into 2022, there’s no rush in finding lucrative and mutually beneficial deals. In March, it was similarly reported that the NFL was beginning to discuss new licensing partnerships, but at the time, we were unsure of the impact COVID-19 was going to have on sports and the economy. We still don’t know how far the global pandemic will reach, but it’s likely more significant than the NFL anticipated three months ago.
Even with economic downfalls because of COVID-19, the NFL shouldn’t struggle to find platforms interested in spending big for the product. Boosting the regular season schedule to include a 17th game, along with two additional playoff contests, helps feed the desire from networks that can’t get enough NFL football.
NFL commissioner Roger Goodell has also been vocal about his willingness to attract platforms and offers from companies beyond traditional TV networks for their rights deals.
“I think this next negotiation is going to be fun, more complex,” Goodell told CNBC last summer regarding TV partnerships. “Probably will include additional players because our whole strategy is to have great reach and to be able to engage our fans. And you have to do that on different platforms.”
FOX, however, is reportedly willing to pay significantly more than what they currently do for NFL rights, which will likely be necessary. Following a 10% viewership decline in 2017, the last two seasons enjoyed 5% improvements each year. Ad revenue last season was said to have increased from around $4.2 billion to $4.4 billion.
As viewership and ad spending increased in recent seasons, similar jumps have been estimated for the cost of NFL rights fees. Even with COVID-19 concern for the 2020 season, the NFL isn’t going to accept a discount. Sunday afternoon packages are expected to cost around $2 billion, with Monday Night Football commanding closer to $3 billion. The most recent deal FOX signed with the NFL came in 2011, worth approximately $1.1 billion annually.