You didn’t think the NFL was going to operate on a discount, did you? Just days after it was reported the NFL planned to double ESPN’s rights fees, Michael McCarthy of Front Office Sports writes it might be NBC who sees the largest increase.
Of the NFL’s current TV deals which are nearing expiration, NBC pays less than ESPN, CBS or FOX, even though they get the strongest game package with Sunday Night Football. Signed in 2011, the current agreement with the NFL costs NBC $950 million annually, less than half of the $1.9 billion ESPN pays for Monday Night Football. It’s also less than the $1.1 billion FOX pays, and the $1 billion rights fee CBS shells out each year for their Sunday afternoon game packages.
Despite NBC paying close to $1 billion per year in rights fees, their Sunday Night Football package looks like a bargain when compared to other network partnerships with the NFL. As the NFL hopes to lock their new rights deals in by March 17, the start of the new league year, they’re asking broadcast partners to pay between 50-100 percent more than their current deals. Expect NBC to see the higher end of those increases.
While NBC has been paying the least, they’ve been receiving the best, thanks in part to being the only league partner with flexible scheduling. It allows NBC to swap their matchup for a more attractive one from the FOX and CBS Sunday game schedule during Weeks 5-17, despite the other networks paying more in rights fees.
NBC gets more, but they also hold up their end of the bargain to the NFL. Sunday Night Football boasts a premium broadcasting crew and has been ranked the No. 1 TV show in prime time for 10 straight years.
NBC similarly recognizes how valuable its NFL property is and won’t be willing to relinquish Sunday Night Football. If the NFL wants their TV partners to pay between 50-100% more in rights fees, the network that receives the most and pays the least is going to find themselves at the top of the increase.