NFL signs new TV deals with Fox and CBS
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Updated as of noon, May 19. As expected, the NFL has settled its feud with Comcast and struck renewal deals with Fox and CBS.
The National Football League is wrapping up two-year extensions on its current TV deals with CBS and Fox. An announcement could come as early as this afternoon, people close to the talks say.
The price tag will go up, but not through the roof. Currently, Fox pays about $712 million annually for its NFC Conference package and CBS shells out about $620 million for the American Football Conference. The increases this time around, according to Sports Business Journal, which has been following the story closely, will be in the 3% to 5% range. That is in line with the last deal, and Company Town confirmed those figures. For non-sports fans, Fox pays more for its deal primarily because the NFC has more big-city teams than does the AFC.
Although their current deals run through the 2011 season, both the league and the networks have incentives to ink new contracts rather than wait. While there are not too many bright signs in the economy, if it turns around in the next year or so, the league would have leverage over the broadcast networks to jack the fees higher. Better for the networks to renew now and not risk that.
Conversely, the NFL is trying to resolve its bitter dispute with Comcast over carriage of the league’s cable network. Peace is near, and how this is being settled requires the broadcast networks to let the league throw Comcast and other cable operators a bone. Specifically, the league’s Red Zone channel, which is currently seen only on satellite broadcaster DirecTV, will be made available to cable operators. The league hopes that by doing this it will boost carriage for its cable channel, which is not widely distributed yet. The NFL could also be facing labor unrest after the 2010 season and wants to have its TV revenue locked in for the foreseeable future.
— Joe Flint
