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 pleasant 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 banned the NFL in a decade Labor peace and TV offers. 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 US sports Races.
The NFL currently has one Data agreement with Sportradar and has stakes in the company since 2015. The terms of this deal are unknown, but the parties are currently in talks to extend the deal, people said.
Sportradar is a data and integrity company that collects sports data such as live play-by-play and operates the NFLs Next Generation Statistics with 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 route (Special Purpose Acquisition Company) to get into the public market.
So is the company extended his deal with the National Basketball Association last October. As part of its previous deal, it roughly paid the NBA $ 41 million per year. Based in Chicago Perform statistics is also one of the most notable 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
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.
But that can be expensive AmazonThe video ads will benefit from this. In a message to customers, Morgan Stanley Analysts have written that Amazon’s video ads make up the fastest growing portion of the company’s advertising revenue of roughly $ 20 billion. And now that it’s all football, rates could go up. The tech company is just tracking Google and Facebook to the digital advertising Market share.
“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.”
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. Though NFL viewers rejectedThe 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
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 firm MediaRadar estimates that Fox’s 2020 NFL games generated around $ 2 billion worth of national advertising, the majority of which came from the Sunday afternoon games.
“It’s the weakest of the packages,” said the longtime television manager Neal Pilson said by 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 believe that the loss of this content will not affect Fox’s existing retransmission agreements. Once these agreements are in place and Fox begins negotiating new distribution agreements with MVPDs and Fox station subsidiaries, the distribution 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.
With that, Fox is in the best position to capitalize on its popularity NFL betting While the league continues to explore the sports betting area 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 involve 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 together with our network partners. However, we assume that they will be involved in all of our activities in the future.” . “