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Sport Management Television Network Contracts

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Ben Elliott

on 25 October 2012

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Transcript of Sport Management Television Network Contracts

Sport Management Television
Network Contracts By: Ben Elliott MLB, NHL, NFL, NBA

College- Conferences
Longhorn Network

League Networks

Technological Innovation

How does Management negotiate these million dollar deals? Overview ESPN - 700 million through 2021
Sunday Night Baseball, Baseball Tonight, Monday Night Baseball,
Wednesday Night Baseball

MLB Network

TBS - Saturday

Local - Braves on Fox Sports South MLB US Most Watched Sport

5 Billion in TV Rights through 2022

Contracts with

CBS - 1.08B -Sunday AFC, SB ('16, '19, '22)
FOX - 1.15B - Sunday AFC, NFC WC, NFC Champ SB ('17, '20, '23)
NBC - 1.05B - 19 Night games, WC Div., SB ('15, '18, '21)
ESPN - 1.9B - 17 MNF, Pro Bowl, Draft (International SB)
Total = 5.18B NFL ABC - 15 Regular Season Games / 9 Playoffs, NBA Finals (2016)

TNT - 52 Regular Season Games / All Star Weekend (2016)

ESPN - 75 Regular Season Games - 1 Conference Finals and majority of Playoffs
NBA TV (2016)

(USA Today / WR Hambrecht) NBA NCAA Tournament

CBS/Turner - TBS, TNT, Tru TV and the Device/Smartphone App

Regular Season

CBS, FSN, ESPN, NBC Sports, Local Providers College Basketball
-Conflict of Interest?

-2.1% of Austin Receive

-Internet Streaming

-UT Sports, some High School

-DirecTV, Charter, Dish, Comcast and Time Warner all have not reached negotiations

-AT & T Uverse and other small providers only carry
-300m over 20 years (15per/yr) Longhorn Network BIG 12
ABC/ESPN and FOX - 2.6 Billion with 200 Million per year (20m a team)

Negotiating a new, large market, deal

PAC 12
ESPN/FOX - 250 million/yr over 12 yrs at 21m a team (Dosh)

What will happen when BCS Playoff takes place Conference Negotiations
Broadcasters with a signal within 75 miles of site cannot broadcast a home game unless it is a sell out
Must sell out 72 hours before game
Can close off seating (Wikipedia)

Exclusive Rights

MLB FOX has exclusive 4-7 rights on Saturdays
ESPN has MLB exclusive rights after 8 P.M. on Sunday (Wikipedia)

Tier System
College Sports
1st Tier = Exclusive Rights
2nd Tier = Selection AFTER 1st Tier (Dosh,2012) Broadcast Rights Viewership Management and Contracts Must work to get TV deal that benefits organization, Fans, Conference, Networks, etc.

Negotiating deals affects viewership, cable providers, local broadcasters, fans and the exclusive rights of the organization or team

Conferences hire firms or negotiators to work with Networks to reach a deal Contract Management What should management consider when seeking a new broadcasting deal

Financial Gains

Competing Contracts

Technological Changes

Management Decision Making Concepts Topics to Explore 1- What is the Management role in a TV Network Contract?

2- What characteristics are highlighted in the decision making process?

3-Has Technology affected how providers and networks must grant viewers access? Questions Internet Streaming

Mobile / Tablet Streaming

Station Merging

How will Tech changes change access to sports and the negotiation process Technological Changes MLB
12,488,000 - Opening Day
25M Cards/Rangers WS Game 7
9,093,000 All Star Game
17,340,000 Heat vs. Mavs NBA Championship

73M Watched NFL on Thanksgiving
Steelers/Packers Super Bowl 111,041,000 NCAA Basketball
Big 10 avg. - 1,496,000
ACC avg. - 1,247,000
SEC avg. - 1,222,000
Uconn v. Butler Final - 20,005,000

NCAA Football
SEC avg. - 4,447,000
ACC avg. - 2,650,000
Big 12 avg. - 2,347,000
National Championship - LSU/Bama
LSU/Bama (Reg Season)
20,011,000 College Viewership Facts, Stats and Figures from:
Nielsen 2011 State of Media
WR Hembrecht Co. Sports Finance Group - The U.S. Sports Market & Franchise Value Report 2012
Wikipedia Source - Hambrecht Sports Finance Source - Nielsen 2011 State of Media Source - Nielsen 2011 State of Media Source - Nielsen 2011 State of Media Negotiated through individual teams

Local Television

Braves - Fox Sports South

Local Radio

Falcons - 790 The Zone FM / 94.1 FM Local Broadcasting Viewership determines ad revenue for networks

Competing Contracts

Technological availability for viewers


Bevilacqua Helvant Partners
Big East, PAC 12, Texas Rangers Networks receive revenue from ad sales

Virtual ad sales

Roughly 10.9Billion in sports ad sold Advertising Circumstances largest determination In Strategic Management Decision(Papadakis, Lioukas & Chambers, 1998)

Financial Interests Serious(Schmidt, 1958)

Factors that go into the decision making process
-Competing Contracts
-Other conference contracts Decision Making Source - Wikipedia
Full transcript