New Records Set in NFL TV Rights Deals

The NFL reached new agreements for TV contracts with 3 of the big 4 networks (Fox, CBS and NBC) last week. They renewed their deal with ESPN (ABC) a couple of months ago. The new NFL deals will mean an increase of 63% starting in 2013. The 3 networks will be paying $3.1 billion per year to the NFL instead of the $1.9 billion they’ll pay this year and next. The games are worth it to the networks. In an age where TV viewing is dropping, the NFL games generate spectacular ratings and are often referred to by the networks as “DVR proof.”

The problem is that, downstream, consumers will pay more. Already, there is open talk by some pay TV providers of putting some sports networks on a separate tier, rather than leaving them a part of basic service. ESPN, in particular, is an expensive channel. In fact, it’s the most expensive cable channel of all. Moving the sports channels to another tier would make it easier for the providers to avoid costly service increase.