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CBS Hopes To Extend NFL Deal

Jason Barrett

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When CBS began carrying “Thursday Night Football” in September, the network did not expect one blowout after another during the first four weeks. It had promoted its new prime-time package throughout the CBS empire and moved a durable ratings hit, “The Big Bang Theory,” to Monday nights. For its efforts and a $275 million rights fee, CBS was getting this?

The Baltimore Ravens beat the Pittsburgh Steelers by 20 points, three days after graphic video surfaced showing Ravens running back Ray Rice punching his then-fiancée.

The Atlanta Falcons trounced the Tampa Bay Buccaneers by 42. The Giants overwhelmed the Washington Redskins by 31. And the Green Bay Packers wrecked the Minnesota Vikings by 32.

“No question, we were pulling our hair out,” said Leslie Moonves, the president and chief executive of the CBS Corporation. “We’d spent a lot of money promoting these games, and you’re watching one game after another tank.”

More competitive contests might have increased viewership of those games, but the next four (three on Thursday and one on Saturday) featured only one lopsided contest and did not produce bigger audiences. Indeed, the first four games and the last four games averaged just over 16 million viewers on CBS and NFL Network, which simulcast them.

For CBS, the games had done their job by helping it promote new programs, build up its Monday programming and show fewer repeats.

“As a network, we’re much stronger with ‘Thursday Night Football’ than without it,” said Sean McManus, the chairman of CBS Sports.

An N.F.L. game has value beyond a half-hour sitcom, even one as valuable as “Big Bang,” said Brad Adgate, senior vice president for research at Horizon Media.

“First, the game is live, for three hours, and ‘Big Bang’ is one of the most heavily time-shifted shows on television, so there’s a concern about whether its ads are being seen,” he said.

According to Advertising Week, advertisers paid $483,333 for 30-second ads during Thursday night games last season. CBS executives said that price had risen by below 10 percent this season.

Kantar Media calculated that CBS had sold $254.8 million in advertising that capitalized on the desire of film studios, carmakers and retailers to prime buyers for weekend purchases.

“You wouldn’t want to sell against it,” said Jo Ann Ross, the president of network sales for the CBS Television Network, referring to the Thursday night games.

CBS, which will carry Super Bowl 50 in February, is the only network that owns two N.F.L. packages, an enviable position despite the league’s woes from concussion litigation, the mishandling of domestic violence cases and the deflated-football controversy that could keep New England Patriots quarterback Tom Brady off the field for the first four games of the season.

From their inception in 2006, Thursday night games were the league’s lesser television offspring. Players and coaches were not thrilled by the short week of preparation. But the league — hoping to stretch its influence beyond Sundays and Mondays — viewed Thursday as another prime-time opportunity. Its channel, NFL Network, carried the games exclusively through 2013.

But the league gradually shifted its thinking, coming to believe that Thursday could truly be an appointment night for the N.F.L., as it had for college football.

In CBS, the league saw the most-viewed broadcast network in prime time and put the Thursday night franchise in its hands. Eight games were placed on CBS (and simulcast on NFL Network). The remaining eight were carried by NFL Network and broadcast stations in the markets of the teams playing.

CBS agreed to produce all the games and gave an added assignment to its No. 1 Sunday afternoon broadcast team, Jim Nantz and Phil Simms.

But the league has decided not to make a long-term deal with CBS. Last season’s one-year contract was followed by a similar one, at $300 million, for 2015. Take it or leave it.

“Is that frustrating?” said Moonves, who paused before responding. “Would we have liked more? Absolutely.”

Asked if he will remain patient if the league seeks another one-year deal for 2016, McManus said, “I’m not sure what the alternative is.” He added, “We weren’t shy about proposing a long-term deal.”

The N.F.L. is reluctant to agree to a contract longer than a year because of the changing media landscape. People are untethering themselves from cable and satellite subscriptions in which they pay for channels they do not want and are choosing Internet-based services instead. Whether the league wants to align Thursday night games with old or new media is a question it seems unready to answer. At what point will it be time to stream “Thursday Night Football” directly to consumers rather than distribute it by traditional means, where a long-term deal could yield a billion dollars or more?

“I think it’s fair to say everything’s on the table,” said Brian Rolapp, the league’s executive vice president for media. “We know we have a really good thing with CBS, and we’re focusing on this year. Thursday is the only package that isn’t long term, and we think a little differently about it. In this day and age, to lock into one model isn’t the smartest thing anymore.”

The future of Thursday night games, as a possible digital property, could become a bit clearer after Yahoo globally streams the Oct. 25 game in London between the Buffalo Bills and the Jacksonville Jaguars.

But CBS executives accept that the league is undecided — or is at least keeping its lucrative options open.

For now, Thursday night games will resume on CBS on Sept. 17, with the Denver Broncos playing the Kansas City Chiefs, followed by reprises of three matchups from last season — Redskins-Giants, Baltimore-Pittsburgh and Indianapolis-Houston. And CBS, happy to let the games enhance its prime-time power, will hope to keep them in 2016 and beyond.

Credit to the NY Times who originally published this article

Sports TV News

The NFL Still Considering Multiple Offers For Sunday Ticket

The NFL has had the respective bids of Disney, Apple and Amazon for weeks now. DirecTV has not bid for the package but has stated it is willing to partner with the new rightsholder for a potential deal.

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Sunday Ticket Negotiations

DirecTV currently has the rights to Sunday Ticket. That deal expires at the end of this upcoming football season. The NFL is expected to make a boatload of cash when they decide which media organization gets the next rights to the package. The only question is… who will that be?

Alex Sherman of CNBC reports that the NFL has had the respective bids of Disney, Apple and Amazon for weeks now. DirecTV has decided not bid for the package. However, they are interested in partnering with the new rightsholder for a potential deal. DirecTV knows that Sunday Ticket is a staple in bars and restaurants and is interested in maintaining those relationships.

Outside of the bar/restaurant industry, success has been limited for the satellite provider with the football package. Fewer than two million subscribers signed up for Sunday Ticket each year which made the package a money-loser for the satellite TV provider.

According to the report, the NFL wants more than $2 billion for the rights and a stake in NFL Media, which is being packaged with Sunday Ticket. Also on the table is the NFL’s mobile rights. The league’s previous mobile agreement with Verizon has ended.

An interesting piece of the negotiations is Sunday Ticket price. According to the report, a buyer would have limited flexibility on pricing. The NFL signed contracts with CBS and Fox and within the framework of those deals, language mandates Sunday Ticket have a premium price. That’s to prevent loss of viewers from the networks that feature local market Sunday afternoon games. So essentially, the price is the price for the consumer.

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Sports TV News

F1 Renews With ESPN For U.S. Media Rights

ESPN was reportedly in a three-way bidding battle with Amazon and Comcast. According to the report, F1 told both Amazon and Comcast on Friday that they had decline to accept either one’s offer.

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F1 ESPN

The racing series F1 has decided to stick with ESPN through 2025.

ESPN was reportedly in a three-way bidding battle with Amazon and Comcast. According to the report, F1 told both Amazon and Comcast on Friday that they had decline to accept either one’s offer.

The reported value of the three-year contract is set to pay F1 $75-90M per year for the U.S. media rights. Amazon had offered to pay roughly $100M per year, with the right to sublicense to a linear broadcast network. Comcast’s offer was similar to ESPN’s in terms of value and the structure. They also wanted to put select races on it’s streaming service, Peacock.

Netflix was in on the negotiations, as well. The makers of Drive to Survive, the streaming series that many credit with the sport’s explosion in popularity in recent years, wasn’t close on on their financial offer. Also, it seems F1 executives were not ready to put all of its races on a streaming service just yet.

Currently, F1 receives $5M per year for ESPN to broadcast it’s races. ESPN has grabbed about 1.0 million viewers per race. That makes F1 a more than viable option for the network to invest into again. ESPN will be able to put a small number of races on its ESPN+ streaming service exclusively. The vast majority being on ABC or ESPN.

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Sports TV News

Skip Bayless Says He And Stephen A. Smith ‘Sorted Out’ Their Disagreement

“Brothers fight. We have fought before. I’m assuming we will fight again.”

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Skip Bayless

Stephen A. Smith and Skip Bayless were locked in a war of words last week following the First Take host’s appearance on JJ Redick’s Old Man and the Three podcast.

The origins of their partnership were discussed and Bayless admitted he did not like the way Smith characterized the state of First Take before he arrived on set. Smith insisted that Bayless simply misunderstood what he meant by saying that he was told the show needed him.

Over the weekend, Skip Bayless says he and Stephen A. Smith got together at the Bayless home in California to talk things out in private.

“He was in LA, he came over, we sat by the pool,” he said on the latest episode of The Skip Bayless Show. “It wasn’t the easiest conversation for a while, but we slowly but surely sorted it out. We got through it, and we have been through so much together.”

Bayless reiterated that he considers Smith a brother. They love each other. That doesn’t mean they are always going to remember events the same way or see eye-to-eye all the time.

“Brothers fight. We have fought before. I’m assuming we will fight again.”

Fighting doesn’t mean the relationship is fractured. In fact, Skip Bayless was adamant that he remains closer to Smith than he is to most people in his life.

“I don’t trust easily because of the way I was raised, but I do trust Stephen Anthony Smith. Trust him with my life. Always have and always will. I trust he will always be there for me, and you better believe I will always be there for him.”

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