Connect with us

Sports TV News

Sinclair RSNs Will Owe More Than They Get Back For Unplayed Games

“Broadcasting & Cable spoke to Wells Fargo’s Steve Cahill about the financial implications for Sinclair. Cahill doesn’t think that the broadcasting conglomerate will get back an overwhelming amount of money.”

Published

on

sports update

Sinclair bet big on its sports future when it purchased the FOX regional sports networks that the Walt Disney Company was forced to by the Justice Department to divest. Sinclair followed up those acquisitions by launching Marquee in conjunction with the Chicago Cubs. Turns out, those bets have gone bust, at least in the short term.

With no live sports for the last four months, there has been a lot of speculation on the rebates leagues and teams will owe broadcast partners. Many contracts stipulate that refunds are owed in the event a specific number of live games are not played. Given that those RSNs own the TV rights to more than 40 professional teams across the NHL, NBA, and Major League Baseball, it is safe to assume a lot of that rebate money is heading Sinclair’s way.

Broadcasting & Cable spoke to Wells Fargo’s Steve Cahill about the financial implications for Sinclair. Cahill doesn’t think that the broadcasting conglomerate will get back an overwhelming amount of money.

“Cahall figures that Diamond pays about $1.9 billion in sports rights, 62% of those going to baseball teams. Diamond will get no money back from the NHL teams, minimal money from the NBA teams and a good chunk from baseball teams, which are playing just 60 games in this shortened season, fewer than the 142 games they promised to MVPDs.”

His estimation is that Sinclair and Diamond (the company’s sports subsidiary) will get back somewhere in the neighborhood of $693 million. That is nothing to scoff at, but Cahill doesn’t believe it will cover the refund it will owe cable providers.

“According to Cahall, only the largest distributors get rebates from Diamond’s networks, which will deliver about 64% of the games they contracted for, resulting in an $823 million rebate to the MVPDs.”

That would put Sinclair about $130 million in the red for 2020.

It’s hard to guess how these moves will effect the average sports fan. $823 million is a large number, but when it is divided amongst every cable subscriber that receives a Sinclair RSN, all of which have different carriage fees for cable and satellite companies, it is hard to imagine the average subscriber gets more than a $5 – $10 rebate.

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.

Published

on

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.

Continue Reading

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.

Published

on

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.

Continue Reading

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.”

Published

on

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.”

Continue Reading
Advertisement
Advertisement

Trending

Copyright © 2021 Barrett Media.