Saturday, May 8, 2021

SPORTS LEAGUES TO REAP A TV BONANZA

October 6, 2014 by · Leave a Comment 

The value of media rights for live sports events is expected to soar 18.7 percent this year to $14.8 billion from $12.5 billion a year ago. Only ticket sales exceed that percentage in the $60.6-billion sports business, according to a study by PricewaterhouseCoopers (PwC). Adam Jones, who heads PwC’s sports advisory services, predicted in the study that eventually media rights will exceed ticket sales as at-home viewing becomes as "comfortable" an experience as going to the games themselves and as advertisers pursue viewers who are not likely to record sports broadcasts and skip commercials when they view them later. "There is unquestioned value in live sports events that get people in front of the TV set and commenting on social networks," Kevin Collins, head of of sports investments at Magna Global, Interpublic’s ad buying group, told the London Financial Times. In fact NBC is charging advertisers $600,000 for each 30-second spot on its Sunday Night Football this season, the FT observed. In a related matter, the Wall Street Journal reports that the NBA is renewing its TV deals with Disney’s ABC and ESPN and with Turner’s TNT and NBA-TV for twice what it currently receives (Turner now pays $445 million annually for television rights; Disney $485 million.