How much does directv pay the nfl

National Football League (NFL) commissioner Roger Goodell expects to choose a broadcast partner for the out-of-market Sunday Ticket package by the autumn.

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How much does DirecTV pay for NFL Sunday Ticket?
How much did DirecTV pay for NFL?
How long does DirecTV have a contract with the NFL?
How much did YouTube pay for NFL Sunday Ticket?

The NFL has already secured ten-year agreements for its main broadcast packages with CBS, ESPN/ABC, Fox, NBC, and Amazon worth US$110 billion. However, the fate of the Sunday Ticket contract has yet to be resolved.

DirecTV currently pays US$1.5 billion a year for the rights in a loss-leading strategy to drive subscriptions for its satellite TV platform. However, with customer numbers falling as consumers ‘cut the cord’, it is ready to exit the stage once its deal expires after the 2023 season.

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The NFL has repositioned Sunday Ticket as a streaming proposition to drive interest from over-the-top (OTT) services and to ensure its matches reach a wider audience. It hopes to achieve as much as US$2 billion a season.

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Although contractual terms dictate that Sunday Ticket won’t cost less than the US$300 a season in order to protect the NFL’s linear broadcast partners, the fact that fans won’t also have to sign up for DirecTV will make a subscription more affordable.

Apple, Amazon and Disney have all submitted bids, eager to use live sport as a way to attract and retain subscribers, and Goodell told CNBC that an end to the elongated process was nigh.

“I clearly believe we’ll be moving to a streaming service,” he is quoted as saying. “I think this will make it more accessible for fans. I think it will be a better experience.”

Goodell also confirmed the organisation would be launching its own OTT platform in time for the new season in September. It is unclear what content will be available on NFL+ or how much a subscription will cost, however reports suggest it could feature radio, podcasts, as well as carrying live games for mobile and tablet devices.

In 2014, when DirecTV agreed to pay the NFL $1.5 billion per year for Sunday Ticket, renewing the eye-popping contract was was a condition of AT&T’s $48.5B acquisition of the now-faded satellite provider. At the time, NFL games were “among the most viewed shows on television.” In 2021, as the contract neared its end, 75 of the top 100 most watched television programs were NFL games.

A new report from the New York Times seeks to confirm what everyone already knows, that Apple’s Tim Cook is the frontrunner to secure the next contract for Sunday Ticket — and the asking price from the league has ballooned from $1.5B to $2.5B annually. Other companies said to be in the mix are no surprise to anyone either, Amazon, Disney and even Google is said to have submitted a bid for YouTube to be Sunday Ticket’s new home.

Regardless of which company triumphs and what they pay, it’s probably going to be worth it. Live sports is the last unconquered arena for the streaming wars, and Apple is poised to make up significant ground with the acquisition of the Sunday Ticket contract. And unlike most companies, Apple can actually afford to lose the kind of money on the NFL package that DirecTV was losing — as much as $500 million per year.

AT&T no longer owns DirecTV but it has agreed to pay up to $2.1 billion for losses resulting from its NFL Sunday Ticket contract.

Also Read: Amazon Reportedly the Frontrunner to Poach 'NFL Sunday Ticket' From DirecTV

AT&T agreed to spin off its pay TV businesses to TPG in a deal valued at $15 billion in February. The deal closed in August.

In a filing with the Securities and Exchange Commission, AT&T described how it was treating some aspects of the separation from a financial and accounting perspective.

It said that it was paying the new DirecTV up to a cap of $2.1 billion for losses resulting from the Sunday Ticket agreement. The rights deal expires at the end of the 2022 regular season.

DirecTV reportedly pays $1.5 billion a year for Sunday Ticket, which gives it a unique programming package that has made it a must-buy among hard-core football followers. The NFL this year reached new long-term deals for its other broadcast franchises, but it remains unclear where Sunday Ticket will end up after 2022.

AT&T also disclosed that its WarnerMedia division will continue to sell DirecTV’s advertising inventory until AT&T closes the sale of WarnerMedia to Discovery.

DirecTV will receive a 70% share of the revenue generated by selling the satellite-TV platform's advertising, according to the filing.

How much does DirecTV pay for NFL Sunday Ticket?

The NFL Sunday Ticket content package will be available through YouTube TV and YouTube Primetime Channels starting in the 2023 season. DirecTV paid approximately $1.5 billion per year for its Sunday Ticket rights and reportedly never made a profit from the deal.

How much did DirecTV pay for NFL?

When AT&T acquired DirecTV in 2015, Sunday Ticket rights were so important that the entire $49 billion deal was contingent on renewing a long-term contract with the NFL.

How long does DirecTV have a contract with the NFL?

DirecTV currently pays US$1.5 billion a year for the rights in a loss-leading strategy to drive subscriptions for its satellite TV platform. However, with customer numbers falling as consumers 'cut the cord', it is ready to exit the stage once its deal expires after the 2023 season.