The NFL is gearing up for its next broadcast rights deal, and it looks like streaming platforms are set to play a big role. With an opt-out in its current TV deal available as early as 2029 and the collective bargaining agreement running through 2030, the league seems eager to renegotiate sooner rather than later.
A big reason? The NFL is reportedly miffed that NBC is shelling out $500 million more for its NBA deal than for Sunday Night Football.
NFL executives are feeling the heat, especially with the likes of NBA getting such lucrative terms. The league's broadcast contracts technically extend through the 2033 season, but Commissioner Roger Goodell has expressed interest in revisiting those deals sooner, citing a rapidly changing media landscape.
Goodell mentioned the importance of flexibility in these deals, emphasizing that the shifting dynamics of media consumption make it essential for the NFL to have options. This flexibility could allow the league to renegotiate earlier than initially planned.
A recent hurdle was cleared when federal regulators approved a deal allowing ESPN to acquire NFL Network and other league-owned assets, with the NFL taking a 10 percent equity stake in ESPN. This agreement, finalized on January 31st, paves the way for the NFL to approach its broadcast partners for potential renegotiations.
Timing is crucial, as the MLB's national media rights deals are up in 2028, and power conferences in the NCAA are eyeing their own deals in the early 2030s. The NFL likely wants to secure its position before these other major negotiations.
According to reports, there's speculation that the NFL's media deals could jump from $10.1 billion to a staggering $20 billion annually. This boost would likely involve streaming platforms like Amazon, Netflix, and YouTube, each potentially hosting five games, including international matchups and Christmas Day games.
Streaming platforms offer a way around the Sports Broadcasting Act of 1961, which limits antitrust immunity for games played on Fridays and Saturdays during the high school and college football seasons. The Dallas Cowboys previously challenged this, and it seems streaming could provide a similar workaround.
The financial muscle of tech giants like Alphabet, Amazon, and Netflix-whose combined market cap dwarfs that of traditional broadcasters-makes them attractive partners for the NFL. This shift could lead to more weekday or Saturday games, maximizing revenue through expanded primetime slots.
In essence, the NFL's move towards streaming isn't just about keeping up with the times-it's about capitalizing on the immense financial opportunities that come with it. As the league looks to double its broadcast revenue, the future of NFL viewing could be set for a major transformation.