Showing posts with label tv deal. Show all posts
Showing posts with label tv deal. Show all posts

Friday, November 19, 2021

Why is the PL TV deal so big?

The English Premier League announced a large new TV deal yesterday. NBC has retained the United States' rights to broadcast the league for the next six years.

The deal:
Length: 6 yrs (2022-2028)
Cost: $2.6 billion
Cost per Year: $430 million
Rev per Team, per Yr: $22 million

Just about every network was involved in bidding for the league. ESPN, CBS, Amazon, WarnerMedia, etc which pushed the yearly increase to three times the previous deal of $150m a year.

So, why is it so big? What made a foreign soccer league so desirable?

Everyone is reporting on the basic figures, but nobody seems to know the answers to these two questions. Here's what I think.

A. It's the top league in the world. Technically, it can be debated where the better players are but Americans love the perceived best, the richest, the most exciting.

B. It fits The US Sports Culture Calendar.

For me, this is easily the most important ingredient. "Culture" is something that takes generations to form and once it takes hold, it's nearly impossible to change (or destroy). The US has formed a very defined sports culture.

• NFL and College Football in the fall.
• MLB Playoffs/World Series
• NBA at Christmas
• Bowl games, NFL Playoffs
• NHL in the winter
• March belongs to College Basketball
• NBA, NHL Finals
• MLB is hotdogs and beer in the summer

That's basically what it has been since the 1980s and etched in stone after the 1994 MLB strike. There's not a lot of room for anything else.

SOCCER IS THE NEXT BIG THING
The PL fits, foreign summer tournaments fit, MLS does not

Major League Soccer tries to squeeze in during the lightest part of the sports calendar. 1/3 of the decision to use (and continue to use) this calendar was logistic - most MLS early teams shared stadiums with other pro teams. Another third of the decision was the thought that young people wanted something super-rad and baseball was for old people - and the final third was there were more national windows open. 

MLS has been sitting on this for 25 years. Each decision MLS made still impacts the league and it is reflected in ratings and viewership. In effect, because of the way they are built, they compete with just about everything on the calendar above.

Enter the Premier League and NBC. 

The network's commitment to covering the league is key while the seriousness and passion of the coverage come off as authentic. Because of where the league is, it solved all of Major League Soccer's challenges I mentioned above.

1. They don't share stadiums.

2. People of all ages like soccer, not just young people.

3. The most important... free morning windows for games. "IT FITS" into the US calendar instead of having to try and elbow its way in (like MLS).

In the past, for European soccer, networks would put up a game or two on random weekend mornings and then move on to some other sport more in tune with the US Sports Calendar. Even now, we see that kind of coverage with ESPN and the Bundesliga. They put up a couple games before sending it over to ESPN+ in favor of morning college football and NFL shows. It's a good example of trying to squeeze something into an existing culture thinking it'll take root.

For my entire lifetime (which is approaching a half-century, Christ!), "soccer" has not been the problem. Americans love soccer. In the decade I was born, the old NASL was the thing for a number of years. Rec leagues started all over the country in the 80s. The World Cup in 1994 is still the most attended and watched in the tournament's history. The Women's World Cup in 1999 is a proud touchstone moment for anyone generation X and above in this country. From that point forward it was the USMNT run in 2002. "Go-go USA" in 2010. In the last 10 years, we've seen the rise in Liga MX's popularity to the point where it gets big 4 types of ratings (but enter stage right, future changes, unfortunately).

Soccer has always been here. I think ratings will continue to improve over the next 6 years and if NBC keeps doing what they are doing, the Premier League will become a 10 month long normal part of the US calendar.

Sunday, February 28, 2016

TV Deal: Local Fans Put Back Together

Columbus Crew SC announced improvements to their TV deal last week. The big takeaway? Fans in the 75-mile radius around the team will be able to watch the team without a subscription to Time Warner Cable (TWC).

The change makes right a very clear wrong done to fans. Two years ago outgoing GM Mark McCullers put the exclusive rights deal with TWC. It was one of these things that broke out of local coverage and went national in how it locked out fans.

Making matters worse - instead of working with fans upset and not able to watch their favorite team, Crew officials went on the attack. Fans (along with writers, bloggers) were told that the deal was great and to stop being critical.

Ultimately, contract architect McCullers was shuffled out months ahead of time and the team and fans took their medicine for two years. Until this past week.

For fans, the deal was evil - no doubt. But was is all the way awful for the Crew? Was what happened any different than other markets? McCullers wasn't trying to be a jerk to fans, he was just doing what sports teams do to become the all powerful entities they are today.

The NFL, NBA, MLB and NHL didn't become what they are by being "fan friendly." They do it by trying to convert you into their own personal ATM machine. Have you stepped back and took a critical look at things recently? In fact, The deal the Crew made with TWC was not all that different from what the LA Lakers, one of the largest sports franchises in the world, have with the cable giant.

We'll see how things work out for the team this year. Will a measurable percentage of fans stay home to watch the games instead of fill the stadium like late season last year? After all, that is one of the reasonings behind a blackout deal. Will fans bother to watch on TV or will the numbers be about the same? Remember; Non-nationally televised MLS is strange in that more fans are at the game than watch on TV.

Looking back, the biggest mistake the Crew made wasn't the actual deal. It was the way the reacted to fan complaints. Fans don't like to be told how to feel, especially in an aggressive fashion.

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(I hope they refrain from herding fans towards what to do / how to feel in an icky passive fashion as well.)

Friday, March 7, 2014

New Crew TV Deal, Time Warner

Much to the chagrin of about half the households in the Columbus area and nearby cities that have Fox Sports Ohio, Time Warner Cable Sports Channel will be the new broadcast partner of the Crew for the next few years. (link)

In a statement to Adam Jardy (link) and the Columbus Dispatch, Fox Sports Ohio (FSO) said the following:

"We think FOX Sports is the right home for the Columbus Crew. Unfortunately, we were unable to come to terms with the Crew on a renewal that made sense for our business. We wish them well."

The reaction from fans in central Ohio has been overwhelmingly negative. Along with a good percentage of the fans now not able to watch games that could previously, the games will also be blacked out locally on MLS Live.

BARRIERS

As things stand now the Crew will lose the exposure FSO gave them to larger cities in the midwest region. They also lose a channel that was on multiple cable and satellite providers. Even if fans of the Indians, Reds, Cavs or even Chuck's Last Call didn't watch the Crew, at least they were exposed to the team indirectly.

On top of that, staying with FSO would have created continuity and help build regular viewership. From a business ops perspective the Crew need continuity, if for nothing else just so they are able to measure organic growth.

This deal feels like something fans would have liked in the 90s - but not now, not with people use to getting sports when they want and how they want. Half the Crew fans out there have every right to be upset. The team has taken something from them that they once had.

The wrong thing to do is to put up more barriers between you and your customers. On top of that, Cable is a dying industry and some of her last gasps of air are buying rights to live sports. It's surprising to me that this was an option for the Crew.

Words of comfort for frustrated fans; The market has a way of sorting things out, she always does. If it is truly a bad deal then the Crew will have to seek alternative.