ESPN reportedly pays $1.9 billion per year for the rights to “Monday Night Football,” a 73 percent increase over the previous contract. “””
I’m no exec but I think I’ve spotted a problem...
I know this will show my ignorance, but who loses, what is the financial impact of all of this?
The NFL is making money because they are selling the broadcast rights to various networks. Is the NFL guaranteed “x” number of dollars for selling the broadcast rights, or is the total they receive dependent on the ratings for the broadcasts, and then they get paid after the fact?
When the networks sell commercial time on the games, are they paid “x” amount, or are the amounts they get paid by sponsors dependent on the ratings??
I can see that, if ratings are down by , say 10%, that there would be 10% less revenue coming in. But who is taking it in the shorts; who in the revenue line has to take the hit from less money coming in??? The NFL, the broadcast networks, the sponsors who pay for commercial time? Who is getting the raw end of the deal?