Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Factors That Go Into Television Network Contracts
Author: Scarinci Hollenbeck, LLC
Date: August 19, 2013
Key Contacts
Back
Many sports analysts are watching the ascent of Fox Sports 1 as it makes multi-year television network contracts with several sports leagues, most recently the United States Golf Association and NASCAR. However, some of these deals – particularly the agreement with NASCAR – seem ill-advised on the surface, and do not appear to financially favor the television sports network, leaving some to question why these deals were made.
For example, NASCAR recently announced a hefty $8.2 billion, 10-year television deal with NBC and Fox, despite the fact that NASCAR’s ratings and audience level have experienced significant declines over the years. So why enter into a multibillion-dollar contract with flailing sports? Several reasons. The industry is a lucrative one, and many networks dominate and gain a greater market share than others. For example, Fox Sports 1 is still in its infancy and NBC is still emerging as a sports network, and entering into a number of agreements with popular sports leagues allow them to compete with mega-networks, such as ESPN.
“All it takes is two bidders to drive up the price … If NBC hadn’t been there and didn’t have an agenda building a sports network, then the financial outcome might not have been as great,” said Zak Brown, president of Just Marketing.
In addition, the networks and the leagues often avoid “cookie-cutter” type legal agreements and establish terms that help advance their unique goals. For instance, Fox and NBC, in an effort to attract NASCAR and other sports leagues, wrote out large checks and avoided dropping rights fees that other large-scale networks refused to consider, Sporting News reported of the transaction. However, the two new networks may earn more in subscriptions by offering viewers a more comprehensive sports package. Networks such as ESPN are already engaged with viewers and established as popular channels, meaning they have more leverage when negotiating contracts and may be less willing to make concessions.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.