In recent years, major sports leagues have secured long-term media rights deals, providing stability for both the leagues and media companies. The National Football League (NFL) signed an 11-year, $111 billion deal in 2021, while the National Basketball Association (NBA) followed suit in 2023 with a $77 billion agreement. These deals have temporarily settled the sports media landscape, but significant changes may be on the horizon.
While some organizations, like the Ultimate Fighting Championship (UFC) and Formula 1, have deals expiring in 2025, most major sports leagues have signed agreements that extend well into the next decade. This has created what some are calling a “calm before the storm” in the sports media rights industry. However, the NFL’s ability to opt out of its current deal after the 2028-29 season looms as the next major event that could disrupt the industry.
The NFL’s decision on whether to opt out could reshape the media landscape. The league could potentially end its long-standing relationships with traditional broadcasters like Fox and CBS in favor of partnerships with streaming giants like Apple, Amazon, or Netflix. As the media environment evolves, the NFL’s next move could significantly impact future valuations for media rights.
The shift to streaming platforms is already influencing the industry, with more viewers transitioning away from traditional pay TV. Live sports have long been a crucial component of the pay TV bundle, but as customer losses mount—recent reports show 4 million pay TV losses in the first half of this year—streaming’s influence continues to grow. Nevertheless, traditional broadcasters like NBCUniversal, Disney, and CBS still hold significant value for leagues like the NFL, given their reach and cash flow stability.
Streaming platforms, while growing, have yet to achieve profitability for most media companies. As tech companies gain more power in the sports broadcasting space, leagues must balance maintaining competition for media rights with avoiding over-reliance on streamers, which could reduce future valuation potential.
Though the current media rights deals provide temporary certainty, the coming years will be pivotal for both the leagues and their media partners. With deals expiring and new bidders potentially emerging, the future of sports broadcasting remains uncertain.
READ MORE: