Next media deal that could dramatically change the NFL media landscape. YouTube executives think the league will blow up the current Sunday Ticket system when its next negotiations get underway. And those talks could rewrite how tens of millions of Americans consume out-of-market games.
Sunday Ticket History
The NFL brought out Sunday Ticket in 1994 so that fans could view out-of-market games. Only DirecTV could offer the package for years. YouTube secured the multi-billion-dollar streaming rights beginning in 2023.
Massive Financial Liabilities
In court, the NFL had at one point faced potential liabilities in class action exceeding fourteen billion dollars. While a judge was able to eliminate monetary award, large financial, and structural risks have not yet been extinguished on appeal.
Future Court Orders
Another possible ruling by an appeals court could require that the league shutter Sunday Ticket altogether. That would end the long-standing practice of packaging away-games of Sunday afternoon football.
College Football Model
The league has explored offering out-of-market games on multiple broadcast networks and streamers. A possible scenario would be to put the games on different television stations, similar to college football, which has its games aired on a variety of different channels at the same time.
Alternative Revenue Channels
Breaking down the single package could enable the league to cash in on a handful of different competing partners. Regional games could be broadcast on some networks with out-of-market games licensed to a number of different digital and linear platforms.
Consumer Cost Relief
Getting rid of the monopoly would have saved your average sports fan quite a bit of money. Fans could have followed their favorite distant teams on their local channels at no additional charge.
Valuing Sunday Windows
The value of Sunday Ticket has certainly weakened as the top games moved to different windows. The standalone value of the Sunday afternoon package has been steadily reduced by streaming-only and individual holiday games.
Aggressive New Scheduling
Breaking down Sunday Ticket allows the league a much more flexible option of its weekly schedule. The league could put on much more weekly games and potentially fill out schedules on Tuesday nights and Wednesday nights.
Upcoming Media Landscape
Upcoming broadcast agreements will focus on wide digital access, with the end of access restrictiveness that comes with exclusives packages. There will be a more fragmented, but accessible viewing landscape as TV networks and streaming services compete to buy single games.
