(Image credit: DirecTV)
By 
Source: www.nexttv.com, September 2021


NFL could command as much as $2.5 billion to whoever licenses the out-of-market games package next

Amazon is in talks with the NFL to acquire its NFL Sunday Ticket games package and is seen as the frontrunner to pay the pro football league as much as $2.5 billion a season to do so, according to a CNBC report.

Satellite pay TV operator DirecTV has controlled Sunday Ticket rights since their inception 27 years ago. But the operator, recently spun off by AT&T in a joint venture with private equity firm TPG, loses money on the current deal that calls for it to pay around $1.5 billion per season.

It was just disclosed in SEC documents this week that AT&T paid DirecTV $2.1 billion to cover those losses, and it doesn’t seem likely that DirecTV has the will or resources to incur even greater losses going forward.

The National Football League is probably OK with this, given DirecTV‘s fast-declining subscriber base, which reduces the pool of consumers willing to pay $300 a season for all out-of-market NFL regular season games.