CBS, NBC renew PGA Tour golf for nine more years

Tiger Woods of the United States celebrates after sinking his putt to win on the 18th inexperienced throughout the closing spherical of the 2019 Masters

Kevin C. Cox | Getty Images Sport | Getty Images

The PGA Tour has struck a brand new, nine-year home media rights cope with ViacomCBS and Comcast‘s NBCUniversal that can preserve weekend protection of most tournaments on CBS and NBC.

The deal will worth the overall package deal of rights at about $700 million per yr, greater than a 70 % enhance over the PGA’s prior rights settlement, mentioned one of many folks, who requested to not be named as a result of the discussions are non-public.

CBS will broadcast a median of 19 tour occasions per yr over the course of the deal and NBC will common eight. The new deal begins in 2022 and ends in 2030. Either CBS or NBC will televise all three FedExCup Playoffs occasions annually, beginning with NBC in 2022 and customarily alternating with CBS. The FedExCup is a season-long points competition culminating in three occasions to find out the FedExCup champion, who wins $15 million. 

The PGA arrange its cable, broadcast and digital rights to resume on the identical time in order that it may maximize income by negotiating with conventional media and digital gamers about rights renewal, mentioned Rick Anderson, the PGA Tour’s chief media officer. But after speaking to all the market, the PGA determined to stick with incumbent companions, Anderson mentioned. 

“Golf is a foundational sport for us,” mentioned Sean McManus, chairman of CBS Sports. “From the time we finish broadcasting college basketball to the time college football and the NFL begins, PGA golf is really our primary programming. To try to replace that with something anywhere close to as prestigious is really difficult.”

The rights settlement is especially essential for ViacomCBS, which is stockpiling priceless sports activities rights whereas it seems to be to compete in opposition to a lot bigger gamers together with Disney, Comcast and Amazon. Both ViacomCBS and NBCUniversal are additionally involved in renewing their National Football League rights. Preliminary discussions on these renewals have already begun and can likely heat up after the NFL and gamers agree on a collective bargaining settlement.

“Sports programming becomes more and more valuable because of the audience it generates,” McManus mentioned. “We got our PGA Tour deal done. The NFL rights will be our next really big negotiation. It’s a really big deal that we’ll try to consummate.”

The rights renewal additionally comes as a brand new golf league — the Premier Golf League — tries to recruit the largest names in golf away from the PGA Tour, together with Tiger Woods. Rory McIlroy has publicly stated he won’t leave the PGA Tour for the brand new league. Brooks Koepka mentioned final month that even large pay packages from the PGL would not be sufficient to take him away from the PGA until many of his fellow top golfers additionally left. 

New digital rights package deal

For the primary time ever, the PGA Tour carved out a separate digital rights package deal for Disney’s ESPN+. The tour’s subscription video service PGA Tour Live, first launched in 2015, will now be part of ESPN+. Disney paid about $75 million yearly for the digital rights, in keeping with two folks conversant in the matter.  

That service, which beforehand value $9.99 per thirty days or $64.99 per yr as an a la carte providing, will now come customary for anybody with an ESPN+ subscription — a $4.99 per month service. ESPN+ subscribers will be capable to watch 4 separate reside feeds of varied enjoying teams in 28 tournaments all year long, although reside content material can be restricted when occasions are broadcasting reside on CBS and NBC. ESPN’s deal additionally consists of highlights rights to be used throughout ESPN platforms and different on-demand video for ESPN+. 

“Credit to the PGA Tour for putting a stake down in the direct-to-consumer game early,” mentioned Burke Magnus, ESPN’s government vp of programming acquisitions and scheduling. As streaming companies have added extra content material for costs largely underneath $10 per thirty days, the PGA realized its standalone product was most likely now not a viable choice, Magnus mentioned. 

NBCUniversal, which owns Golf Channel, will proceed carrying all early-round protection and early weekend protection of each FedExCup occasion because the tour’s sole cable companion. LPGA tournaments will proceed to be aired on Golf Channel with expanded protection for a minimum of seven occasions on CBS and NBC yearly. The LPGA maintains management of all of its worldwide media rights.

“It was a priority to retain the broadcast package with cable exclusivity,” mentioned NBC Sports president Pete Bevacqua. 

The settlement would not embrace the 4 main tournaments, that are negotiated individually. Augusta National handles the Masters rights, PGA of America negotiates the PGA Championship, the USGA is in command of the US Open, and the R&A manages The Open (The British Open). 

Disclosure: Comcast is the proprietor of NBCUniversal, mum or dad firm of CNBC.

WATCH: Here are the largest challenges dealing with the sports activities trade now

Source link

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.