Networks, Iger and football...

[Cricket2]

ABC Could Still Score NFL

By John Consoli mediaweek.com April 04, 2005

Don't count ABC out just yet as an NFL telecaster under the new TV rights agreement beginning with the 2006 season (Mediaweek, March 28). While sister network ESPN wants--and is the frontrunner to get--the NFL's Monday-night games through 2011, word from sources close to the negotiations is that ABC, the current Monday-night incumbent, wants the NFL Sunday-night games under the new rights agreement.

What is stalling the conclusion of a deal with ABC/ESPN parent Walt Disney Co. is how much each network should pay, although the NFL is amenable to working out a deal with ABC for several reasons. The NFL would prefer to spread its coverage around the various networks. That would preclude Fox and CBS from getting the Sunday-night games, since each will continue to televise Sunday-afternoon games under their new contracts. And NBC is not expected to bid close to the amount the NFL is seeking for Sunday night. Also, the NFL and ABC have been partners on Monday Night Football since 1970, making it the longest-running prime-time show in TV history, a fact that NFL Commissioner Paul Tagliabue stressed when asked about the negotiations.

According to sources close to the negotiations, the NFL wants to move the Sunday-night cable window to Monday night, meaning it could be sold either as one package or two half-season packages. ESPN is currently paying $600 million for both halves on Sunday, and the NFL wants $900 million for both halves under the new Monday scenario. Disney seems willing to pay the $900 million for ESPN to carry Monday nights, if the NFL is willing to take $400 million for the new Sunday-night broadcast window.

That would be $150 million less than the $550 million per year ABC is now paying for its Monday-night rights (and the amount ABC is reportedly losing each year on its current contract). That means the NFL would receive only an additional $150 million per year for the combined packages under the new agreement, but it wants more. CBS is paying $122 million more per year under its new contract with the NFL, while Fox is paying $162 million a year more.

But a source familiar with the negotiations said, "The likelihood of the NFL doing a deal with ABC is better than a lot of people are predicting.” Were ABC to offer $450 million per year, it would mean the NFL would take in $200 million more per season for both packages, or $1.2 billion over the six years of the new contract.

No one from Disney or ABC Sports would comment for attribution, but one ABC Sports insider confirmed that negotiations with the NFL are ongoing for both ABC and ESPN. “There are a lot of rumors and scenarios out there right now,” he said. “The only ones who really know what’s going on are Paul Tagliabue and [Disney CEO] Bob Iger.”

The question I have is why are ABC and ESPN competing for the same thing? Seems sort of stupid, but hey what do I know?

 

[TheWeasel]

They aren't competing for both. They are trying to negotiate seperate deals for 3 seperate packages ( 2 Sunday Packages & 1 Monday Package). They want to switch nights at a discounted increase. They aren't bidding against each other, but they are hoping the NFL cuts a deal with them based on their long relationship without the other networks getting involved. We'll see.