Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Factors That Go Into Television Network Contracts
Author: Scarinci Hollenbeck, LLC
Date: August 19, 2013
Key Contacts
Back
Many sports analysts are watching the ascent of Fox Sports 1 as it makes multi-year television network contracts with several sports leagues, most recently the United States Golf Association and NASCAR. However, some of these deals – particularly the agreement with NASCAR – seem ill-advised on the surface, and do not appear to financially favor the television sports network, leaving some to question why these deals were made.
For example, NASCAR recently announced a hefty $8.2 billion, 10-year television deal with NBC and Fox, despite the fact that NASCAR’s ratings and audience level have experienced significant declines over the years. So why enter into a multibillion-dollar contract with flailing sports? Several reasons. The industry is a lucrative one, and many networks dominate and gain a greater market share than others. For example, Fox Sports 1 is still in its infancy and NBC is still emerging as a sports network, and entering into a number of agreements with popular sports leagues allow them to compete with mega-networks, such as ESPN.
“All it takes is two bidders to drive up the price … If NBC hadn’t been there and didn’t have an agenda building a sports network, then the financial outcome might not have been as great,” said Zak Brown, president of Just Marketing.
In addition, the networks and the leagues often avoid “cookie-cutter” type legal agreements and establish terms that help advance their unique goals. For instance, Fox and NBC, in an effort to attract NASCAR and other sports leagues, wrote out large checks and avoided dropping rights fees that other large-scale networks refused to consider, Sporting News reported of the transaction. However, the two new networks may earn more in subscriptions by offering viewers a more comprehensive sports package. Networks such as ESPN are already engaged with viewers and established as popular channels, meaning they have more leverage when negotiating contracts and may be less willing to make concessions.
- Industries: Entertainment & Media
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
10 Common Issues in Franchise Disputes
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Author: Paul Grossman
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Author: Donald M. Pepe
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.