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  1. #1
    MoonJoe's Avatar
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    NFL, DirecTV Extend Pact in $4 Billion Deal

    Wal Street Journal-3/24/09
    By MATTHEW FUTTERMAN

    In a sign that media rights for major sports may defy the recession, the National Football League reached a four-year extension with DirecTV Group Inc. Monday valued at $4 billion.
    [directv and nfl deal] Associated Press

    The NFL's new contract with DirectTV calls for payments of $1 billion a year for the 2011-14 seasons. That is a 43% increase on an annual basis over the current five-year deal.

    According to a person with knowledge of the deal, the contract calls for payments of $1 billion a year for the 2011-14 seasons. That is a 43% increase on an annual basis over the current five-year deal, in which DirecTV pays the NFL about $700 million a year for the exclusive right to sell the Sunday Ticket package. That package allows fans to see every NFL game on Sundays, as opposed to simply the games shown on local broadcast channels.

    Major cable operators have been trying to reach a deal with the NFL to sell the Sunday Ticket and share revenue with the league, but the NFL has preferred to take a lump-sum payment from DirecTV, which has used the product to lure viewers away from cable subscriptions to satellite.

    However, the new deal chips away at DirecTV's exclusivity when it comes to out-of-market games. The agreement with the El Segundo, Calif., company allows the NFL for the first time to pursue deals with cable operators and Internet providers to offer subscribers the Red Zone Channel, which provides cut-ins to the crucial moments of NFL games. In addition, cable subscribers living in areas where satellite service isn't available will be able to buy the full Sunday Ticket package over the Internet.

    To be sure, the NFL still needs to reach agreements with cable and broadband providers on the price and access to the Red Zone Channel. Negotiations with those companies to carry the NFL Network, the league-owned cable channel, have dragged on for several years. The league also has been battling Comcast Corp. in court and at the Federal Communications Commission over the cable provider's decision not to include the NFL Network in its basic digital tier of channels.

    However, the deal with DirecTV bodes well for the league as it approaches talks with its broadcast partners for new agreements. Its current deals with General Electric Co.'s NBC Universal, CBS Corp. and Walt Disney Co.'s ESPN expire after 2011. Under those deals, ESPN pays the NFL $1.1 billion a season, NBC Universal pays $600 million and CBS pays $620 million.

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  2. #2
    r8rh8rmike's Avatar
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    Re: NFL, DirecTV Extend Pact in $4 Billion Deal

    Looks like we'll probably be paying more for the NFL package. Directv obviously knows there are a lot of people who stay with them because of Sunday ticket, me being one of them. I'd love to be able to look at other TV options, but I can't be without Rams games on Sunday. Guess I'll be with Directv for several more years.

  3. #3
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    Re: NFL, DirecTV Extend Pact in $4 Billion Deal

    Until the Rams get better, I'm sitting on my money. If the Rams are in the playoff hunt the last 4 weeks I'll buy it then which will probably be the same price as a full season package 3 years ago.

  4. #4
    r8rh8rmike's Avatar
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    Re: NFL, DirecTV Extend Pact in $4 Billion Deal

    Quote Originally Posted by txramsfan View Post
    Until the Rams get better, I'm sitting on my money.
    There are times during the last few seasons when I wish that's what I would've done, but I still get excited before every Rams game and every Sunday is something to look forward to for me. I guess I'm just a glutton for punishment.

  5. #5
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    Re: NFL, DirecTV Extend Pact in $4 Billion Deal

    Well, in all actuality it would probably be cheaper for me. Local sports bars get expensive too....

    lol

  6. #6
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    Re: NFL, DirecTV Extend Pact in $4 Billion Deal

    I was really hoping to be able to move away from Direct TV. Oh well, guess it's either stick with Direct TV or move back to STL.

  7. #7
    Ramblin` Ram's Avatar
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    Re: NFL, DirecTV Extend Pact in $4 Billion Deal

    in Europe you can pay 10 euros (about $19) per weekend and get to watch any games you chose (apart from the ones broadcasted on Sky) in the NFL which is then available for you to watch all the other games you didnt catch on sunday up until tuesday...i get to see most games before the tuesday deadline.
    this is all through the internet i should add...only Sky have the rights to watch it on T.V (well unless you in britain where you can also catch the monday night games live on Channel 5)

    if i have $19 a week and Waylon the Cat got enough food to survive the week on..im paying it!

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