December 16, 2011   |No Comments

High Costs of Sports on TV Always Passed on to YOU

Think your cable/satellite bill is high now? Wait till the costs of the latest NFL TV rights deal are passed on to you. Yesterday, the NFL reportedly agreed to a new TV rights deal with FOX, CBS and NBC that will pay a total of $28 billion in fees over nine years. The $3.1 billion the NFL will receive from the networks is a 63% increase over the current $1.9 billion paid by the three networks. In addition, yesterday, ESPN announced a new TV rights deal with the NCAA for coverage of college sports through 2024.

Unfortunately, as media networks pay more and more for TV rights, those costs get passed on to consumers. The New York Times reports today that that average TV subscriber pays $100 per year for sports coverage, whether they watch sports or not. Right now, ESPN earns $4.69 from every cable and satellite household and that number is expected to go over $5 very soon.

So the leagues get richer as the media companies pay more and more and pass those costs on to you. Remember that it doesn’t have to be this way. We grant the leagues an anti-trust exemption to collectively negotiate broadcast contracts. If they’re going to continue to gouge consumers and sports fans, perhaps we should reconsider that…

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