NFL media fees are expected to double to $8 billion annually by the end of the decade, a significant reason why the league has been striving to reduce the share of revenue the players receive, said Neil Begley, a Moody’s Investors Service senior analyst. Those conclusions are in a yet-to-be-released, but finished, report that Moody’s plans to publish now that the NFL has locked out the players, Begley said. Among the key issue in the labor stalemate is the sharing of revenue. Ownership has pushed for a greater share of the pie, which itself is expected to increase from lucrative media fees and other sources. The league’s deals with Fox, CBS, NBC, ESPN and DirecTV fuel about $4 billion in annual revenue currently, with deals running through 2013 and an ESPN extension in the final stages that sources have said would see that network’s fee double. “It’s why this CBA needs to be fixed now,†Begley said, “before this big surge (in media fees). Because otherwise, (the NFL) won’t reap enough to offset costs associated with building stadiums.†Source: Sporting News
Cost of stadiums does not have a tie in to cost of media rights. So this report is just a bunch of crap. No one needs to sit in a $4000 seat to watch a football game while drinking wine and chomping down the caviar. Slam some seats down and make them safe and keep the place clean, thats all we ask.
Nobody needs to go to football games at all but some people WANT to go and drink wine and eat caviar....and those people can afford to so they would be dumb not to offer it.
