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Sports and TV

Sports and TV. Sports provide a scenario for what TV does best -- live, dramatic, suspenseful action Televised sporting events (Super Bowl, World Series and Olympics) often rank among the highest viewed programs of all time Broadcast sports touch almost every American household.

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Sports and TV

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  1. Sports and TV • Sports provide a scenario for what TV does best -- live, dramatic, suspenseful action • Televised sporting events (Super Bowl, World Series and Olympics) often rank among the highest viewed programs of all time • Broadcast sports touch almost every American household

  2. Sports and Culture • Sports provide entertainment • Sports affect civic “pride” • Sports impact community development and economic fortunes – every Notre Dame home game generates over $7 million in the SB community • Sports often provide a backdrop for other forces in society

  3. Sports and TV • 200 million Americans call themselves sports fans (seven out of eight adults) • In 2005-06, Americans spent $15 billion on tickets to sporting events ($9 billion on movies) • Companies spent $8.31 billion on sponsorships of sporting events (out of $12 billion overall total) • Sporting events took in $18.6 billion in revenue

  4. Sports Broadcasting History • Major college football games were broadcast on WEAF in 1925. • Every Chicago Cub baseball game was broadcast on radio beginning in the late ‘20s. • NBC, with one camera, produced the first telecast of a sporting event, a Princeton-Columbia baseball game, in 1939.

  5. Sports Broadcasting History • The telegraph provided baseball scores to subscribers around the nation in the early 1900s • The first radio broadcast of the sporting event was a prize fight in Pittsburgh on KDKA, April 11, 1921. • KDKA broadcast a Davis Cup tennis match on August 4, 1921, and a Pittsburgh Pirate baseball game a day later.

  6. Sports Broadcasting History • Invention of videotape (1956) and satellite transmissions (1962) spurred the growth of television sports. • Monday Night Football (ABC) began in 1970. • ESPN debuted in 1979. The all-sports network reaches over 85 million households.

  7. Sports Provide Television: • A programming base for broadcast networks on weekends • A promotional vehicle for other network programming • An image builder for networks and local stations • A lure for non-regular viewers • A community tie-in for local stations • A venue for advertisers

  8. Television Provides Sports: • Exposure • Public Relations • Money

  9. However. . . • Nearly every entity that televises a sporting event loses money • ESPN is the only network to turn a profit in sports • Morgan Stanley estimates total sports programming losses of $1 billion annually. • $500-$600 million at broadcast networks • $400-$500 million at cable networks

  10. Sports and Television • Television networks spent $6.7 billion in television rights fees in 2005-06. Production costs run into the millions • The ESPN networks telecast 51,000 hours of programming this year – triple the amount in 1994. • ABC, CBS, Fox and NBC spent more than $1 billion on sports in 2005-06, compared with $750 million on series and entertainment programming and $400 million on news.

  11. Sports and Television • Over 94 million watched the 2007 Super Bowl

  12. Sports and Television • Advertisers – from Budweiser to General Motors, from McDonald’s to Cialis – will spent $7.4 billion to purchase commercial time in telecasts of 2006-07 sporting events. • Auto: $1 billion • Beer: $412 million • Financial Institutions: $372 million • Telecommunications: $354 million

  13. Sports and Television • Traditional Commercial Spots • Product Placement • Promotional Tie-ins-Contests • Sponsorships of • Pregame/Halftime/Postgame shows • Players of the Game • Plays of the Game • Events

  14. Sports and Television • Commercials • $2.6 million in Super Bowl • $200,000 spot in MNF • $350,000-$400,000 on NBC’s Football in America game

  15. Fundamentals of Sports Television • RIGHTS’ FEES -- Whoever owns, creates or stages the sporting event also makes the decision of who gets to televise (or broadcast via radio, the internet, pay-per-view, etc.) that event. • No one can televise or broadcast an event without securing those rights.

  16. Fundamentals of Sports Television • The owner determines the market value of the television rights and then seeks the highest bidder for those rights. The owner may be an individual team, a league, a conference, etc. • Rights’ Fees have escalated over the last decade. These fees help pay salaries for athletes and provide income for teams, leagues and conferences or the event promoter.

  17. Rights’ Fees NFL • ESPN -- $8.8 billion ($1.1 billion annually) for Monday Night Football through 2013 • Fox -- $4.27 billion ($712.5 million annually) for NFC Sunday afternoon package. Super Bowl in 2008 and 2011. Pro Bowls in 2008 and 2011 • CBS -- $3.73 billion ($622.5 million annually) for AFC Sunday afternoon package. Super Bowl in 2007 and 2010. Pro Bowls in 2007 and 2010

  18. Rights’ Fees • NBC: $3.6 billion ($600 million annually) for Thursday night season opener, Sunday night package, Super Bowls in 2009 and 2012; Pro Bowls in 2009 and 2012 • Direct TV: $3.5 billion ($700 million annually) for NFL Sunday Ticket TOTAL VALUE: $23.9 billion ($3.7 billion a year)

  19. Rights’ Fees The Olympics • $793 million for Athens Games • $2.2 billion for 2010 and 2012 games (NBC bid $1 billion more than the next highest bidder)

  20. Rights’ Fees NCAA Men’s Basketball: • CBS paid $6 billion for the NCAA sports package over 11 years ($545 million annually) • NBC pays about $5 million annually for ND home football games

  21. Rights’ Fees NHL: • NHL’s deal with NBC was based on profit sharing plan – split advertising revenue after NBC deducted production costs

  22. Television Sports • Regional/Cable Networks • League/Team Owned Networks (YES, Big Ten Network) • Local TV Station Sports • News • Locally Produced Events

  23. Pay-Per-View • HBO pioneered this concept with boxing matches. • Now, many leagues offer game packages through satellite services.

  24. Sports Production • Televising sports is expensive. • Costs often can’t be recouped through advertising.

  25. Problems of Televised Sports • Pressure to win • Creation of inflated sports environment • Control over starting times and time outs • Advertising sponsorships • Sports created for television (XFL, WWF, WCW, Extreme Games) • Cross Promotion • Ownership Issues

  26. Why Don’t We See. . . • More women’s sports. . . • Horse racing. . . • College “Olympic” sports. . . • High school sports. . . • Little league games. . .

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