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Nfl Football Telecasts Case Study

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This task force of broadcasting, finance, and marketing people helped legitimize projections and potential profitability from NFL football telecasts; this also served as a way to defend and justify the NFL’s asking price for its content, as well as enable the league to figure out its break-even price at which it would make sense to keep the content in-house. The research this task force conducted also allows the NFL to capitalize on trends and future projections, based on empirical data. The members of the owners television committee also helped determine the length of contract and distribution rights, etc. and when/whom to approach when negotiating contracts as to get the best price and highest probability of closing the deal, thereby limiting …show more content…

More importantly, this demonstrated the sport’s growing popularity and cult following (particularly among young male). The NFL stood above other sports associations because it helped networks gain legitimacy, credibility, and stability, as illustrated by Fox Network’s bid to steal away the CBS package in 1993. These three letters not only connoted prestige and exclusivity but also contained strong metaphors in penetrating the American business culture. For example, with the introduction of its own NFL Network, the league maintained exclusive rights to unique content, a fantastic product that can generate greater future revenues. This also served as a means to dilute audience for certain networks, by giving them more options to choose from. The NFL also built this perception of scarcity, with the illusion that it has fewer rights packages compared to the number of networks bidding for them, which led to effective marketing of any programming that can be distributed in conjunction with selling football games, given football’s ability to promote non-sports related prime-time shows. …show more content…

CBS’s CEO felt strong pressures to rejoin the NFL family since its ratings declined after missing out from 1994 to 1997. Given the level of excessive demand, the only way to stay with the competition was by also bidding at a higher level. However, both networks also had significant leverage to pull as well. Collectively, if CBS and NBC could convince other networks to forgo TV rights to NFL broadcasting, thereby reducing demand, this may force NFL to release more games for TV use. And since the NFL allocates much of the contract money to pay each team, teams could place significant pressure on NFL to lower prices and increase distribution rights in order to sustain the same salary level for the players. If teams were forced to individually negotiate with local or regional broadcasters, this would limit NFL’s popularity/views and bring more headaches to commissioners. The NFL also has the risk of overexposure due to the fact that NFL Sunday Ticket, a joint venture with NBC, was available to dish owners with the opportunity to view out-of-market games on Sunday afternoons. Again, this fragmentation of audiences, due to increased specialization of broadcasting and cable TV networks, would further limit the league’s ability to deliver unique content. Lastly, the NFL Network hasn’t been that successful with cable providers; only DirecTV carried this network, which severely hampers content

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The biggest percentage of shared revenue is generated from the league’s national television agreements. TV rights fees will grow to $4.9 billion in 2014 and will increase again in 2015 once DirecTV’s agreement is extended. The genesis of the NFL’s revenue-sharing model is embedded in its longstanding television rights practices. At the start of the 1961 season, CBS held broadcast rights to each NFL team except the Browns, who had a regional broadcast agreement with Sports Network Incorporated (SNI).

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The National Football League is an integral part of American culture, practically owning a day of the week. Though they do not release their annual financial data, they are valued upwards of $45 billion placing them tantamount with some of the world’s largest companies. However, the current corporate structure significantly limits its organizational effectiveness; recently, the organization’s culture and questionable practices have been largely scrutinized. Although the National Football League continues to generate high revenues due to favorable competitive forces, we recommend they provide a more sustainable product with a focus on public perception to address issues of misfit and centrality.

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1010 Words | 5 Pages

In the article titled, “Arrogance, Deceit, Oversaturation At Root of NFL’s Ratings Decline”, CBS Boston writer Michael Hurley provides a long list of reasons as to why he believes the usually strong viewership and high ratings of the NFL on TV have gone down dramatically this year. Hurley touches upon a myriad of varying potential causes for the decline of the NFL’s ratings in order to provide his audience, likely sports fans, with an idea as to what exactly is going on to create such a problem. Although Hurley notifies the audience of various factors that may be causing the ratings to go down, his argument lacks depth and credibility due to an evident lack of ethos. Furthermore, Hurley seems to undermine the problem’s complex nature by hastily

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1992 Words | 8 Pages

(Pro Football Hall of Fame 1). The NFL shared its game on TV at the world’s fair in New York and broadcast the event to a small number of people who owned a TV. Although technology then had to improve and TVs had to be more common for this media to become popular which came true. “Coverage of the NFL increased in newspapers across the country” (“All Decades” 1). When people saw the NFL in newspapers they became interested and more people became fans.

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714 Words | 3 Pages

According to Statista the average price for a regular season game is $93 and the Super Bowl's average ticket price is $4000. The NFL has the ability to jack up ticket prices based on how important the game is or how good the teams are meaning the games aren't about the fans it's about making the maximum amount of money. The NFL also have the ability to set rules and equipment regulations since they are the governing body of football. Another thing the NFL proving it has a monopoly is it’s complete control of ruling when games are played. College football games are usually always saturdays, then on Sundays, Monday Night, and Thursday Night the NFL takes up all the remaining TV time.

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874 Words | 4 Pages

To most people, the National Football League is merely the provider of Monday night, Thursday night, and Sunday entertainment- professional football. However, George Dohrmann, in his essay “Hooked for Life: Inside the NFL’s Tobacco-Style Strategy To Hook Your Kids,” discusses the aggressive marketing tactics used to sell kids on a dangerous sport. In order to create long-lasting viewers, the league tries to instill the love of the game to elementary-age kids. Dohrmann easily persuades an audience of parents by explaining who is targeting them and their children, why they are being targeted, and how they are being targeted in an ad campaign to allure their kids into playing football. He even offers a seemingly-perfect solution to this dilemma.

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1497 Words | 6 Pages

Also stated by Forbes that in it’s yearly ranking, NFL groups represent six of the worlds ten most profitable sports establishments and that they are the main alliance in the world with an average group endeavor estimate of well over $1.2 billion. In the year 2008, it consolidated the income of the 32 groups and the total came to the crazy number of $7.6 billion. A large amount of that came from the TV bargains, other key sources are ticket deals, stock deals as well as corporate sponsorships. It is a fact that the NFL has been a cornerstone of development when it comes to professional sports. It completely takes over the TV on Sunday evening, its recreation is constantly put among the most sat in front of the TV programs which was stated by Nielson’s TV

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1350 Words | 6 Pages

Besides, I agree with what Almond said and I know employees, the players, and the owners would never earn the same amount of salaries. The owners of the company would make lots of money and become billionaire. They exploit their consumer and players just so they can earn money. Making money is what they are going for and they are not concern about other things unless it related to them. I know NFL company owner are making millions of dollars each year just buy

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1475 Words | 6 Pages

This gave them the opportunity to make more money which in turn helped grow the organization. This made it where they could get better players and when the team gets better the more fans the team will have. The NFL ended up selling the rights to televise the games to Columbia Broadcasting System (CBS). One of the only downsides to the televising of games is if the games

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883 Words | 4 Pages

America and many other countries enjoy the sport of football. Fans worldwide watch and follow NFL games and all the problems that occur during games, by players, coaches, team, even fans. All fans want to see the players, coaches, and teams, be punished fairly for something they do on or off the field. But, it was noticed that the certain punishments being dealt, were extremely unfairs and are unjustified. As time went on it was noticed even more that, these unfair and unjustified punishments began to become too much for the players, coaches, team, and fans to have to see and hear about.

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979 Words | 4 Pages

Meanwhile, the NCAA makes $11 billion from a contract with CBS. The benefits that these players are collecting “have led to a black market for compensating athletes” (Birkenes and

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489 Words | 2 Pages

For example Michigan football is on national T.V every week of the season. An example is espn which is a 40 billion dollar company. So they would get money from whoever was broadcasting them. Also they have one of the highest count

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Definition: Ideology is ideology and values of the nature of the good life, the social, economic, moral values, and the role of government. "Liberalism" and "conservative spirit" are the two dominant system of beliefs and values in America and Texas life today 1/ Ideology Conservatism: - Basic Principles of conservative economic policy is economic floating, but conservatives practice often pursue "economic floating false," that is, the affirmation of economic theory does not follow law what practices produce results both best practices connected with support of government policies help business overcome difficulties in marketplace. - Often described as being on the "right-wing" of the political trends, conservatives argue that the economic

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1662 Words | 7 Pages

That year, ABC Sports innovator Roone Arledge teamed up with NFL commissioner Pete Rozelle to launch "Monday Night Football," an instant hit on prime-time evening television. Professional football franchises, which had once struggled for attendance, became businesses worth millions of dollars. Although the players' salaries rose, they would not reach the levels achieved by major league baseball until the 1990s. Strikes in 1974 and 1987 led to victories by the owners, who effectively blocked the free agency that had resulted in soaring salaries in major league baseball.

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791 Words | 4 Pages

In the early stages of the American Football system, most players had to have a normal day job on top of playing, because there was no money to be made in pro football.” (Two Sides To Every Coin, are Professional Athletes Paid Too Much? BleacherReport.com) Do you know those animal commercials that shows all those pets stranded, hurt, hungry, thirsty that need a home? Well if national athletes weren’t paid so much, money could go toward them instead of relaxing on a couch with food and popcorn while animals and people suffer and in some circumstances,

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