http://www.examiner.com/x-426-Sports-Examiner~y2009m3d24-Directv-deal-with-NFL-might-help-with-lockoutMarch 24, 4:44 PM
Peter King of Sports Illustrated had this to say about the new deal announced today between the NFL and DirecTV:
In securing an incredible rights fee from DirecTV to air games on satellite TV...the NFL got lockout insurance."
King's point is made as a result of the contract provision which guarantees the league its yearly payment whether games are played or not. That payment will be raised to a cool $1 billion from the current rate of $700 million per year.
It turns out this is not a unique provision. It is customary in media rights deals with networks. But what if the guarantee provision was coupled with one that allowed the network to get their payment back over the course of the remaining years of the contract? According to a source close to profootballtalk.com, that is the case.
Then it might not be insurance. That would entail being compensated in total or close to it with a deductible. In this case the deductible is a killer. The network will shave a third of the payment made during a lockout year in each remaining year under the deal.
Seems to me that's only putting off the inevitable big hurt. What would the league have to do in the event it finds itself in that kind of hole? Maybe not stay at the St. Regis in Dana Point for its owners' meetings. Now that would really be rough.
For details on the new contract between the NFL and DirecTV, read our Sports Media Examiner, here and our Tampa Bay Sports Examiner, here (These work at link)
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