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Friday, September 7, 2018

Report: Wall Street To Be Watching NFL TV Ratings

The NFL’s TV ratings are being monitored on Wall Street, with some financial analysts saying that another big ratings drop could affect the standing of some broadcast companies.

“We continue to believe the NFL is the single biggest swing factor for media earnings and valuation,” read a research note released Thursday from MoffettNathanson.

“Any sign of continued NFL ratings weakness could pose a long-term risk for broadcasters who may be forced to bid up for rights.”

According to sportsbsinessdaily.com, the most interesting part of the report looks into the next round of rights negotiations, with the report suggesting that ESPN should drop its “MNF” package in order to pursue “SNF” instead.

The report calls Disney’s current “MNF” package a "rotten deal with … a cost/rating point ratio that is 260% to 400% more expensive than any other package."

The report goes on to say, “One of the more interesting theories that we still think has a higher probability of playing out is if Disney instead targets the more valuable, but lower-priced Sunday Night Football package, currently at NBC. We believe Disney should reclaim the Sunday primetime package by paying a significant premium to the existing costs. Even if they pay $900 million more per year, it is a better economic outcome than keeping MNF”

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