The report that the NFL will receive ongoing payments from DirecTV as part of the Sunday Ticket package even if there’s a work stoppage in 2011 seemed too good to be true.
And, apparently, there’s a good reason for that.
An industry source tells us that provisions of this nature are standard practice in broadcast deals relating to pro sports.
“All sports league media deals are structured so payments continue in a lockout or strike,” the source said. “The money is then deducted off future years. . . . The news would have been had this not been the case.”
So, if the past practice applies in the present case, DirecTV would earn back its $1 billion for 2011 by reducing the payouts in 2012, 2013, and 2014.
This development bolsters our belief that the league’s current goal is to apply as much pressure on the union as possible, in the hopes of working out a deal and avoiding a work stoppage.
The league has done a good job of creating the impression that it wants one, and the league surely hopes that the posturing will result in a new deal containing significant concessions that favor management.
DirecTV “Guarantee” Would Likely Reduce Future Payments
Published March 24, 2009 11:25 AM
