Bargaining chip: The NBA is using access to its data stream as leverage for a piece of the sports betting action.
The big picture: Both the NBA and MLB believe they should directly benefit from sports betting through “integrity” or “royalty” fees. The leagues are pushing state legislators for ≈ 0.25% of total bets placed.
The big question: Fans want to expand the college football playoff from 4 teams to 8, but how much more revenue would it generate?
Quick math #1:
1) ESPN pays $608M per year
2) 3 games are currently played
3) ESPN pays ≈ $200M per game
4) 7 games would be played in the expanded field
5) If $200M/game held, then an additional round of 8 would generate $800M in additional revenue
Sports are becoming more reliant on media rights fees even as traditional TV faces challenges.
Share of sports revenue for media rights according to PwC:
1) 2013–22%
2) 2014–24%
3) 2015–26%
4) 2016–27%
5) 2017–28%
6) 2018–28%
7) 2019–29%
8) 2020–29%
9) 2021–29%
10) 2022–30%
D’oh! Last week we wrote about the potential bidders and left out potentially the most disruptive in Amazon.
Flashback: The bids are in for RSN sale
The final bids were due last week for the 22 regional sports networks (RSNs) that are being sold as a part of the Disney/Fox deal.
All 22 RSNs could fetch up to $22B according to some estimates.
66 different prime-time shows are returning to broadcast this year.
…
Estimated World Cup advertising:
1) Global — $2.4B
2) U.S — $600M (25% of total)
Quick math:
1) 7.6B is the global population
2) 3.5B will watch World Cup from 200 different countries
3) 1 out of every 2.2 people on earth will watch part of World Cup
