PGA Tour Expediting TV Rights Deal To Avoid NFL, Believes Golf Needs A Second "Linear Channel"
/I got a chance to read the longer version of John Ourand and John Lombardo’s SBD piece on the PGA Tour rights fees and beyond the summarized version I posted about yesterday.
There were several interesting nuggets shared by Rick Anderson, who will head the Tour’s negotiations.
Ourand and Lombardo call the timing “aggressive” given that it could create an awkward situation with existing partners for two full seasons. Or…
If the PGA Tour signs new deals with CBS and NBC, it will be able to add new features two years early. If it moves on from CBS and NBC, the tour believes that it will need those two years to develop a new channel and digital presence.
Another reason for the tour to move early is to take advantage of an overheated media rights market before the NFL comes in and takes over a sizable piece of that market. The NFL’s deals are up in 2021 and 2022, and all indications are that the $5.5 billion of linear TV rights deals that the league collects annually will see a huge increase.
The NFL is also pushing hard to expand its season deeper into February, which could impact who might be interested in fall or west coast events.
The Tour also seems to believe there is a need for a lot more golf on television, including options to pay for the privilege of seeing every shot from every player if someone chooses to:
Anderson said he is looking for one or, potentially, two linear channels. He pointed to the content it has from the PGA Tour, LPGA, PGA Tour Champions and Korn Ferry tours as evidence that the tour has enough content to fill two channels.
“When you start talking about capturing every player and every shot, the digital platform is where that would come to light,” he said. “We know that our opportunity extends beyond the current business model of cable and a linear channel. We can build a real digital platform that has content that people will pay for and in a different way than any other sport can do.”
I’m thinking you could call it PGA Tour Live. Just a thought!
It will be fascinating to see how many streaming services believe they can sell subscriptions with golf as part of their package. It’s hard to see HBO Max and ESPN+ feeling that adding golf will be that final piece getting someone to pay $20 a month.
In sizing up the bidders, SBD’s assessments beyond the expected interest of CBS, NBC and Golf Channel featured surprising notes, presumably shared with them by Anderson:
Discovery
Discovery signed a 12-year, $2 billion deal for the PGA Tour’s international rights. It paid $30 million to $35 million for Golf Digest this spring. But Discovery has not showed interest in the tour’s U.S. rights.
What happened to Netflix for golf on our phones? Oh right, when you’ve got to cover the CEO’s absurd compensation package, it’s hard to start a new channel.
ESPN
Much of ESPN’s interest revolves around its streaming service ESPN+. But new President Jimmy Pitaro has expressed interest in the PGA Tour’s linear rights, too.
Don’t count out ABC, where golf’s demographic actually would watch in numbers that sponsors care about.
Fox
Sources say Fox is not interested in a big PGA Tour package, but the tour hopes it will want tournaments around the U.S. Open to help streamline its production and sales processes around the sport.
The new U.S. Women’s Open date rules out the Memorial going to Fox two weeks out from the men’s U.S. Open, meaning an RBC Canadian or Rocket Mortgage could be in their future?
WarnerMedia
WarnerMedia has showed a lot of interest. Last week, AT&T’s Randall Stephenson said he is in the market for live sports rights for the company’s planned direct-to-consumer streaming service HBO Max. PGA Tour rights would fit that bill.
And since he gets to have a say as part of the PGA Tour Policy Board, you have to like his chances.