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Old 11-18-2011   #1
badboy
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Default Television money

In last day or two on some thread, I read a question about off season moves (free agency) and Texans Salary cap. I found the following info concerning television money to NFL and am sharing. I will link each company as to where I got the info. Any math issues should be taken up with my teachers.

ESPN: many are aware of this as it was settled during the recent CBA being cobbled together. As I understand ESPN was paying $1.9 Billion to NFL per year. New contract signed this summer goes into effect 2013 & through year 2021 is a 73% increase to $3.8 B per year. Divided by 32 = $11.9million per team per year beginning 2013.
http://www.nytimes.com/2011/09/09/sp...lion.html?_r=1

NBC: in 2009 extended contract from 2011 thru 2013 increasing annual from $600m to $612m for 2012 & 2013. It seems most think the new deal beginning 2014 will be much higher but not upto ESPN (who gets more games).
http://views.washingtonpost.com/thel...-with-nbc.html

CBS: While more vague, it appears CBS is paying $625m per year thru 2013 & will re-negotiate as will NBC. Note that Moonves says 2012 will be very profitable for all as advertising for Presidential election will boost profits.
http://latimesblogs.latimes.com/ente...-politics.html

Fox: was hard to find anything other than $4.27B per year and after receiving telephone I lost my link. It also expired 2013 as I recall.

Telemundo: could not find any contractual amounts but was recently renewed.

It seems that each NFL team will have apprx $12million per year beginning 2014 from ESPN alone. By guesstimating I think a minimum of $5 million per year per team could be added.

IMO Texans (and other NFL teams) should have additional $17 million per year increase in salary cap.

In summary, Texans can sign free agents such as Mario Williams, Foster, Matt Schaub, Dreesen, Myers, etc easily by backloading.
Current annual salary cap

Mario: $15m decrease to $10m= -$5m
Schaub: $7 increase to $12m = +5m
Myers: $ 3.5m increase to $5m= + $1.5m
Foster" $.5m increase to $5m = + $4.5m
Dreesen $ 1.2m increase to $2m = + $1m

Total increase:$7million per year for these players. Other roster player increases would be paid by yearly increases in revenue from sources such as tickets, commercial interests, newspaper, radio, etc.

The remaining $10m from television would go for draft allowing any remaining balance (after signing rookies) to go toward other team free agents.

Your thoughts?
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Old 11-19-2011   #2
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Default Re: Television money

Good research. Thanks.
Like you said, with favorable contract structuring, we can keep all our key guys

...or sign some new ones.
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