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Old 03-12-2007   #1
gjmac2
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Default Is CBS, Fox, NBC and ESPN losing money?

I just thought I would get opinions here. I had an arguement with a friend of mine, who claims that the networks are not losing money on the NFL contract. I think the networks are losing money. Anyone out there have a opinion or know for a fact that the networks are losing money?
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Old 03-12-2007   #2
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Default Re: Is CBS, Fox, NBC and ESPN losing money?

NFL is the most popular sport in the nation. There is no way that they are losing money.
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Old 03-12-2007   #3
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Default Re: Is CBS, Fox, NBC and ESPN losing money?

Next time you watch an NFL game, take note of how often commercials come on. The networks get paid for every time that someone advertises.

No way that they're losing money.
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Old 03-12-2007   #4
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Default Re: Is CBS, Fox, NBC and ESPN losing money?

ESPN is, for a fact, losing money, but the other networks are able to plug their own shows and any lost money could be seen as simply advertising costs.
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Old 03-12-2007   #5
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Default Re: Is CBS, Fox, NBC and ESPN losing money?

They're losing tons of money--that's why they keep renewing their deals for more and more money.
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Old 03-12-2007   #6
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Default Re: Is CBS, Fox, NBC and ESPN losing money?

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Originally Posted by infantrycak View Post
They're losing tons of money--that's why they keep renewing their deals for more and more money.
Drayton McLane claims he is losing money every year as well...

It boils down to "creative accounting". ESPN/Cap Cities/ABC/Disney is well known for its accounting practices..
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Old 03-12-2007   #7
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Default Re: Is CBS, Fox, NBC and ESPN losing money?

I've read that the cost of producing NFL games, with the amount of equipment and personel X multiple games, costs the networks more than they make in advertising revenue (especially when you factor in the amounts they are paying the NFL for those rights). But the tie-in to other shows is what makes it an appealing deal.

Of course, it could be chaulked up to creative accounting, but I just remember reading this in the past.
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