NHL’s next TV deal will test the league’s strength while media companies prepare for NFL rights increase
How do the world's biggest media companies judge the value of non-NFL rights? The NHL is giving us our first window into a new era in media values.
The NHL's upcoming TV deal presents a significant test of the league's value in the current media landscape. With the NFL's rights fees expected to increase substantially in its next deal, media companies are likely to be more cautious in their bidding for other sports properties. The NHL, as one of the most prominent non-NFL sports leagues, will provide a key indicator of how investors perceive the value of its content.
The NHL's current TV deal, which expires soon, generated approximately $1 billion in annual revenue. Any significant increase in this figure would suggest that media companies still view the league's content as a valuable asset, capable of drawing large audiences and driving engagement. Conversely, a flat or declining deal would indicate that the league's value may be waning. This has implications for other sports leagues, such as Major League Baseball and the National Basketball Association, which will also be negotiating new TV deals in the near future.
As media companies prepare for the NFL's rights increase, expected to exceed $7 billion annually, they will likely be more discerning in their bidding for other sports properties. This could lead to a more nuanced evaluation of the NHL's value, taking into account factors such as its growing popularity, digital engagement, and the increasing importance of streaming services. Investors should watch the NHL's TV deal negotiations closely, as they will provide valuable insights into the evolving media landscape and the shifting priorities of media companies.
Originally reported by cnbc.com. FundNews adds analysis for finance & markets readers.