Dublin
\nOn Monday morning, executives at all the major media companies in the sports space received an email inviting them to make their best pitch for what is likely to be the biggest TV and streaming sports rights deal of the year: The U.S. rights to UEFA, including the UEFA Champions League.
\nLeague officials and their U.S. commercial partner Relevent Sports Group are banking on growing interest in European soccer, and the need for big exclusive sports content on streaming, to turbocharge the new agreement, which will kick in with 2024-2025 season.
\nAccording to someone familiar with the talks, Relevent and UEFA are seeking a 6-year deal, and are expecting a big result, particularly following NBCUniversal\u2019s deal to retain English Premier League rights last year. The 6-year EPL deal, which includes live games on USA Network, Peacock, NBC and Telemundo, was worth some $430 million annually, or more than $2.5 billion over the course of the deal.
\nBut while there is an expectation of a similar financial outcome, the new UEFA media rights tender offer isn\u2019t just about the economics. The source involved in the talks said that the first round of bids \u2014 which are due August 15 \u2014 are also expected to include detailed marketing and distribution plans, as well as a breakdown of what matches would be on streaming vs linear, etc.
\nEvery major media company is expected to take a look at the package, including the major traditional players like Disney\/ESPN, CBS\/Paramount, Fox, NBCUniversal and Warner Bros. Discovery, joined by streaming players like Apple and Amazon.
\nIt is also possible rights could be broken up (it will depend on the results of the tender that is now open), though UEFA is not expected to approve any more than two packages.
\nThe UEFA rights may be of particular interest to companies looking to invest in their own streaming offerings. With the U.S. leagues like the NFL and NBA still mostly focused on linear television, UEFA appears open to packages that features a heavy streaming component. Given UEFA\u2019s younger than average fanbase, streaming may make sense as a primary delivery mechanism, even if linear can still drive eyeballs.
\n\u201cThis product attracts a young, diverse audience, which is an important part of the strategy, particularly as it relates to streaming,\u201d the source said.
\nAfter the bids come in next month, UEFA and Relevent are expected to move quickly, with a deal hopefully locked up by the start of the 2022-2023 season, which kicks off in September.
\nSports rights continue to skyrocket in value, even as linear TV continues its slow secular subscriber decline.
\nWhile the recent 10-year, $100 billion-plus rights deals for the NFL remain the benchmark for rising rights values, all major sports are seeing their potential TV and streaming revenue rise.
\nThe major cause is streaming, with legacy partners like ESPN, CBS and NBCUniversal all investing in their own streaming services (ESPN+, Paramount+ and Peacock), while also looking for rights to keep their linear channels generating cash.
\nMeanwhile, new entrants are beginning to seriously invest in sports. In particular, Amazon and Apple are securing significant rights and making competitive bids, with Amazon set to become the exclusive home for NFL Thursday Night Football later this year, and Apple recently inking a long-term deal with Major League Soccer. Amazon also secured UEFA rights in the U.K. earlier this year.
\nAnd after the UEFA deal wraps up, all eyes will turn to the NBA, which is also seeking to renew its deals ahead of the 2024-2025 season, and is likely looking at a deal that will be second to only the NFL when it wraps up.<\/p>\n","protected":false},"excerpt":{"rendered":"
Dublin On Monday morning, executives at all the major media companies in the sports space received an email inviting them to make their best pitch for what is likely to be the biggest TV and streaming sports rights deal of the year: The U.S. rights to UEFA, including the UEFA Champions League. League officials and […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":{"0":"post-270880","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-sports"},"yoast_head":"\n