US Markets
Thursday, January 4th, 2024 6:48 pm EDT
Key Points
- Landmark Media Rights Deal: The NCAA and ESPN have finalized a groundbreaking eight-year media rights deal, surpassing $115 million annually. This represents a substantial increase, approximately three times more than the previous 14-year deal valued at about $40 million per year. The agreement, effective from September 1, 2024, to 2032, encompasses rights to 40 NCAA championships, including 21 women’s and 19 men’s events. ESPN gains exclusive championship coverage across various sports, such as women’s basketball, women’s volleyball, women’s gymnastics, softball, baseball, and FCS football, as well as international rights to these championships and the Division I men’s basketball championship.
- Significant Emphasis on Women’s Sports: The deal underscores the growing prominence of women’s sports in the media landscape. Approximately 57% of the deal’s value is attributed to women’s college basketball, according to consulting partners Endeavor’s IMG and WME Sports. ESPN’s successful airing of events like the NCAA women’s basketball tournament and the WNBA playoffs has contributed to the rising popularity of women’s sports, as they achieve record ratings in recent years.
- Impact on Student-Athlete Benefits: The NCAA’s significant increase in media rights value, driven by this deal, is expected to have a positive impact on student-athlete benefits. Alongside the new media rights terms, enhancements to student-athlete benefits across all three NCAA divisions are slated to take effect. The NCAA aims to use the additional revenue to explore revenue distribution units for the women’s basketball tournament, addressing concerns of inequality that arose during the previous year’s tournament. This move reflects a commitment to improving facilities and support for women’s sports. The long-term deal is a continuation of the more than 45-year relationship between ESPN and the NCAA, dating back to ESPN’s launch in 1979. As the NBA prepares for the next major professional sports rights negotiations, the NCAA’s groundbreaking deal sets a notable benchmark in the evolving landscape of sports media rights.
The NCAA and ESPN have entered into a new eight-year media rights deal, marking a significant increase in value, exceeding $115 million annually. This new agreement is approximately three times the worth of the previous 14-year deal, which amounted to about $40 million annually. An additional 25%, totaling $28.75 million annually, will be allocated for production and marketing costs, as confirmed by an NCAA spokesperson. The deal, effective from September 1, 2024, to 2032, grants ESPN exclusive rights to 40 NCAA championships, including 21 women’s and 19 men’s events. The coverage spans women’s basketball, women’s volleyball, women’s gymnastics, softball, baseball, and FCS football, also including international rights to the championships and the Division I men’s basketball championship.
ESPN Chairman Jimmy Pitaro expressed enthusiasm about the longstanding collaboration between ESPN and the NCAA. The deal positions ESPN as the primary, multi-platform home for showcasing NCAA championships, promising growth potential and an enhanced experience for viewers and student-athletes, as stated by NCAA President Charlie Baker. The landscape of sports media has witnessed a surge in the popularity of women’s sports, with record ratings in recent years. The deal’s value is notably tied to women’s college basketball, constituting around 57%, as highlighted by Endeavor’s IMG and WME Sports, consulting partners for the NCAA in the deal.
The substantial increase in the NCAA’s media rights’ worth is expected to facilitate exploring revenue distribution units for the women’s basketball tournament, a significant topic discussed by the organization last year. This move aims to address issues of inequality, with complaints surfacing on social media about disparate facilities during the women’s tournament compared to the men’s. The NCAA emphasized that alongside the new media rights terms, various enhancements to student-athlete benefits across all three NCAA divisions will take effect. The deal is anticipated to support important programs and contribute to the visibility of NCAA sports, particularly for women student-athletes.
The partnership between ESPN and the NCAA has spanned more than 45 years, dating back to ESPN’s launch in 1979. The agreement comes at a time when the sports media landscape is witnessing significant shifts, and women’s sports, in particular, have garnered increased attention and record ratings. ESPN’s airing of events like the NCAA women’s basketball tournament and the WNBA playoffs has been integral to this success. Looking ahead, the NBA holds the next major professional sports rights negotiation, with talks underway as the league aims to reach decisions before the expiration of the current deal following the 2024-25 season.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/04/ncaa-and-espn-ink-8-year-920-million-media-rights-deal.html
