BREAKING: TV Networks and NFL Both Enjoy Adding to Their Sizable Piles of Money

The source of over $3 billion/year in NFL revenue isn't happy.

Sources from the NFL's TV rights holders -- which include CBS, NBC, ESPN, and Fox -- are upset that the NFL doesn't do enough to encourage their marketing partners to advertise on TV, and specifically, the Super Bowl.

Ads on CBS's broadcast of Super Bowl XXXLI cost $2.6 million per 30 seconds, which certainly isn't priced to move. But bear in mind, the networks are limited as to which sponsors they can accept -- certain NFL partners (Anheuser-Busch, for example) have exclusive deals shutting competitors out of TV ad spots (which is why you don't see any Coors ads on the Super Bowl) -- which significantly limits the pool of prospective buyers for that pricey 30 seconds of TV airtime.

That being said, it's hard to see the Networks as the hero in this story, for a couple of reasons.

1.) The first problem with rooting for the Networks here -- they're the TV networks. They broadcast a ton of crap, and the few shows we like, they typically take from us prematurely, or stretch out for so long they ruin any good feelings we had about the show.

And then there's the more directly applicable complaint -- they gunk up our football broadcasts with more tickers, bugs, experimental cameras and angles than anyone should have to endure. Maybe the fact that people are on the verge of having seizures during broadcasts is playing a role in less advertiser interest.

2.) The second problem is, they were the ones who signed the $3 billion dollars in the first place. And when I read statements like this:

NFL representative Brian McCarthy said NFL official sponsors last season spent a combined $410 million on NFL telecasts during the regular season and playoff games, excluding the Super Bowl.

I'm no mathematician, but if they only made $410 million beyond the Super Bowl on advertising, they've have to sell a lot of $2.6 million dollar ads to make up all of that $2.59 billion on the season's final game.

And we know they don't. The Networks themselves sell these sort of deals as the tentpole that helps them to promote their other shows, and in turn, help promote the overall health of their advertising inventory. Which, takes us back to point #1 and all those bugs and ticker messages driving us to watch the rest of their fine programming lineup. Because something's gotta get viewers to tune in to whatever show they're putting David Spade in this year.

It's a neverending saga, and I suppose one we'll just have to live with -- the NFL value keeps rising, and the 'always look over your shoulder' attitude of the media business will lead to continued bidding wars, followed by the frantic scramble to monetize, which translates to a broadcast focused on attracting "new viewers" far more than satisfying the core audience.

In closing, I leave it up to you -- the NFL or the TV Networks -- who's the villain in this story?

Filed under: Sports