It might also help offset their steadily declining revenues, lol.
I know that's most likely why they're doing it but I could never understand how exactly they're expecting it to work out. Renegotiate TV contracts? Are the advertisers actually going to pay more? For what exactly? Am I supposed to drink more beer than usual just because there is an extra NFL game?
It seems to me that it's a zero sum proposition, same money will get spread a bit thinner, there won't be hordes of new fans bringing new money, and existing fans may be more likely to skip one or two games because there will be more of those where top players are resting before playoffs etc.
They already have renegotiated the
broadcasting contracts for the next twelve seasons. It was mandated by their Collective Bargaining Agreement that a contract had to be accepted by at least one major broadcasting network before they could have a 17
th game. According to the article the contracts are worth $10 billion per year, but I don't know how that compares to the last contract. I assume it's significantly more, since the contracts are usually for a minimum of three years, and most at least five.
It's a doomed recipe, in my humble opinion. The games are already a chore to watch with so many commercial interruptions, and the commercials themselves seem to get more and more annoying. This new broadcasting agreement isn't likely to move things in a positive direction. There were only a few games that I sat down to watch live during this last season. Most of the time I start a half-hour late, and fast-forward through the bullshit, get caught up by half-time, and do the same thing for the second half. It seems like at some point the advertisers will get wise to this trend and stop paying so much for advertising. But what do I know, maybe it's worth it to them?
Take the new ABC contract for example; they're paying $2.7 billion per year for 19 games per season, and two super bowls in the next 12 years. Just taking averages, a football game broadcast is about 3 hours long, and only about 1 hour and 20 minutes is dedicated to the game or announcer chit-chat. That leaves about 1 hour and 40 minutes for commercials. Again, on average ABC is paying about $140 million per game. Just to break even, they have to charge about $700k for each 30-second long advertising slot. Just to BREAK EVEN! Like most retailers they have to make at least a 30% margin to be profitable, so that means they have to charge, on average $1m per commercial...
So, next time you're paying your car insurance bill recall how many of those time slots were occupied by the company to whom you're writing that check. Makes you wonder.