TV Sports Plays by Its Own Rules

2016 08 04   Peter Feinstein   TV and Ratings    

We Americans love our sports. Because of that, advertisers do too.

So, finding ourselves on the heels of Wimbledon and the Euro 2016 soccer championship, and on the cusp of the 2016 Summer Olympics, here are a couple of thoughts on TV sports advertising.
Writer Anthony Crupi posits that all the major sports-broadcasting deals have been locked up: “For all intents and purposes, there are no more major sports portfolios left to be acquired. The cupboard is bare and will remain so through the start of the next decade.”

Every time I read that we’ve reached the end of the rainbow, I remember it’s just someone trying to run counter-culture and be the first to correctly predict the future. And while they certainly mean no harm, they just don’t seem to understand the notion that the sports and entertainment industries are not bound by common sense.

They play by a different set of rules, by which the only thing that matters is leverage. If there’s still room to leverage multiples against a spend, they’ll do it. To me, these most recent deals are simply that. Not the last, just the most recent.
For ad buyers, the intention people bring to viewing content is the key to determining value. Whether live or purposely delayed for later consumption, it is the viewer’s intention that determines real value.

The sports and entertainment industries are not bound by common sense.