Disney Needs the NBA and NFL
Sports fans are loving the overlap of NBA playoff basketball and working from home, but no one loves it more than ESPN and Disney, which is the media company that can gain the most from the return of live sports.
Disney funnels money into the NBA: ESPN will pay the NBA about $1.4B each year through 2025. That's the most by any media network. The other big buyer is Turner, which will pay about $1.2B/year, according to Sports Business Journal.
Disney's exposure to live sports is unmatched: Dis paid $5.8B in media rights payments for live sports content in 2019, more than any other network. Media rights fees for live sports represented 52% of ESPN's total costs.
Other biz categories on hold: "Because many of DIS's other business segments are paused during COVID-19 (ie, theme parks, cruise ships, film releases. etc) we believe DIS is the biggest beneficiary of live sports (especially the NFL and NBA) returning to TVâ - Needham analyst Laura Martin.
NFL cash cow: ESPN drops $1.9B/year for NFL media rights. Part of the reason the NFL is the most valuable sports league in the U.S. is the growing demand from advertisers. Ad revenue for the NFL has increased by almost 66% Since 2016, according to data compiled by Needham.
