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Media Rights Fees For Lower Rated Sports Are Soaring – Forbes

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With live sports dominating TV viewing trends and a number of networks vying for the rights to televise games, the rights fees for lower rated sporting events have been escalating. Besides the 10-year $2.5 billion agreement Major League Soccer struck with Apple TV+, several other agreements have been reached over the Summer including Formula One racing, The UEFA
EFA
Champions League and colleges Big Ten Conference with notable media rights increases.

Besides potentially strong ratings, there are several other reasons for the increase in media rights fees. The first is to keep these events from going to such deep pocket video streamers as Apple TV+ and Amazon
AMZN
Prime. Another reason is the rights fees of such popular sporting events are locked up for years. These include the NFL (expires in 2033), Olympics (expires in 2032), Men’s “March Madness” (expires in 2032), MLB (expires in 2028) and NHL (expires in 2028). Another common thread has been that live sporting events are airing more and more on broadcast television.

Formula One Racing: In late June Sports Business Journal reported that Formula One Racing has extended their U.S. media agreement with Disney. Under the new three-year deal, Disney will pay between $75 million to $90 million annually. This is a sizable increase from the $5 million annual agreement Disney had made with F1 racing back in 2019 which runs out this year. With the new agreement, most F1 races will air on either ESPN or ABC. A few races will also be streamed on ESPN+. The new deal expires in 2025.

It was reported F1 Racing had rejected bids from Comcast
CMCSA
and Amazon, with Amazon even offering more money than Disney. Comcast’s offer was said to be in line with Disney’s, with part of the proposal having a handful of races streamed on Peacock. It is expected in 2023 that, in a first, there will be three races held in the U.S. (Austin, Las Vegas and Miami) with an additional three to be held in time zone friendly locations (Mexico City, Montreal and Brazil).

F1 ratings have been improving in the U.S. This year, through the first five races on ESPN, viewing has increased year-over-year by 49%. In July, ABC aired the Formula One race in Miami which averaged a record 2.4 million viewers. Also, helping to increase interest in F1 has been Formula 1: Drive to Survive which provides viewers a behind-the-scenes look at the sport. The docudrama has been streaming on Netflix
NFLX
over the past four seasons.

UEFA Champions League: Another recent negotiation reporting a sizable increase in U.S. media rights fees was soccer’s UEFA Championship League with Paramount. In August, Paramount renewed their U.S. English language agreement with a six-year deal valued at $1.5 billion. The Hollywood Reporter says the price is 2.5 times higher than the current pact between Paramount and UEFA.

With two years remaining on the current contract, Paramount will be the U.S. home for the UEFA Champions League through 2030. With the U.S. being one of the host nations to the 2026 FIFA World Cup, it is expected soccer’s popularity will continue to grow. The UEFA is still negotiating its U.S. Spanish language media rights agreement.

Reportedly Paramount outbid other prominent media companies including Comcast which was bidding on both English and Spanish language packages. Amazon was reportedly in the final round of negotiations with Paramount. Amazon has the U.K. rights to stream UEFA Champions League.

Founded in 1955, the annual UEFA Champions League tournament begins in late June and involves the leading soccer clubs across Europe. The tournament has a round-robin stage with qualifying clubs advancing to a double legged knockout round followed by a single elimination championship match. Real Madrid is the current champion.

Big Ten Men’s Conference: Of late there has been a lot of movement with colleges and athletic conferences. For example, last year Texas and Oklahoma, two of the most prestigious Big 12 football schools, announced they were leaving to join the Southeastern Conference (SEC). A few months later The Big 12 announced they would be adding Cincinnati, Brigham Young, Houston and Central Florida to its conference. College movements have continued into 2022 when in July UCLA and University of Southern California announced they were leaving the Pac-12 to join the Big Ten in 2024.

The addition of the two Los Angeles based schools made the 16-school Big 10 a nationwide conference with east coast schools Rutgers and Maryland joining in 2014. The Big Ten will have a local school presence in the four largest TV markets; New York (Rutgers), Los Angeles (UCLA and USC
SC
), Chicago (Northwestern) and Philadelphia (Penn State). The surprise announcement came prior to the Big Ten’s record media rights agreement.

In August the conference reached a seven-year, $8 billion agreement (averaging over $1 billion per year). The new rights contract starts on July 1, 2023 and runs through 2029-30 with Fox/FS1, CBS, NBC/Peacock and The Big Ten Network as media partners. The new agreement shuts out ESPN which had been televising Big Ten contests for the past forty years. While football is the most popular sport, the agreement includes basketball (men’s and women’s) as well as Olympic sports.

Looking at the new agreement for college football, The Athletic says Fox will televise games starting at 12 noon on Saturdays. Beginning in 2024 CBS (after its SEC contract ends) will televise games with kick-offs at 3:30 p.m. NBC will then air “Big Ten Saturday Night”. This will provide college football fans with three Big Ten football games every Saturday across three broadcast networks. In addition, Peacock will exclusively stream eight football games each season.

The networks will alternate televising the Big Ten championship game with Fox televising in odd every numbered year and CBS/NBC alternating in even numbered years. Last year the championship game averaged 11.3 million viewers. According to Nielsen, in 2021, regular season matches generated an average audience of over 4.1 million viewers across Fox/FS1 and ABC/ESPN.

What’s Next: Upcoming media rights negotiations include NASCAR
AR
, who’s ten-year $8.2 billion annual agreement with Fox and NBC expires in 2024. The next really big negotiation however, will be with the NBA whose current media agreement expires after the 2024-25 season. Currently Disney and Turner Sports own the media rights, ponying up $24 billion over the nine-year agreement ($2.6 billion per annum). It’s been reported the new agreement could at least double or possibly triple the current media rights agreement. In addition, while the NBA would like to retain their relationship with their current media partners, there is a strong possibility of more media partners with a separate streaming agreement more than likely.

Last week, the College Football Playoffs announced they will expand the tournament to include twelve teams. The move will happen no later than 2026 when the current media rights agreement expires. ESPN has had the exclusive rights paying an annual fee of $470 million. While ESPN s expected to bid on a contract renewal, it is possible the CFP will be televised (and streamed) across several networks with a sizable increase in cost.

The soaring increases in media rights for live sports is also an offshoot of the poor ratings that scripted dramas and comedies have been undergoing. While live televised sports face the same fragmented landscape, the audience erosion has not been as prevalent. As a result, media companies besides outbidding their competitors look at live sports as the last bastion of appointment viewing.

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What to stream this weekend: ‘Civil War,’ Snow Patrol, ‘How to Die Alone,’ ‘Tulsa King’ and ‘Uglies’

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Hallmark launching a streaming service with two new original series, and Bill Skarsgård out for revenge in “Boy Kills World” are some of the new television, films, music and games headed to a device near you.

Also among the streaming offerings worth your time as selected by The Associated Press’ entertainment journalists: Alex Garland’s “Civil War” starring Kirsten Dunst, Natasha Rothwell’s heartfelt comedy for Hulu called “How to Die Alone” and Sylvester Stallone’s second season of “Tulsa King” debuts.

NEW MOVIES TO STREAM SEPT. 9-15

Alex Garland’s “Civil War” is finally making its debut on MAX on Friday. The film stars Kirsten Dunst as a veteran photojournalist covering a violent war that’s divided America; She reluctantly allows an aspiring photographer, played by Cailee Spaeny, to tag along as she, an editor (Stephen McKinley Henderson) and a reporter (Wagner Moura) make the dangerous journey to Washington, D.C., to interview the president (Nick Offerman), a blustery, rising despot who has given himself a third term, taken to attacking his citizens and shut himself off from the press. In my review, I called it a bellowing and haunting experience; Smart and thought-provoking with great performances. It’s well worth a watch.

— Joey King stars in Netflix’s adaptation of Scott Westerfeld’s “Uglies,” about a future society in which everyone is required to have beautifying cosmetic surgery at age 16. Streaming on Friday, McG directed the film, in which King’s character inadvertently finds herself in the midst of an uprising against the status quo. “Outer Banks” star Chase Stokes plays King’s best friend.

— Bill Skarsgård is out for revenge against the woman (Famke Janssen) who killed his family in “Boy Kills World,” coming to Hulu on Friday. Moritz Mohr directed the ultra-violent film, of which Variety critic Owen Gleiberman wrote: “It’s a depraved vision, yet I got caught up in its kick-ass revenge-horror pizzazz, its disreputable commitment to what it was doing.”

AP Film Writer Lindsey Bahr

NEW MUSIC TO STREAM SEPT. 9-15

— The year was 2006. Snow Patrol, the Northern Irish-Scottish alternative rock band, released an album, “Eyes Open,” producing the biggest hit of their career: “Chasing Cars.” A lot has happened in the time since — three, soon to be four quality full-length albums, to be exact. On Friday, the band will release “The Forest Is the Path,” their first new album in seven years. Anthemic pop-rock is the name of the game across songs of love and loss, like “All,”“The Beginning” and “This Is the Sound Of Your Voice.”

— For fans of raucous guitar music, Jordan Peele’s 2022 sci-fi thriller, “NOPE,” provided a surprising, if tiny, thrill. One of the leads, Emerald “Em” Haywood portrayed by Keke Palmer, rocks a Jesus Lizard shirt. (Also featured through the film: Rage Against the Machine, Wipers, Mr Bungle, Butthole Surfers and Earth band shirts.) The Austin noise rock band are a less than obvious pick, having been signed to the legendary Touch and Go Records and having stopped releasing new albums in 1998. That changes on Friday the 13th, when “Rack” arrives. And for those curious: The Jesus Lizard’s intensity never went away.

AP Music Writer Maria Sherman

NEW SHOWS TO STREAM SEPT. 9-15

— Hallmark launched a streaming service called Hallmark+ on Tuesday with two new original series, the scripted drama “The Chicken Sisters” and unscripted series “Celebrations with Lacey Chabert.” If you’re a Hallmark holiday movies fan, you know Chabert. She’s starred in more than 30 of their films and many are holiday themed. Off camera, Chabert has a passion for throwing parties and entertaining. In “Celebrations,” deserving people are surprised with a bash in their honor — planned with Chabert’s help. “The Chicken Sisters” stars Schuyler Fisk, Wendie Malick and Lea Thompson in a show about employees at rival chicken restaurants in a small town. The eight-episode series is based on a novel of the same name.

Natasha Rothwell of “Insecure” and “The White Lotus” fame created and stars in a new heartfelt comedy for Hulu called “How to Die Alone.” She plays Mel, a broke, go-along-to-get-along, single, airport employee who, after a near-death experience, makes the conscious decision to take risks and pursue her dreams. Rothwell has been working on the series for the past eight years and described it to The AP as “the most vulnerable piece of art I’ve ever put into the world.” Like Mel, Rothwell had to learn to bet on herself to make the show she wanted to make. “In the Venn diagram of me and Mel, there’s significant overlap,” said Rothwell. It premieres Friday on Hulu.

— Shailene Woodley, DeWanda Wise and Betty Gilpin star in a new drama for Starz called “Three Women,” about entrepreneur Sloane, homemaker Lina and student Maggie who are each stepping into their power and making life-changing decisions. They’re interviewed by a writer named Gia (Woodley.) The series is based on a 2019 best-selling book of the same name by Lisa Taddeo. “Three Women” premieres Friday on Starz.

— Sylvester Stallone’s second season of “Tulsa King” debuts Sunday on Paramount+. Stallone plays Dwight Manfredi, a mafia boss who was recently released from prison after serving 25 years. He’s sent to Tulsa to set up a new crime syndicate. The series is created by Taylor Sheridan of “Yellowstone” fame.

Alicia Rancilio

NEW VIDEO GAMES TO PLAY

— One thing about the title of Focus Entertainment’s Warhammer 40,000: Space Marine 2 — you know exactly what you’re in for. You are Demetrian Titus, a genetically enhanced brute sent into battle against the Tyranids, an insectoid species with an insatiable craving for human flesh. You have a rocket-powered suit of armor and an arsenal of ridiculous weapons like the “Chainsword,” the “Thunderhammer” and the “Melta Rifle,” so what could go wrong? Besides the squishy single-player mode, there are cooperative missions and six-vs.-six free-for-alls. You can suit up now on PlayStation 5, Xbox X/S or PC.

— Likewise, Wild Bastards isn’t exactly the kind of title that’s going to attract fans of, say, Animal Crossing. It’s another sci-fi shooter, but the protagonists are a gang of 13 varmints — aliens and androids included — who are on the run from the law. Each outlaw has a distinctive set of weapons and special powers: Sarge, for example, is a robot with horse genes, while Billy the Squid is … well, you get the idea. Australian studio Blue Manchu developed the 2019 cult hit Void Bastards, and this Wild-West-in-space spinoff has the same snarky humor and vibrant, neon-drenched cartoon look. Saddle up on PlayStation 5, Xbox X/S, Nintendo Switch or PC.

Lou Kesten

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Trump could cash out his DJT stock within weeks. Here’s what happens if he sells

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Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.

Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.

Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.

Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.

Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.

Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.

Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.

As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.

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Arizona man accused of social media threats to Trump is arrested

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Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.

Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”

In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.

The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”

This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.

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