Resiliency of live sports viewing and vociferous network competition drives outsized inflation in the cost of ...

All three major sports leagues saw new long-term broadcast rights deals kick-in over the last three years. On average, the deals increased the network cost of broadcasting the NFL, MLB, and NBA by 113%, far outpacing the advertising inflation. ESPN alone has $3 billion committed to broadcasting just the NFL and NBA in 2017. Looking at the extreme appreciation in the value of sports franchises, it is clear how lopsided these broadcast deals have been in the leagues’ favor. The average value of an NBA, NFL, and MLB franchise appreciated more than 80% between 2013 and 2015, which compares to 46% total between 2007 and 2013. Last year alone, the NFL’s revenue jumped 21%, from $6 billion to $7.4 billion. Its TV rights deals accounted for roughly 60% of that revenue.