Rights Fees in Sport Essay

1539 Words May 21st, 2005 7 Pages
The steadfast rule when it comes to sports and rights fees is that it's the business of entertainment. The dollars are going to go where the value is. With Rights fees, networks pay fees to have the rights to a particular broadcast, for example march madness, the NFL or the Olympics.

Rights fees are determined by the value a certain property holds, this is determined by the ratings. The most important ratings market world wide is undisputedly the North American, and in particular the US market as we will later discuss with the Olympic media coverage. With in the US it is a battle field to increase ratings because of the dollar value associated with the opportunity to sell advertising and consequently the rights fees.

Personally I
…show more content…
However, rights fees are also a source of funding for many college level athletics, at least in the US, as ESPN's rights fees have helped fund many programs including minor level and women's sports.

Yet, on the international level rights fees have played an important role since the mid-1980's. Rights fees have become an integral part of the revenue stream from many not-for-profits such as the IOC.
The majority of the advertising revenues generated during the Olympics are US based (92%), one of the reasons behind altering the summer/winter Olympic schedule to separate two year periods. By giving US advertisers a staggered Olympic schedule more dollars were made available for sponsorship and advertising and thus rights fees. It was reported that NBC paid $793 million for the rights to the Athens Olympics. The increase from the Sydney figures can be attributed to the favorable time zone and for the fact that European Olympics have historically had much better viewer ship/ratings than the Asian ones. In fact the NBC's coverage was totaled at 1,210 hours between all their affiliated networks, something quite unprecedented to date.
"The IOC sells their broadcast rights for billions of dollars to finance the Games and support their various sports governing bodies…" It began in 1948 with the BBC paying the equivalent of $3,000 to broadcast the games. Similarly to US network television and league rights like the NFL, the network who

Related Documents