PGA Tour thinking about opting out of tv deals early

[nevets88]

I'm no industry insider, but I think the deals they signed are pretty much as good as they're going to get.

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Top PGA Tour officials have met with each of the big four broadcast networks over the past few weeks, as the group considers opting out of its current broadcast rights deals. CBS and NBC hold rights for 31 golf events through 2021, but the PGA Tour can opt out of the deal after the 2018...

https://www.sportsbusinessdaily.com/Journal/Issues/2016/09/19/Media/PGAT-media.aspx

DOES IT MAKE SENSE FOR THE PGA TOUR TO LEAVE NBC AND CBS?

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There’s an interesting story out today at Sports Business Journal that talks about the PGA Tour considering opting out of its broadcast television deals with NBC and CBS early. While the contracts with the two networks for the PGA Tour season runs through the year 2021, the PGA Tour is examining whether or not they should exercise an opt-out clause that can put their rights on the market early after the 2018 season.

http://awfulannouncing.com/2016/does-it-make-sense-for-the-pga-tour-to-leave-nbc-and-cbs.html

[newtogolf]

Income is part of the equation the other part is the audience size and demographics.  CBS and NBC have a better idea what the PGA Tour contract is worth at this point going forward than when they signed in 2011.  I'd be shocked if CBS and NBC offered close to the same amount of money for the rights.  

As for the PGA Tour, they might be able to cut a deal with ESPN, ABC, FOX but as the article points out, they already offer other programming.  Does PGA Tour golf draw more viewers and higher advertising fees than NBA basketball and NASCAR?  

I'd suggest the PGA Tour not opt out and stick with the guaranteed money.  

[Rainmaker]

15 hours ago, newtogolf said:

Income is part of the equation the other part is the audience size and demographics.  CBS and NBC have a better idea what the PGA Tour contract is worth at this point going forward than when they signed in 2011.  I'd be shocked if CBS and NBC offered close to the same amount of money for the rights.  

As for the PGA Tour, they might be able to cut a deal with ESPN, ABC, FOX but as the article points out, they already offer other programming.  Does PGA Tour golf draw more viewers and higher advertising fees than NBA basketball and NASCAR?  

I'd suggest the PGA Tour not opt out and stick with the guaranteed money.  

Agree!  The worst thing, imo, would be for the coverage to end up on a "cable only" network like ESPN.  If I were the PGA Tour, there's no amount of money ESPN could pay that would make it worth it. 

[skeedawg]

I think would be a huge mistake on the part of the PGA. You are already struggling with downward trend in golf popularity, so you don't have any leverage to make a deal right now. If you wait until the 2018 cycle that trend may be heading in a positive direction which would give you the necessary leverage to maximize revenue on the TV deals. I don't see a scenario where moving to ESPN or Fox is beneficial given the competition with the other sports they broadcast. I'm guessing that Fox possibly approached them about televising more events post-NASCAR broadcasting based on the success broadcasting the US Open. If true who do you let go? NBC already owns the Golf Channel, your single best place to showcase the sport. CBS has exclusive rights to the Masters, I think they would be harder to walk away from here. 

[Patch]

If I were the PGA, I would stay with the guaranteed money through the end of their current contract. Pretty sure th current deal was expexting Woody to still be around. 

Myself, playing golf is way more importantant than watching it. I watch a little of 2 or 3 majors every year and that's it for me. I know several recreational golfers who feel the same way. I watch a lot of NFL, and MLB games. I don't get interested in the NBA until the conference championships start. Golf is way down there on my list of sports to watch on TV. 

Edited September 21, 2016 by Patch

[Groucho Valentine]

That would be dumb short sided mistake by the PGA tour. They're never going to get better deal than what they have now unless Tiger has some kind of career revival. 

[Broke100Once]

I'm no business expert, but it seems to me like the Tour shouldn't opt out.  Imagine if one or more of Day/McIlroy/Spieth/DJ/Fowler/someone else breaks out as a mainstream sports star, or (perhaps even bigger) what if Tiger actually recovers and has one or two Jack-in-86 runs left in him over the next couple of years?  The Tour would be in a much better negotiating position in 2019-2020 looking ahead to 2021 that they would opting out in 2018 when none of those things have happened.

[Ron]

IMO, if you want to promote a sport or an event to the masses, Network TV is the only way to go.  The Big 3 have always been there and are reliable.  Are they perfect?  No, but I don't see any other broadcaster doing it any better.  If I'm not mistaken, didn't the "Open" in the UK learn that going with Cable companies was detrimental to the viewer base?