The market for premium sports rights is expected to rise to a record $26 billion this year, a 14 percent increase. The increase in rights fees will be largely due to new mega deals for Major League Baseball and European soccer tournaments, including Britain’s Premier League.
Europe’s top leagues and club competitions are expected to generate $10.6 billion of the total in 2014. Fox Sports and Turner Broadcasting’s 8-year media agreement for Major League Baseball will double in annual payout for broadcast rights to $14 billion, driving this year’s surge in revenue.
The 14-percent expected growth in sports rights revenue contrasts with the annual growth of 5 percent that was reported between 2009 and 2013.
“We see no signs that the premium sports rights value bubble is about to burst, rights fees for live content to premium properties overall will continue to grow,” said Austin Houlihan, a senior consultant in the sports business group at Deloitte. “Premium live sport delivers large audiences, typically characterized by an attractive demographic profile. It drives subscriptions and generates advertising for broadcasters, particularly in an increasingly altered media landscape.”
