The sports media world is undergoing a huge transition period as the streaming era enters the forefront and the cable industry continues its arc of decline. Various sports leagues and teams are trying to figure out how to navigate the uncharted waters and coming up with new blueprints on how to reach fans and maximize revenue.
One of the realities is that there aren’t enough transformative live sports properties for everyone. The NFL is locked into its deals for the rest of the decade at least. The NBA just signed its new deals with Amazon, NBC, and ESPN. And college football is embarking on a new realignment reality that has been shaped almost solely by television money.
So where might needy networks and streaming platforms might turn if they need a live sports boost? Well… they may just have to do it themselves.
In the brand new CNBC Sport newsletter from Alex Sherman, former CNN executive Jeff Zucker spoke about what currently faces the industry. Zucker was asked about future investment opportunities in the sports media space. Since leaving his role at CNN, he now runs Redbird IMI, a joint venture between Redbird Capital and International Media Investments which is backed by the UAE. They have already been active in the sports media space, investing in Front Office Sports.
But Zucker sees even more opportunities ahead. Specifically, a future where media companies create events and even potentially sports leagues that they can own and operate themselves at a time when many of the premier rights packages are locked up for several years.
I am particularly excited by the prospect of owned & operated sports properties. We’ve seen Netflix wade into sports with a golf event, a tennis event, and even a hot dog eating competition. I expect more streamers and other distributors to continue to experiment with live sports rights. But since so many marquee rights are tied up for years, entrepreneurially-minded producers who can capitalize and dream up new sporting events will be rewarded. EverWonder, which we have backed at Redbird IMI, recently launched Players Era, a college basketball tournament we’re thrilled to put on. It’ll be distributed by TNT Sports and air on their networks and Max. There’s a massive opportunity to devise more owned and operated sporting events, leagues, and more.
It’s a very interesting concept for Zucker, but some of the events he points to are largely one-offs that blur the lines between entertainment and sport. The Netflix Cup golf tournament really only served as a marketing ploy for the streamer’s successful documentary series on F1 and the PGA Tour. The Chestnut-Kobayashi eating challenge won’t be confused with the Super Bowl or The Masters anytime soon, as captivating as it might have been for competitive eating enthusiasts.
The Players Era tournament Zucker mentions is a first of its kind college basketball tournament that is largely driven by NIL incentives and rewards and might hold some interest since it’s featuring games that matter with an impressive set of major programs taking part. Other than finding some small pieces here and there within the current sports ecosystem, expecting a startup to make a noticeable impact seems like wishful thinking.
While companies might be willing to splash cash for new glitzy events they hope will develop a following, there needs to be some perspective about just how realistic this is. Let’s be honest – we’re really only talking about tech streaming giants and/or private equity sovereign wealth funds with near unlimited resources who can just create a sports league out of nothing. But building a league and seeing the fans and revenue come are two vastly different things. Just ask LIV Golf.
