Fox's NFL Deal May Be A Bridge Too Far; Streaming Transition Could Leave Company With Losses

Mar. 19, 2021 2:07 PM ETFox Corporation (FOX)AMZN, CMCSA, DIS, PARA, PARAA15 Comments
Max Greve profile picture
Max Greve


  • Fox has re-upped for another 11 years with the NFL, along with its other TV partners, for as much as $1.2 billion per year more above current rates.
  • Losing Thursday Night will only save $400 million, the broadcast segment only reported $430 million in EBITDA last year, so it is obviously planning on recouping the cost through fee hikes.
  • Pay-TV operators are increasingly reluctant to grant such fee hikes, and consumer pay-TV defections may only accelerate if Fox and others attempt to impose them.
  • With the entire company only reporting $1-1.5 billion per year in profit, Fox faces risk if it is unable to recoup the cost, making this NFL deal considerably more risky than past ones.
Official Wilson NFL ball
Photo by by_nicholas/iStock Unreleased via Getty Images

As someone who has been worried that Fox (NASDAQ:FOX) would overpay for its next NFL deal, I’ve been waiting for things to become official so I can start poring over the details to see just what the damage of another

This article was written by

Max Greve profile picture
Max Greve is a graduate of Northwestern University with a quadruple major in History, Economics, Political Science, and International Studies. Max is a full-time writer and in addition to stock market trends also writes articles on government, current events, macroeconomic trends, and last but not least, the ongoing inefficiencies of professional sports.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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