Networks pay billions to broadcast sports. How do they recoup those costs? Especially knowing all the expenses they have with hosts camera crew etc
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The broadcast crews are pretty much a known cost, and are a fraction of the broadcast rights. Sure there’s some variability, but not that much, and those costs still don’t amount to much compared to what they have to pay the leagues. And when they do have to incur greater costs, it’s usually because they’re airing more games (like playoff series that last for more than the minimum number of games), and when they air more games, they sell more advertising. Speaking of advertising, that’s how they recoup money and make a profit – they sell commercial time, and sports broadcasts tend to command a premium. The audience is dependable, year in and year out, and the demographics are well known. Advertisers tailor their commercials to these audiences, typically with great results – results they are willing to pay for.
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