Why are pro sports leagues and college sports’ conferences expansion plans so contingent on when media deals expire?
In: 10
Because a massive part of the revenue generated by these leagues comes from media deals.
Expansion means extra games, extra games means a change to the TV schedule in order to fit the extra games in, along with an expectation the media deals will be worth more due to the additional advertising revenue.
So for example, the current deal may be with a cable company to broadcast 100 games a season. If new teams comes in mid-deal, their may be an additional 15 games that are able to broadcast which are not covered under the current deal, so they miss out on all of the additional revenue these extra games may generate.
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