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DirecTV would lose more than $600 million in lost season, but could save $420 million

SundayTicket

Fans upset with the lockout have been making it known to us that they’re voicing their displeasure by canceling their NFL Sunday Ticket subscriptions on DirecTV.  If there’s no football season in 2011, a lot more will be following suit.

Alex Sherman of Bloomberg.com reports that DirecTV expects to lose between $600 million and $750 million in revenue, if the season is canceled.  Loss of the Sunday Ticket programming also would impact new subscriptions to the DirecTV service, since DirecTV is the only television outfit to offer the ability to view all Sunday afternoon games in their entirety.

That said, the recent ruling in the “lockout insurance” case could mean that DirecTV won’t have to give the NFL $420 million in free money during a lockout in 2011.  Judge David Doty has yet to rule on whether the payments will be blocked or whether money will have to be shared with the players.

Since no repayment obligation applies to the $420 million from DirecTV, Judge Doty could decide to require the money to be paid — and to require the NFL to give the players 59.6 percent of it, which equates to more than $250 million.

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46 Responses to “DirecTV would lose more than $600 million in lost season, but could save $420 million”
  1. mulehead70 says: Mar 16, 2011 9:54 AM

    Welcome to NFL Sunday Lockout…coming to a TV near you.

  2. pftdabomb says: Mar 16, 2011 10:00 AM

    I don think I can say this enough……

    Boo the NFL Owners and Booooooo the NFLPA* and De Smith

  3. jackhall00 says: Mar 16, 2011 10:05 AM

    Already cancelled mine.
    I will watch the local games or any games I want to watch I will get on the Internet for FREE!

  4. darvon86 says: Mar 16, 2011 10:06 AM

    That is an interesting take. Surely the $420M was negotiated by use of the player-supplied product. It very well could be distributed under the old CBA if a lockout blows the season away.

  5. tward291 says: Mar 16, 2011 10:06 AM

    are u serious thy all money hungry

  6. MichaelEdits says: Mar 16, 2011 10:07 AM

    Oh, grow up. We don’t get DirecTV in Hanoi. Tell it to the AFLAC duck.

    Oops. Seriously, do you know how I watched the Super Bowl? PFT Live Chat and a BBC radio feed on the NFL website. Best viewing experience ever.

    And again, the words I thought I’d never type: Don’t you miss Gene Upshaw?

  7. darvon86 says: Mar 16, 2011 10:10 AM

    But I think in the case of a blown season, at worst DirecTTV would pay it to an escrow account. I don’t think Doty would invalidate the DirectTV contract, just isolate the money away from the owners until the new CBA.

  8. FinFan68 says: Mar 16, 2011 10:13 AM

    DirecTV would make a lot more money if they cut the price in 1/2 and allowed fans to choose a particular team to watch every week. Many fans are spread all over and not just in the local market. Most would gladly pay a reasonable amount to watch their fav team rather than what the league/networks consider “prime” games

  9. wryly1 says: Mar 16, 2011 10:14 AM

    Good. I do hope ticket sales and TV revenues drop. That, more than anything else, will stop the owners from trying to slay the cash cow.

  10. whathappenedtovox says: Mar 16, 2011 10:16 AM

    The exclusive agreement with DirecTV is yet another example of the owners’ greed. The NBA, the NHL, and MLB all make their version of the NFL’s Sunday Ticket available on multiple cable providers, but since DirecTV pays the NFL literally billions to be the exclusive provider, NFL fans are forced to subscribe to DirecTV’s terrible service if they want to watch every NFL game.

    Many fans can’t get DirecTV even if they wanted to because they rent, and homeowners don’t want unsightly and bulky satellite dishes bolted to their homes, and others would incur penalties from their current provider even if they wanted to switch. Never mind DirecTV’s atrocious customer service, and of course the pesky little problem of often not being able to watch TV… AT ALL… if there’s heavy precipitation or other bad weather.

    Roger Goodell talks all the time about the NFL doing everything to be “fan friendly,” but their exclusive agreement with DirecTV is anything but.

  11. sourdough says: Mar 16, 2011 10:19 AM

    Why pay for the NFL Sunday Ticket, and line the pockets of owners and players, when you can watch every NFL game via the internet in HD on your tv!?!

  12. angrycorgi says: Mar 16, 2011 10:19 AM

    Maybe the difficulty with splitting up 9.5 billion dollars is that its too big and nobody has a large enough knife…After the fans say “bye” and the pie is only 6 billion, you can just use a butter knife.

    These guys should have known this entire process is self-defeating. Maybe the players will get 50% of the whole enchilada next year. Let me get my calculator out. Let’s see. 50% of 6 billion = 3 billion. Ok. 60% of 7.5 billion (9.5 billion minus 2 billion off the top, thus 7.5 billion) = 4.5 billion.

    Oooooppppssss….somebody screwed the pooch in the NFLPA accounting dept.

  13. skippynj says: Mar 16, 2011 10:20 AM

    The oligarchy of owners extorted this money from fact-challenged Mr. Murdoch, so I hope they’re all happy together, floating up there on that cloud of greed above the rest of us. I love the NFL package but my Saints just got a ring so I’ll take my 350 and buy a ticket to N.O instead. Laissez les bons temps roule, and go Hornets!

  14. joepags says: Mar 16, 2011 10:25 AM

    lets just say profit of 650, they give nfl 420, thats a profit of 230 million?? and im suppose to be upset? am i doing this wrong?

  15. tombradyswig says: Mar 16, 2011 10:29 AM

    Fire De Smith and hire Troy!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  16. Al Davis says: Mar 16, 2011 10:29 AM

    You could get 3 or 4 good players for $600 million…

  17. hail2tharedskins says: Mar 16, 2011 10:44 AM

    I don’t know what Doty will ultimately rule, but don’t expect Doty to order 59.6% be given to players. The player’s contracts already account for the 59.6%, in it would be way to complicated to go down the path of pro-rating contracts etc, plus how do you deal with players not under contract. The likely outcome would either be a fine assessed to the NFL and paid to the NFLPA or the money held in escrow until the lockout ends (as the NFLPA was originally asking for). For a lawyer, you really don’t think these through very well.

  18. scoops1 says: Mar 16, 2011 10:46 AM

    MichaelEdits says:
    Mar 16, 2011 10:07 AM
    We don’t get DirecTV in Hanoi. Tell it to the AFLAC duck.
    ———————-

    We can’t..Gilbert Gotfried got fired yesterday

  19. steelersmichele says: Mar 16, 2011 10:52 AM

    DirecTV is the only television outfit to offer the ability to view all Sunday afternoon games in their entirety.

    Too bad the league doesn’t make the NFL Sunday ticket available to those of us that cannot get Direct TV. They are making it hard for me to cancel my non-subscription in protest.

  20. cappa662 says: Mar 16, 2011 10:59 AM

    That’s a horrible deal for Direct TV. Not only will you be out 600 mill if there is no season, but out another 420 mill for the lockout insurance. Whoever approved that deal should be fired. That’s over a billion lost. If I was a shareholder, I would be beyond pissed.

  21. r8rsfan says: Mar 16, 2011 11:00 AM

    Sunday ticket costs more every season. The wife is killing me about renewing this season and she has no idea about a lockout or anything else. I could drop the ticket, not actually miss any games, be a hero, and get my favorite dinner for a week. Thanks NFL!

  22. wvugrad00 says: Mar 16, 2011 11:08 AM

    Wait, if I dont cancel SundayTicket, and the NFL wasnt playing games, they still planned on charging me?

    I will go balistic if that happens, and I cant watch on the internet because I cant get broadband at my house

  23. FoozieGrooler says: Mar 16, 2011 11:12 AM

    Want to lower your DirecTV bill*?
    Just call and say you want to cancel your subscription.
    That not only gets a real human on the phone in like 2 seconds, but they’ll knock $20 off a month plus free HD (another $10) without even blinking, for a year.
    Hold out and they’ll even throw in a free premium channel or two.

    They’ve been raising rates 6% every March since I’ve been a subscriber, this year it was more like 12%.

    /*of course, this only works works if you’re out of your contract – if not you’re screwed.

  24. FoozieGrooler says: Mar 16, 2011 11:16 AM

    I had their Sunday Ticket for three years and canceled it – I don’t miss it a bit.
    Being as you have all those games, you get this “twitch” to channel surf all day Sunday, end result was you wind up not seeing ANY game in its entirety.

    On top of that, like the name implies, you only see Sunday games – No Thursdays, Saturdays or Monday Night Football. No Pre-Season and no Post-Season either. And your own teams games are always blacked out since they’re already on local network TV.
    Who needs ‘em?

  25. panagos91 says: Mar 16, 2011 11:25 AM

    Good

  26. vetdana says: Mar 16, 2011 11:36 AM

    you can watch every NFL game via the internet in HD on your tv!?!

    I thought the NFL were able to block illegal transmissions and litigate same, ,as in the case of many local bars being chastised for watching blacked out games off the internet & having the NFL sending letters that threaten to sue ?

  27. skoobyfl says: Mar 16, 2011 11:38 AM

    I’m watching climbing right now online & man it’s more exciting than you would think, who needs a TV?

  28. FoozieGrooler says: Mar 16, 2011 11:39 AM

    wvugrad00 says: Mar 16, 2011 11:08 AM

    “Wait, if I dont cancel SundayTicket, and the NFL wasnt playing games, they still planned on charging me? ”

    Sure they would. Why do you think they just automatically re-up you every year, without your consent, unless you specifically tell them otherwise?

  29. mr92687 says: Mar 16, 2011 11:40 AM

    What about would be customers? I only have Directv because of NFL Network and Sunday Ticket. No NFL and someone like me wouldn’t have a reason to subcribe to Directv.

  30. sdboltaction says: Mar 16, 2011 11:54 AM

    Someone’s going to have to tell me how to watch games on my internet tv.

  31. sharongo says: Mar 16, 2011 12:04 PM

    All these broadcast disputes are silly. You would think that they’d want as many people as possible watching their commercials! Another way is to watch TV online through sites like the LiveTVWorldwide website. They offer live and recorded TV shows from around the world.

  32. upperdecker19 says: Mar 16, 2011 12:07 PM

    Exact same thing happened w/ me last month. Thx for the reminder to cancel Sunday Ticket.

    FoozieGrooler says:
    Mar 16, 2011 11:12 AM
    Want to lower your DirecTV bill*?
    Just call and say you want to cancel your subscription.
    That not only gets a real human on the phone in like 2 seconds, but they’ll knock $20 off a month plus free HD (another $10) without even blinking, for a year.
    Hold out and they’ll even throw in a free premium channel or two.

  33. blitz2unow says: Mar 16, 2011 12:16 PM

    Always about the money and only the money..

  34. statking says: Mar 16, 2011 12:29 PM

    As a Buccaneer fan I was forced to watch all of their home games online but in the past few months the government has shut down most sites that provided free live streams of those games. The main site I used was channelsurfing.net and if you go that site now it says this domain has been seized by the Department of Homeland Security. Anybody know of other sites like the one I used that haven’t been shut down?

  35. thecgroup says: Mar 16, 2011 12:40 PM

    Direct TV should loose the contract and if the NFLPA would listen to the fans, they should demand this as well

    We fans are held at ransom watching this game, and are forced to watch the “local” game, regardless as to where you live. I live2 hours from Charlotte, and am forced to watch their games. While I was a direct ticket subscriber in years past. Last year i stopped it, and this winter I canceled Direct TV all together. I switched to a Roku box and watch what I want when I want, including all sporting events. Direct TV will die without the NFL package, as a large percentage of their subsribers do so because of the package.

    The NFL needs to offer its digital Broadcast via the internet FREE or at minimum cost for all Fans. The commercials are paying for the broadcasts, why should we pay more??? To watch the same game/comercials.

    Its the same as the music industries refusal to back technology and the MP3, and it has died as a result. THE NFL needs to offer internet broadcast just like MLB, NHL, and NBA

    I watched every game last year via the internet, and guess what, its the same comercials excluding 1 or 2 local comercials during half time breaks…. why should we pay more. Additionally why cant you buy a single team???

    IF THE NFLPA is listening, this is how to win the fans. The games should be very minimal to watch on television/internet and we should be able to watch what ever game we want.

    THE BROADCASTS are paid for by comercials, why should we pay more???

  36. scottyd27 says: Mar 16, 2011 12:43 PM

    HEY thanks for reminding me ot cancel my auto renewal of sunday ticket. I had forgotten as i usually just let it renew.

    SCREW YOU NFL & NFLPA and your modern day slavery. try being a fan and having to pay the bills!!!!!

  37. thecgroup says: Mar 16, 2011 12:53 PM

    IF you buy the direct TICKET you are paying 350/season just to watch the exact same comercials….

    The games can be easily broadcast by the NFL over the internet at a fraction of the cost…. JUST LOOK at the NBA, NHL, and MLB. the NFL is making you a slave to Direct TV… quit the system, its the only way they will listen.

  38. 1phd says: Mar 16, 2011 1:13 PM

    OH! BOO HOO I’m crying in my beer for the over priced, monopolistic DirecTV rip off losses. If the NFL had half a brain they would offer internet viewing instead of paying their goons and prodding the Feds to shut down all the places overseas that used to offer us the games online. DirecTV would be dropped SO fast if that happened. Oh wait, maybe that’s why it’s not happening. ;)

  39. stanklepoot says: Mar 16, 2011 2:05 PM

    Personally, I went with Dish Network. Same channels (minus sunday ticket), better service, and at a lower cost. I left cable in the dust years ago as their service was god awful and their prices were outrageous. On top of which, I got free HD simply for agreeing to sign up for automatic billing. Anyway, I get three games during the day, another game Sunday night, Monday night football on ESPN, and the Thursday night games later in the season since NFLN is part of my tv package. That’s a fair amount of games, including all the homes games (both the Eagles and Steelers). That’s fine for me. Yeah I miss the occasional game I’m interested in, but then I turn to NFLN later on and see detailed highlights and discussion of all the games. I’m certainly not signing a contract to pay more for what I already get just so I can have the honor of paying another $350 to watch the other games…especially when they’ll be running at the same time as the sunday afternoon games anyway. I’d be better off just getting Red Zone for a small fraction of the cost. If I’m going to channel surf the games anyway, at least Red Zone automatically takes you to the more exciting games and drives.

  40. minanten says: Mar 16, 2011 3:02 PM

    I cancelled my NFL Ticket last year when they blacked out a Vikings home game I wanted to watch. I live in western Montana 1065 miles away and the closest “local” telecast was in Missoula – 120 miles away. I couldnt pick the game up anywhere but that didnt matter to DirectTV. ” “local” broadcasters have the right to blackout certain games in your area” was their only response. They’re “Any game, any time” advertising for NFL Sunday Ticket is a LIE! All of you thinking about getting Sunday Ticket and all of you who currently have it – be forewarned!

  41. laeaglefan says: Mar 16, 2011 4:17 PM

    The NFL should offer their games on nfl.com, the same way that mlb.com offers all of the major league games. I wouldn’t mind paying for the games, as long as it was priced reasonably. I pay $119 for a full season of major league baseball on mlb.com in HD quality, and would be willing to pay the same for the NFL. I can only hope that once their exclusive contract with DirecTV expires, they’ll do exactly that. That contract has to be the only reason they haven’t done it yet.

  42. danthemanhsv says: Mar 16, 2011 5:50 PM

    So I post that DTV is cutting 250 jobs in Huntsville, AL and 200 in Boise, ID and firing call center personell and mgt due to cost because of the nervousness around not having a huge revenue generator like NFLST and my post gets deleted. We were also told to not issue credit to customers because we need to watch out cash. Looks like DTV is deleting my post. Can’t hide the truth. Good hardworking people are being hurt and let go for no reason and are being denied unemployment by DTV becuase of this nonsense.

  43. kidder95 says: Mar 16, 2011 9:07 PM

    Wow. I believe dan themanhsv speaks the truth. Makes sense. I assume DirectTV has a good investment plan with the NFL owners. If not, really bad business plan. Then again, maybe it’s their only plan.

    Got to love capitalism!

  44. kidder95 says: Mar 16, 2011 9:12 PM

    One last note. The NFL as a whole better have a new business model, because I am changing mine.

    You see, if there is no change to the system, I probably don’t make the effort to change. However, the catalyst is now there. I doubt very much I will have the cash or the wherewithal to spend $350 this fall if a deal is meet in due course of time.

    So, basically, the NFL has lost a DirectTV customer, and easy $350 per year, because of some unknown reason.

    Everyone knows renewals are the hardest thing to establish, but the greatest indicator of future P&L.

    Good luck, NFL.

    Most businesses would not have this latitude.

  45. cjvirnig says: Mar 16, 2011 10:16 PM

    The NFL and DirecTV deserve to get burned for their anti-trust violating exclusivity agreement. The reason why tens of millions of homes are still without the NFL Network is because the cable companies who are holding out have no interest in giving in to the NFL who stole millions of dollars in revenue from them by giving DirecTV exclusive rights to the Sunday Ticket package.

    Cable companies lost tens of thousands of subscribers to DirecTV because of their exclusivity agreement with the NFL for the Sunday Ticket Package. It’s despicable for Goodell and the NFL to accuse cable companies of playing dirty by not including NFL Network in their basic tier packages.

    That would be like a wealthier guy stealing your wife away from you and then that guy complaining that you won’t pay for their honeymoon.

    When the players say Goodell is a liar, I believe them.

  46. fedupsaintsfan says: Mar 17, 2011 8:21 AM

    I’m with a lot of other fans…CANCELED!!!

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