Sports have always held a special place in our lives, captivating audiences with their drama and excitement. In recent years, the value of sports media rights has soared to unprecedented heights, raising questions about what drives this explosion and what the future holds. This article delves deep into the world of sports media rights, exploring the factors behind their rise, the challenges faced by different sports, and the strategies employed to sustain income in a changing landscape.

Uncover the Magic of Sports Media Rights

Why Sport is ‘a Unicorn’

Analysis by SportBusiness shows that the total value of sports rights has never been higher. This year's 12% increase to £49.5bn can be attributed to events like the Paris Olympics and men's European Championship football. Record deals and increasing competition have also buoyed the market. For example, the Premier League's overseas media rights sales are up 23% for the 2025-28 cycle. In the US, the NBA secured a 11-year global deal worth £59bn with Disney, NBC, and Amazon's Prime Video, while the NFL is in a £11.6bn seven-year deal with Google-owned YouTube. Netflix has also entered the live sports arena, investing in global rights to show NFL matches and a tennis exhibition. WWE's £3.9bn deal to show the wrestling franchise marks another significant move.Sports seem to be the one thing bucking the trend of declining TV watching. With live sport guaranteeing reliable audiences, the demand for such rights from media companies is at an all-time high. Despite the rise of gaming and social media, live sport makes up a growing proportion of the content watched by younger viewers.

So, is it really worth all that money?

TKO president Shapiro believes that some sports properties will be hotter than others. Sports is the only thing flat-out working across linear and digital due to its live nature, competition, rooting history, and fanbase equity. For example, the NBA and NFL have seen significant growth in their media rights deals. With live sport still a reliable draw, it appears that the demand for such rights will continue to grow.

Not all sports are winning

While 'tier one' sports are seeing a rise in media rights, less mainstream properties are struggling. Many Olympic sports, for example, have to offer their national and international championships for free. In October, the BBC was not charged for showing the final of sailing's America's Cup, and England's women's rugby matches were offered to broadcasters for free. Some believe that changing viewing habits and the rise of streaming services are to blame.In Europe, media companies have been cautious in their spending on football rights. DAZN's exclusive rights to show the revamped Fifa Club World Cup may be linked to potential investment rather than market demand.

What about Premier League rights?

The Premier League's media rights deal is complex. The new £6.7bn domestic TV agreement for the 2025-29 cycle is spread over four years, generating less per year than the previous cycle. Amazon chose not to bid for the Premier League package, and senior figures in the English club game are pressuring for the Saturday 3pm TV blackout to be scrapped. The Premier League's support for Article 48 remains, but the future is uncertain.

Tougher times for European football leagues…

In Germany, the Bundesliga saw a slight increase in its domestic deal, while in France, the Ligue de Football Professionnel had to accept a lower deal with DAZN and BeIN. In Italy, Serie A is in the first year of a domestic deal worth less than the previous one. The rise of Premier League clubs' spending power has led to concerns about the loss of top talent in continental leagues.

…and for rugby

European rugby union chiefs signed a broadcast deal to screen Champions Cup matches on Premier Sports, meaning no terrestrial coverage in England. The Sky deal for rugby league's domestic Super League is worth less than before. Callum McCarthy attributes this to the end of tough competition between Sky and BT Sport and broader economic trends. People simply cannot afford to keep paying more for sport.

More matches – more revenue?

Many sports are creating more matches to generate more broadcast income. Fifa is expanding its World Cup and Club World Cup, Uefa has done the same with its club competitions, and Major League Soccer has added play-offs. The England and Wales Cricket Board has created The Hundred. While this may generate more income, it can also crowd out less popular sports.In conclusion, the world of sports media rights is complex and constantly evolving. While some sports are thriving, others are struggling. The strategies employed by different sports to sustain their income are diverse, and the future remains uncertain. But one thing is clear: sports will continue to captivate audiences and drive media rights deals for years to come.