NFL discussing deal with Paramount that could be extra $1 billion

NFL and Paramount SkydanceAccording to information obtained by CNBC, renewal talks regarding the agreement to keep the league’s Sunday games on CBS are starting to take shape.

NFL and CBS executives are negotiating a price increase where the midpoint of the bid-ask spread is about 50% or 60%, according to two people familiar with the negotiations who asked not to be identified because the talks are private. CBS currently pays an average of $2.1 billion a year for its Sunday afternoon games, CNBC previously reported. A 50 percent increase means CBS will pay more than $3 billion in its next deal.

In return for the increased revenue, the NFL will eliminate the opt-out clause in its original deal with Paramount, part of an 11-year deal that runs after the 2029-30 season through the end of the 2033-34 season. This clause would give the league the chance to leave early.

CBS will begin paying the new fee for the same package of games for the next eight years starting next season.

Paramount’s adjusted estimate for earnings before interest, taxes, depreciation and amortization for 2026 is $3.6 billion. In case of Paramount merger Warner Bros. Discovery If approved by regulators, the combined company’s adjusted EBITDA projection would be $18 billion, Paramount Chief Financial Officer Dennis Cinelli said. he told investors this month.

“We have a phenomenal relationship with the NFL, and we anticipate that will continue for the foreseeable future,” Paramount CEO David Ellison told CNBC earlier this month. “They’re one of our most important partners, and we plan on them remaining one of our most important partners, because we’ve had a historic season in partnership with them. And, you know, we’re not in a position to comment due to ongoing negotiations. I promise we’ll share something as soon as we have something to say.”

comcastNBCUniversal, Amazon Prime Video and Fox It is also subject to the 2029-30 opt-out clause in their agreements. DisneyESPN and ABC have until 2031.

The league chose to begin negotiations with Paramount’s CBS before other media partners because the change of control provision from Skydance Media’s acquisition of Paramount Global allows the NFL to break the deal through 2027.

One source familiar with the matter said the NFL could negotiate with Fox after CBS because the terms of the deal should be similar; both companies have Sunday afternoon packages.

Fox currently pays slightly more for its game package than CBS, according to a person familiar with the matter; approximately $2.2 billion. Fox “will definitely look at it” [be] The CEO stated that he will continue this mutually beneficial relationship with the NFL, but has not yet had any “material discussions” regarding renewal. Lachlan Murdoch It was said at the Morgan Stanley Technology, Media and Telecom Conference earlier this month.

According to sources familiar with the matter, the NFL has not entered into financial negotiations with Amazon, NBC or Disney. It’s unclear whether the league would seek to move forward with a similar 50% increase for all three of these packages.

Some executives at NBC and Disney believe the relative strengths of the Sunday Night Football and Monday Night Football packages have diminished because the NFL has given better games to Amazon for Thursday Night Football in recent years, according to people familiar with the matter.

ESPN is currently paying $2.7 billion for Monday Night Football. A 50 percent increase means ESPN will pay more than $4 billion for this package; Disney would likely dispute that figure, according to people familiar with the matter.

The timing and scope of the NFL’s new deals could have a significant impact on the value of other sports’ rights in the coming years.

The NHL is currently owned by Disney and Warner Bros. They have TV deals with Discovery that will expire after the 2028 season. NHL Commissioner Gary Bettman had a series of discussions about renewing a deal before the NFL did, according to two people familiar with the matter. Will probably have to wait though Paramount’s deal to acquire WBD is expiring before a new deal is signed.

versant CEO Mark Lazarus He said earlier this month that he was “ready for the sports landscape to change” given the NFL’s prohibitive cost. That could allow Versant, which owns USA Network and other cable channels, to buy the rights to sports “that we wouldn’t otherwise be involved in,” such as the NHL or MLB, he said.

Disclosure: Versant is the parent company of CNBC.