The NFL and Paramount are negotiating a renewal for CBS's Sunday afternoon game broadcasts, with CBS's annual fee potentially rising by 50-60% to over $3 billion for an eight-year deal starting next season.
Price Increase and Terms
- CBS currently pays approximately $2.1 billion per year for its Sunday afternoon games.
- A 50% increase would raise the fee to over $3 billion annually.
- The new fee would commence next season and span eight years.
Opt-Out Clause Removal
- In return for higher revenue, the NFL will eliminate the opt-out clause after the 2029-30 season.
- This clause was originally part of an 11-year agreement extending through 2033-34.
Other Media Partners
- NBCUniversal, Amazon Prime Video, and Fox have similar opt-out clauses with varying timelines.
- Disney's ESPN and ABC have an opt-out provision until 2031.
Financial Context
- Paramount's adjusted EBITDA projection for 2026 is $3.6 billion.
- If the merger with Warner Bros. Discovery is approved, the combined company's adjusted EBITDA would be $18 billion.
- Paramount CEO David Ellison affirmed the strong ongoing partnership with the NFL.