Discovery Secures Rights To PGA Tour Outside U.S. For $2B Through 2030
Discovery is building on its multi-platform, international broadcasts of the Olympics through its Eurosport division by securing rights to the PGA Tour through 2030 for an investment of $2 billion.
The 12-year deal, which the entities called “unprecedented,” will start in 2019. It will include global multi-platform live rights, outside the U.S. to all PGA Tour media properties. That means about 2,000 hours of content per year, including the six Tours operating under the PGA Tour umbrella and nearly 150 tournaments annually, including The Players Championship, the FedExCup Playoffs, and the Presidents Cup.
In addition to live linear rights in 220 markets and territories, the alliance will include the creation of a PGA-branded OTT video streaming service in the vein of Discovery’s Eurosport Player.
Similar to its model for the Olympics, Discovery said it plans to profit from the rights through a combination of sublicensing, advertising, affiliate and digital subscription revenues.
The amount of the rights payments will increase over time, as additional rights in new countries become available. The estimated rights costs are approximately $50 million per year in 2019 and 2020, $100 million in 2021 and then ramping up through 2030. Discovery said it is planning for additional marketing, operational and other expenses of around $20 to 30 million per year in the first 3 years as the Company builds out the product and platform.
“Today is a fantastic day for golf fans around the world as Discovery proudly partners with the PGA Tour to create something that has never been done before,” Discovery CEO David Zaslav. “The long-term partnership between the PGA Tour and Discovery will create the new global Home of Golf.”
Added PGA Tour Commissioner Jay Monahan, “This is an exciting next step for the PGA TOUR, which presents a tremendous opportunity to accelerate and expand our media business outside the United States, better service our international broadcast partners, and drive fan growth with a deeply experienced strategic global partner.”
Zaslav and Monahan will discuss the partnership in more detail during a media conference call later this morning.
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