NFL, CBS Reportedly Negotiating Major Rights Fee Increase for Sunday Games

While Paramount is in the process of buying Warner Bros. Discovery, it's also in talks with the NFL to renew a deal to keep the NFL's Sunday games on CBS, according to CNBC. 

The New Deal Proposal

CNBC is reporting that the executives for the NFL and CBS are negotiating a price increase "with a bid-ask spread midpoint around 50% or 60%."

Right now, CBS is paying about $2.1 billion per year, so a 50% increase would add about $1 billion. 

What does CBS get out of it? The NFL would be willing to eliminate the opt-out clause that's in the deal following the 2029-30 season. The original deal is 11 years and goes through 2033-34. So, if CBS agrees to pay an additional $1 billion, it will have the right to the NFL without any potential disruptions for several more seasons. This is a clause that the NFL also has with NBCUniversal, Amazon Prime Video, and Fox. There's an opt-out clause with ESPN and ABC, but it's in 2031 rather than 2029-30. 

If these negotiations are agreed upon, CBS would begin paying the new fee as soon as the next season begins. 

“We have a phenomenal relationship with the NFL, and we anticipate that continuing for the foreseeable future,” Paramount CEO David Ellison told CNBC earlier this month. “They are one of our most important partners, and we plan for them to stay one of our most important partners, having just delivered a historic season in partnership with them. And, you know, ongoing negotiations, we’re not really in a position where we can comment. I promise we’ll share something as soon as we have something to say.”

The NFL is working with Paramount before any others because of a "change-of-control provision" following Skydance Media's acquisition of Paramount Global. That would allow the NFL to break its deal with Paramount by 2027. 

What the NFL Could Do Next

After dealing with Paramount, CNBC says that the NFL may work with Fox next because "the terms of the deal should be similar," citing that both companies own packages for Sunday afternoon games. 

Fox is paying $2.2 billion, and according to CEO Lachlan Murdoch, Fox will “certainly look to [be] continuing that mutually beneficial relationship going forward." 

As of right now, the NFL hasn't started talks with Amazon, NBC, or Disney. When they do, though, CNBC reports that it's unclear if they'd push for the same increase. 

CNBC reports that "people familiar with the matter" say that executives at NBC and Disney "believe the relative strengths of their packages — Sunday Night Football and Monday Night Football — have diminished as the NFL has given Amazon better games for its Thursday Night Football in recent years."

ESPN currently pays $2.7 billion for Monday Night Football.