Market for TV Sports Rights to Reach Record High

NEW YORK: The market for premium sports rights is set to rise by 14 percent this year to a new record, $26 billion, according to a new report by industry analysts Deloitte.

The increase in rights fees is expected to be driven by new agreements for Major League Baseball and European soccer tournaments, such as the Premier League and Bundesliga. Europe's top leagues and club competitions are expected to generate $10.6 billion of the total in 2014. In all, around three quarters of the total premium broadcast fees will be generated by 10 competitions, including the four major North American professional leagues.

The 14-percent expected growth contrasts with the annual growth of 5 percent that was reported between 2009 and 2013.

“We see no signs that the premium sports rights value bubble is about to burst, rights fees for live content to premium properties overall will continue to grow,” said Austin Houlihan, a senior consultant in the sports business group at Deloitte. “Premium live sport delivers large audiences, typically characterized by an attractive demographic profile. It drives subscriptions and generates advertising for broadcasters, particularly in an increasingly altered media landscape.”