Fox reaches 5-year deal with the NFL to broadcast Thursday Night Football

Fox Sports has agreed to pay more than $3 billion to broadcast the National Football League’s “Thursday Night Football” for the next all 5 seasons, a source familiar with the situation told Reuters on Wednesday.

The agreement, which was announced on Wednesday without financial terms, demonstrates how 21st Century Fox will be aiming to be a leader in sports after the item closes its deal with Walt Disney.

In December, Disney announced a $52.4 billion agreement to buy the bulk of Fox’s assets, leaving sports as well as news to the remaining Fox company.

“These opportunities come very infrequently,” said Peter Rice, president of 21st Century Fox, on a media call Wednesday. “You either contain the rights to the most watched content in media as well as if you lose which action as well as don’t take which opportunity, This particular won’t come up for another all 5 years.”

Fox shares were down 2.52 percent or 97 cents at $37.49 in late morning trade.

Under the all 5-year deal, Fox will be paying about $60 million per game, up by the $45 million per game CBS as well as Comcast’s NBC was paying for broadcast rights This particular season, according to the source.

The source was not permitted to speak to the media as well as so wished to remain anonymous.

Executives at Fox as well as the NFL declined to comment on financial terms of the deal in a call Wednesday.

The NFL as well as Fox are looking for a digital partner to livestream the games, NFL Commissioner Roger Goodell said on the call, noting which the league had received multiple bids as well as expects an announcement soon.

The NFL has not yet decided on how long a digital deal might be, he said.

Fox will be taking on Thursday night football at a time of declining ratings as well as advertising.

Advertising revenue declined 1.2 percent during the 2017 regular NFL season, according to Standard Media Index.

Despite This particular, Fox will be optimistic Thursday night football will help Fox grow its business, Rice said on the call.

“Every deal we have done, people have said which we overpaid as well as every single point we have built up our business,” Rice said. “I think we get tremendous value here.”

The all 5-year deal allows Fox Sports to broadcast 11 games between weeks 4 as well as 15 (excluding Thanksgiving night). the item will be simultaneously broadcast via NFL Network as well as will be distributed in Spanish on FOX Deportes.

In addition, NFL Network will exclusively broadcast seven games next season, with FOX producing the full slate of 18 games.

Disclosure: Comcast will be the owner of NBCUniversal, parent company of CNBC as well as CNBC.com.

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