ESPN (DIS) reportedly agrees 6-year extension with College Football Playoff

ESPN (NYSE: DIS) and the College Football Playoff (CFP) have reached a tentative agreement on a six-year extension valued at $7.8 billion, ensuring ESPN's coverage of the 12-team tournament through the 2031-32 season, according to The Athletic.

This agreement, averaging $1.3 billion annually, remains dependent on CFP officials finalizing the expansion details following the Pac-12's disbandment, the report says.

Currently, ESPN is two years into a deal with an annual payment of $608 million, covering the CFP semifinals, championship, and four New Year's Six bowl games. The apparent jump in rights fees from $608 million to $1.3 billion in the new extension deal may seem substantial, but the actual percentage increase is less dramatic as the current contract’s average fails to include the pricing for the on-campus first-round matches.

This extension also offers ESPN the option to sublicense Playoff games, potentially broadening the broadcast reach beyond Disney-owned platforms, subject to ESPN's discretion.

Should it happen, the deal would position ESPN to dominate the broadcasting landscape for almost all Division I college sports championships, with the exception of the men’s basketball tournament.

The latter remains under the purview of CBS, TNT, and their affiliated networks and platforms until 2032.

By Vahid Karaahmetovic

You May Also Be Interested In

• Walt Disney (DIS) call put ratio 2 calls to 1 put
• Bernstein sees US-China robotics decoupling after FCC ban
• Goldman says buy this EU power stock