* Source says ESPN paying more than $7 billion for games
* New playoff deal will start in 2014, secured for 12 years
* College football approved new playoff format in the summer
* Adds to ESPN's portfolio of high-profile live sports
By Liana B. Baker
Nov 21 Disney's ESPN said on Wednesday
it locked up the TV rights for U.S. college football playoff
games for 12 years in a new deal that a source said was worth
more than $7 billion.
ESPN did not disclose financial terms of the agreement with
the group that will administer the new college football playoff
system, which starts in 2014. The deal will run from 2014 until
January 2026, the network said in a statement.
A source with knowledge of the matter said ESPN would pay
$470 million a year, or $5.64 billion over 12 years to carry the
games that are part of the new playoff format that was approved
in June by a committee of university presidents.
Combined with a previous agreement for three bowl games, the
Rose Bowl, the Sugar Bowl and Fiesta Bowl, ESPN will pay between
$600 million and $615 million per year, or between $7.2 billion
and $7.38 billion, for the postseason games.
ESPN will have the rights to air a championship game and a
pair of semifinal games featuring teams that are selected for
the four-game playoff. It will also air other bowl games that
will rotate each year.
The games will be featured on ESPN's platforms, including
television, radio and on the Internet and mobile devices.
The highly profitable ESPN TV network is a major revenue
generator for Disney. It is seen in 98 million homes and has
secured major multi-year sports TV deals with the NFL, Major
League Baseball, Wimbledon and college football, among others.
In August, ESPN agreed to pay Major League Baseball $5.6
billion over eight years for a package of baseball games.
Sporting events are among the shrinking number of broadcasts
that viewers watch live without skipping commercials, and
therefore reap some of the highest rates from advertisers. This
has drawn more bidders to sports programming, driving prices
higher and providing a boon to sports teams.
Disney shares closed up 24 cents, or 0.5 percent higher, on
Wednesday at $48.68.