Direct TV pays the NFL even if season is cancelled

[goaliebob99]

Directv is on the hook to pay the NFL reguardless, and if they don't play they will get a partial refund.

As far as customers, if the NFL season is completely cancelled and not a single game is played, then I would think Directv would be obligated to refund everyones money. The number of customers who would threaten to cancel over being charged for a package they never received, BBB complaints, Attorney General Complaints, and potential class action lawsuits is enough to make Directv think twice.

Now if there is atleast 1 game played, it becomes a grey area because then the question is does the customer get a partial refund, or no refund at all? Its the same thing if you bought the package 3 weeks after the season started, you still pay full price until the half season special comes around.

I will say one thing, if I where Charlie Ergen I would love to see the NFL season cancelled. There would be so many angry customers out there, they would blame the loss of the NFL on Directv and switch to Dish.

If he added full time hdrsn's he would attract them alot better!

 

[FlyingJ]

The closest the broadcast networks have to insurance is the fact that if the entire season is cancelled, a year gets added on to their contracts with the NFL to replace the one just cancelled...

Where did this little tidbit of information come from? Have an attorney budy that has been wrapped up with the network agreements and he tells me that there is a contract about 6 phonebooks thick that has every possible situation they could think of addressed. Even a single game being canceled for a natural disaster. This situation now didn't sneak up on anyone. They (at the networks) were discussing this 2 years ago and the what-ifs.

 

[cosmo_kramer]

Where did this little tidbit of information come from? Have an attorney budy that has been wrapped up with the network agreements and he tells me that there is a contract about 6 phonebooks thick that has every possible situation they could think of addressed. Even a single game being canceled for a natural disaster. This situation now didn't sneak up on anyone. They (at the networks) were discussing this 2 years ago and the what-ifs.

A. DirecTV
The NFL’s contract with DirecTV was to expire at the end of
the 2010 season. The previous contract had no work-stoppage
provision. As a result, the NFL would receive no revenue if it
locked out the Players. DirecTV had the exclusive right to
broadcast a “Red Zone” channel featuring scoring opportunities from
every regular-season Sunday afternoon game. The NFL wanted to
offer its own version of the Red Zone.
The NFL and DirecTV began negotiations in July 2008. The
extended contract provides that DirecTV will pay a substantial fee
if the 2011 season is not cancelled and up to 9% more, at the NFL’s
discretion, if the 2011 season is cancelled. Of the total amount
payable in the event of a cancelled season, 42% of that fee is nonrefundable
and the remainder would be credited to the following
season. As a result, the NFL could receive substantially more from DirecTV in 2011 if it
locks out the Players then if it does not. DirecTV would have
considered paying more in 2009 and 2010 “to have [the work-stoppage
provision] go away.”

....

The NFL and CBS and FOX, respectively, extended the contracts
through the 2013 season. Under the extended contracts, the new
work-stoppage provision: (1) eliminates the requirement that the
NFL repay rights fees attributable to the first three lost games in
the affected season; (2) allows the NFL to request less than the
full rights fee; and (3) allows the NFL to repay the funds, plus
money-market interest, over the term of the contract. If an entire season is cancelled, the contracts extend for an additional season.

http://images.nflplayers.com/mediaResources/files/Lockout%20Insurance%20Case%20Decision.pdf

 

[FlyingJ]

Good info. Hey Cosmo, correct me if I am wrong, and I may be, but I am reading this to say that "the new work stoppage provision" requires that the NFL repay the rights fees attibutable for all games lost after the first three.

I remember back in law101 they always had us reread provisions from th other side's point of view.

 

[cosmo_kramer]

Good info. Hey Cosmo, correct me if I am wrong, and I may be, but I am reading this to say that "the new work stoppage provision" requires that the NFL repay the rights fees attibutable for all games lost after the first three.

I remember back in law101 they always had us reread provisions from th other side's point of view.

I'm no attorney, so I can't speak to specifics, but I did find this explanation of Judge Doty's findings:

The NFL is expected to negotiate broadcast contracts on behalf of both the NFL and the Players Association, but the court ruled the NFL did not act in the legal definition of "good faith" in its business practices. Once the NFL opted out of the CBA, it negotiated contract extensions that protected the NFL in the event of a lockout -- to the tune of $4 billion -- while it knew the players wouldn't see any money during a work stoppage.

In fact, Doty's court document claimed the NFL turned down more money in broadcasting contracts for the 2009 and 2010 seasons because it preferred to negotiate the work-stoppage provisions.

Think about that. The NFL turned down more money for two seasons for the sole purpose of setting itself up on a $4 billion cushion in a lockout. When breaking that down, there's almost no other way to look at it: The NFL has been setting itself up for a lockout for two years.

Judge David Doty's Court Document Shows How NFL Set Itself Up to Make $4 Billion in Potential Lockout - NFL - NESN.com

 

[FlyingJ]

I think...again, thinking here which can be harmful, that the "explanation" is a bit sketchy. There is either "no other way to look at it" the "almost" points at an agenda. Bottom line...if I get charged for the freaking package and there is no football, that could be a problem. But.....there will be football, it will start on time and the world will be ok. Let it be written, let it be done, or what ever it was that Yul Brynner said.

 

[DodgerKing]

Directv is on the hook to pay the NFL reguardless, and if they don't play they will get a partial refund.

As far as customers, if the NFL season is completely cancelled and not a single game is played, then I would think Directv would be obligated to refund everyones money. The number of customers who would threaten to cancel over being charged for a package they never received, BBB complaints, Attorney General Complaints, and potential class action lawsuits is enough to make Directv think twice.

Now if there is atleast 1 game played, it becomes a grey area because then the question is does the customer get a partial refund, or no refund at all? Its the same thing if you bought the package 3 weeks after the season started, you still pay full price until the half season special comes around.

I will say one thing, if I where Charlie Ergen I would love to see the NFL season cancelled. There would be so many angry customers out there, they would blame the loss of the NFL on Directv and switch to Dish.

And then what? They switch and they still cannot watch football, including for years to come. On top of that, many of them watch other sports as well, of which either Dish does not offer or is not near the same quality.

I don't see the strike leading to a huge turn of Direct subs to Dish because of the reasons stated above

 

[cosmo_kramer]

A friend who is in management at ESPN told me that Directv's desire for Sunday Ticket exclusivity is the reason for that weird clause that requires more to be paid to the NFL with cancelled games. Kinda makes sense since none of the other broadcast partners have the same requirement...

 

[FlyingJ]

A friend who is in management at ESPN told me that Directv's desire for Sunday Ticket exclusivity is the reason for that weird clause that requires more to be paid to the NFL with cancelled games. Kinda makes sense since none of the other broadcast partners have the same requirement...

I guess that is the price we pay. I kind of like that. The "whatever it takes" approach!

 

[televisionarchives]

Now I know this won't happen but wouldn't it be great if they moved college games to Sunday if the strike happens!! And I'm betting with someone here at work that we won't have a Season.