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The Great Indoors
Matt Purdue
06/01/2004
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According to experts, the AFL must maintain
and grow its network
television coverage. While TV networks traditionally
pay leagues a fee for the rights to broadcast games—NFL owners are currently
sharing contracts worth more than $17 billion, for example—and hope to recoup
the fee by selling advertising, NBC’s deal with the AFL is unique: There is no
rights fee. Instead, the network and the league share advertising revenue. (NBC
will broadcast the AFL championship game, ArenaBowl XVIII, live on June
27.)
“The AFL is at an inflection point, because the agreement with NBC runs
out at the end of 2004,” notes Chisnell. The upswing in TV ratings has pleased
both the network and the league, and Baker indicates that he and NBC are also
talking about expanding to other outlets. Without a solid TV deal, however, the
AFL “will sort of settle down into a minor league. They need this boost for
growth,” Chisnell says.
The AFL’s continued expansion also rests on its
stepchild relationship with the NFL, considered the General Motors of
professional sports. Today the two leagues share nine owners and a referee
development program. While Baker has no plans to convert the AFL into a minor
league for its larger counterpart, a formal partnership or branding relationship
could light a fuse for explosive growth. “That’s all they need. I think that
would be huge,” says Chisnell about the impact of such a marriage. “That will
take the casual fan from viewing it as a minor league sport to making it a
viable entity associated with the NFL.”
Until that happens, owners like
Wasserman continue to burn the midnight oil—and their cash reserves—to maintain
a professional product on the field, bolster P&Ls, keep NBC happy, churn out
marketing plans and, while they are at it, win a few football games. “Sports is
unique in that the biggest part of the business you can’t control is the only
part people see. You can do all the right things very thoughtfully and still go
0-16,” Wasserman concludes. “But that’s where you get the rush you don’t get
selling donuts.”
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