NBC Asks NFL To Favor Owned Markets, Moves Ball Into Profit End Zone

Could NBC be urging the NFL to give it "Sunday Night Football" match-ups to provide an extra, trickle-down revenue boost? The network said Tuesday that Denver and San Diego will face off in the Nov. 19 "SNF" game--the second straight week in which a team from a market where NBC owns and operates the local station is playing.

When a team from an O&O market--San Diego in this case--plays, NBC Universal's revenues jump, since it owns both the national ad time and all the local inventory, too. And that local inventory has particular value, since ratings would be expected to soar as fans tune in for the home team.

Also, under the NFL's new flexible scheduling plan, the late-season match-ups on NBC are announced about 12 days before broadcast. The local stations might be able to command premium pricing with a rush of advertisers eager to appear on a game with local interest.

The favorable scheduling raises the question of whether the NFL is looking to place the most compelling match-ups on NBC or with an O&O link.

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NBCU should benefit from a windfall this weekend, when New York and Chicago play on the network. NBC has O&Os in both markets, located in the country's number one and number three DMAs.

True, NBC does not have ultimate control over what games the NFL allows it to air on "SNF"--but the net makes requests and is in constant discussions with the league. A team can only appear on NBC a maximum of four times in a season.

So far this season, NBC's games for the first nine weeks have included an O&O "home team" every week. (The New England Patriots play in Boston, but are a virtual "home team" in NBC's Hartford-owned market.) Those games were determined in April by the NFL after requests by NBC.

One of the "SNF" match-ups has been a "windfall" game with O&O teams playing each other. Another predetermined windfall game will come on Christmas Day, when Philadelphia and Dallas battle.

To be sure, the NFL's other two broadcast networks, Fox and CBS, feature home teams in their O&O markets every week. And the flexible scheduling can benefit those networks with appealing O&O games that move from a 1 p.m. start time to the more attractive 4 p.m. slot.

An NFL representative declined comment on scheduling maneuvers, but said: "The goal of flexible scheduling is to get as many top games in front of as many fans as possible."

NBC Sports representatives did not immediately respond to a request for comment.

After paying huge rights fees to the NFL, networks often claim that although the deals may lose money on a straight network basis, they can lead to profitability company-wide from increased ad sales at the O&Os. (Other reasons include promotional opportunities the games provide and payments from affiliates to help cover the costs.)

The new flexible scheduling plan is a move by the NFL to ensure that prime-time games on NBC feature compelling match-ups late in the season. The NFL determines which games NBC gets for weeks 10-15 (and 17) about 12 days before game night. Fox and CBS can each protect five games NBC can't carry during the flexible scheduling weeks.

It's possible that a boffo game featuring teams from outside an O&O market would yield huge national ratings for NBCU, and then be more valuable than a less attractive match-up involving one of NBCU's home teams. But an appealing game with some O&O interest is clearly ideal.

NBCU's collection of 10 O&Os includes nine markets with NFL home teams. Perhaps unfortunately for the company, only four have teams that are doing well enough to likely be considered for "SNF" games going forward: New York, Chicago, San Diego and Hartford (New England).

The teams in the Philadelphia, Dallas and Washington markets could merit consideration with some improvement. San Francisco (two teams with SF and Oakland) and Miami are unlikely to make it.

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