AT&T agreed to spin off its pay TV businesses to TPG in a deal valued at $15 billion in February. The deal closed in August.
In a filing with the Securities and Exchange Commission, AT&T described how it was treating some aspects of the separation from a financial and accounting perspective.
It said that it was paying the new DirecTV up to a cap of $2.1 billion for losses resulting from the Sunday Ticket agreement. The rights deal expires at the end of the 2022 regular season.
DirecTV reportedly pays $1.5 billion a year for Sunday Ticket, which gives it a unique programming package that has made it a must-buy among hard-core football followers. The NFL this year reached new long-term deals for its other broadcast franchises, but it remains unclear where Sunday Ticket will end up after 2022.
AT&T also disclosed that its WarnerMedia division will continue to sell DirecTV’s advertising inventory until AT&T closes the sale of WarnerMedia to Discovery.
DirecTV will receive a 70% share of the revenue generated by selling the satellite-TV platform's advertising, according to the filing.
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Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.