AT&T To Pay DirecTV Up to $2.1 Billion for NFL Sunday Ticket Losses

Promo for 2021 season of NFL Sunday Ticket
A DirecTV NFL Sunday Ticket promo for the 2021 season. (Image credit: DirecTV)

AT&T no longer owns DirecTV but it has agreed to pay up to $2.1 billion for losses resulting from its NFL Sunday Ticket contract.

Also Read: Amazon Reportedly the Frontrunner to Poach 'NFL Sunday Ticket' From DirecTV

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.

Jon Lafayette

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.