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 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.
The smarter way to stay on top of broadcasting and cable industry. Sign up below.
Thank you for signing up to Broadcasting & Cable. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.