Business news : Fitch: U.S. Sports Outlook for 2014 Stable on Favorable Trends Despite Tepid Economy

NEW YORK--U.S. sports enter 2014 with a stable outlook, supported by long-term collective bargaining agreements, national television contracts, and stable game day attendance, according to a Fitch Ratings report.

'Major League Baseball continues to build off of strong fan support and performance over the last few seasons, while the National Basketball Association's strong viewership and game day attendance is a positive,' said Chad Lewis, Senior Director at Fitch. 'The National Football League 2014-2021 television contracts are valued, on average, at $4.99 billion annually - significantly higher than prior contracts. Rights fees from 2014-2021 average $155.9 million per year, up from $99.6 million per club during the 2012-2013 season.'

'Despite the National Hockey League's approximately 500 canceled games, 16 teams played to capacity attendance while 10 teams were over 90% capacity and four were above 80% - statistics that clearly highlight a dedicated and loyal local fan base.'

Collective bargaining agreements in the National Football League through the 2020?2021 season, Major League Baseball through the 2016 season, and National Basketball Association through at least the 2016?2017 season provide certainty through the medium term. After a partial season cancellation in the 2012-2013 season, the National Hockey League reached a new collective bargaining agreement, which runs through the 2021-2022 season.

Renewal rates have been mixed depending on local economic conditions, league, and team performance. In some cases, luxury suites and other premium seats have been renewed for shorter contract durations, facing the greatest pricing pressure, while advertising and sponsorship agreements have generally been stable to positive depending on league and market.

As facilities face pressure from the home viewing experience, the leagues and teams must continue to reinvestment in facilities to maintain strong and stable attendance levels and attract corporate sponsorship partners.

For more information, a special report titled '2014 Outlook: Sports' is available on the Fitch Ratings web site at www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: 2014 Outlook: Sports (U.S. Sports Trends Remain Favorable Despite Tepid Economic Conditions)  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=726496
 
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Contacts
Fitch Ratings / Chad Lewis, +1-212-908-0886 / Senior Director
Fitch Ratings, Inc./ One State Street Plaza / New York, NY 10004
or
Charles Askew, +1-212-908-0644 / Analyst
or
Media Relations / Elizabeth Fogerty, +1-212-908-0526 / elizabeth.fogerty@fitchratings.com

By press release