Discovery, PGA Tour Sign 12-Year $2B Deal For Global Linear, Video-Streaming Rights
Monday, June 4, 2018 at 02:53PM
NYSportsJournalism.com in Discovery, Golf, PGA Tour, golf, live-streaming, sports marketing, sports media

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June 4, 2018: Multi-media company Discovery has signed a 12-year alliance with the the PGA Tour to create "an international multi-platform home for golf, delivering the sport’s most exciting moments, players and championships to passionate fans around the world on every screen and device.”

The partnership, to begin in 2019, would include global multi-platform live rights —  outside the U.S. — to all PGA Tour media properties, totaling about 2,000 hours of content per year.

That would include the six Tours operating under the PGA Tour umbrella and nearly 150 tournaments annually, such as The Players Championship, the FedExCup Playoffs and the Presidents Cup.

The price of the “investment” was put at $2 billion by Discovery.

The PGA Tour has negotiated all of its non-U.S. broadcast rights deals on its own since 2007.

“Today is a fantastic day for golf fans around the world as Discovery proudly partners with the PGA Tour to create something that has never been done before,” David Zaslav, president and CEO for Discovery, said in a statement.

“The long-term partnership between the PGA Tour and Discovery will create the new global 'Home of Golf,' including delivering over 2,000 hours of live content year-round and this prestigious sport’s greatest moments, stories and athletes.”

In addition to live linear rights in 220 markets and territories outside the U.S., the alliance would include the “creation of a dedicated, PGA Tour-branded, OTT video-streaming service that will capitalize on Discovery’s direct-to-consumer product and platform expertise as home to the Eurosport Player.”

Discovery said it expects to invest more than $2 billion over the course of the alliance, including licensing of the PGA Tour’s international media rights and building a global OTT platform available outside the U.S., "with a gradual increase of annual investment during the term.”

The business will be led by Discovery’s Alex Kaplan, now president and GM for the Discovery and PGA Tour venture.

According to Jay Monahan, commissioner for the PGA Tour, “This is an exciting next step for the PGA Tour, which presents a tremendous opportunity to accelerate and expand our media business outside the United States, better service our international broadcast partners, and drive fan growth with a deeply experienced strategic global partner.

“This partnership aligns very well with the opening of PGA TOUR offices in London, Tokyo and Beijing in recent years and will support our long-term objectives of growing the game of golf. It also will deliver more value to our sponsors as it presents a tremendous opportunity to engage new and diverse audiences around the world.”

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