“Last week, I wrote a post in Forbes which described why I thought Apple should outbid traditional broadcast TV and cable operators for the NFL’s suite of Thursday Night Football games which is up for bid,” Eric Jackson writes for Forbes. “Even though I argued that Apple could make $24 billion in profits over the next 5 years as a result of bidding $800 million a year for 5 years (or $4 billion in total), I don’t think I really made clear how significantly that could help Apple’s stock.”
“The extra sales of Apple TVs, content via iTunes that people would then buy on their Apple TVs, plus incremental iPhone sales would all be new iOS ecosystem sales not currently factored in by Wall Street analysts in their current price targets for the Apple stock price,” Jackson writes. “Therefore, they would have to model in all this additional revenue which would be prompted by large numbers of Americans and those internationally who love their NFL migrating to Apple to be able to stream the games on their Apple TV hockey pucks.”
“The bottom line is that this move by Apple to get into the live-streaming sports area would likely cause the Wall Street analysts to have to upgrade their price targets by another $264 billion or a quarter of a trillion dollars,” Jackson writes. “With 5.58 billion Apple shares outstanding currently, an extra $264 billion in market cap would mean an extra $47/share tacked on to their Apple price targets.”
Much more in the full article here.
MacDailyNews Take: As we wrote back in May 2014:
Perhaps Cook should consider bidding for and winning NFL Sunday Ticket away from Direct TV, buying rights to Premiere League and La Liga games, etc. and making them Apple TV exclusives. Go directly to the sports leagues with boatlods of cash. Maybe that’ll grease the wheels. It’ll certainly move a bunch of Apple TV boxes around the world in short order.
Apple could make $15 billion from winning the rights to NFL Thursday Night Football – November 27, 2015
Why Apple’s Board of Directors needs to include Mark Cuban – September 4, 2015
How Apple, Amazon, or Google could make Web TV a reality: Spend billions on the NFL – July 19, 2013
Did Apple drop the ball on an NFL deal for Apple TV? – August 21, 2009
Don’t buy it. Way overpriced. Sooner or later, people will wake up and come to understand that America’s blood sport is maiming players right and left, and we all contribute to the problem by way overpaying athletes. Nothing really wrong with sports, or football, or the NFL, but they have a monopoly, and that’s always bad for consumers.
Sports is for low-IQ beer drinkers, not creative people. The only sport I follow is the Forbes 400.
After the merger with the American Football League, they have squashed the WFL, the USFL, the XFL and coming soon another league for them to squash, Major League Football (MLFB).
Not to worry, precious Cook will just convince the NFL to transition to flag football (with rainbow flags, natch, and BGLTcheerleaders) and go from blood sport to cumbyya…..
Heck, I would be happy with a paid Pac-12 Network subscription option on the Apple TV to get around the lack of progress in getting the network on Directv.
The rights are worthless won’t sell nothing more for Apple, like giving money to a sport star, fashion model or a movie star.
The NFL- home to corporate welfare- is going to need that money to settle up for all the head trauma issues. Full contact football is today about where smoking was in 1979- still common, but hearing the first rumblings of it’s demise.
The delayed and cumulative effects of head trauma in tackle football are real and will be a feast for lawyers. The NFL is a rich Dinosaur smoking unfiltered Camels.
You’re talking about grown men who play a tough game and so I don’t think they should be able to sue anyone if they get head trauma or other injury. The knew the game was tough when they started the sport and knew it when they signed the contracts, so you can’t throw blame against an organization knowing full well what’s the risks are. That’s like signing up for the military and during them because you had to go to war.
Hmm looks like I made a few typos sorry about that
The NFL has known about the problem and has largely covered it up until payers started committing suicide and asking their brains be examined. The turf sits on concrete or asphalt- very few play on real grass. The hits from these pumped up monsters are not safe and the NFL knows it.
Apple would get more bang for their buck by buying movie production companies then spending it on football franchising. I hope Apple never waste a single penny on this sort of silliness.