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How the NFL could sink the AT&T-DirecTV merger

How the NFL could sink the AT&T-DirecTV merger
photo courtesy of shutter stock

Yesterday, I told you all about the AT&T and DirecTV merger and how both companies committed to Net Neutrality for three years, despite what the FCC says.

Today, that deal might be going down the tubes, all thanks to the NFL. I know what you're thinking: "What does the NFL have to do with AT&T and DirecTV?"

DirecTV has a Sunday Ticket package with the NFL and if DirecTV can't strike up a new deal with the NFL with the merger looming, AT&T has the right to walk away. Here's some fine print from the filing for purchase:

The parties also have agreed that in the event that DirecTV's agreement for the "NFL Sunday Ticket" service is not renewed substantially on the terms discussed between the parties, the Company may elect not to consummate the merger.

NFL Sunday Ticket costs $330 for an entire season. With that package, viewers can watch every game live, stream content online, or watch on your tablet, smartphone or laptop. Needless to say, it's a big source of revenue for DirecTV.

Football fans don't need to panic just yet, though. DirecTV CEO Michael White told Business Insider:

... negotiations with the NFL are going well and should clear by the end of the year, well before the merger with AT&T is expected to go through. ... "I'm still highly confident we're going to get out deal done," White said. "Discussions are very positive with the NFL."

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