Rarely does too much time pass without hearing Learfield IMG College has agreed to another multimedia rights partnership, on their way to owning a large collection of contracts with elite athletic programs nationwide. But without the NCAA Tournament, and plenty of uncertainty surrounding the start of the college football season due to a global pandemic, Learfield IMG has “quietly” asked schools for 60-day delays in making scheduled payments, according to Dan Wolken of USA Today.
Beyond delaying scheduled payments, Learfield IMG is also looking to restructure some of their partnerships to reduce or even eliminate rights fees. While some schools are understanding of the unprecedented times, others, according to the USA Today story, believe Learfield is using the pandemic as a way of obtaining more favorable deals.
The company isn’t alone in their attempt to alter a college sports partnership. Recently, the LA Times reported Under Armour is looking for a way to renege their 15-year $280 million deal with UCLA which launched in 2017. As Under Armour watched their stock plummet from $50 to $9, they’re also now looking to dump their deal with Cal.
Learfield IMG also isn’t the first media company accused of using the pandemic as an excuse to cut costs. When Sports Illustrated parted ways with senior writer Grant Wahl, the longtime journalist suspected the platform was using COVID-19 as justification to permanently reduce his salary.
Learfield and IMG merged in 2018 amid antitrust concerns to create a company worth over $2 billion, representing more than 70% of NCAA Division I athletic programs. Of those representations, Learfield IMG pays around $1 million for smaller programs and up to $15 million annually for high-profile schools.
Learfield IMG offered the following statement to Wolken and USA Today, saying they built “an aggressive campaign to recoup millions in at-risk revenue on behalf of the universities and conferences we represent” following the cancellation of spring sports, but that the economic fallout and uncertainty about fall sports necessitated discussions about adjusting these contracts.
“From the very beginning, our sole objective has been to ensure that all parties are in a position to weather this storm together, and to exit the other side cooperatively invested in a thriving partnership.”
The unknown of how many more losses the sports industry will endure during this global pandemic shouldn’t be discounted as Learfield IMG and other companies restructure their costs. But that restructuring might force college athletic programs to find a new rightsholder or even choose to operate their own media and marketing rights.
Brandon Contes is a former reporter for BSM, now working for Awful Announcing. You can find him on Twitter @BrandonContes or reach him by email at Brandon.Contes@gmail.com.
