Yahoo Finance's Josh Schafer joins the Live show to detail the NFL's new streaming service and which platforms are still being considered for an NFL Sunday Ticker partnership.
DAVE BRIGGS: Let's continue the streaming discussion now as related to the sports world. The NFL announcing its own service, NFL+. That's 5 bucks a month for live local and prime time regular season and postseason games. Also news that YouTube may be entering the playing field for NFL Sunday Ticket. Josh Schafer is here with the impact of all of this on the king of cash, Apple. How does this move impact them?
JOSH SCHAFER: Yeah, Dave, so we now have Apple, who we have known to be in the winner's circle. We've heard from multiple analysts they're in the winner's circle. A lot of outlets are reporting that it seems like Apple's in the lead. But Google comes in, which is interesting, and Amazon. They both have plenty-- they all three of them have--
DAVE BRIGGS: They all have cash.
JOSH SCHAFER: --plenty of money to play with.
DAVE BRIGGS: Not as much as Apple. Apple is the cash king.
JOSH SCHAFER: And a lot more than Disney, though. So you can see kind of--
--going to go-- this is going to go tech style for sure. And I think what the interesting thing with NFL+ is for Apple is it's kind of the NFL taking a little bit of the piece of the pie for itself, right? They want to build out this streaming service. And it seems like Apple might be caught up in these discussions with, well, do we get NFL+ if we pay 2 and 1/2 billion dollars? Do we eventually get Red Zone? Are they going to try and buy all of that? Because if they're paying 2 and 1/2 billion dollars a year, they're going to want as much as they can get for it.
DAVE BRIGGS: They're going to want exclusivity, right? That's what I keep wondering about. If you're going to fork over that money for Sunday Ticket, you have to be the only one that gets it and not allow that other NFL version of it, right?
JOSH SCHAFER: Yeah, and that's why you're seeing so much money come into the space. I mean, it's a booming space right now.
JARED BLIKRE: Let me ask you something. We had an interesting discussion in our meeting earlier. We know through one particular NFL team that happens to be public kind of back in the envelope calculations out of that. What does this mean for Apple and also for the other teams?
JOSH SCHAFER: Yeah, Jared, so it's an exciting day for Green Bay Packers fans. It's owner shareholder day. And really, what we get as NFL fans and watchers is we get a good look at the revenue, right? So if you look at the national revenue for the Packers there, you can see it comes in at $347 million. That's the shared revenue. The Green Bay Packers get that. The Jacksonville Jaguars get that. The Detroit Lions get that. Everyone gets it.
Look at that number next to it, the expenses, $500 million. But when you think about it, they're 70% of the way there with that $347 million, without selling a ticket, without selling a beer, without having anyone go to a game. So then you only need to cover 30% more, and you're profitable. That's why all of these billionaires want to buy sports teams. It's a very cash flow positive business.
And when you think about the national broadcast rights that are coming in the next two years, guys, that we're talking about, Amazon, that billion dollar deal that starts this year, that's not included in that number. The $2.5 billion that's reported for NFL's Sunday Ticket, that's not included in that number. NFL teams might soon be making $500 million before they play a snap.
DAVE BRIGGS: Before they even start the preseason.
JOSH SCHAFER: That's a business I want to own.
JARED BLIKRE: Buffet, Buffett should get into football. I think he's missing out here, guys.
DAVE BRIGGS: Bezos.
JOSH SCHAFER: There's our prediction.
JARED BLIKRE: Really?
DAVE BRIGGS: I'm taking Bezos--
JARED BLIKRE: Yeah, I can see that.
DAVE BRIGGS: --before Buffett.
JARED BLIKRE: I can see that.
DAVE BRIGGS: Bezos gets in on that in the next couple of years. Josh Schafer, good stuff.