Make Goods, Extensions and Refunds… Oh My!!

This is the Statt Mann Baby. Time to Scatt a little bit.

CoronavirusCrazy times globally. All the event cancellations this week have caused executives to run around with their hair on fire for a while.

I’d love to be a fly on the wall when broadcasters and content providers figure out who owes whom what for all the television programming that’s disappeared this week.

One producer told me the commercials lost this week and in the weeks to come might amount to tens of billions of dollars in lost revenue. How do you make good on that?

ESPN, ABC Sports, Turner Broadcasting, FOX Sports, CBS Sports, and NBC SN have all paid multiple billions with the expectation of getting that money back in profits from programming that’s now gone.

Usually when commercials fail to run there’s something called make goods when the network makes other time available to make good on the time lost.

But this is so great there might need to be an extension to current contracts to cover these lost hours. In short, refunds are unlikely.

Peace.

March 15, 2020

Leave a Comment