A Business Story

 Over the past week, NBC has come to agree...'yes, the Olympics hasn't been a big viewer deal'.  It's to the point where discussions are going on, with companies who paid for viewers via their commercials, and the fine-print of the contracts say that if things don't reach x-level....NBC has to 'gift' them other commercial airing times.

Whats this mean?  Well.....imagine yourself a car company and your $25-million was a total bust on viewers.  So the fine-print now allows you a chance to get 20 prime-time slots in January of 2022.  

The damage this triggers?  Pick one single show on a Tuesday night and suggest that two of the advertisements will be 'pay-back' situations....meaning there is no profit for these two commercials that you are giving away.  

The show in question?  Well....they will be furious over the free deal, and realize they didn't make the cashflow they anticipated.

Could they do this for NFL football evenings?  Yes.

So here's the real cherry of this discussion....NBC signed an extension to the Olympics contract (back in 2014)....which brings them up to 2032.   Cost?  7.75 billion dollars.  

What if the woke business continues into 2024 (Paris), and they were forced into 'gifting' another hundred-odd commercials?  2028 in southern California?  Same story?

All of this leads me to this one thought....that NBC will be putting itself into some economic spiral and probably to be sold off within the next five years.