AT&T-DirecTV merger may hinge on NFL agreement

If DirecTV is unable to strike a deal with the National Football League to renew the satellite TV operator's contract to offer the popular NFL Sunday Ticket football package, AT&T Inc can pull out of the merger, according to a regulatory filing. In a filing related to the merger, the companies said, "the parties also have agreed that in the unlikely event that the Company's agreement for the 'NFL Sunday Ticket' service is not renewed on substantially the terms discussed between the parties, AT&T may elect not to consummate the merger." The current DirecTV offer allows subscribers to watch football games outside of their local markets on Sundays. The exclusive package, which costs subscribers up to $300 a year, is an important tool for DirecTV to attract subscribers and the company has said about 2 million people receive the service. Investors have been watching closely to see whether DirecTV would renew the Sunday Ticket contract with the NFL, estimated to be worth $1 billion annually, with the potential to rise in value as part of a new agreement.

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