Advertisers paid $1.25 million for a 30-second primetime spot in the Tokyo Olympics. It may not have been the best investment.

This year’s viewership is down 42% from the 2016 Rio Games, pushing NBC to renegotiate with advertisers to prevent future losses. Ad deals are different with every company but based on number of viewers or the “brand lift” a network can provide.

• In 2011, NBCU’s parent company Comcast paid $4.38 billion for Olympic rights from 2014-20.
• The deal was extended for $7.75 billion in 2014 to include the Games from 2022-32.

NBC sold a record $1.25 billion in commercial spots this year but set aside extra advertising inventory in the case there would be a drop in ratings — which now seems like the right decision.

Reports blame the low viewership on the lack of in-person spectators, top athletes dropping out, the time difference from Tokyo, and even a misunderstanding of where to find the broadcasts.

Despite the setbacks, NBCUniversal’s CEO Jeff Shell said Thursday that the company still expects a profit. 

NBC’s Peacock has 54 million sign-ups as of this week, up from 42 million in late April. So far, overall streaming minutes for the Games are up 24% from 2016.

NBC also has broadcast rights to the Beijing Olympics and Super Bowl next year.

Churchill Downs is making a big investment in its iconic venue.

The home of the Kentucky Derby announced three capital improvement projects totaling $211 million over the next three years.

• $90 million will go toward the Turn 1 Experience project, featuring 7,100 all-inclusive seats set to be completed by the 2023 Derby.
• Another $45 million will be for renovating and upgrading the Homestretch Club, an area adjacent to the Twin Spires, converting outdoor seating into three unique seating options with amenities.
• The venue also announced construction of a hotel, gaming positions, and amenities at Derby City Gaming worth $76 million, adding 135,000 square feet of new space.

Churchill Downs already houses Millionaires Row, an exclusive interior dining room that starts at $36,000 per table, and The Mansion, an invite-only club featuring a $1,000 mint julep cocktail.

“We’ve listened to our customers’ feedback over the years and the response to those demands can be seen in these upcoming capital projects,” said Churchill Downs president Mike Anderson.

Wagers on this year’s Kentucky Derby Day in April reached $233 million, just shy of the record $250.9 million in 2019.

Orange, a French telecom company, has renewed its sublicensing agreement for rights to LaLiga and UEFA club competitions with Spain’s Telefónica in a deal worth roughly $356 million, per SportsPro. 

The deal is similar to the last contract between the two entities, but comes as Orange has seen its soccer audience grow by 43% over the last year. 

• The renewed agreement is a result of a ruling by Spain’s competition authority that requires Telefónica to share its sports content with other telecom companies.
• The content includes LaLiga and Formula 1, among others.

Orange has more than 268 million customers in 27 countries and is the largest telecommunications provider in France, with a market cap of $29.73 billion.

Telefónica — also one of the largest telecom companies in the world — is the rights holder to the UEFA Champions League and the Europa League. 

The company holds rights for a three-season cycle that begins with the 2021-22 seasons.

Orange reported $12.5 billion in revenue for Q2 2021, a 2.6% increase year-over-year.