Broadcast Rights Value: Comprehensive Insights and Key Drivers

Updated On: August 23, 2025 by     Aaron Connolly  

Defining Broadcast Rights Value

Broadcast rights let TV networks, streaming platforms, and other media companies show live or recorded content to audiences. The value of these rights really depends on how big the audience is, how much broadcasters want the content, and the advertising money it can pull in.

What Are Broadcast Rights?

Media companies get the legal authority to transmit content like sports matches, tournaments, or big events to the public through broadcast rights. Without these rights, broadcasters just can’t show copyrighted stuff on their platforms.

These rights cover a bunch of distribution methods:

• Traditional television broadcasts
• Radio transmissions
• Online streaming services
• Mobile viewing platforms

Sports organisations, leagues, and event organisers start out owning these rights. They sell or license them to broadcasters who want to air the content.

The rights holder decides when, where, and how their content gets out there. That gives them a lot of leverage to negotiate profitable deals with different broadcasters.

Broadcasters often fight hard to secure exclusive rights to popular content. This competition pushes prices up, which is why major sports media rights deals can get so massive.

Types of Broadcast Rights in Sports

Sports broadcast rights come in several flavors, each affecting the market value differently.

Live broadcast rights usually bring in the most money. These let networks show matches or tournaments as they happen, and advertisers love live content since you can’t really replace or delay it.

Highlight rights allow broadcasters to show key moments after events end. They’re cheaper than live rights but still draw big audiences, especially during major tournaments.

Delayed broadcast rights let broadcasters show full matches hours or even days later. These aren’t as valuable—most fans already know the results by then.

Territory-specific rights split the world into regions. One broadcaster might own UK rights, while another gets European rights for the same event.

Digital streaming rights keep gaining value as more people watch online. Some organisations sell these separately from TV rights, which creates extra revenue streams.

Mobile viewing rights often get bundled with streaming deals, but sometimes they sell them on their own for added value.

Core Factors Affecting Broadcast Rights Value

Several key things determine how much broadcasters pay for sports content. The size and type of audience, how far the content reaches, and where people are watching all play big roles in setting prices.

Audience Demographics and Viewing Figures

Who watches your content actually matters more than just the number of viewers. Broadcasters pay premium rates for 18-49 year-olds with higher incomes, since advertisers want those groups.

Peak viewing times push value way up. Championship matches and finals can see viewership jump by 300-400% compared to regular season games. Esports shows this clearly—big tournaments like The International or League of Legends Worlds pull in much higher broadcast fees.

Gender balance matters too. Sports that attract both male and female viewers usually land better deals because more advertisers get interested.

Key demographic factors:

• Age ranges (18-34 is the sweet spot)
• Household income
• Education level
• Where viewers live

Broadcasters want content that keeps a steady audience. Consistent viewership helps them sell ad packages to sponsors, and nobody likes wild swings in numbers.

Market Reach and Geographic Coverage

How widely content gets distributed directly affects its broadcast value. Content that reaches multiple regions brings in higher fees than stuff limited to one area.

Population density really matters. Rights for big cities cost more per capita than rural regions, since urban viewers usually have more spending power.

International reach multiplies value fast. English Premier League broadcasts in Asia, for example, generate huge fees because of the massive potential audience.

Coverage factors that drive value:

Factor	Impact on Value
Urban vs Rural	Urban 2-3x higher
International Rights	5-10x domestic rates
Multi-language Access	25-40% premium

Regulations in different countries play a part too. Some places restrict foreign content, which can limit market access and lower value.

Time zones matter. If content airs during prime hours in big markets, broadcasters pay more compared to off-peak times.

Platform Types and Distribution Channels

Platforms pay different amounts based on their reach and business models. Traditional TV still brings in the highest fees for major sports.

Streaming platforms are catching up with traditional broadcasters. Netflix, Amazon Prime, and gaming platforms like Twitch offer something different. Streaming services often pay more to break into sports.

Cable and satellite providers usually lock in exclusive regional deals. These deals often include multiple viewing options and replay rights, which justifies higher prices.

Platform comparison for broadcast rights:

• Traditional TV: Highest fees, big reach
• Cable/Satellite: Moderate fees, targeted viewers
• Streaming Services: Rising fees, younger audiences
• Digital Platforms: Fees vary, global reach possible

Over-the-top platforms like YouTube TV sit somewhere in the middle. They offer broader reach than regular streaming but not as much as big TV networks.

Mobile-first platforms are starting to matter, especially for esports, where younger fans prefer phones and tablets.

Analytical Methods for Broadcast Rights Valuation

Valuing broadcast rights comes down to three main approaches. Market comparison checks similar deals, financial modelling predicts future cash flows, and viewership forecasting estimates audience growth.

Market Comparison Approach

The market comparison approach looks at recent broadcast rights deals to set price benchmarks. We analyze similar sports properties, leagues, and regions to get a sense of current rates.

We gather data on comparable deals. If we’re valuing Premier League rights, for example, we’ll check what other top European football leagues got recently. Audience size, match frequency, and contract length all factor in.

Where we get market comparison data:

• Premium stats from places like Statista
• Sports business industry reports
• Free stats from league annual reports
• Insights from broadcast industry analysts

This approach isn’t perfect. Every rights package is different, and the market changes quickly. Streaming has shaken up old pricing models, so older comparisons aren’t always useful.

We adjust for differences between properties. You can’t just compare a Championship league deal to Premier League rights without considering viewership and market appeal.

Financial Modelling Techniques

Financial modelling helps estimate broadcast rights value by projecting future revenue and costs. We build cash flow models that look at ad income, subscription fees, and production expenses.

The discounted cash flow (DCF) method is the go-to. We forecast annual revenues from broadcast rights over the contract, then discount them to present value. We have to make some assumptions about growth and discount rates.

Key model inputs:

• Ad revenue projections based on viewership
• Subscription income from pay-per-view or streaming
• Production costs for equipment and staff
• Rights escalation clauses that bump up payments over time

Monte Carlo simulations let us test different scenarios. We can model best, worst, and average cases to get a value range, not just one number.

Industry analyst reports give us benchmarks for our assumptions. They help us check our revenue projections against what’s actually happening in the market.

Forecasting Future Viewership Trends

Getting viewership forecasts right is critical for valuing broadcast rights. We look at past viewing data to spot trends and guess how audiences might behave in the future.

Traditional TV viewership has dropped in a lot of places, while streaming and digital viewing have grown. We have to account for this shift when estimating total audience and engagement.

Forecasting methods:

• Time series analysis of past viewing numbers
• Regression models that connect viewership to economic and social trends
• Demographic analysis to see how preferences change by age group
• Platform migration models to track movement from TV to streaming

Research firms give us market insights to check our forecasts. Statista and similar platforms have viewership data for different sports and regions, which helps us spot bigger trends.

We also factor in outside influences. Economic swings, competing entertainment, and big sporting events can all change how many people tune in.

Commercial Use and Revenue Streams

Broadcast rights bring in money through advertising deals and content licensing. Major esports events can pull in millions from advertising, and licensing deals keep content valuable across platforms and regions.

Advertising and Sponsorship Impacts

Advertising really forms the backbone of broadcast rights value in esports. Big tournaments pull premium ad rates because they connect with engaged audiences that traditional media can’t always reach.

Esports broadcasts often get higher ad premiums than many traditional sports. Young adults spend more time watching esports, so brands want in.

Sponsorship packages usually include:

• Logo placement during broadcasts
• Pre-roll and mid-roll ads
• Product integrations in streams
• Social media promotion rights

Revenue splits usually favor the broadcaster at first. As a league’s audience grows, they can negotiate better terms.

Commercial agreements need to consider sales tax in different regions. UK-based broadcasts might face different taxes than those aimed at the EU or US.

Advertisers increasingly want exclusive sponsorships. This raises broadcast rights values as brands compete for limited premium slots.

Licensing and Syndication Revenues

Content licensing stretches broadcast rights value beyond the first airing. Esports organisations license match footage to highlight channels, social platforms, and educational content creators.

Syndication deals multiply revenue. Popular tournament footage can keep earning for years through licensing to streaming services, TV networks, and digital media companies.

Main licensing revenue sources:

• International broadcast rights
• Video-on-demand licensing
• Social media clip licensing
• Educational institution usage

Selling geographic licenses creates multiple income streams from the same content. Tournaments often sell separate rights for North America, Europe, and Asia-Pacific.

Sales tax rules change by territory. UK-based esports companies have to navigate different regulations when licensing content abroad.

Revenue shares between creators and licensees usually range from 60-40 to 70-30 splits. The bigger the league, the better the percentage they can negotiate.

Major Sports Leagues and Notable Broadcast Deals

The top sports leagues pull in billions in broadcast revenue through multi-year TV and streaming contracts. The NFL leads with $12.4 billion a year, and basketball, baseball, and hockey keep landing bigger deals as streaming services go up against traditional broadcasters.

National Football League Agreements

The NFL brings in more broadcast revenue than any other league on the planet. The league earns about $12.4 billion per year from its current media deals.

Current NFL Broadcast Partners:

• CBS, NBC, Fox: Traditional Sunday and Monday games
• ESPN: Monday Night Football
• Amazon Prime: Thursday Night Football ($13 billion deal)

These contracts run through 2033 and add up to $110 billion. That’s nearly double what the last deal was worth.

Thursday Night Football moved exclusively to Amazon Prime Video in 2022. That marked a big shift as the first major US sports package to go fully streaming.

The NFL’s media rights make up around 43% of all US sports broadcasting revenue. Each team gets about $400 million a year just from national broadcast deals.

NBA, MLB, and NHL Broadcast Rights

NBA Broadcasting Deals: The NBA’s current deal with Disney (ESPN/ABC) and Warner Bros Discovery (TNT) wraps up in 2025. They’re getting about $2.6 billion a year from it, which is wild since that’s three times more than the last contract.

Big names like NBC, Amazon, Apple, and YouTube TV want in on the next round. Most folks in the industry think the next deal could hit $5.5 billion per year.

MLB Television Contracts: Major League Baseball makes money from both national and regional TV agreements. Fox, ESPN, and Apple TV+ handle the national side, keeping revenue steady.

Regional sports networks actually reach 82% of MLB’s TV audience. Local ratings even climbed 7% in 2022, though national numbers slipped a bit.

NHL Media Rights: Back in 2021, the NHL signed a seven-year, $4.3 billion deal with Disney and Turner Sports. That more than doubled what they got from NBC before.

ESPN brought hockey highlights back to SportsCenter in a big way. Both ESPN and Turner now promote NHL coverage during NBA broadcasts.

NCAA March Madness Contracts

March Madness is a broadcast goldmine for NCAA basketball. CBS and Turner Sports split the men’s tournament under a $1.1 billion per year deal.

Key March Madness Details:

• Duration: Deal runs through 2032
• Total Value: $19.6 billion over 22 years
• Coverage Split: CBS covers early rounds; Turner takes the later stages

The women’s tournament is finally getting its due. ESPN locked in an eight-year, $920 million deal covering 40 NCAA championships, including women’s basketball.

March Madness pulls in huge ad dollars thanks to its wide appeal. Office pools and casual fans really boost those audience numbers.

The tournament’s format throws in the possibility of big upsets and bracket chaos. That unpredictability makes it especially valuable for broadcasters who want viewers glued to the screen.

Role of Contracts and Negotiation

Contracts drive the value of broadcast rights. They set how long deals last and when they’re up for renewal.

Negotiation strategies often decide whether you land a premium rate or have to settle for less in a crowded market.

Contract Duration and Renewal Clauses

Contract length shapes broadcast rights value by locking in revenue and market position. Longer deals bring stability, but sometimes they trap broadcasters at rates that don’t keep up if audiences grow.

Esports contracts usually run between one and three years. This lets broadcasters protect their investment but still adjust as gaming audiences explode.

Annual contract reviews are popping up more often. These reviews let both sides tweak terms based on:

• Viewership numbers from the last year
• Sponsorship revenue trends
• Growth into new regions
• Tournament format changes that affect value

Renewal clauses often use automatic extensions if certain milestones are hit. For example, a contract might renew if average viewership tops 100,000 during major tournaments.

First right of refusal clauses protect current broadcasters. The rights holder has to offer renewal terms to them first before talking to anyone else.

Smart renewal setups include fees that go up as audiences grow. Organisers sometimes negotiate 15% yearly increases if viewership targets are met, so the broadcast value keeps up with the sport’s popularity.

Negotiation Strategies in Rights Deals

Winning broadcast rights deals means understanding what both sides truly want. Organisers need steady exposure and money, while broadcasters crave exclusive content that brings in subscribers or ad dollars.

Data-driven valuations give negotiators a real edge. Analytics like viewership stats, audience demographics, and engagement rates help justify higher prices or push for discounts.

Package deals usually offer more value than single tournament rights. Broadcasters often pay more for a full season of:

• Regular season games
• Playoff tournaments
• Behind-the-scenes features
• Player interviews and documentaries

Territory restrictions give organisers leverage. If you want exclusive UK rights, you’ll pay more than for a shared or non-exclusive deal.

Payment structure matters, not just the total amount. Upfront payments help organisers with cash flow, while performance-based payments tie everyone’s interests together.

Escalation clauses guard against market shifts in long-term deals. If a rival tournament suddenly pulls huge numbers, these clauses can bump up fees to keep things competitive.

Sometimes, broadcasters and organisers ditch fixed fees for revenue sharing. Broadcasters might give up 30-40% of ad or subscription revenue from esports content, turning the deal into a partnership instead of a simple sale.

Technological Innovations Shaping Rights Value

New technology is shaking up the price broadcasters pay for sports content. Streaming services and the way people watch on multiple devices now create revenue streams old-school TV just couldn’t offer.

Streaming Services and Digital Platforms

Streaming giants are changing the entire broadcast rights game. Apple, Amazon, and Netflix now go head-to-head with traditional TV for top sports content.

Apple’s deal with Major League Soccer is a prime example. They grabbed exclusive global streaming rights on Apple TV+, moving the league away from regular TV.

These tech companies bring some serious advantages:

• Global reach with no regional limits
• Direct connections with subscribers and better viewing data
• Flexible pricing like pay-per-view
• Integration with their own devices or services

The money is huge. Global sports media rights hit £44 billion in 2023, and streaming played a big part in that.

Amazon Prime Video’s Premier League coverage shows how streaming changes habits. Their Thursday night games draw younger fans who want on-demand action instead of sticking to TV schedules.

Impact of Multi-Device Viewing

Multi-device viewing has totally changed how we price broadcast rights. Fans watch on phones, tablets, laptops, and smart TVs—all at once sometimes.

This opens up lots of ways for rights holders to cash in:

Device	Primary Use	Revenue Impact
Mobile	Live scores, highlights	In-app buys, targeted ads
Tablet	Second screen stats	Premium content subs
Smart TV	Main viewing	Traditional ads
Laptop	Social sharing	Affiliate marketing

The NBA’s multi-platform strategy is a great example. Their mobile app brings in extra revenue with personalised content while fans watch on TV.

Rights holders now split deals by device and platform. One football match might make money from live TV, mobile highlights, social media clips, and even VR.

At first, this fragmentation seemed like a headache. But actually, it’s boosted total rights value by bringing in more bidders and more ways to earn from each game.

Legal and Regulatory Considerations

Broadcast rights sit in a tricky legal landscape. Copyright laws protect content creators, and international regulations shape sports rights distribution across borders.

These legal frameworks directly decide how rights get valued, sold, and enforced in different places.

Copyright and Licensing Laws

Copyright laws give sports organisations control over their events. They own the content, so they get to decide who broadcasts, streams, or distributes it.

Licensing turns these rights into real money. Broadcasters buy the licence to show specific content, and the contract spells out:

• Where they can show it
• Which platforms they can use
• How long the rights last

Key licensing elements include:

• Exclusive vs non-exclusive rights
• Territory restrictions (UK only, EU, global)
• Platform limits (TV, streaming, mobile)
• Duration of rights

Intellectual property laws also help fight illegal streaming and piracy. This legal protection boosts the value of official broadcast rights because rivals can’t just show the same content for free.

International Regulations on Sports Rights

Broadcasting sports across borders means dealing with different rules everywhere. The European Union has its own laws about showing sports in member states, and other regions have their own systems.

Major international considerations include:

• Anti-siphoning laws to keep big events on free TV
• Competition rules to stop monopolies
• Data protection laws for viewer info
• Import/export controls on broadcast content

Regulators like Ofcom (UK) and the FCC (US) watch over standards and competition. They can block deals if they think one company is getting too much power or if the public loses access to major events.

Time zones also add a twist. Live broadcasts have to follow ad and content rules in every country where they air, which complicates both value and distribution.

Market Trends and Future Outlook

Streaming is upending how we value broadcast rights, while new esports markets are opening doors for rights holders and broadcasters.

Growth of Streaming-Exclusive Contracts

Streaming giants are eating into traditional broadcasters’ turf. Netflix, Amazon Prime, and gaming platforms are driving up prices and leaving legacy media scrambling.

The numbers don’t lie. Programming rights fees grew 6.3% a year from 2018 to 2022, hitting $19.8 billion. They could jump to $31.6 billion by 2030.

Key changes include:

• Direct-to-consumer streaming that cuts out regular TV
• Tech companies using sports to pump up subscriber counts
• Shorter contracts for more frequent renegotiation

Old-school broadcasters are struggling. As more people ditch cable, only about 50 million pay-TV households will stick around by 2030—a 25% drop.

That’s a big opening for streaming services with deep pockets. Tech companies will likely grab even more sports rights in the years ahead.

Emerging Sports and Media Markets

New competitive scenes—especially esports—are creating lucrative broadcast opportunities outside traditional sports.

Growing markets include:

• Regional esports leagues with dedicated fans
• Mobile gaming competitions in Asia and new markets
• Women’s sports picking up serious broadcast investment
• Alternative sports finding streaming audiences

The broadcast and media tech market reached $41.60 billion in 2021. It’s on track to grow 9.4% a year, possibly hitting $85.36 billion by 2029.

Digital innovation is driving most of this. AI, 4K/8K video, and cloud tools are changing how we watch.

Foreign investors are pouring money into major sports. That’s pushing up values across all types of competitive entertainment.

Specialised sports bundles are popping up too. These target die-hard fans who’ll pay top dollar for all-access coverage of their favourite competitions.

Comparing Accounts and Access to Data

Platforms don’t all give you the same level of access to broadcast rights data. Premium accounts dig deeper than free ones, so knowing what you get can save you time and money.

Account Types for Industry Data

Most data platforms use a tiered setup. Free accounts usually show just the basics and a few sample charts.

Statista has three main levels. The free version gives you headlines and a handful of charts. Basic accounts cost about £50 a month and unlock more stats. Premium business access starts at £400 monthly for the full database.

S&P Global Market Intelligence uses enterprise pricing. They don’t list rates since it depends on your company size and what you need.

Industry-specific sites like SportBusiness run on subscriptions. Prices range from £200 to £2,000 a year depending on access.

Most platforms offer student discounts—sometimes 50-70%. Some even let you try them free for a week or a month before you have to pay.

Accessing Premium Versus Free Insights

Free statistics offer a basic look at the market, but they don’t really dig deep. For example, you’ll see headlines like “US sports rights approach £30 billion,” but you won’t get the details on which companies spend what.

Premium stats go much further. They break down individual broadcaster spending, contract durations, and even revenue projections for each sport.

Free sources? Think press releases, annual reports, and those generic industry summaries. They’re fine if you just want to get a feel for trends or need quick facts.

Premium access brings real-time data, custom report generation, and lets you compare historical data. Analysts and investment firms depend on this level of detail when they’re making big decisions.

Heads up: A lot of platforms will auto-renew your subscription. Always double-check those cancellation policies before you start a free trial.

Challenges and Risks in Broadcast Rights Valuation

Valuing broadcast rights comes with two huge headaches that can seriously impact investment decisions. Viewer demand changes in ways nobody expects, and figuring out the real value of content is way trickier than it looks.

Fluctuating Viewer Demand

Viewer demand throws the biggest curveball for anyone trying to price broadcast rights. One season, millions might tune in for a tournament. Next season? Those same fans could vanish, chasing after a new game.

This cycle happens all the time in esports. Maybe Counter-Strike pulls in huge crowds one year, but then Valorant suddenly takes over and viewership drops.

Traditional sports aren’t immune either. When star players retire or teams switch cities, audiences shift.

What drives these changes? Well, several things:

• New games popping up
• Exclusive streaming deals
• Tweaks in tournament formats
• Viewers just getting tired by season’s end

Predicting future earnings gets dicey fast. Rights holders often look at last year’s numbers, but esports fans can be fickle—way more than traditional sports audiences.

Warning: Investors often put too much faith in viewer loyalty when they’re crunching the numbers for long-term deals.

Regional quirks make things even messier. A game that’s huge in Europe might totally flop in North America. That makes valuing global rights a risky business.

Complexity in Measuring True Value

There’s a lot more to broadcast rights value than just counting viewers. Multiple revenue streams and hidden costs make things messy.

Rights packages usually bundle up different territories, platforms, and timeframes. A single deal might include:

Component	Variables
Geographic reach	Regional exclusivity, global rights
Platform rights	TV, streaming, mobile
Content type	Live matches, highlights, documentaries
Duration	Single season, multi-year deals

Each part comes with its own risks and rewards. Streaming rights might look valuable, but sometimes those audiences don’t actually bring in much ad revenue.

People often forget about production costs. Broadcasting esports takes special gear, skilled people, and technical know-how. These costs can eat into profits fast.

Market saturation is another headache. Too many similar tournaments split the audience, and each broadcast ends up being worth less. In esports, this happens all the time since so many organisers are fighting for the same fans.

Data transparency is still pretty weak across the industry. Broadcasters rarely share detailed viewership numbers, so independent valuations are almost guesswork.

Frequently Asked Questions

Broadcasting rights values swing wildly depending on audience size, competition, and whether the content is exclusive. Sports leagues cut multi-billion pound deals, and the rise of digital streaming keeps shaking up old pricing models.

What factors contribute to the high cost of sports broadcasting rights?

Live sports draw massive crowds, and advertisers pay big money to reach them. Once a game ends, though, the value of that broadcast drops off a cliff.

Scarcity is a huge driver. There’s only one Premier League or Super Bowl every year.

Broadcasters fight hard for these rights. When Sky Sports, BT Sport, and Amazon all want the same football matches, prices shoot up.

Having a global audience bumps up the value even more. A single Premier League match can reach fans across nearly every continent.

How do NFL broadcast agreements compare financially to other major sports leagues?

The NFL pulls in about $10 billion a year from broadcasting rights spread across several networks. That’s way ahead of most other leagues.

Premier League rights sold for £5 billion over three years just in the UK. Add in international deals, and football nearly matches the NFL on a global scale.

Major League Baseball gets around $2.8 billion per year from national TV deals. Regional contracts add even more for individual teams.

The NBA’s current deal is about $2.6 billion annually. The next round of negotiations could push that number much higher.

In what ways do ESPN sports broadcasting contracts influence the market?

ESPN’s subscriber fees set a kind of baseline for sports content pricing. They pay over $2 billion a year just for NFL Monday Night Football.

When ESPN offers premium rates, rivals have to keep up or beat them, which pushes prices higher for everyone.

As ESPN loses traditional subscribers, they’ve become pickier. Now, they focus their money on the biggest events instead of spreading it thin.

Their shift toward streaming has also changed how leagues package their rights. More often, leagues split digital and TV deals.

Which country holds the most lucrative football TV rights deal?

England’s Premier League sits at the top for domestic fees. The current deal pays out £1.67 billion per season just for UK rights.

Germany’s Bundesliga brings in about £1 billion a year domestically. Bayern Munich’s dominance doesn’t seem to hurt business much.

Spain’s La Liga gets around £900 million each year from domestic rights. Most of that value comes from Real Madrid and Barcelona.

Italy’s Serie A earns roughly £850 million per season from domestic deals. The league still trails behind Europe’s biggest competitions.

How are MLB TV contract values determined?

National contracts look at viewership across all 162 regular season games and the playoffs. The long season means broadcasters get tons of content.

Regional sports networks pay based on things like local market size and how popular a team is. The Yankees, for example, command much higher fees than smaller clubs.

If a team makes the playoffs or is in contention for a championship, its broadcast value jumps. Success means better ratings and more revenue.

Digital rights play a bigger role every year. Streaming services want exclusive content to attract younger fans.

What is the impact of college football TV contracts on conference revenue?

The Big Ten Conference just landed a new media deal, and now each school gets about £80 million every year.

That’s a huge jump from what they got before.

SEC schools pull in similar amounts, which really opens up a financial gap between the power conferences and the smaller leagues.

You can see this gulf play out in recruitment and in the quality of facilities.

When schools switch conferences, they mostly do it to chase better TV money.

Media revenue seems to matter more than geography these days.

Meanwhile, smaller conferences try to keep up, but their TV deals only bring in £2-5 million a year for each school.

That gap between rich and poor programs just keeps getting bigger.