Wednesday, April 20, 2016

Game changer for conference expansion?

With the BIG soon hitting $40-$45 million and the SEC already at $34 Million..........everyone else is just waiting for the other shoe to drop.

Note the B1G contract is only for 6 years.  I find that very interesting.


http://www.onthebanks.com/2016/4/20/11464314/big-ten-tv-contract-rutgers-

"If the Ourand report in Sports Business Journal is accurate, it breaks down to $17.8 million per school....and that's for about half of what the conference is offering to the networks.  This contract also does not include digital media rights nor the BTN package of games.
An interesting point made by USA Today's Dan Wolken is that this six year deal means that the Big Ten will be opening up bidding at least once more - more likely twice - before the ESPN deal with the SEC expires in 2034.  That means there could be even more money negotiated by and for the Big Ten while the SEC is locked into a 20-year deal."
 
 
 
"The Game is Texas Hold ‘Em – And The Big 12 Doesn’t Have Enough Chips.
 
They are willing to pay $250 million a year to the Big 10 to broadcast 25 football games and 50 basketball games a year.
$250 million for half of the inventory.
The Big 10 currently gets $112 million a year for its entire 1st tier media rights, which expire after the 2016-17 basketball season.
 
So the immediate question is how much does ESPN still want to be involved with the Big 10? Live sports are still the Holy Grail of media outlets, and the Big 10 is second only to the SEC in its appeal to college fans. CBS is probably content to sit this one out, but NBC/Comcast and Turner Broadcasting are both expected to be bidders for the 2nd half of the package. If they match the first bid, that would mean the Big 10 would collect $500 million a year just for their 1st tier rights.
One other interesting note is that there is no mention of FS2 as a carrier of these contests. All games will be nationally televised on the FOX Network or FS1. Those networks are available on the basic packages, but have been woefully behind even ESPN 2 when it comes to ratings for college football - just ask the Big 12.
Speaking of the Big 12. IF the Big 10 gets a matching bid for the second part of the tier one package, they will be distributing over $35 million a year to each program - not including College Bowl, NCAA basketball or Big 10 network revenue.
The Big 12 tax return for 2014-15 stated that the league distributed $23.3 million to each program, including all revenue streams. The SEC hit $34 million with the first year of the SEC network payout.
There is no way the Big 12 can pull together the scraps out there for expansion and come close to anything like those numbers. Forget about poaching from the ACC, that is a non-starter.

Texas is fine as long as ESPN keeps the LHN money flowing. But if the administration is not working seriously on an exit strategy to a more secure long-term conference solution, they should be fired tomorrow."
 
 
"Big Ten poised to shift media rights from ESPN to Fox
 
The Big Ten will return to market to solicit bids on the second half of the package, according to the report. Among the potential interested parties are ESPN/ABC, CBS, NBC and Turner Sports.
 
Sports Business Daily has reported that CBS wants to renew its package of men's basketball games, currently worth $12 million a year. That contract, like ESPN's, expires after next season.
Each Big Ten school, save for newbies Maryland and Rutgers, is expected to receive $40 million to $45 million a year in media rights once the new deals kick in. That figure was $20 million in 2009-10."

No comments:

Post a Comment