http://www.sportsbusinessdaily.com/Journal/Issues/2016/04/25/Media/Big-Ten.aspx
"Why did the Big Ten do such a short deal?
When conference media deals expire:
| Conference | Year |
| Big Ten | 2022-23 |
| Pac-12 | 2023-24 |
| Big 12 | 2024-25 |
| ACC | 2026-27 |
| SEC | 2033-34 |
Media negotiations typically come down to timing and leverage, and the Big Ten’s six-year deal with Fox is no different. The length of the deal means that the Big Ten will see a sizable increase now, while leaving it in position to take another bite from the apple when this deal expires in 2022-23. The Big Ten, by bucking the trend of doing long-term deals that go out anywhere from 12 to 20 years, will be able to go back to the table before any of its conference brethren. In the most recent cycle of contract renewals, the Big Ten went last, which originally was thought to be an advantage. The other leagues theoretically would complete their deals, and the Big Ten would come in and obliterate them all. Sources tell us that the first half of the Big Ten package will fetch around $250 million annually from Fox. The second half of the negotiations will determine if this theory was right or wrong."
"Recent reports indicate that Big Ten schools are projecting $44.5 million in annual revenue by the first year of the new TV contract (2017-18) for 12 of its 14 schools. Maryland and Rutgers aren’t fully vested until they’ve been in the conference six years. The majority of that revenue will come from the league’s media contracts. The Big Ten Network pays $8 million per school annually. If the new deal eventually reaches $500 million per year, as Commissioner Jim Delany has sought, that would average $35.7 million per school once all of the schools are able to take a full share. Combined with the BTN revenue, the Big Ten’s annual revenue would reach a whopping $44 million per school."
This is horrible math intended to make the Big Ten seem bigger than it really is... Basically all they are saying is that IF ESPN pays as much ($250 million/year) for the other 25 games as Fox has agreed to pay, THEN the Big Ten will make $44 million/year per team. They also forgot to take out the Big Ten's cut. So, while I think $44M is highly unlikely, they are still in line to make something like $31 million/year per team - about $10M/year ahead of the ACC right now, and about the same as the SEC.
ReplyDeleteFSU's main sports website believes a $20 million gap is there after research. Latest David Teel article also suggests this much.
ReplyDeleteThe gap is HUGE....right now. $15-$20 Million.....it is what it is. All the ACC has now is attempting to muddy the waters and pretend it isn't that large. It's huge...right now...going to widen.
They may believe it, but they are wrong. Mark my words; if I'm wrong, I will admit it (but I'm not)
DeleteI understand, I rarely 100% believe anything. I reserve that level of belief until I see it.
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