Monday, June 20, 2016

And the ACC revenue gap continues to grow....

You can bet money that a weak ACC Network offer will be tied to a long term TV contract locking in the ACC as DISTANT payout to the Power 2.

The ACC will declare it a victory, but it will be a long term blow to the VERY few football schools in the ACC.  To make it worse, it will force a 9 game schedule.  You can see the ACC media blitz already working to sell the 9 game schedule and how this will be good for the ACC.

This will be a blow to FSU Football for sure, but like the weak FSU leadership of the past, you will see them declare it a victory. 

As Lou states below....if the ACC weren't dead last all the time, it would be wise for them to wait and rebid the contract on an open market (of course, the last time the ACC had that chance, all they cared about  was Swofford's son).



RedditCFB@RedditCFB 9 minutes ago
ESPN buys 2nd half of B1G media rights—$190m per yr; totals $440m per yr w/ Fox & CBS for nearly x3 prev media deal:



http://csnbbs.com/thread-782282.html


"Although everything may done on the ACC Network but the announcement...
I see here that the PAC's Larry Scott feels the same way I do about things.

http://blogs.mercurynews.com/collegespor...-model-us/

It's not really apples to apples, but the idea holds. You can get a few million more dollars now, or you can be a free agent down the line.

I personally would like the ACC not to extend their deal and go on the market at the end of the contract, and that looks like what the PAC will do, rather than selling off part of it's network.

Many industry analysts with zero stake in the race have told me in recent years that the Pac12Nets are, at best, a mild success.

So why does Scott consider the current model optimal?

Because of these seven words:

“We are taking the longer-term view.”

And because of this:

“I look at my role as the steward of the value of the content for the members.”

Scott is aware of the fan (and campus) frustrations with Pac12Nets distribution and revenue. But whether you agree or not, his priority is the long haul – and the presidents and chancellors support that approach.

Scott believes the windfall worth waiting for, even if it means the Pac12Nets distributions lags those of the B1G and SEC networks by $50 million (or more) annually.

*** What does the long haul mean?

It could mean up to eight more years. The current Tier 1 deal with ESPN and FOX expires in the summer of 2024. When that happens, the conference will take everything it owns to the market.

In Scott’s view, the confluence of rising demand for live sports (good insight here) … and changes in media landscape … and demand for Pac-12 content … will work to create a bonanza for the conference at the negotiating table with fill-in-the-blank (ESPN, FOX, Hulu, Facebook, Google, etc).

“We want to create the most long-term value,” he said. “That’s the mission.”

Is that the right move? Scott and his consultants believe it is. There’s no way to know for sure, of course. One could argue that an unforeseen development in the ever-changing landscape could leave the Pac-12 in a sub-optimal situation.
"

No comments:

Post a Comment