Politics, ESPN and UConn

[Kevin Caliendo]

One of the interesting side notes to all this talk of expansion is the fact that the State of CT has invested or committed to invest $2B into the university of CT. That includes $90M for the football facility. The state also recently gave ESPN a $25M tax break to bring in 600 jobs. ESPN emplys 3,400 people in CT and has a multi-billion campus in Bristol. They are a profitable business for sure, generating roughly $700M in pre-tax profits (not sure how much of that is domiciled in CT), but they are not in the top 30 in terms of employers in the state. Yet, they were given one of the first big tax breaks of new incentive program Malloy has initiated. Interesting?

Well, we all think that ESPN is driving the conference realignment, at least when it comes to the conferences they are invested in, ie the ACC. I find it hard to imagine that the governor of the state will not try to exert influence on ESPN to help find Uconn a good home. He has too much invested in the state school and what it means to the state in terms of future employers and employees. Also, ESPN is not really in position to up and leave Bristol given the unique location and capital equipment they have there. the costs would be prohibitive and moving to NY or NJ is actually more expensive tax-wise for the business. Maybe promises will be made. Maybe the tax break was part of a deal to help Uconn and the state itself. Who knows, but if there is one thing Uconn might have going for it, it is this.

 

[Hoophound]

One of the interesting side notes to all this talk of expansion is the fact that the State of CT has invested or committed to invest $2B into the university of CT. That includes $90M for the football facility. The state also recently gave ESPN a $25M tax break to bring in 600 jobs. ESPN emplys 3,400 people in CT and has a multi-billion campus in Bristol. They are a profitable business for sure, generating roughly $700M in pre-tax profits (not sure how much of that is domiciled in CT), but they are not in the top 30 in terms of employers in the state. Yet, they were given one of the first big tax breaks of new incentive program Malloy has initiated. Interesting?

Well, we all think that ESPN is driving the conference realignment, at least when it comes to the conferences they are invested in, ie the ACC. I find it hard to imagine that the governor of the state will not try to exert influence on ESPN to help find Uconn a good home. He has too much invested in the state school and what it means to the state in terms of future employers and employees. Also, ESPN is not really in position to up and leave Bristol given the unique location and capital equipment they have there. the costs would be prohibitive and moving to NY or NJ is actually more expensive tax-wise for the business. Maybe promises will be made. Maybe the tax break was part of a deal to help Uconn and the state itself. Who knows, but if there is one thing Uconn might have going for it, it is this.

I 100% agree with this and have been talking about on the board. Political pressure works and ESPN has been treated well by the state. I doubt that Malloy has sat on his hands on this and I hope he keeps some pressure on.

 

[whaler11]

You would think that ESPN would want UConn in a good conference for the entertainment value for it's employees. All they do is bitch about how bad Bristol and Hartford are. Not that they are wrong, but they are even worse without UConn sports.

 

[mcs333]

Remember Bristol is only ESPN's operation center. NYC is where the corporate offices are and all major decisions are made.

 

[whaler11]

They keep moving more people to Bristol though. They just moved the entire magazine staff to Connecticut from New York. One would hope that the state would be pressuring them, but given what you see out of the state they probably are waiting for the busline to be built because they don't know how to find Bristol without it.

 

[WestCoastHusky]

There is no doubt ESPN is behind the demise of the BE. They plotted with ACC to destroy the BE before we can land our next big TV deal. This is exactly what has just happened. State of CT definitely should get involved dealing with this monster. If ESPN tells ACC to go to 16 today and add UCONN, ACC would have done it by now. All ESPN has to say is ACC's next TV deal will be more valuable with UCONN in the picture.

 

[Scalito]

All ESPN has to say is ACC's next TV deal will be more valuable with UCONN in the picture.

And the ACC would just take ESPN at its word? Of course not.

The only way ESPN can force the ACC to take UConn is by actually providing it with financial incentives to do so. And let's be clear. If convincing is needed, the incentives would have to be higher than what the ACC would earn from ESPN by unilaterally adding UConn to the conference. Those who are hoping to be saved by ESPN, therefore, are hoping that ESPN will overpay for the right to televise UConn/ACC games.

If you are an UConn fan, don't hold your breath. If you are a Disney shareholder and you think there's any chance this'll happen, sell your stock because your officers ain't looking out for your financial interests.

 

[ctchamps]

And the ACC would just take ESPN at its word? Of course not.

The only way ESPN can force the ACC to take UConn is by actually providing it with financial incentives to do so. And let's be clear. If convincing is needed, the incentives would have to be higher than what the ACC would earn from ESPN by unilaterally adding UConn to the conference. Those who are hoping to be saved by ESPN, therefore, are hoping that ESPN will overpay for the right to televise UConn/ACC games.

If you are an UConn fan, don't hold your breath. If you are a Disney shareholder and you think there's any chance this'll happen, sell your stock because your officers ain't looking out for your financial interests.

At least Disney World has Fantasy Land.

 

[WestCoastHusky]

And the ACC would just take ESPN at its word? Of course not.

The only way ESPN can force the ACC to take UConn is by actually providing it with financial incentives to do so. And let's be clear. If convincing is needed, the incentives would have to be higher than what the ACC would earn from ESPN by unilaterally adding UConn to the conference. Those who are hoping to be saved by ESPN, therefore, are hoping that ESPN will overpay for the right to televise UConn/ACC games.

If you are an UConn fan, don't hold your breath. If you are a Disney shareholder and you think there's any chance this'll happen, sell your stock because your officers ain't looking out for your financial interests.

State politics got VTECH into the ACC. It can work for UCONN too. State can give ESPN extra (wink wink) benefits if they help UCONN land in a more stable conference.

 

[Scalito]

State politics got VTECH into the ACC. It can work for UCONN too. State can give ESPN extra (wink wink) benefits if they help UCONN land in a more stable conference.

If I were Malloy, I'd skip the "wink, wink" and offer ESPN a firm, binding, and on-the-record bribe. Of course, I don't live in CT anymore, so the money wouldn't be coming from my pockets......