AAC 2nd TV Contract/Negotiations

[junglehusky]

I agree as well. While Amazon and other providers may get into the college game, it'll be either at the high end (Big Ten) or super low end on a budget (maybe something to take the place of ASN for the Patriot League or similar level). The Amazons probably aren't interested in a G5 league.

 

[WestHartHusk]

I don't have high expectations for the next contract.

The networks are in cost-cutting mode and none of the potential streaming partners are going to overpay for a second-level conference.

The conference has a little more leverage without the right to match, but then again, ESPN has a little more leverage in terms of not having to match some other bidder's promise of exposure.

My hope would be that UConn would be able to retain some tier three elements, but the other conference members have no way to monetize their own tier three property, so it won't be a priority of theirs.

I expect that the next contract will be similar to this one in terms of dollars, but lesser in terms of exposure.

Honest question...is our administration really going to give up our T3 rights because Tulsa, Tulane...basically everyone else, have nothing better to do with theirs?

 

[huskypantz]

Honest question...is our administration really going to give up our T3 rights because Tulsa, Tulane...basically everyone else, have nothing better to do with theirs?

We obviously care about T3. Cincy does too. Other than that, we'd have to lobby other schools to block a deal that included T3 rights. For example, if Tulane's not going to get more than 1 mil per year and they're faced with 2 mil T1/2 or 3.5 mil all rights, why would they vote against selling all rights?

 

[shizzle787]

I don't have high expectations for the next contract.

The networks are in cost-cutting mode and none of the potential streaming partners are going to overpay for a second-level conference.

The conference has a little more leverage without the right to match, but then again, ESPN has a little more leverage in terms of not having to match some other bidder's promise of exposure.

My hope would be that UConn would be able to retain some tier three elements, but the other conference members have no way to monetize their own tier three property, so it won't be a priority of theirs.

I expect that the next contract will be similar to this one in terms of dollars, but lesser in terms of exposure.

Disagree with this part. I don't think exposure will change much and I belive half the B1G contract went to Fox, which actually leaves more spots open on ESPN networks for us.

 

[CL82]

I didn't want to like this but, I do agree. I just don't see anyway the AAC sees an uptick in revenues in the current climate.

I think it's going to come down to Aresco picking between similar dollar packages but trying to determine which gives the best exposure to the conference

We essentially have a single bidder for our conference. Not a recipe for success. If we got out tier 3 rights back, I'd call it a win but ESPN can make them a part of the deal because, as Fishy correctly notes, no one else can monetize theirs.

Getting back tier 3 rights close to being the most attractive part of the UConn to the NBE fantasy. Yeah, I'd be happy about games with Nova and Georgetown (and Seton Hall because it is convenient) but the $4-7M that we'd be able to get for football, MBB (occasionally), and WBB would be worth nice to have.

 

[Drew]

From this article that @huskymedic posted in the Wichita thread: AAC boss talks adding Wichita State, future expansion plans

Everybody felt that our conference was going to have a certain undercurrent of instability. That's an accurate statement to the extent that in the early days it did, and through this whole Big 12 process, no question. But if some schools left, we'd still have a great nucleus, a great core, and now we're aspiring to be a [Power 6]. That's the key. We've beaten [Power 5 programs] in football. We have 19 wins in two years. We have 32 games of over a million viewers on ESPN platforms. That's remarkable. Last year alone, we had a Tulsa-Ohio State game that had four million viewers, and we had a UCF-Michigan game that had two million viewers. Our championship game one year out-rated the Pac-12 championship game. And now the question is, if there's stability in the landscape, which it looks like there is, we've got to try to be a P-6.

And that's where Wichita comes into play. My feeling was if we weren't holding up our end of the bargain in basketball, it would be harder to claim that we were a P-6 conference. And we got off to a great start in basketball a couple of years ago. UConn won the national championship [in 2014]. Last year we had four teams [make the NCAA tournament], this year only two. But we haven't been getting high seeds. That's cyclical. We have coaches in place who are going to get it done. Gregg Marshall will be sitting around a table now with some coaches who have won national championships and gone to Final Fours.

I think [a Power 6] is attainable. I really do. I think these schools have resources. We'll get a better TV deal. That's going to be key. In a few years, we're going to be negotiating. We've got the '17–'18, '18–'19 and '19–'20 seasons left to go, but we'll negotiate well before that. I think our guys have done more with less already.

 

[Drew]

Found this on the "American Power" presentation released by the conference today and thought this was interesting regarding AAC TV deals going forward: http://sidearm.sites.s3.amazonaws.c...17/5/1/AACStrategyGuide_WEB_FINAL.pdf?id=1374

The "Multimedia" slide on page 16 of the PowerPoint presentation contains something I found interesting:

4.37: "Explore putting the American Digital Network exclusively on a prominent over-the-top offering as a precursor to a broader future arrangement involving live football and basketball games"

Is this a sign of things to come with the next "tv" rights deal? Instead of being plugged into cable or satellite is the AAC going to explore a solely OTT option for its sports content? This would be an incredible mistake in my opinion.

Then there is this on page 18:

5.02: "Identify competition for our rights by evaluating traditional media platforms and staying attuned to the latest trends and emerging media platforms in order to prepare ourselves prior to entering the marketplace"

5.03: "Visit regularly with prominent digital and technology companies in order to understand their future content and distribution strategies as it relates to live and pre-packaged sports content"

5.04: "Monitor the media marketplace and embrace new, emerging technologies that will differentiate the Conference from its peers and help it reach new fans"

 

[billybud]

The strategy of "over the top" broadcasting is interesting...UConn might need a broadcast partner to create and market an over the top channel.

ESPN is also implementing an over the top channel and has invested their first billion or so into Bam Tech, an over the top provider,

They have made the statement that they do not want to duplicate their cable content....Soooo...I wonder if 3rd tier rights are available to snap up from programs, if ESPN would buy them for inclusion on the over the top channel?

 

[Fishy]

Is this a sign of things to come with the next "tv" rights deal? Instead of being plugged into cable or satellite is the AAC going to explore a solely OTT option for its sports content? This would be an incredible mistake in my opinion.

I agree - I don't think it's an option and I don't think they're suggesting it.

I think they're merely suggesting that maybe putting the ADN on over-the-top might be a way to dip a toe in the pool as an experiment.

You really cannot avoid the networks yet - they still have the eyeballs and good luck scheduling home and homes when your games are on the internet.

 

[SubbaBub]

People who cite ratings when they play OSU and MICH in FB are not to be taken seriously. How many AAC v AAC games were over 1M?

 

[Rufus]

I think those high ratings came from the fans for the opponent of the American school than anything else. 4 million tuned in to see Ohio State play. Tulsa was simply the name on the jerseys of Ohio State's opponent. 2 million tuned in to watch Michigan play. UCF was simply the name on the jerseys of Michigan's opponent. In each case, these were one off 7th home games for the Big Ten School. Similar to the arrangements these schools make with MAC schools. These games were part of the B1G media package, not the American package. The day Ohio State plays a road game at Tulsa is the day the American can try and claim those viewers. But that day won't ever happen.

 

[dayooper]

I think those high ratings came from the fans for the opponent of the American school than anything else. 4 million tuned in to see Ohio State play. Tulsa was simply the name on the jerseys of Ohio State's opponent. 2 million tuned in to watch Michigan play. UCF was simply the name on the jerseys of Michigan's opponent. In each case, these were one off 7th home games for the Big Ten School. Similar to the arrangements these schools make with MAC schools. These games were part of the B1G media package, not the American package. The day Ohio State plays a road game at Tulsa is the day the American can try and claim those viewers. But that day won't ever happen.

Those teams usually get paid pretty handsomely to play at the Horseshoe, the Bighouse, Bryant Denny Stadium, the Swamp, either of the Death Valleys or any other name school.

UCF was paid $1.5 million to play at Michigan last year. That's a tremendous payday for them.

 

[Slasher]

People who cite ratings when they play OSU and MICH in FB are not to be taken seriously. How many AAC v AAC games were over 1M?

Cincinnati vs. Houston, 2.159M
UConn vs. Houston, 1.421 M
Memphis vs. Houston, 3.093M
Temple vs. Navy, 2.05M (AAC Champ)

High water mark was Navy vs. Army, 7.94M (obv non-aac game)

 

[dayooper]

Cincinnati vs. Houston, 2.159M
UConn vs. Houston, 1.421 M
Memphis vs. Houston, 3.093M
Temple vs. Navy, 2.05M (AAC Champ)

High water mark was Navy vs. Army, 7.94M (obv non-aac game)

Houston was a great example this year. They had hype from the year before and then they went a beat a pretty good Oklahoma team opening weekend. This is how Aresco needs to market the AAC. Go with the hot hand.

 

[Zissou]

KenPom's preview of next basketball season
1. B12
2. BE
3. SEC
4. ACC
5. B10
6. P12
7. AAC
8. MW
9. A10
10. MVC

 

[Kemba429]

Gus Johnson, Bill Raftery, and Len Elmore call the games, which is an added bonus.



If you bump to $3 or $4m, for football plus basketball, that is still less than the Big East gets for just basketball.

Come home, UConn. Come home to the Big East.

You cant beat Bill, Gus, and Len

 

[SubZero]

Cincinnati vs. Houston, 2.159M
UConn vs. Houston, 1.421 M
Memphis vs. Houston, 3.093M
Temple vs. Navy, 2.05M (AAC Champ)

High water mark was Navy vs. Army, 7.94M (obv non-aac game)

This seems to give Houston an argument that they are the ones driving attendance in the AAC.

The numbers of the AAC championship game is a nice surprise.

 

[Hoophound]

Houston was good, that drove ratings. Ranked teams get viewers. Remember back in the Big East when Rutgers and UL were ranked and undefeated going into a night game? That game was played in an electric stadium and ratings were fantastic. People just want to see a good game with real implications for the post season. I watched it and I almost never watch those teams.

Our ratings were worse against Houston because we were awful. Cincy was supposed to be good and brought viewers but I think that game was early in the season before we knew they stunk. Navy, Temple and Memphis were all good teams.

 

[upstater]

Reading this article, I don't think it's a foregone conclusion that the rights package will be similar to the first: Disney's ESPN problem comes down to simple math

If the Big East was worth $7m to $13m a decade ago, it may be that the AAC is worth more than $2m. The only question is, does the network value having it? ESPN's people are pretty clear and plain in this article. They are bringing in less money than ever. But they are still highly profitable and that profitability is based on the perception that ESPN is still the goliath in sports. Anything that erodes that perception creates a problem for ESPN. I am not saying that the AAC enables ESPN to maintain its goliath status, but if ESPN believes that retaining the AAC starves FS1 of more live sports, then you can easily make the case that the AAC is worth more than $2m per team per year.

 

[nelsonmuntz]

This is going to be a much harder contract to negotiate than anything in the past. I think the network demand is still there at some level (they need to broadcast sports or they become completely irrelevant), but the AAC needs to be looking down the road 5 years.

 

[CL82]

This is going to be a much harder contract to negotiate than anything in the past. I think the network demand is still there at some level (they need to broadcast sports or they become completely irrelevant), but the AAC needs to be looking down the road 5 years.

Toward what?

 

[The Funster]

Toward what?

The oncoming train.

 

[huskypantz]

Toward what?

Hopefully life without UConn.

 

[Drew]

American Athletic basketball tournament may look to Midwest in future

The American is looking at its multi-media options in advance of 2020, when its TV contract with ESPN ends. It appears all options are on the table, including digital companies such as Amazon or Netflix, should they decide live sports makes sense.

“The commissioner (Mike Aresco) is being thorough in looking at all aspects before making a decision on anything, or even a decision on a direction,” Boatright said. “His focus on going to be on that piece for the next couple years.”

 

[Drew]

reading this article, this section below most interested me regarding the future of the AAC TV deal:

To keep these competitors at bay, ESPN decided to, as Skipper put it, build a deeper moat. And that was when rights really began to get pricey.

In the spring of 2011, months before ESPN completed its NFL deal, NBC thought it had a deal with the Pac-10 worth $225 million per year. NBC already carried Notre Dame football, and the deal would have given the network’s sports channel a foothold in the college marketplace. Before NBC and the Pac-10 signed their contract, Skipper, who ran ESPN’s programming group at the time, called Fox Sports’ Randy Freer and came up with a unique and rarely seen bid — a combined offer of $250 million per year. The Pac-10 ended up spurning NBC and signed a deal with ESPN and Fox.

A year later, ESPN beat NBC Sports to the punch again — this time with MLB. While NBC Sports executives were in London for the Olympics, ESPN and MLB executives met privately to cement a deal that NBC wanted.

Skipper, who had become ESPN’s president by then, agreed to double the annual rights fee, from $350 million per year to $700 million. The huge increase came without significant postseason games — ESPN has the rights to one wild-card game. In fact, MLB officials were surprised that ESPN didn’t push harder for postseason rights. But ESPN executives said postseason baseball did not work for its fall schedule because it was filled with college football, which generally brings in higher ratings.

Even though national MLB ratings had been dropping significantly leading up to the deal, Skipper again saw an opportunity to keep a marquee package away from a competitor. Plus, he liked the sheer number of hours MLB provided, especially in the summer months.

The deals kept adding up. In May 2013, it signed an 11-year, $825 million deal to take the U.S. Tennis Association’s U.S. Open from CBS. In April 2014, ESPN agreed to pay $100 million for one NFL wild-card playoff game. In May 2014, it committed at least $37.5 million per year for Major League Soccer (up dramatically from its previous annual payout of $8 million per year).

But it wasn’t just about sports rights where ESPN committed the cash. The network’s reaction to competition also led to significant pay increases for several on-air personalities — paying some studio hosts well into seven figures — to keep them from going to Fox Sports 1 or NBC Sports Network.

ESPN insiders acknowledge those deals overvalued some of their on-air personalities and played a big part in ESPN’s decision to lay off more than 100 hosts, analysts and reporters earlier this spring.


1. Will ESPN continue to "build a deeper moat" despite their declining subscriber base? The article notes that even without as many traditional cable subscriptions, the value of sports rights might not decrease in the future. Will ESPN continue to pay more than necessary to keep the rights they feel are so important to their network? If so, does the AAC benefit from this style of negotiating/management?

2. Its interesting to see that NBC has tried on numerous occasions now to grow their portfolio of sports broadcasting rights. They put in unsuccessful bids for the AAC, PAC 12, and MLB. Will NBC be a player in the next AAC tv deal, especially since the ESPN "right to match" clause is gone? Getting 2-3 AAC games a week on NBC, say we get 2 slots of Friday night, 12ET and a 730/8ET slot on Saturdays, would be a major major accomplishment.

 

[Drew]

Are we going to return T3 rights back to individual schools?

The Huskies have a lucrative TV deal with SNY (about $1 million a year) and a media rights deal with IMG (bringing in about $9 million a year, and set to expire after 2017-18) that is one of the best in the nation. The SNY money had gone directly to the AAC and then split among all member schools, but UConn argued during recent conference meetings that it should keep that money. Athletic directors voted in favor of that proposal, and UConn will retain about $3.1 million over the next three years because of it.

http://www.courant.com/g00/sports/u...urant.com/g00/?i10c.referrer=#nt=oft12aH-1gp2

 

[upstater]

Are we going to return T3 rights back to individual schools?

The Huskies have a lucrative TV deal with SNY (about $1 million a year) and a media rights deal with IMG (bringing in about $9 million a year, and set to expire after 2017-18) that is one of the best in the nation. The SNY money had gone directly to the AAC and then split among all member schools, but UConn argued during recent conference meetings that it should keep that money. Athletic directors voted in favor of that proposal, and UConn will retain about $3.1 million over the next three years because of it.

http://www.courant.com/g00/sports/UConn-huskies/hc-aac-UConn-money-0527-20170526-story.html?i10c.referrer=http://www.courant.com/g00/?i10c.referrer=#nt=oft12aH-1gp2

A good thing, BUT why is the number so low? Years ago, the UConn women alone were at $1.8m a year. That figure didn't even include UConn men and football. Did the UConn men appear on SNY much last year?

 

[ConnHuskBask]

A good thing, BUT why is the number so low? Years ago, the UConn women alone were at $1.8m a year. That figure didn't even include UConn men and football. Did the UConn men appear on SNY much last year?

I think we had more games on SNY in the past, than we do now. I recall seeing some Big East games on SNY, but now the only thing on the network is the OOC cupcakes.

I recall Big East football being on SNY as well.

Seems like the games that used to go to SNY are now sold by ESPN to CBSSN.

 

[huskypantz]

A good thing, BUT why is the number so low? Years ago, the UConn women alone were at $1.8m a year. That figure didn't even include UConn men and football. Did the UConn men appear on SNY much last year?

It's low because we don't own our tier 3 rights. Even when we did to an extent, that money went back to the BE pot to be divvied up. The UConn brass better ensure that the next TV contract does NOT include tier 3 rights.

 

[upstater]

It's low because we don't own our tier 3 rights. Even when we did to an extent, that money went back to the BE pot to be divvied up. The UConn brass better ensure that the next TV contract does NOT include tier 3 rights.

??? The TV station still pays though, right? The money now goes to the AAC. The question is, why is the money paid to the AAC so low?

Of course, here's more than one way to cut a pie. SNY could rout more money UConn's way through the coaches' shows instead of paying the AAC directly. That is one way you can get around the tier 3 rights belonging to the conference.