ACC expansion will pay off in new TV deal

[Rumrunner]

"ACC expansion will mean at least $1 million to $2 million a year in additional revenue for each of the conference’s existing schools, according to sources privy to discussions between the league and ESPN. The addition of Pittsburgh and Syracuse, which will increase the number of t..."

https://www.sportsbusinessdaily.com/Journal/Issues/2012/02/06/Colleges/ACC-TV.aspx

 

[Fishy]

Of course it will.

Despite the happy-happy joy-joy contingent's thoughts, the ACC killed a rival for television dollars.

The extra cash that the ACC will enjoy is coming out of the Big East's corpse.

 

[Uptop]

That's all?! There's a lot of talent here that would know better, but $1-2 million more per year by TV standards doesn't seem like a lot in contrast to what Pac 12 received and what SEC projects to receive adding MO and A&M.

Proves the goal was to take the Big East out.

 

[HartbeatHusky]

That's all?! There's a lot of talent here that would know better, but $1-2 million more per year by TV standards doesn't seem like a lot in contrast to what Pac 12 received and what SEC projects to receive adding MO and A&M.

Proves the goal was to take the Big East out.

That's exactly what I said it would be based on what another article said previously. It's a lot compared to what the BE is currently getting but will still leave the ACC pulling up the rear compared to the other 4 AQ leagues. BE would have easily gotten more than that had it stayed together but that ship has probably sailed. This amount will not protect the ACC from poaching from the B10 or SEC if those leagues decided to move in that direction and they are adding 3 years locking it in even longer.

Make no mistake, this is the best possible outcome for the ACC based on the disadvantage their contract put them in, but they will still be at the mercy of other leagues. The SEC is going to renegotiate as well now that Mizzou and aTm are joining and they'll probably be up in the $20M per year club with the P12 and B10. The B12 is going to be able to get closer to that number with their new additions as well. The New Big East will be lucky to get a comparable deal to the ACC and probably will be a few million behind it baring a last minute dramatic development.

 

[Fishy]

I think you guys are bad at math.

$1-2M extra per team is an extra $14-28M distributed per year - that is substantial. Each team might get on the order of $13-15M per year.

The absolute best case scenario for the Big East will probably result in yearly payments that will be half of that.

 

[HartbeatHusky]

The absolute best case scenario for the Big East will probably result in yearly payments that will be half of that.

We'll know the answer to this soon enough. It's all speculation on our part at this point.

 

[Fishy]

It wasn't my speculation - I took it from a trade journal article that someone scanned and sent to me before the holidays. I think 5.0 to 7.4M was the range cited.

 

[CL82]

It wasn't my speculation - I took it from a trade journal article that someone scanned and sent to me before the holidays. I think 5.0 to 7.4M was the range cited.

Can you link to it? I would be surprised if the numbers aren't substantially higher but there are others on the board who have much better info.

 

[HartbeatHusky]

It wasn't my speculation - I took it from a trade journal article that someone scanned and sent to me before the holidays. I think 5.0 to 7.4M was the range cited.

I hope they can do better than that if we are going to be stuck here. I wouldn't be surprised if those numbers are for football only members not including basketball. I'd like to see the report that you read as well but thanks for letting us know that you have seen it reported somewhere.

 

[Carl Spackler]

I'm not sure how any of this is news. The ACC/ESPN interest in this whole mess was reported by DeFillippo in the Boston Globe months ago.

I would really like to see that article that says the big east payout per program would be $5mill-$7.4mill. First question I have to ask, is whether or not that figure is for the football playing members, or the basketball playing members......

Because - if that were the number for the basketball playing schools, on strict television revenue of first and second tier rights (good lord, do you even comprehend that?) but never mind.....if the basketball schools were to get $5mill a year from television 1st and 2nd tier alone, that would be only just over a 50% increase from existing revenue. A $5mill a year pay for football schools, would be just over a $1mill more per year than they already get.

I find that very hard to believe. Why? Because the reported figures in the ESPN/Big East talks last year were in the $120 mill per year range, which was triple what we already have, and that was with Cuse, WVU, and Pitt, and knowing TCU wasn't coming.

So, whatever Fishy read, is speculating that by losingthe Syracuse, WVU, and Pitt television markets, and gaining Central Florida, SMU, Houston for all sports, and Boise St, SDST, and Navy for football - by gaining those markets and losing the others....and projecting a 12th addition and a football champoinship game....

all of that somehow projects to a broadcasting contract that will be essentially a 1/3 of what ESPN was willing to pay before the big east walked out and said they were going to open market in august 2011.

Nope, not buying that.

Funny how in September, with the market presenting the way it was going, Cuse and Pitt are gone to teh ACC, for a guaranteed upgrade in pay, and Flipper is reporting ESPN's involvement in the Boston Globe, and that UConn was the original target.

UConn and Cuse to the ACC would have effectively killed the Big East conference. Cuse and Pitt to the ACC, adn WVU to the mess that is the big 12?

Nope.

On top of it, the conference leadership finally gets it in Providence. Finally.

We are goign to be just fine money wise going forward. ESPN media empire would have you believe otherwise.

 

[HartbeatHusky]

The only credible reports that I've read about the potential new BE contract are this one from Houston where the AD says it should be at least $10M per school and north of 8 figures and another one from Sporting News saying that it could possibly be higher than the ACC's deal because NBC is still a very motivated buyer. I personally doubt that we will get more than the ACC considering the departures we've suffered but definitely would hope it would be over $10M per year for all sports members.

http://www.chron.com/sports/cougars...celebration-UH-officials-talk-new-2393437.php

http://aol.sportingnews.com/ncaa-fo...-job-arizona-state-craig-james-rudy-ruettiger

 

[nelsonmuntz]

The only credible reports that I've read about the potential new BE contract are this one from Houston where the AD says it should be at least $10M per school and north of 8 figures and another one from Sporting News saying that it could possibly be higher than the ACC's deal because NBC is still a very motivated buyer. I personally doubt that we will get more than the ACC considering the departures we've suffered but definitely would hope it would be over $10M per year for all sports members.

http://www.chron.com/sports/cougars...celebration-UH-officials-talk-new-2393437.php

http://aol.sportingnews.com/ncaa-fo...-job-arizona-state-craig-james-rudy-ruettiger

Shhhh. There is a component of this fan base that enjoys wallowing in misery over this issue and thinks the TV number should be $5 per school. Not $5 million, 5 dollars.

 

[nelsonmuntz]

It wasn't my speculation - I took it from a trade journal article that someone scanned and sent to me before the holidays. I think 5.0 to 7.4M was the range cited.

The MWC will get better than $5MM per school in their next deal, even with their departures. I guess you believe the Big East is worth less than the new MWC.

 

[RS9999X]

Shhhh. There is a component of this fan base that enjoys wallowing in misery over this issue and thinks the TV number should be $5 per school. Not $5 million, 5 dollars.

The MWC will get better than $5MM per school in their next deal, even with their departures. I guess you believe the Big East is worth less than the new MWC.

We've been going at this for 6 months. I still think the $2 million per year ($24 million) will be the real number for existing ACC programs. That's in line with the previous ACC 'Raid' contract adjusted for contract inflation.

$24 million is a great bullet point on every ADs resume and every President's resume and will be tweaked up after logowear and ticket sales are included. Compensation Committees will reward them with $$$ and longevity. That's the way the game is played. The extra money is a great down payment on a new facility or expansion or improvements. Coaches know there wll be salary trickle down for them too.

The good news: The ACC will want to reopen that contract before 2026. There will come a time when the opportunity is right--mostly because the media consultants the ACC hire have a sales pitch they can deliver to both ESPN and to the Presidents and collect some nice consulting fees based on revenue increases. We know the media landscape is changing quickly over the next 8 years. At some point they will want to go the table again and add some more bullet points to their resumes and dance before the compensation committees.

 

[Fishy]

The MWC will get better than $5MM per school in their next deal, even with their departures. I guess you believe the Big East is worth less than the new MWC.

I didn't express an opinion.

#ReadHarder.

 

[WestCoastHusky]

I think you guys are bad at math.

$1-2M extra per team is an extra $14-28M distributed per year - that is substantial. Each team might get on the order of $13-15M per year.

The absolute best case scenario for the Big East will probably result in yearly payments that will be half of that.

Sorry Fishy that's wrong.

By getting $1M to $2M more per year, ACC has to play one more conference game per year (9 vs. 8) and take on 3 more years of that contract. This means the ACC won't be able to get another deal 16 years from now. 16!! On top of it, they gave up ALL the rights to ESPN. If you do the math for number of new conference games they gave up etc, the payout per game is similar to what they are getting now.

It sounds like ESPN made out like bandits in this deal. ACC's ESPN's biatch for the next 16 years.

Unless the BE's new deal is much worse than the ACC deal, I would say ACC is royally screwed comparing to other BCS conferences for the next 16 years.

BE would be wise not giving up all of its rights to ESPN. BE should try to model after PAC-12's model. It would be beyond stupid to give up all of the TV rights to one single network.

 

[WestCoastHusky]

I'm not sure how any of this is news. The ACC/ESPN interest in this whole mess was reported by DeFillippo in the Boston Globe months ago.

I would really like to see that article that says the big east payout per program would be $5mill-$7.4mill. First question I have to ask, is whether or not that figure is for the football playing members, or the basketball playing members......

Because - if that were the number for the basketball playing schools, on strict television revenue of first and second tier rights (good lord, do you even comprehend that?) but never mind.....if the basketball schools were to get $5mill a year from television 1st and 2nd tier alone, that would be only just over a 50% increase from existing revenue. A $5mill a year pay for football schools, would be just over a $1mill more per year than they already get.

I find that very hard to believe. Why? Because the reported figures in the ESPN/Big East talks last year were in the $120 mill per year range, which was triple what we already have, and that was with Cuse, WVU, and Pitt, and knowing TCU wasn't coming.

So, whatever Fishy read, is speculating that by losingthe Syracuse, WVU, and Pitt television markets, and gaining Central Florida, SMU, Houston for all sports, and Boise St, SDST, and Navy for football - by gaining those markets and losing the others....and projecting a 12th addition and a football champoinship game....

all of that somehow projects to a broadcasting contract that will be essentially a 1/3 of what ESPN was willing to pay before the big east walked out and said they were going to open market in august 2011.

Nope, not buying that.

Funny how in September, with the market presenting the way it was going, Cuse and Pitt are gone to teh ACC, for a guaranteed upgrade in pay, and Flipper is reporting ESPN's involvement in the Boston Globe, and that UConn was the original target.

UConn and Cuse to the ACC would have effectively killed the Big East conference. Cuse and Pitt to the ACC, adn WVU to the mess that is the big 12?

Nope.

On top of it, the conference leadership finally gets it in Providence. Finally.

We are goign to be just fine money wise going forward. ESPN media empire would have you believe otherwise.

The number SDSU and BOISE got from BE media consultants is $6M to $13M per year for football only. I would say the new BE deal will be closer to the $13M number than the $6M number. With Navy and maybe on board, the new deal could be pretty good for FB only. BE also will get basketball on top of that so I am feeling pretty confident BE can be close or surpass ACC's new deal number. On top of that, if BE is able to keep some second and third tier rights for a possible national network, that could be another cash cow for the future.

 

[HartbeatHusky]

The number SDSU and BOISE got from BE media consultants is $6M to $13M per year for football only. I would say the new BE deal will be closer to the $13M number than the $6M number. With Navy and maybe on board, the new deal could be pretty good for FB only. BE also will get basketball on top of that so I am feeling pretty confident BE can be close or surpass ACC's new deal number. On top of that, if BE is able to keep some second and third tier rights for a possible national network, that could be another cash cow for the future.

I still think the BE needs to think about adding some basketball-centric schools like Memphis, UNLV, and/or Temple to make sure that the basketball conference is still viewed as a hot property. Football is about as good as they can get given the options but basketball can still be bolstered and made more valuable.

 

[RS9999X]

It sounds like ESPN made out like bandits in this deal. ACC's ESPN's biatch for the next 16 years.

I'm jonesing for a Duke Football game right now.

Did ESPN really pay for that content?

 

[NEforceUConn]

This is what the ACC did to increase each team's annual take by about 10% (from $13m to call it $14.3m):

1) Risk watering down ACC fever HUGE! Believe me old line ACC fans don't accept BCU and they will not accept SyraPitt. Once the league is expanded to 14 teams the old line rivalries will be less interesting, and league support will dwindle.

2) They will permanently be remembered as the ONLY conference to actively recruit and poach teams.

3) Basically they have killed their own conference (time will show that) and (unfortunately for me) the BE too.

ps I don't know what crap they fed FSU and Clemson but for them to agree to the $20m higher exit fee for JUST a yearly $1.3m increase is crazy. They will not forget getting swindled by Swofford.

pss Lastly, once the SyraPitt news broke, the inside ACC clan that I know (down here in Greensboro) whispered that it was all about the ESPN contract and after it was all said and done they were expecting $3-5m more a year from ESPN. Now that its $1-2m they will be pissed, its almost like the second coming of Sherman

 

[gars44]

never a dull moment.

 

[Fishy]

The number SDSU and BOISE got from BE media consultants is $6M to $13M per year for football only. I would say the new BE deal will be closer to the $13M number than the $6M number. With Navy and maybe on board, the new deal could be pretty good for FB only. BE also will get basketball on top of that so I am feeling pretty confident BE can be close or surpass ACC's new deal number. On top of that, if BE is able to keep some second and third tier rights for a possible national network, that could be another cash cow for the future.

Wow.

No. Just no.

There is no way, no way, no way, no way that the conference gets $13M per team. And no earthly way that we come close or top the ACC's contract.

Please.

 

[metsfan2323]

Wow.

No. Just no.

There is no way, no way, no way, no way that the conference gets $13M per team. And no earthly way that we come close or top the ACC's contract.

Please.

Unless we get Scott Boras as an agent. Look what he convinced the Yankees to pay for AROD when nobody else was bidding.

 

[WestCoastHusky]

Wow.

No. Just no.

There is no way, no way, no way, no way that the conference gets $13M per team. And no earthly way that we come close or top the ACC's contract.

Please.

You might want to do some research on that. These are comments from the SDSU article when they joined the BE. They spoke to number of media consultants who actually do this for a living.

The addition of the five schools along with current members Cincinnati, Connecticut, Louisville, Rutgers and South Florida puts the Big East in media markets totaling 28 million households, Sterk said. That gives it the largest local reach of the BCS football conferences, Sterk said, and that should help when the conference renegotiates its TV deal in September. A group of 10 media consultants estimated the Big East's new TV deal could pay each school between $6.4 million to $10 million annually, Sterk said.​

​

Read more:​

http://www.nctimes.com/sports/college/aztecs/college-football-tv-money-drives-aztecs-to-big-east/article_ccb04a05-a6fc-58b1-8329-924515b6d361.html#ixzz1lg7bqaVZ​

Number of things going to BE's way:

1. BE is the last major conference going for a TV deal.
2. It will be on an open market unlike the ACC. It will have multiple bidders.
3. BE would be wise to study the PAC-12 model and keep bunch of 2nd and 3rd tier rights for a future conference network.
4. I fully expect football to get at least $10M per year and basketball to get about $5M per year. $15M per year would put it over the ACC deal. On top of that, there is also the potential for a BE conference network if they can figure it out somehow.

Timing is everything and timing is on BE's side for the TV negotiation.

 

[RS9999X]

ESPN will pay the Big East the same as originally offered--$130 million.

The BE will guarantee more content (9-game conference schedule), more teams (markets), and concede more media rights.

That will be split between 12 football shares and 16 basketball shares--28 shares in total

The one revenue sport members will get $4.65 million per school and All Sports a combined $9.3 mil a school. Nothing more. That's a 160% increase over the current contract's $3.6 mil.

It was originally speculated in the press the BE would split the $130 million contract as $4.6 million for basketball (8 teams) and $10.3 million for both revenue sports (9 teams w/ TCU).

The football schools like UConn will make up the lost revenue money by dividing exit fees for SU/WVU/Pitt and colelcting more during phase in periods for the new teams before they get a full share.

Expect UConn to see about the same amount $10.3 mil based on the exit fees andphase-in distributions and $9.3 mil BE base.