ACC looking into starting their own network too

[UConnJim]

Nationally, only 60% of the pop has wired cable TV.
But another 30% have an "alternate delivery system", which I presume refers to satellite/phone company/etc. I would guess that rural areas were not worth the investment by cable companies, so there's more dish activity there.

Vowel guy is correct. The Northeast is heavily wired for cable and rural areas depend on satellite.

 

[RS9999X]

best article on an SEC network.

http://www.al.com/sports/index.ssf/2012/06/sec_seriously_considers_tv_net.html

even in ACC country no one's buying a network. it's Swofford performing due diligence to keep the boo birds of the Charlotte Raycom mafia at bay. If the Big 12 calls Swofford's got nuthin to keep a Maryland from being poached

 

[RS9999X]

More on the SEC network and note the Charlotte angle in all this which you know just fries the ACC and Raycom butts when they read this stuff........the ACC Office and Raycom Sports Network offices are both Charlotte based.....


Among the most pressing items in the way are the schools' local TV rights, currently held by a variety of different companies. Those rights are good for at least one football game per season and 6-8 men's basketball games, per SBJ:

CBS has the rights at LSU, while Learfield has Alabama, Missouri, Mississippi State and Texas A&M. IMG College has the rights at the rest of the schools, except for Ole Miss, plus a minority share of the Alabama property.​

Also, the report forecasts Charlotte, N.C., as the likely home of the new SEC network. Despite sitting outside of the league's footprint, Charlotte is home to ESPN Regional Networks, the company responsible the ESPNU Network, ESPN's SEC regional football coverage and also ESPN's bowl game and basketball tournaments.
Aside from the shared revenue -- the SEC Network is expected to be the most lucrative conference-specific network to date -- ESPN will also gain control of the league's marketing, SBJ notes:

Being able to package TV advertising from the new network into corporate sponsorships will give ESPN a sales advantage when it takes over the SEC’s marketing rights. The SEC’s list of corporate champions includes Allstate, AT&T, Dr Pepper and Regions Bank, while a second tier of sponsors has Aaron’s, Dick’s Sporting Goods, Golden Flake, UPS and eight others.​

 

[UConnJim]

If SEC expansion happens, Charlotte will be in footprint.

 

[RS9999X]

If SEC expansion happens, Charlotte will be in footprint.

That's my read. It's an open taunt

 

[riskylogic]

More on the SEC network and note the Charlotte angle in all this which you know just fries the ACC and Raycom butts when they read this stuff........the ACC Office and Raycom Sports Network offices are both Charlotte based.....


Among the most pressing items in the way are the schools' local TV rights, currently held by a variety of different companies. Those rights are good for at least one football game per season and 6-8 men's basketball games, per SBJ:

CBS has the rights at LSU, while Learfield has Alabama, Missouri, Mississippi State and Texas A&M. IMG College has the rights at the rest of the schools, except for Ole Miss, plus a minority share of the Alabama property.​

Also, the report forecasts Charlotte, N.C., as the likely home of the new SEC network. Despite sitting outside of the league's footprint, Charlotte is home to ESPN Regional Networks, the company responsible the ESPNU Network, ESPN's SEC regional football coverage and also ESPN's bowl game and basketball tournaments.
Aside from the shared revenue -- the SEC Network is expected to be the most lucrative conference-specific network to date -- ESPN will also gain control of the league's marketing, SBJ notes:

Being able to package TV advertising from the new network into corporate sponsorships will give ESPN a sales advantage when it takes over the SEC’s marketing rights. The SEC’s list of corporate champions includes Allstate, AT&T, Dr Pepper and Regions Bank, while a second tier of sponsors has Aaron’s, Dick’s Sporting Goods, Golden Flake, UPS and eight others.​

The ACC network will be based in Charlotte too, meaning it will also be run by ESPN. The Tier 3/Olympic Sports content part part of the ESPN ACC contract may (probably will) be renegotiated, but any ACC network that takes form in the next ten years will be an ESPNU spinoff.

 

[Jericho]

best article on an SEC network.

http://www.al.com/sports/index.ssf/2012/06/sec_seriously_considers_tv_net.html

even in ACC country no one's buying a network. it's Swofford performing due diligence to keep the boo birds of the Charlotte Raycom mafia at bay. If the Big 12 calls Swofford's got nuthin to keep a Maryland from being poached

I don't know if that's the best article as the info is 7 months old. A lot has moved forward since then. But Charlotte would be the headquarters as that's where ESPNU is and ESPN is basically running it.

I'd also question how the SEC would have the "most lucrative conference-specific network". The Big Ten Network makes so much money in part because the Big 10 has such a large equity stake and those payments are replacements for the Tier 2 and Tier 3 rights for the conference. The SEC already is getting paid for both Tier 2 (through ESPN) and Tier 3 (through various sources). Since that article was written, ESPN/SEC has been buying back the Tier 3 rights, but essentially they are paying out money to re-sell the rights via the Network. It may result in a net gain, but I don't see how it will make more money than the Big 10. Even if the network is more successful (possible, but questionable), most of that money will likely go to ESPN. The SEC won't be double paid for their content.

 

[RS9999X]

The SEC argument is that the carrier fees and 24/7 advertising sales will make it a win/win option. ESPN Classic, ESPN NEws and ESPNU were getting between 16 and 18 cents in 2010

SNL Kagan, a media analysis group, estimates the Big Ten Network (BTN) receives 97 cents monthly per subscriber in Big Ten markets and six cents out of market by charging that amount for television providers to carry the network.\

 

[Jericho]

The SEC argument is that the carrier fees and 24/7 advertising sales will make it a win/win option. ESPN Classic, ESPN NEws and ESPNU were getting between 16 and 18 cents in 2010

SNL Kagan, a media analysis group, estimates the Big Ten Network (BTN) receives 97 cents monthly per subscriber in Big Ten markets and six cents out of market by charging that amount for television providers to carry the network.\

Yes, but the Big 10 has roughly 50 % equity in their Network. So they essentially get 50% of that .97 per subscriber. Its unclear if the SEC will have any equity in their network, and if they do it would be a very small percentage. The SEC profits would funnel back to ESPN

 

[RS9999X]

Yes, but the Big 10 has roughly 50 % equity in their Network. So they essentially get 50% of that .97 per subscriber. Its unclear if the SEC will have any equity in their network, and if they do it would be a very small percentage. The SEC profits would funnel back to ESPN

That's your assumption.. ESPN might value the relationship and write a win win extension to avoid the SEC defection to a PAC-12 model for Tier 3 as a platform to build off in 10 years. Will the SEC add two in 2014 to reopen their contract yet again? I see ESPN coughing up 50% of the revolution accretion from an SEC network

Sent from my Lumia 920 via Windows 8. Now bite me Apple Droids.

 

[Jericho]

That's your assumption.. ESPN might value the relationship and write a win win extension to avoid the SEC defection to a PAC-12 model for Tier 3 as a platform to build off in 10 years. Will the SEC add two in 2014 to reopen their contract yet again? I see ESPN coughing up 50% of the revolution accretion from an SEC network

Sent from my Lumia 920 via Windows 8. Now bite me Apple Droids.

Does not make sense. The contract the SEC signed with ESPN a few years back for Tier 2 stuff was made with the specific intent for the SEC not to start a network. Many observers felt the ESPN overpaid, possibly on purpose, simply to stop a potential network. Hell, there might even be a specific provision in the contract that prevents the SEC from forming a network.

And even if there is not such a provision, let's be honest. The best the SEC could do on their own is buy out all their existing Tier 3 agreements and try to bundle that together. That's not super-exciting. While it is content, you really need some of the better content, i.e. Tier 2 stuff, to make the network work. That means the SEC needs ESPN. And that's the problem. The SEC needs ESPN way more than ESPN needs the SEC. The Big 10 controlled all their own Tier 2 and Tier 3 rights and still gave up 50% equity. So I'm to believe the SEC, which currently controls 0% of the rights, is going to get the same deal? It's not happening. ESPN will probably get around 50% (just like Fox got from the Big 10) just for the money and administration. . They will then get another 30-35% since they already control the Tier 2 stuff. The only question is hwo the Tier 3 is handled and how the SEC is brought it (for example, does ESPN buy it out and own the network lock, stock, and barrel? or does the SEC buy back the Tier 3 stuff and sell it for a flat fee and more money? or does the SEC buy back the Tier 3 stuff and exchange it for an equity interest?)

But no matter the exact form, the SEC is not going to get a majority interest in the network and will certainly have to late out some cash in order to get a siginificant interest. You can then give the SEC buy-in rights to purchase more equity over time. But there's no logical way to believe the SEC will make more money off the network than the Big 10. The SEC could get better rates, but most of that money will go to ESPN. They're the ones putting most of the money and content in.

 

[RS9999X]

Click here to reply

Sent from my Lumia 920 via Windows 8. Now bite me Apple Droids.

 

[RS9999X]

Fracking phones. Will reply later

Sent from my Lumia 920 via Windows 8. Now bite me Apple Droids.

 

[Jericho]

Here's some more "concrete" numbers:

http://www.usatoday.com/story/sports/college/2013/01/16/sec-conference-money-increases/1836389/

Most relevant is this section:

SEC Network: $1.5 million per school ($21 million total)
A dedicated conference network is projected to have extremely good distribution among cable and satellite TV providers, especially in states where the conference has schools. It also may be attractive nationally.

Which states the SEC Network would generate an additional $1.5 million per school per year over what the SEC gets now. And it gets $21.4 million per school per year for Tier 1 and 2 stuff (plus other payouts like Bowls, NCAA credits, etc...)

 

[RS9999X]

That's a working number assuming no ESPN involvement. I predict it grows quickly in scope.

Sent from my Lumia 920 via Windows 8. Now bite me Apple Droids.

 

[Jericho]

That's a working number assuming no ESPN involvement. I predict it grows quickly in scope.

Sent from my Lumia 920 via Windows 8. Now bite me Apple Droids.

It's true, but ESPN does not work for free

 

[pj]

Actually, the ACC has a ton of leverage. Schools could just choose to leave.

I would not be surprised if ESPN stepped up big to try and save the ACC. Letting the Big East go has turned into a massive debacle for ESPN. The best market (Rutgers) and best football schools (WVU and TCU) are now on Fox, as will be all the basketball schools. ESPN will pay almost as much for Notre Dame basketball, Louisville, Pitt and Syracuse (about $110MM/year when you include the extra ESPN upped the ACC deal by) as it could have gotten the entire Big East for, and Fox got the best content from the fiasco. I imagine someone at ESPN will get fired over this.

I actually think Swofford is in better shape than most of us care to think. If Fox starts to pick apart the ACC, ESPN is in serious, serious trouble. I think ESPN would kick in an extra $100MM per year to keep it together, which it will probably run through the ACC Network so it won't look like ESPN completely caved at the negotiating table, although that is exactly what will happen.

UConn is toast. The game is over, and there are 5 leagues. ESPN has no choice but to save the ACC. This means that the ACC will never add another school. Game. Set. Match.

Your thesis is self-contradictory. If ESPN wants to create an ACC Network to keep the ACC together and realizes they made a mistake in letting valuable schools go to competitors, they'll want to bring UConn into the ACC Network. You think Swofford has leverage because he can threaten suicide, in the form of dissolution of the ACC. That's not often a credible threat.