ACC Network looking more like a sinking ship than the rising tide

[kibblesnbits]

Why would they get 49% of the profits? They are partners with FOX as a joint venture in the Network and own 49% of the network. That's why Nebraska, Maryland and Rutgers got reduced shares of revenue when they joined. The revenue wasn't reduced just because, they are in essence buying their share of the network.

They share 49% of the revenues & the expenses. So in my scenario they would get $4.90 in revenue and then any expenses related to that would be shared 51/49 between FOX and the B1G.

That's an interesting perspective and you obviously are not an accountant. If they get $4.90 of the $10 per viewer revenue but then must pay back 49% of the costs then that is the same as saying they end up with 49% of the profits. They might end up with $2 per viewer profit or a $2 per viewer loss. But it really doesn't work that way. They don't maintain separate accounts from Fox and each take their share of revenue and then pay their share of costs. It's a single business and one set of books with the owners getting profit distributions (split 51/49), not revenue distributions and cost paybacks. Either way, there are no guarantees when you are an owner rather than a royalty recipient.

 

[Exit 4]

The author is blown away because it wasn't ESPN that got the carriage for the ACC Network and SEC Network. It was The Walt Disney Company that got the carriage. Cable providers for the most part won't risk losing all families with kids by losing the Disney Channel and ABC. They'll give carriage to the ACC Network and SEC Network to keep families with kids using their service. What subscriber rates they pay is negotiable, but Disney will get the channels distributed.

Now the author for the article of the Original Poster might want to do a follow up with comment on this new development. Comcast drops Big Ten Network from some out-of-market areas

Wow what a timely post and moreover - this seems like very significant news. And - suppprts my POV that the honeymoon is over for the BTN too. Wow.

Bet other cable providers follow suit in a year.