David Boren Must Be Drooling

[Nostical]

"Tax documents for the fiscal year ending in August 2015 show the Southeastern Conference earned revenue of close to $528 million over the last calendar year. As a matter of contrast the Big XII had total revenue of $250 million while the Big Ten reported $339 million. Each SEC member school will receive $31.2 million. The documents, which were obtained by USA Today, indicated the SEC is in the midst of a financial bonanza boosted by the College Football Playoff.

The conference also saw a major boost thanks to the SEC Network, which launched Aug. 14, 2014. Overall, the revenue represents a 60 percent increase from the previous year and showcases the overall power of the SEC. The SEC Network is already generating a profit of around $5 million per school. That came as a bit of a surprise to many, who did not view the network as a profit-generating entity in its first year."

David Boren has to be saying to his presidential brethren---How the heck can any of you (including you folks in Austin) object to making the BIG XII Network a reality. We're leaving lots of dollars on the table---and UConn gets us on lots of TV sets and other viewing platforms in the population rich Northeast!

 

[amory]

Even if it happens, a Big 12 network wouldn't bring in close to what the SEC Network makes.

People in SEC territory are a different breed. They literally know and care about nothing other than college football. The Big 12 has some nice programs, but the SEC is strong pretty much top to bottom. You can't really compare the two.

 

[specialisthusky]

He's probably saying nothing to his Presidential brethren and instead asking himself, "how does OU join the SEC?"

 

[JSM1970]

Yes, I recall being on a business trip to Athens and the customer leader was a South Carolina grad and our Sales person was from SC. It was summer and they were talking SEC football in great detail, recruiting, etc. It was kind of silly to watch how excited they were getting about it. But their passion is unlike the Northeast, West, Midwest about it.

Even if it happens, a Big 12 network wouldn't bring in close to what the SEC Network makes.

People in SEC territory are a different breed. They literally know and care about nothing other than college football. The Big 12 has some nice programs, but the SEC is strong pretty much top to bottom. You can't really compare the two.

 

[NYUConn]

If the network generated $5 million per school in year one, that's a total of $70 million in revenue distributed back to the schools.

I think it's fair to estimate that a Big 12 network would probably generate 1/3 of that given the fact that the industry is changing and the Big 12 reputation-wise just isn't the SEC. So that would be a total of $21 million spread across 12 schools is $1.75 million.

Is an extra $1.75 million per year, per school worth it to pursue a network?

We better hope so.

 

[whalerfan]

Even if it happens, a Big 12 network wouldn't bring in close to what the SEC Network makes.

People in SEC territory are a different breed. They literally know and care about nothing other than college football. The Big 12 has some nice programs, but the SEC is strong pretty much top to bottom. You can't really compare the two.

I agree and disagree at the same time. Yes they are a different breed but they bring more to the table than just football. For years I was involved with the SEC gymnastics broadcasts. Those events are well attended and draw good numbers. They went live every night last week with that. SEC baseball is huge too.

 

[Nostical]

He's probably saying nothing to his Presidential brethren and instead asking himself, "how does OU join the SEC?"

Ha! Probably true.
As for comparing conferences, the Big XII may never produce SEC numbers, but there is still lots of gold to be had if the pirates can stop squabbling and set sail.

 

[Pudge]

Many assumed that the Power 5 was this comparable like group. It is not ... and never ever was going to be. And the first rule - Econ 101 - of a Cartel is: there will be cheating and cutting corners.

SEC was - due to its football centric focus and great Programs - going to be the top dog. Great recruiting base and really strong interest. The B1G went in a far different direction but will also yield far more revenue per University; with the added benefit of intangible brand that gets it to a far higher plateau in academia. BOTH conferences made solid expansion choices (yes ... even Rutgers). For their overall strategy. B1G will soon sign a big new contract and be closer tot he SEC.

Pac12 as well. With the interesting focus of pushing into Asia and other pockets for revenue. Solid academic structures. But ... their time zone and demographics will always put them third.

We have seen a lot of whining about the decline in Cable. Massive layoffs and falling off in revenue. Aren't College Sports parallel/derivative of NFL & other Sports Entertainment? Why is the NFL saying they are striving to take their $12b revenue up to $25b? Isn't there a Like line in College Football? or Hoop?

I think Swofford made poor choices; based on Brand derived from past past glory ... in BC, Cuse, Pitt. Raycom and their structure makes them a laggard. And, I think they will have a hard time getting traction. Boren is right: the B12 has been reactive. With a few tweaks, they can grab a good hold of a changing market.

With all this ... however ... when the 2 top Conferences break the $50m per University mark and the ACC or other is at $21-26m, what do you think is going to happen? A GoR is just that: a start of a negotiation to what it is going to cost. Not tested by courts? Leaving this stuff to lawyers tells me that there is a way to thread that.

 

[UConnTrumbull]

If the network generated $5 million per school in year one, that's a total of $70 million in revenue distributed back to the schools.

I think it's fair to estimate that a Big 12 network would probably generate 1/3 of that given the fact that the industry is changing and the Big 12 reputation-wise just isn't the SEC. So that would be a total of $21 million spread across 12 schools is $1.75 million.

Is an extra $1.75 million per year, per school worth it to pursue a network?

We better hope so.

Which either means XII does not expand or they expand with UConn

 

[don356]

The problem is texas was so overpaid by espn, that in order to make them "whole" to do a b12, it will cut into the other members take. I think it's thru 2031.

 

[whaler11]

If the network generated $5 million per school in year one, that's a total of $70 million in revenue distributed back to the schools.

I think it's fair to estimate that a Big 12 network would probably generate 1/3 of that given the fact that the industry is changing and the Big 12 reputation-wise just isn't the SEC. So that would be a total of $21 million spread across 12 schools is $1.75 million.

Is an extra $1.75 million per year, per school worth it to pursue a network?

We better hope so.

Beyond a doubt it is not. Since most make more selling their own tier 3 rights they would have to give up.

Plus the other media contracts have tier 2 content you'd need because there is no way you are building a network on only tier 3 rights.

 

[NYUConn]

Beyond a doubt it is not. Since most make more selling their own tier 3 rights they would have to give up.

Plus the other media contracts have tier 2 content you'd need because there is no way you are building a network on only tier 3 rights.

That's where I come down on it too.

Now all that being said, I'm speculating with these #s and the fact that this was a year one payout of $5 million a year only indicates that the amount of revenue should grow moving forward as it likely would with a Big 12 network.

 

[Sportsman5]

I've said it in a different threads, but I think it's worth repeating. The big 12 network would bring exposure for the universities as a whole and allow them to recruit students and faculty from around the country (hence adding Cincinnati and UConn). That is why football is the most important sport. It gives exposure that draws people to the school and enhances the profile of the school in the long term. The conference network isn't just about getting X dollars in a given year. It's an investment into building the brand of the schools associated with it so that those schools can grow and thrive into the future.

 

[The Funster]

Even if it happens, a Big 12 network wouldn't bring in close to what the SEC Network makes.

People in SEC territory are a different breed. They literally know and care about nothing other than college football. The Big 12 has some nice programs, but the SEC is strong pretty much top to bottom. You can't really compare the two.

SEC has some great fastpitch softball so a lot of fastpitch players and coaches will tune in to softball on the SEC channel as well.

 

[mavblues]

1) These numbers are way off. More like $100MM (see below)
2) This is the FIRST YEAR, people. Sheesh. How many ventures are profitable like this in YEAR ONE????

Chadd Scott‏@ChaddScott 5h5 hours ago

Chadd Scott Retweeted Bill King

By my math and confirmed to me, SEC Network made just over $100M in Year 1. Details: http://gridironnow.com/how-much-money-did-sec-network-make/

 

[NYUConn]

1) These numbers are way off. More like $100MM (see below)
2) This is the FIRST YEAR, people. Sheesh. How many ventures are profitable like this in YEAR ONE????

Chadd Scott‏@ChaddScott 5h5 hours ago

Chadd Scott Retweeted Bill King

By my math and confirmed to me, SEC Network made just over $100M in Year 1. Details: http://gridironnow.com/how-much-money-did-sec-network-make/

If you read the article the author actually claims that the revenue to individual schools is $6.8 million which isn't too far off from the $5 million per school the OP is posting.

To your second point, I agree, this is only year one. The total can only get hire once the kinks are worked out and the network becomes more efficient after launching.

 

[Richmondhsky]

Yes, I recall being on a business trip to Athens and the customer leader was a South Carolina grad and our Sales person was from SC. It was summer and they were talking SEC football in great detail, recruiting, etc. It was kind of silly to watch how excited they were getting about it. But their passion is unlike the Northeast, West, Midwest about it.

You mean like all of us idiots who come here each and everyday to discuss, argue, speculate etc? Recruiting updates, P5 etc, etc

 

[mavblues]

If you read the article the author actually claims that the revenue to individual schools is $6.8 million which isn't too far off from the $5 million per school the OP is posting.

To your second point, I agree, this is only year one. The total can only get hire once the kinks are worked out and the network becomes more efficient after launching.

Not to split hairs, but the OP was off by 36% ($6.8MM per school vs $5MM per school). Then, we have posters saying B12N would only less than 1/3 of that (incorrect) $70MM figure, or $21MM. So, all of a sudden, we've gone from SECN doing $102MM IN ITS FIRST YEAR, to B12N doing only $21MM (on a stabilized basis, no less).

The reason I even bring it up is that in another thread, I used the $100MM figure as an estimate for the B12N and buying out the LHN, and I got blasted for it.

Don't tell me that if the SECN does that in its FIRST YEAR, that B12N couldn't do it after a couple of years - IF they add UCONN and its TV sets, that is.

That is my only point. I'm not attacking anyone; I'm pointing out that it is not logical to say SECN throws off $102MM net in its first year, but B12N (with an expanded conference footprint) will only do 20% of that, or $21MM. NO WAY. NOT IF THEY EXPAND TO INCLUDE UCONN AND EITHER CINCI OR BYU.

 

[HartbeatHusky]

http://www.scout.com/college/oklaho...cincy-are-getting-too-much-press?s=146&page=1

UConn and Cincy are getting too much press..

from OU and West Virginia. West Virginia says adding teams will happen and adding one near them will most likely happen. OU needs UConn for the basketball, knowing there isn't a major player in football to beat their value in mens and womens basketball.

Revenue earned in 2014

UConn = $72M

Pros: Basketball, mens and womens, best combo in NCAA. WVU and Cincy are within the region.

Cons: Not consistently in the Top 20 in football, but they do get ESPN games. OU played UConn in the Fiesta Bowl in 2011.

UCincy = $60M

Pros: Major recruiting hotbed. Basketball. Five minutes from their pro stadiums, so teams like OU and Texas could perhaps play at the Bengals location. Campus location is five minutes from their downtown, which is on the river along with their pro stadiums, very impressive setting with hotels, conventions, sports, etc.

(Med school is highly ranked with impressive facilities.)

Cons: Not consistently in the top 20 in football, but they do get ESPN games. Brian Kelly had them rolling for a few years with stout talent. They are enlarging their stadium on-campus now, so that will earn points.

OU played Cincinnati twice, while Brian Kelly was at UC.

Regardless...

Both make this kind of coin and they aren't even in a real conference. I can't imagine the value they would generate in all sports combined, if they can do it without a P5. That's what has Boren in an obvious frenzy right now. Both are better athletic school that Rutgers and the BigTen gifted Rutgers as spot on their team.

By comparison:

TTech = $77M
Ole Miss = $76M
Maryland = $73M
VTech = $73M
KSU = $72M
North Carolina State = $70M
Georgia Tech = $68M
ISU = $69M
Colorado = $64M
Oregon State = $63M
Miss State = $62M

That guy gets it....

 

[UConn Dan]

That guy gets it....

Yes, yes he does. Finally someone sees it. Thx for sharing

 

[Kolumbo]

Many of those posters are just so short sighted. Expand with the programs which have the most potential to work hard and succeed. They are focusing way too much on past success which we all know is no guarantee of future performance.

 

[Dooley]

For the B12 (and a B12 Network), it wouldn't just be about the bottom line dollars it could bring. It's about expanding the conference footprint outside of the panhandle too. The B12 plays the most exciting brand of college football in the country. Football that every fanbase, including ours, wishes its own team would play. But nobody east of the Mississippi or West of the Rockies watches it or cares to watch it. Why? Their games are stuck in FOX/FS1 quicksand, often starting at 3:30, and going up against games that include east coast teams with HUGE alumni fanbases that are of more importance. The conference has one school that naturally kicks off at Noon...the rest kick off in the AM if it's a Noon start. By adding more EST schools, the conference not only can create a new revenue stream (it won't be anywhere near the B1G or SEC...but that's not the point), it also expands their brand into more densely populated areas and allows them to stagger their games on Saturdays. The latter is almost as important as the first point.

 

[mavblues]

For the B12 (and a B12 Network), it wouldn't just be about the bottom line dollars it could bring. It's about expanding the conference footprint outside of the panhandle too. The B12 plays the most exciting brand of college football in the country. Football that every fanbase, including ours, wishes its own team would play. But nobody east of the Mississippi or West of the Rockies watches it or cares to watch it. Why? Their games are stuck in FOX/FS1 quicksand, often starting at 3:30, and going up against games that include east coast teams with HUGE alumni fanbases that are of more importance. The conference has one school that naturally kicks off at Noon...the rest kick off in the AM if it's a Noon start. By adding more EST schools, the conference not only can create a new revenue stream (it won't be anywhere near the B1G or SEC...but that's not the point), it also expands their brand into more densely populated areas and allows them to stagger their games on Saturdays. The latter is almost as important as the first point.

Totally agree.

 

[NYUConn]

I suggest you guys give this Deadspin story a read today:

http://deadspin.com/espns-uncertain-future-is-already-here-1753901086

This is no to say that ESPN wouldn't invest in a Big 12 Network, but it really throws cold water on the idea that it could be as profitable as the SEC Network.

 

[Slasher]

I suggest you guys give this Deadspin story a read today:

http://deadspin.com/espns-uncertain-future-is-already-here-1753901086

This is no to say that ESPN wouldn't invest in a Big 12 Network, but it really throws cold water on the idea that it could be as profitable as the SEC Network.

While this is "bad" for ESPN, it's only looking at one side of the story. ESPN is now starting to sell it's service in other avenues, such as sling TV. This gives them streaming subscribers that isn't tied to cable carriage fees. It won't be long before ESPN is offered as a standalone service, at a significantly higher rate than $6.91 per month.