Fox wins MWC Rights Deal from ESPN

[huskymedic]

>> Fox Sports has reached an agreement with the Mountain West to carry a package of the conference’s football and basketball games that formerly was held by ESPN. Separately, CBS Sports Network renewed its package of MWC games. My colleague Michael Smith and I are told that the Fox and CBS deals combined will be worth about $35 million annually -- around $20 million from CBS and $15 million from Fox. The length of the deals is not clear yet, but MWC Commissioner Craig Thompson has said that he wanted shorter terms than the 10-year deals the MWC had previously. The games in the Fox package are expected to run primarily on FS1.<<

>> Fox is now in business with five FBS conferences -- the MWC, Big 12, Big Ten, Pac-12 and Big East. The network also is believed to be in the running for the SEC’s package of 15 football games that CBS currently has. Even though Fox won the bidding, ESPN will continue to have a bowl relationship with the Mountain West and work with the league on playing in the early-season basketball tournaments. The MWC worked with Wasserman as an adviser on the deal.<<

 

[Exit 4]

And keep in mind, per that very same Ourand story its noted that Boise State and Hawaii are not included in these figures because they have been granted rights by the MW to negotiated their own separate media contracts.

I thought we might be looking at a mere $250k per home game (so 1M to 1.5M per annum for 5 to 6 games) for our football on SNY on perhaps a 6 year deal...but maybe it will be a little better than than.

 

[Drew]

That’s a great deal for MWC

 

[UConnDan97]

Pay the conference 35 million. So based on what I just saw, we're talking 3 million per team???

Rough...

 

[Pudge]

The best thinking was not going out 10 years. AAC is really 13 years ... 12 +. Things change in that length of time & you don’t want to be locked in.

 

[UConnJim]

Pay the conference 35 million. So based on what I just saw, we're talking 3 million per team???

Rough...

I dont’t know the details, but it sounds like the deal may be for 10 teams. Also, the deal is with Fox and CBS.

Some takeaways.

1) Smart for MWC to not go long term vs. AAC.
2) ESPN continues to slowly but surely losing its grip on college sports. Why do we pay a big premium for ESPN content?
3) This should be favorable for UConn football TV rights.

 

[Exit 4]

MWC basketball has to be close to worthless, so this is really a Football only contract.

 

[Chin Diesel]

Timing of this with news last week of ESPN reopening contract negotiations with AAC seems to tip some of the balance towards, AAC, no? At a minimum might minimize amount the satan network can chop off from the existing AAC contract.

 

[UConnJim]

Timing of this with news last week of ESPN reopening contract negotiations with AAC seems to tip some of the balance towards, AAC, no? At a minimum might minimize amount the satan network can chop off from the existing AAC contract.

ESPN has overpaid on content with subscribers in decline and needs to be a tough negotiator. Think about this. They are paying Wake Forest about 2/3 of what the MWC makes.

 

[UConnDan97]

I dont’t know the details, but it sounds like the deal may be for 10 teams. Also, the deal is with Fox and CBS.

Some takeaways.

1) Smart for MWC to not go long term vs. AAC.
2) ESPN continues to slowly but surely losing its grip on college sports. Why do we pay a big premium for ESPN content?
3) This should be favorable for UConn football TV rights.

So then 3.5 million per team?

What am I missing? This sounds bad for them and potentially bad for us, depending on how NYC is valued...

 

[HartfordHank]

ESPN has overpaid on content with subscribers in decline and needs to be a tough negotiator. Think about this. They are paying Wake Forest about 2/3 of what the MWC makes.

ESPN doesn’t pay Wake Forest anything. They contract with and pay the ACC.

 

[huskymedic]

 

[gampelcrazies]

So then 3.5 million per team?

What am I missing? This sounds bad for them and potentially bad for us, depending on how NYC is valued...

We are talking about the Mountain West. Think their contract before was like $1.1 million a team. And all their games are going to be on TV now. No streaming. Not a bad deal for MW.

 

[UConnJim]

ESPN doesn’t pay Wake Forest anything. They contract with and pay the ACC.

The point is there are a ton of freeloaders in college sports, Wake Forest being one of them. ESPN is steadily losing content, are raising prices, and losing subscribers. And, the market is moving away from the bundled channel cable market that drove their growth. ESPN channels cost $9+ per month and Fox channels ~$2. ESPN is troubled. Yes, they will have to honor existing contracts. That said, if the cable sports apocalypse is in the future, Disney can spin ESPN out (which they have considered) and let ESPN figure out how to survive and honor their sports rights deals.

 

[gampelcrazies]

The point is there are a ton of freeloaders in college sports, Wake Forest being one of them. ESPN is steadily losing content, are raising prices, and losing subscribers. And, the market is moving away from the bundled channel cable market that drove their growth. ESPN channels cost $9+ per month and Fox channels ~$2. ESPN is troubled. Yes, they will have to honor existing contracts. That said, if the cable sports apocalypse is in the future, Disney can spin ESPN out (which they have considered) and let ESPN figure out how to survive and honor their sports rights deals.

Fox is slowly taking over college sports broadcasting. If Fox ever ends up with the CBS SEC package ESPN should begin to panic.

 

[Da_Aisijimo_Gou]

What’s the chance CBSSN and FS1 simply needed content way more than ESPN?

 

[uconnyankee]

didn't Boise have a larger take than the other schools in the MWC?
wonder if that is able to continue. Would ESPN like Boise in the AAC?

biggest fear could come true...
Boise leaves MWC and joins AAC with BYU. That and rumors of the playoffs expanding could make the AAC a legit power league with a path to the playoffs.

Brace for it!

 

[huskymedic]

didn't Boise have a larger take than the other schools in the MWC?
wonder if that is able to continue. Would ESPN like Boise in the AAC?

From the POSTED articles

>>The new Fox and CBS contracts, which will go into effect July 1, provide the conference’s 10 schools -- not including Hawaii and Boise State, which have separate arrangements -- with a significant revenue lift. Under the old contracts, those 10 schools made $1.1 million per year, per school. That per-school figure should jump to about $3 million or more. The league’s media deals are complicated because Boise State’s home games are negotiated separately from the rest of the conference. In the previous arrangement, Boise was paid a $1.8 million annual bonus, a deal negotiated in 2012 when the school jumped to the Big East and then quickly returned. Thompson has said that Boise will continue to receive a bonus above what other MWC schools get as an incentive to keep the Broncos in the league. Hawaii also has a separate deal, as it is a football-only member of the MWC.<<

 

[metsfan2323]

didn't Boise have a larger take than the other schools in the MWC?
wonder if that is able to continue. Would ESPN like Boise in the AAC?

biggest fear could come true...
Boise leaves MWC and joins AAC with BYU. That and rumors of the playoffs expanding could make the AAC a legit power league with a path to the playoffs.

Brace for it!

Yup, the MWC is in prime poaching position for the AAC and ESPN now.

 

[Exit 4]

didn't Boise have a larger take than the other schools in the MWC?
wonder if that is able to continue. Would ESPN like Boise in the AAC?

biggest fear could come true...
Boise leaves MWC and joins AAC with BYU. That and rumors of the playoffs expanding could make the AAC a legit power league with a path to the playoffs.

Brace for it!

BYU would be crazy to ditch their awesome independent schedule to play the AAC. Go look at their schedule for the next 5+ years- pretty awesome.

As for Boise, I don’t see what the AAC can do for them that they can’t already do from the comfy confines of the MWC. Boise gets a ton of CA kids, which would take a hit if they Trade games against Fresno and San Diego for Tulane and ECU.

 

[Pudge]

From the POSTED articles

>>The new Fox and CBS contracts, which will go into effect July 1, provide the conference’s 10 schools -- not including Hawaii and Boise State, which have separate arrangements -- with a significant revenue lift. Under the old contracts, those 10 schools made $1.1 million per year, per school. That per-school figure should jump to about $3 million or more. The league’s media deals are complicated because Boise State’s home games are negotiated separately from the rest of the conference. In the previous arrangement, Boise was paid a $1.8 million annual bonus, a deal negotiated in 2012 when the school jumped to the Big East and then quickly returned. Thompson has said that Boise will continue to receive a bonus above what other MWC schools get as an incentive to keep the Broncos in the league. Hawaii also has a separate deal, as it is a football-only member of the MWC.<<

that bonus is significantly less than the neatly packaged $7m of the AAC. It didn’t used to be that big a gap.

 

[GridironGR8]

I am reading that some sources (including the MWC and Dennis Dodd) are reporting that there is no deal yet between the MWC and ANY media entity. So I guess the mouse hasn't died just yet.

 

[UConnJim]

didn't Boise have a larger take than the other schools in the MWC?
wonder if that is able to continue. Would ESPN like Boise in the AAC?

biggest fear could come true...
Boise leaves MWC and joins AAC with BYU. That and rumors of the playoffs expanding could make the AAC a legit power league with a path to the playoffs.

Brace for it!

I don't think its happening. First, being in the MWC has not been holding Boise St. back from the playoff. Their performance has. Last 5 year records: 12-1, 10-3, 11-3, 10-3, 9-4. This year, Boise 12-1 is ranked 19 and Memphis 12-1 is ranked 17. Boise lost @ 7-5 BYU and Memphis lost @ 8-4 Temple. Boise beats BYU, there are in.

Next, the money isn't that different. Let's assume the AAC contract increases over the 12 year life, so year 1 is ~$6 million. I would think the Boise deal, with the new MWC contract is $4.5 to $5 million.

Then, look at the travel. Boise St. is greater than 1200 miles from every AAC school. UConn is ~1200 miles from the furthest AAC school and we complained about travel.

As for BYU, they just signed a 7 year deal with ESPN and they are playing many P5 schools in the future. They are not giving that up to play in the AAC.

Finally, I think it is more likely the AAC goes to 10 football schools vs 12. Why? I just don't think Navy will stay LT. The original reason Navy joined the AAC is that their AD was worried about scheduling late season games in the future as there were few independents and more conferences went to playing more conference games. Well, there are now more independent schools (UConn, UMass, Liberty, New Mexico St.) to make late season scheduling easier.

 

[Exit 4]

I don't think its happening. First, being in the MWC has not been holding Boise St. back from the playoff. Their performance has. Last 5 year records: 12-1, 10-3, 11-3, 10-3, 9-4. This year, Boise 12-1 is ranked 19 and Memphis 12-1 is ranked 17. Boise lost @ 7-5 BYU and Memphis lost @ 8-4 Temple. Boise beats BYU, there are in.

Next, the money isn't that different. Let's assume the AAC contract increases over the 12 year life, so year 1 is ~$6 million. I would think the Boise deal, with the new MWC contract is $4.5 to $5 million.

Then, look at the travel. Boise St. is greater than 1200 miles from every AAC school. UConn is ~1200 miles from the furthest AAC school and we complained about travel.

As for BYU, they just signed a 7 year deal with ESPN and they are playing many P5 schools in the future. They are not giving that up to play in the AAC.

Finally, I think it is more likely the AAC goes to 10 football schools vs 12. Why? I just don't think Navy will stay LT. The original reason Navy joined the AAC is that their AD was worried about scheduling late season games in the future as there were few independents and more conferences went to playing more conference games. Well, there are now more independent schools (UConn, UMass, Liberty, New Mexico St.) to make late season scheduling easier.

Yep about Navy and Navy has a separate media deal making an AAC exit even easier.

 

[UConnRock]

Navy is likely pleased that the AAC division format has been ditched as their placement in the West division just did not work. I don't see Navy leaving the AAC as they have been very competitive. Now it is true that TV money is not as big a deal for Navy given their service academy standing, but Navy has no reason to dislike the AAC football schedule with their yearly OOCs of Army, and ND. I have always seen Navy as a good AAC fit and I would need to hear a stronger argument for them to leave.