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How AAC TV deal could impact the future of college football rights
>>On the field, the American Athletic Conference has acquitted itself well since the football iteration of the Big East collapsed. The AAC has made clear its aspirational desires, launching a persistent “P6” campaign to include itself in the top echelon of Power Five conferences in college sports.
The AAC has shown in a small sample size that it can be intermittently competitive with the top leagues in college football. That includes two marquee bowl wins the past three seasons, with Houston toppling Florida State in the Peach Bowl after 2015 and undefeated UCF thumping Auburn in the same game last season. But to change the narrative on the field, the next step for the Artist Formerly Known As The Big East is to change the financial model off it. For all of AAC commissioner Mike Aresco’s stumping for the sport’s model to change to a Power Six, there’s no chance of that transcending empty rhetoric until the league’s financial revenues look more Rockefeller than Bundy.<<
>>For now, however, Aresco is toeing the party line and saying the league’s preference is to stay with ESPN. The league’s exclusive 30-day negotiating window with the network begins on Feb. 1. “First things first,” he said. “We want to get something done with ESPN if possible. We view them as the best alternative. They have offered us great exposure and helped us build our brand. That would be our preference.”
There’s a sexier potential option than everyone around college sports is curious about. Aresco, his staff and consultants have done their digital due diligence on all potential partners. Aresco’s background also comes in traditional television, as he was a longtime CBS executive before being picked to restart and revive the league five years ago. “ESPN is still in 85 million homes,” he said. “It’s still a significant number of homes. The ratings have been generally stable. I don’t think anyone knows precisely where it’s going.”<<
>>What’s the most likely outcome? It’s difficult to predict, but industry sources see the confluence of a primary deal with ESPN and some subsidiary deals with other channels or digital networks. (That’s been the model of the Big 12, Pac-12, and others). Maybe ESPN buys it all and sells some off? Maybe Facebook dabbles on a second-tier package like it did for Major League Baseball? As for the financial numbers, there’s fluctuating predictions on exactly what multiples the AAC will receive. At least double? Sure. Likely triple? It’s needed. Those projections are tricky, especially in a rapidly changing environment, as the size of the deal will come down to market forces – or lack of – more than anything within Aresco and the league’s control.<<
... more in link.
>>On the field, the American Athletic Conference has acquitted itself well since the football iteration of the Big East collapsed. The AAC has made clear its aspirational desires, launching a persistent “P6” campaign to include itself in the top echelon of Power Five conferences in college sports.
The AAC has shown in a small sample size that it can be intermittently competitive with the top leagues in college football. That includes two marquee bowl wins the past three seasons, with Houston toppling Florida State in the Peach Bowl after 2015 and undefeated UCF thumping Auburn in the same game last season. But to change the narrative on the field, the next step for the Artist Formerly Known As The Big East is to change the financial model off it. For all of AAC commissioner Mike Aresco’s stumping for the sport’s model to change to a Power Six, there’s no chance of that transcending empty rhetoric until the league’s financial revenues look more Rockefeller than Bundy.<<
>>For now, however, Aresco is toeing the party line and saying the league’s preference is to stay with ESPN. The league’s exclusive 30-day negotiating window with the network begins on Feb. 1. “First things first,” he said. “We want to get something done with ESPN if possible. We view them as the best alternative. They have offered us great exposure and helped us build our brand. That would be our preference.”
There’s a sexier potential option than everyone around college sports is curious about. Aresco, his staff and consultants have done their digital due diligence on all potential partners. Aresco’s background also comes in traditional television, as he was a longtime CBS executive before being picked to restart and revive the league five years ago. “ESPN is still in 85 million homes,” he said. “It’s still a significant number of homes. The ratings have been generally stable. I don’t think anyone knows precisely where it’s going.”<<
>>What’s the most likely outcome? It’s difficult to predict, but industry sources see the confluence of a primary deal with ESPN and some subsidiary deals with other channels or digital networks. (That’s been the model of the Big 12, Pac-12, and others). Maybe ESPN buys it all and sells some off? Maybe Facebook dabbles on a second-tier package like it did for Major League Baseball? As for the financial numbers, there’s fluctuating predictions on exactly what multiples the AAC will receive. At least double? Sure. Likely triple? It’s needed. Those projections are tricky, especially in a rapidly changing environment, as the size of the deal will come down to market forces – or lack of – more than anything within Aresco and the league’s control.<<
... more in link.
