How will this impact Uconn's T3 rights?

[WestCoastHusky]

FloSports adds Big East Digital Network in expanded streaming deal - SportsPro

Tie up sees streaming platform become home to Big East Digital Network for 2021/22 academic year.

www.sportspromedia.com

Uconn needs to keep its T3 rights to build its own brand with its own platform. I don't have details of this deal, but would like to find out if this will impact Uconn's T3 rights in any way.

 

[Storrs South]

FloSports adds Big East Digital Network in expanded streaming deal - SportsPro

Tie up sees streaming platform become home to Big East Digital Network for 2021/22 academic year.

www.sportspromedia.com

Uconn needs to keep its T3 rights to build its own brand with its own platform. I don't have details of this deal, but would like to find out if this will impact Uconn's T3 rights in any way.

UConn's T3 rights are included in current Big East TV deal with FOX. So all the WBB games that aired on SNY last year were televised on cable TV instead of Big East Digital because FOX sublicensed to SNY.

Based on current deal, UConn doesn't get any additional money for this arrangement it is already baked into current TV payout from FOX.

This agreement doesn't affect UConn as only non-UConn games end up on FloSports like we saw last year (sublicense fee is probably significantly higher than what FloSports is willing to pay).

 

[How Sway?!]

UConn's T3 rights are included in current Big East TV deal with FOX. So all the WBB games that aired on SNY last year were televised on cable TV instead of Big East Digital because FOX sublicensed to SNY.

Based on current deal, UConn doesn't get any additional money for this arrangement it is already baked into current TV payout from FOX.

This agreement doesn't affect UConn as only non-UConn games end up on FloSports like we saw last year (sublicense fee is probably significantly higher than what FloSports is willing to pay).

How much would our T3 rights be worth in the open market?

 

[Hoophound]

How much would our T3 rights be worth in the open market?

Supposedly, a lot of money. Like $10-12 mill if I remember correctly. That makes us unique.

 

[How Sway?!]

Supposedly, a lot of money. Like $10-12 mill if I remember correctly. That makes us unique.

If true, we should try and regain them during the next tv contract talks, unless Fox is planning on setting up a Big East channel, which I doubt.

 

[JeepCSC]

Tier 3 isn’t that valuable. The Big XII had their tier 3 rights bundled with their broader Learfield/IMG deals (radio shows, stadium advertising), and none of them besides Texas were outside the $7-10 million range I believe. I think West Virginia fans broke it down once that they were making about $2 million from just tier 3 rights. Not sure how accurate, and we’ve probably had 8 years of inflation to add now. But no one besides Texas and Notre Dame ever got rich on tier 3 games.

 

[CL82]

Supposedly, a lot of money. Like $10-12 mill if I remember correctly. That makes us unique.

Don’t think so. WBB is @$2M. Football is @$500K Baseball and hockey combined maybe another $500K maybe. Most of our men’s games get picked up. I’m not sure how much inventory goes to tier 3. Still a decent chunk of change.

 

[Storrs South]

How much would our T3 rights be worth in the open market?

The open market has kindly already figured this out for us.

As I understand it, Tier 3 rights includes everything the National Broadcasters pass on (ESPN, FOX, ABC, CBS).

When UConn was in the AAC, their Tier 3 rights weren't included in the TV deal so they had the deal with SNY (technically some would call this Tier 2, but I think this is also Tier 3).

I believe UConn earned about $1+ million annually from SNY for most WBB home games, a few MBB OOC games, and one football game.

Tier 3 also includes multimedia rights which UConn sells to Learfield. The most recent agreement has a base of about $6 million a year + revenue sharing so maybe that number is more like $8-10 million per year by the time the 15 year contract expires in 2033.

So @Hoophound's guess of $10-12 million is pretty good. Those deals were also signed at the lowest point in quite some time for MBB and Football so there's definitely a lot of room to pump up those numbers up when the Big East goes back to FOX to negotiate in 2024/2025. Add in the value of WBB continues to climb in brand value + increased interests in women's sports and these are all things that can help at the negotiating table. And the real icing on the cake is those deals were signed in the AAC; UConn in the Big East is likely a signicantly more valuable commodity. No idea how much more we are talking but something to consider.

 

[CL82]

Tier 3 also includes multimedia rights which UConn sells to Learfield. The most recent agreement has a base of about $6 million a year + revenue sharing so maybe that number is more like $8-10 million per year by the time the 15 year contract expires in 2033

What is this exactly? Is it games? From what sports?

 

[JeepCSC]

UConn’s media contract was $96 million for 15 years with Learfield/IMG. That included coaches’ radio shows, advertising, and tier 3 rights.

 

[CL82]

UConn’s media contract was $96 million for 15 years with Learfield/IMG. That included coaches’ radio shows, advertising, and tier 3 rights.

Got it. So probably unfair to include all of that in an analysis of tier 3 rights.

 

[Storrs South]

What is this exactly? Is it games? From what sports?

The Learfield IMG deal is all sports. It includes the Coach's Shows, Radio broadcasts, and licensing agreements with the UConn athletic department. There's a good FAQ by the Courant of what is captured in the agreement. The New UConn-IMG Deal Is Worth At Least $93 Million. Here's What Else You Need To Know

I only included it in Tier 3 rights calculation since that seems to be the industry standard so if we are doing 1:1 comparison to peers that would be captured.

 

[Stinger92860]

So we are getting 7m a year in addition to BE money?

 

[CL82]

The Learfield IMG deal is all sports. It includes the Coach's Shows, Radio broadcasts, and licensing agreements with the UConn athletic department. There's a good FAQ by the Courant of what is captured in the agreement. The New UConn-IMG Deal Is Worth At Least $93 Million. Here's What Else You Need To Know

I only included it in Tier 3 rights calculation since that seems to be the industry standard so if we are doing 1:1 comparison to peers that would be captured.

Thanks, that was good info and very interesting. For some reason I had gotten stuck in the notion that tier 3 rates are games, but it is a lot more. It does make Yukon interesting and valuable if those rights are ceded to the conference.

One more question it’s $93 million over how many years?

 

[hoopsfan22]

Thanks, that was good info and very interesting. For some reason I had gotten stuck in the notion that tier 3 rates are games, but it is a lot more. It does make UConn interesting and valuable if those rights are ceded to the conference.

One more question it’s $93 million over how many years?

15 years

 

[Storrs South]

So we are getting 7m a year in addition to BE money?

Something like that. It's like a $6M base plus revenue sharing so no clue what the value of that balance is. Could be 7, could be 10, could be more it, it may be in the most recent financial statements UConn published but I haven't looked. Plus the $500k or so from CBS Sports for football which is a mix of both tier 1, 2, and 3 rights (the FCS game each season would usually be Tier 3).

 

[Hoophound]

My understanding is our Learfield deal is lower than it would be if we did it now by several million. Also, if we can put a presentable football team together, we will do much better than 500k. I think the AD knows this and that’s why he is optimistic. If you do the math on our athletic department with the men’s basketball team challenging for Final Fours again and the football team, which is clearly recruiting better as an Independent, winning even half their games, the future is bright. Imagine a reworked Big East deal paying a couple million more, the football deal paying even 2 million, the stadium mostly full of fans and Gampel rocking, and we’ve suddenly got something going. We are getting paid more, selling tickets and merchandise and watching our market value go up.

I’m optimistic right now. This football season is really big for us. We’ve got to show improvement and give the fans some hope and excitement. We are close to turning the corner and more help is on the way.

 

[CL82]

$25 x 35,000 x 6 = $5.25M. It doesn’t make up for footballs $17 million deficit, but it sure puts a nice dent in it.