I am waiting for one of the bashers to explain just what leverage Aresco or wards had this time around. Let me rephrase: intelligently and realistically explain the leverage either had in the latest round of negotiations.
Entering into negotiations with NBC, ESPN, and whomever, start with this premise:
The only school left in the AAC with appreciable value in its non-nationally televised tv rights (call them Tier 3, a nomenclature used in differing ways by different conferences) is UCONN. Whatever games the network does not want to pick up for national distribution, is retained by the school.
UCONN is the only AAC school that commands its marketplace. No other school exerts such influence over its DMA. Not memphis, not usf, not tulane, smu, houston and on and on.
In order to monetize these rights, UCONN would need an outlet willing to pony up money for "scrub" games, or games that attract local interest. This applies to football (UCONN v. Towson, UCONN v. Memphis), hoops (UCONN v. Fairfield), both men's and women's.
With respect to the value of these rights-SNY is paying $1.2 million a year for 17 scrub women's basketball games.
UCONN wants these rights. The AAC wants these rights to use in negotiations with the networks to increase the value of the tv contract.
When UCONN finds out that the value of the tv contract which grants the AAC's media rights (digital included) to ESPN, UCONN has two choices accept this or not.
Enter Navy discussions. Navy has a current contract with CBS. Navy gets to keep its tv revenue from CBS in the future. This was part of the negotiations with NBC, ESPN.
UCONN tells Aresco- $2 million is way too low. UCONN makes $1.2 million on 17 scrub girl's games, but now it will make a total of $2 million on 9 or 10 football games, 20-22, men's games, and 20-22 women's games. These games include high profile matchups in football, and men's and women's basketball games.
UCONN tells Aresco, we keep our tier 3 rights. Let every school keep them. If other schools don't want this, UCONN buys out its rights for the $2 million.
In negotiations, ESPN/NBC has offered $2 million a year per school. How much less would the offer be if schools kept their tier 3 rights? Would the amount be $1,999,999? Would NBC buy essentially same content for even cheaper? Of course they would.
The conference would have been made whole (through UCONN's payment back its conference tv distribution if school's demurred on retaining their individual tier 3 rights).
As for leverage: If Navy gets to keep their TIER ONE rights, UCONN keeps their Tier 3 rights.
At this point, what is Aresco going to do? His conference has already blown up, and the tv number is basically at the point where the conference is paying ESPN to broadcast games like a giant infomercial.
This issue is unique only to UCONN. UCONN had a relationship with an RSN that is ready, willing and able to produce the games.
Instead, UCONN is like a dumb host with parasites feeding off of it.
And incidentally, Ward makes $40,000 per month to come up with ideas to make UCONN money.
And in the end, you know who is getting screwed the most? UCONN football. UCONN lost a partner that had a financial incentive to boost it in the NY market.
