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Message: [QUOTE="CoastAtlantic, post: 3235925, member: 5174"] [URL='https://twitter.com/theDudeofWV']Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158547708392738816']1h[/URL] Here’s a quick primer for those foolish enough to question my assertion that the Big 12 will expand. Pay attention & put your thinking cap on because I’m only doing this once. Ready, set, go.... [URL='https://twitter.com/theDudeofWV']Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158548253388001280']1h[/URL] The Big 12 is only P5 conference without a terrestrial conference network. Its also the smallest P5 conf in terms of members (10) and media footprint. But the Big 12 is third in conf revenue. [URL='https://twitter.com/theDudeofWV']Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158549073923923970']1h[/URL] Each of the Big 12’s members play 9 conference games - alternating between 4 & 5 home conf games per year. The Big 12 is usually 3rd in TV ratings despite having the smallest footprint. [URL='https://twitter.com/theDudeofWV'] Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158549260448751616']1h[/URL] From top to bottom the Big 12’s pro rata TV ratings & fan engagement are on par with the SEC & Big 10. Big 10 numbers are extremely top heavy. [URL='https://twitter.com/theDudeofWV']Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158549854001516544']1h[/URL] The Big 12 is the only P5 conf not locked into a long term deal for their TV rights. Their primary TV deal was signed in 2012 and has increased from $20 to over $30M. It expires in 2025. [URL='https://twitter.com/theDudeofWV']Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158551019028172800']1h[/URL] When the Big 12 signed its TV deal in 2012 the landscape was different. The only avenues for broadcast outlets available were the networks. That’s changed. There are a host of new media companies hungry for live sports. [URL='https://twitter.com/theDudeofWV']Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158551751856988161']1h[/URL] Here’s where the Big 12 has the advantage. They are not partnered with ESPN or Fox on a network. Their programs have rabid fan bases who actually watch football. [URL='https://twitter.com/theDudeofWV']Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158552227700781056']1h[/URL] By expanding the Big 12 can add more games to its rights package and take as much as 30% of their content to open market to sell to the highest bidder. By being first to market to new media they expect premium plus money for that 30% of inventory as cost of market inventory. [URL='https://twitter.com/theDudeofWV'] Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158552815071092737']1h[/URL] The first part of this strategy is extending their deal with ESPN. ESPN currently has 50% of football & almost all of basketball. By extending their deal with ESPN they get a boast in base revenue & ESPN saves money due to inflation on a long term deal. [URL='https://twitter.com/theDudeofWV']Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158553437233197056']1h[/URL] This strategy requires an extension of the GoR to match the new TV deal. The payoff for the Big 12 is simple. The extended GoR gets them more money from ESPN and vastly inflates the revenue generated by taking whatever % of inventory left to the open market. [URL='https://twitter.com/theDudeofWV']Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158554150461956096']1h[/URL] The theory is this strategy catapults the Big 12 into the same revenue neighborhood as the SEC & B1G due to the cost of entry paid by new media company X for Big 12 rights. If you have ever sold anything on ebay you know how a bidding war drives up price. But there’s more. [URL='https://twitter.com/theDudeofWV']Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158554833621790722']1h[/URL] The Big 12 also gets a defacto conf network on ESPN+ with a escalating fee schedule. Plus expect made for primetime matchups between the Big 12 and ESPN’s other partners the SEC & ACC which also drives up revenue. [URL='https://twitter.com/theDudeofWV'] Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158556211496833024']1h[/URL] Do I have to point out the only way the Big 12 can maximize revenue from new media money is by expanding? [URL='https://twitter.com/theDudeofWV']Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158556907751313410']58m[/URL] Now before you get lathered up and try to argue with me you need to understand the Big 12 is the only P5 conf able to pivot & cash in on emerging new media money. The SEC & ACC are partners with ESPN with > 90% of inventory tied up. Likewise the B1G is tied up with Fox & ESPN. [URL='https://twitter.com/theDudeofWV'] Christopher Lambert@theDudeofWV[/URL] [URL='https://twitter.com/theDudeofWV/status/1158557586159017984']56m[/URL] One last point. First to market wins the new media jackpot. Fox has threatened the Big 12 not to expand. The Big 12 would love to free up that inventory from Fox if Fox isnt as willing a partner as ESPN. [MEDIA=twitter]1158555195351154690[/MEDIA] [/QUOTE]

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