Positive for BE TV Deal? Rose Bowl to $80 mill/yr

[UConnJim]

I just saw that ESPN has increased their media payout for the Rose Bowl from $30 mill to $80 mill/yr! This is not that much less than ESPN had originally offered per year for all of the BE football and basketball games, ~$110 mill per year, that was turned down.

The linked article says the Champion Bowl (SEC and B12) should get a similar contract, but the Orange is hard to forecast given the bowl only has the ACC as an anchor, but they project it will be less than the Rose and the Champion. Clearly with the time slot move from night to 1 PM, the value of the Orange Bowl has been diminished.

I can't see how this is a negative for the BE as college sports media rights continue to go up in value. The BE won't get as much as the top 4 conferences, but the gap with the ACC could end up being less than feared.

http://www.sportsbusinessdaily.com/Journal/Issues/2012/07/16/Colleges/BCS-playoffs.aspx

 

[Waquoit]

The BE won't get as much as the top 4 conferences, but the gap with the ACC could end up being less than feared.

This non-ESPN article uses the term "Big 5". It also says, "By doing separate TV deals for those three bowls, the ACC, Big Ten, Big 12, Pac-12 and SEC guarantee that a significant portion of TV revenue will flow directly into their coffers and won’t have to be shared with the other conferences."

 

[nelsonmuntz]

Why would ESPN pay so much for a single game involving one league, the Big 10, that will be putting most of its content on a competitive network (the BTN) by the end of this deal?

Is the Big 10 really worth that much more than everyone else?

 

[Dann]

Why would ESPN pay so much for a single game involving one league, the Big 10, that will be putting most of its content on a competitive network (the BTN) by the end of this deal?

Is the Big 10 really worth that much more than everyone else?

a league of mostly big publics is worth a lot i guess. hmm or espn knows something that we wont until a announcement is done one day in the future.

 

[metsfan2323]

This is great news for the Big East. It shows that the market value for college football games is exploding at the right time. It also offers proof that turning down ESPN's contract was the right thing to do.

 

[TuxedoYoda]

Champions bowl will be as much or more. Orange Bowl will be less than half - I would guess $35 million. The gap between the Big 12 & the ACC keeps growing & growing.....

 

[SubbaBub]

This is great news for the Big East. It shows that the market value for college football games is exploding at the right time. It also offers proof that turning down ESPN's contract was the right thing to do.

Unless, of course, they are spending the money originally intended for the BE.

 

[businesslawyer]

This is great news for the Big East. It shows that the market value for college football games is exploding at the right time. It also offers proof that turning down ESPN's contract was the right thing to do.

I'm not sure it will prove that. Timing the market right is great -- you get more money -- but doesn't change anything structurally, because eventually the market effects everyone. Had we taken the offer from ESPN, I doubt anyone would have bolted last year.

 

[UConnJim]

BL - All of the BE schools would have left even if we had a new contract last year. SEC/Big1G/Pac12 > Big 12 > ACC > BE. (At least from a perception standpoint.). On the field, ACC and nBE could be equal or one could be slightly better.

The media rights value of the Rose and the Champions should far outweigh the value of the Orange Bowl. This is another nail in the coffin for the stability of the ACC. Personally, I think the ACC's media rights value will push FSU and possibly Clemson to the Big 12 as they will not be able to financial compete with Florida and South Carolina of the SEC who are their real comparables.

If the Big 12 adds FSU and Clemson, the top 4 conferences will be crystal clear.

 

[UConnDan97]

I think the truth lies somewhere in between UConnJim and BizLaw's statements. If we had accepted the ESPN contract, I think that Pitt bolts no matter what (It's why Nordenberg did what he did in the first place, and it seems clear that Pitt desperately wanted in). I'm not convinced, however, in Syracuse and WVU bolting. Syracuse felt, and perhaps to some degree still feels conflicted about leaving a conference that they were almost synonymous with, along with UConn and G'Town. And I think that WVU, if the money gap between the BE and Big12 wasn't gigantic, would have felt like their path to the playoff system would be easier in the Big East (had they stayed in the BE long enough to find out about it). Who else would have joined Pitt? Don't know. But I do feel like the other two would likely have stayed......so once again....f$%k Pitt!!!

 

[UConnJim]

UConnDan - I disagree. WVU wanted a bigger conference and perceived stability. Big 12 had a spot and they were taking it no matter what happend in the BE. (In my opinion, WVU to the Big 12 will lead to a long term decline as they will be a middle of the pack B12 school. If schools like FSU, Clemson, and ND join, it will solidify WVU's middle of the pack position in the Big 12, just like they were in the Big East before Miami, VT, and BC left.)

I also think Syracuse and Pitt were more than willing to go to ACC and UConn, Rutgers, Louisville,... Would have as well.

 

[UConnDan97]

UConnDan - I disagree. WVU wanted a bigger conference and perceived stability. Big 12 had a spot and they were taking it no matter what happend in the BE. (In my opinion, WVU to the Big 12 will lead to a long term decline as they will be a middle of the pack B12 school. If schools like FSU, Clemson, and ND join, it will solidify WVU's middle of the pack position in the Big 12, just like they were in the Big East before Miami, VT, and BC left.)

I also think Syracuse and Pitt were more than willing to go to ACC and UConn, Rutgers, Louisville,... Would have as well.

What stability? WVU announced the move like 3 months after Texas, OU, OSU, and TT flirted with the Pac-12. They knew nothing about the revised tv deal at the time, and they knew they would be in litigation with the Big East once they announced it. It wasn't about stability. It was about money. If you want to make the argument that money = stability, then...okay, I guess. But it was about the dollar signs.

 

[ZooCougar]

What stability? WVU announced the move like 3 months after Texas, OU, OSU, and TT flirted with the Pac-12. They knew nothing about the revised tv deal at the time, and they knew they would be in litigation with the Big East once they announced it. It wasn't about stability. It was about money. If you want to make the argument that money = stability, then...okay, I guess. But it was about the dollar signs.

Nothing of what you are saying is wrong, but the truth is that an unstable Big 12 is still better than an unstable Big East by a wide margin. In fact, some would say that WVU, as the flower of the old Big East, stabilized the Big 12. The money didn't hurt either.

 

[Waquoit]

Champions bowl will be as much or more. Orange Bowl will be less than half - I would guess $35 million. The gap between the Big 12 & the ACC keeps growing & growing.....

What was the payout for the bowl where we had our best win? $2 million? What about the gap between the ACC and us?

 

[RS9999X]

That's an impressive chunk of change.

I agree the ACC Orange Bowl is worth something less than 1/2. About 40% is about right based on ratings and they need some sort of deal for that. Neutralizing ND and the BE are required.

 

[UConnDan97]

Nothing of what you are saying is wrong, but the truth is that an unstable Big 12 is still better than an unstable Big East by a wide margin. In fact, some would say that WVU, as the flower of the old Big East, stabilized the Big 12. The money didn't hurt either.

That may be true. WVU (and TCU) may have become the glue that holds that conference together, but I think many people could have imagined Texas and OU bolting for the Pac-12 after WVU's announcement and during the Pac's announcements of the collaboration with the Big10, tapping into Asian markets, etc. That would have been cruel to see. Funny, but cruel...

 

[huskypantz]

What was the payout for the bowl where we had our best win? $2 million? What about the gap between the ACC and us getting an invite?

fify

 

[Srqhusky]

I just continue to have one question. Where is all this money going to come from that espn is paying?? Is there cause for concern It could be passed along in ticket sales, cable bills or parking fees. Going to a game now is not exactly inexpensive. Don't forget after these schools get paid the execs want a piece too.