SDSU AD on the AAC media deal

[tcf15]

Plenty of questions, issues and options as Mountain West negotiates new TV deal

Here is what’s not going to happen when the Mountain West opens negotiations for a new television contract next week: A major network swoops in and offers $30 million per school per year that…

www.sandiegouniontribune.com

The American Athletic Conference, with the best football and men’s basketball outside the power conferences, also has its media rights expiring after next year and recently finalized a $1 billion package with ESPN that sounds promising for its mid-major brethren until you start peeling back layers.

At first glance: Each school will get just under $7 million per year starting in 2020-21, still not at the level of the SEC’s $43.1 million from 2017-18 but considerably more than the couch change that Div. I’s have-nots receive.

The fine print: Most games will be on ESPN+, a pay web service ($4.99 per month) with only 2 million subscribers, rather than linear or “real” TV; schools are responsible for on-campus production costs, which some estimate could lower their net annual take by as much as $2 million; and the deal is for 12 years, when technology may change and media rights might be worth more and Div. I athletic budgets will undoubtedly have soared.

“That’s what blew me away,” SDSU’s Wicker says, “that 13 years from now they’re still going to be getting $7 million per school, knowing what things cost today and what they might cost in 13 years. I would be surprised if we got locked into something like that. I think that’s too long.”

 

[Wordbomar]

but but but ... “1 BILLION DOLLARS”

 

[UC1995]

The pipe dream of a western branch of the AAC just blew away.....

No way BYU and others touch this conference with a ten foot pole if ADs are thinking this

 

[Dooooooomed]

The pipe dream of a western branch of the AAC just blew away.....

No way BYU and others touch this conference with a ten foot pole if ADs are thinking this

BYU, no. But if that article about the MWC getting $1-$2 million in their next TV deal is true, who knows. Either way I'm glad we're out. Imagine that new travel budget... Poor Temple.

 

[huskymedic]

Here’s a article from the Conference Realignment Forum that has the most recent article on the MWC (w/ AAC deal commentary):

Background: Analysis: Plenty of questions, issues and options as Mountain West negotiates new TV deal

Mountain West future on line as TV talks take place

>>Sports media expert Joel Lulla, a lecturer at Texas, said he thinks a marriage between the Mountain West and the growing ESPN-Plus digital service makes sense.

The American Athletic Conference agreed to a 12-year, $1 billion deal with ESPN that includes a major portion of games being played on the digital format, setting the precedent of what’s expected to come. It’s about four times what the American made on its previous ESPN deal, but AAC fans who want to see their favorite team must pay $4.99 per month to watch.

“The number the American Athletic Conference got, it’s a little misleading because the AAC is going to have to produce a lot of events, and that’s going to cost millions of dollars,” said Lulla, the former head of ABC Sports’ legal and business department and a lead counsel at IMG. “But if ESPN-Plus and ESPN are not interested in the Mountain West, they’ve got a big problem because I don’t know who else is going to step up in any real way.

“They’re currently between the CBS deal and the ESPN deal somewhere in the $16, $17 million-a-year range. If ESPN-Plus is interested, they could double that easily. If ESPN is not interested, they could be looking at a 50 percent haircut.”<<

>>The Mountain West’s current deals with CBS Sports, ESPN and AT&T SportsNet expires in 2020, paying each school about $1.1 million each year. CBS Sports had the first negotiating window.<<

 

[Guapo]

The AAC will not have the best basketball outside of the power 5 after this year

 

[Edward Sargent]

but but but ... “1 BILLION DOLLARS”

I think 1 Billion dollars was the incentive clause in Aresco’s contract. He’ll get his payday and will be long gone in 13 years

 

[noeynox]

12 years is a killer. Can't believe Aresco agreed to that. At that length he needed 10 million a year from ESPN. This was a fail.

 

[Da_Aisijimo_Gou]

I think 1 Billion dollars was the incentive clause in Aresco’s contract. He’ll get his payday and will be long gone in 13 years

Bingo!

 

[CL82]

but but but ... “1 BILLION DOLLARS”

 

[CL82]

12 years is a killer. Can't believe Aresco agreed to that. At that length he needed 10 million a year from ESPN. This was a fail.

He took what he could get and spun it the best he could. If we were willing to give up a GOR, we would have done better. Who knows how much better.

 

[Guapo]

Arseco is a dingus

 

[noeynox]

He took what he could get and spun it the best he could. If we were willing to give up a GOR, we would have done better. Who knows how much better.

No one is signing a GOR to a G5 conference. I just don't see that happening.

 

[superjohn]

The AAC will not have the best basketball outside of the power 5 after this year

They never did.

 

[CL82]

No one is signing a GOR to a G5 conference. I just don't see that happening.

Well, at least not anyone believes that they have a shot of getting off the island.

 

[noeynox]

Well, at least not anyone believes that they have a shot of getting off the island.

Any school investing in athletics at the AAC/Mountain West level believes it. I think damn near every fbs school believes it somewhat.

 

[CL82]

Any school investing in athletics at the AAC/Mountain West level believes it. I think damn near every fbs school believes it somewhat.

I guess. Still, depending on the nut, I think there were schools in our conference who given at GOR. Probably everyone but the schools that were in the B12 debacle.

 

[Fishy]

BYU, no. But if that article about the MWC getting $1-$2 million in their next TV deal is true, who knows. Either way I'm glad we're out. Imagine that new travel budget... Poor Temple.

I think the Mountain West is in line to get hammered.

The AAC deal will look good to almost all of them.

 

[nelsonmuntz]

It seems like some of the schools would be better off selling their media rights individually than through the league at those prices.

I still don't understand a market that values Minnesota at 50x New Mexico or San Diego State.

 

[AZHuskiePop]

It seems like some of the schools would be better off selling their media rights individually than through the league at those prices.

I still don't understand a market that values Minnesota at 50x New Mexico or San Diego State.

UM is the flagship of a decently populated state who plays in a conference with iconic schools.That also have a long football history including the legendary Bronco Nagurski. As legend has it he was Farmboy in a field pulling a plow normally requiring a horse.
The UM football coach asked him for directions to a town where they were going to scout a recruit.
Legend has it Bronco picked up the heavy plow and pointed it in the direction of the town. There is also the indentation in the concrete wall of the stadium left when Bronco ran into it.
Whether the Bronco stories are true or not is totally irrelevant they are part of the UM football folklore. A conference where history and legend are as big a actual games. Okay they screwed up with Rutgers but even they have a legendary heritage.
That’s one of the big ,difference in brand , that kept us from a B1G bid.
SDSU is mostly likely not even the number one school in San Diego . They also play teams that don’t exactly conjure up iconic brands or come with legends attached.
Unless you consider blue artificial turf as iconic.

 

[Waquoit]

UM is the flagship of a decently populated state who plays in a conference with iconic schools...

So the best you got is that UM has had a long tradition of existence.

 

[Rocktheworld]

but but but ... “1 BILLION DOLLARS”

 

[CL82]

Rocktheworld

But worth it. That was hysterical.

 

[Fishy]

It seems like some of the schools would be better off selling their media rights individually than through the league at those prices.

I still don't understand a market that values Minnesota at 50x New Mexico or San Diego State.

Because Minnesota started playing Ohio State and Michigan in the Middle Ages when such things were decided.

It's the most illogical demographic arrangement that somehow became law.

 

[Guapo]

Because Minnesota started playing Ohio State and Michigan in the Middle Ages when such things were decided.

It's the most illogical demographic arrangement that somehow became law.

Bringing logic to a college sports conversation is like bringing a chicken bone to a gun fight