UCONN will never grant its media rights to the Big East

[Rumrunner]

While Memphis, Seton Hall, and Providence probably have no problem in allowing the Big East to acquire their media rights, this is why it is a nonstarter for UCONN:

Revenue

Women's basketball
$1.1 m a year

IMG
$8-10 million a year (comprised of media rights and marketing rights, for which UCONN and IMG would need to agree (buyout) the media portion

This is how Cal did it with the Pac 12/IMG:
Financially, the contract is expected to provide about $15.4 million in gross revenue to the school in the first year. Payments will escalate over the 12-year length of the pact. However, after taking into account new costs associated with implementation of the deal, including the need to buy back existing local broadcast rights from IMG College (the department's multimedia rights holder) and increased travel expenses, the net value of the new contract for Cal will be about $5.2 million more than was received last year from through the existing conference TV pact.

UCONN's SNY deal for men's bb and football

A dollar figure isn't available, but it is a 3 year contract. I assume it is separate from the rights held by IMG which might be radio rights. This deal should be conservatively in the $3-5 million range based on fb and bb content.

The Big East distributed $6-7 million in tv revenue last year to the all sports teams.

There is speculation that a new deal might garner $15-20 million a year.

If you're UCONN, the marginal increase in its hypothetical media contract with a GOR's provision is smaller than a media contract without such a provision. E.g., if the BE media contract is $8 million a year per school, UCONN receives $7 million a year less from that contract, but keeps its IMG revenue, and sNY revenue, which conservatively is in the $8 million a year range (total of sNY wbb + allocation of IMG revenue + sNY mbb and fb revenue).

Basically, UConn would again be subsidizing low performing programs by gaining ( and potentially losing) little revenue with the added injury of ceding its rights. Moreover, as the networks want to capture emerging media distribution mediums, you know that they will want to lock up such rights for a long period of time. The Pac 12's grant is for 12 years. The Big 12 started with a 6 year grant to stabilize the league, but have a 7 year extension all set to go upon completion, presumably, of their new tv deal. The Big 10 network has a 25 year grant. The SEC doesn't have one yet (the launch of the SEC digital network sometime in the future might precipitate one.

In short, a grant of media rights while in the best interest of Seton Hall and Memphis, and of the Big East, isn't in UCONN's interest.

 

[CL82]

While Memphis, Seton Hall, and Providence probably have no problem in allowing the Big East to acquire their media rights, this is why it is a nonstarter for UCONN:

Revenue

Women's basketball
$1.1 m a year

IMG
$8-10 million a year (comprised of media rights and marketing rights, for which UCONN and IMG would need to agree (buyout) the media portion

This is how Cal did it with the Pac 12/IMG:
Financially, the contract is expected to provide about $15.4 million in gross revenue to the school in the first year. Payments will escalate over the 12-year length of the pact. However, after taking into account new costs associated with implementation of the deal, including the need to buy back existing local broadcast rights from IMG College (the department's multimedia rights holder) and increased travel expenses, the net value of the new contract for Cal will be about $5.2 million more than was received last year from through the existing conference TV pact.

UCONN's SNY deal for men's bb and football

A dollar figure isn't available, but it is a 3 year contract. I assume it is separate from the rights held by IMG which might be radio rights. This deal should be conservatively in the $3-5 million range based on fb and bb content.

The Big East distributed $6-7 million in tv revenue last year to the all sports teams.

There is speculation that a new deal might garner $15-20 million a year.

If you're UCONN, the marginal increase in its hypothetical media contract with a GOR's provision is smaller than a media contract without such a provision. E.g., if the BE media contract is $8 million a year per school, UCONN receives $7 million a year less from that contract, but keeps its IMG revenue, and sNY revenue, which conservatively is in the $8 million a year range (total of sNY wbb + allocation of IMG revenue + sNY mbb and fb revenue).

Basically, UConn would again be subsidizing low performing programs by gaining ( and potentially losing) little revenue with the added injury of ceding its rights. Moreover, as the networks want to capture emerging media distribution mediums, you know that they will want to lock up such rights for a long period of time. The Pac 12's grant is for 12 years. The Big 12 started with a 6 year grant to stabilize the league, but have a 7 year extension all set to go upon completion, presumably, of their new tv deal. The Big 10 network has a 25 year grant. The SEC doesn't have one yet (the launch of the SEC digital network sometime in the future might precipitate one.

In short, a grant of media rights while in the best interest of Seton Hall and Memphis, and of the Big East, isn't in UCONN's interest.

All depends on what the numbers are and what UConn would have to give up. I agree that the analysis above is the right one.

 

[pj]

TV deals rarely buy every right. This is likely to be a football and men's basketball deal, maybe conference tournaments for some other sports. There's no reason UConn can't negotiate a limit of the number of its games a network gets so that SNY has exclusive rights to some.

Content that is most valuable to, say, NBC will go to NBC for appropriate compensation. Content that is more valuable elsewhere will go to those places. NBC can't use everything on 2 networks, so there will be content outside the deal.

 

[Dann]

time to go indy? if we can fill a fball schedule then whats holding us back?

 

[baggerbob]

As I said on syracuse board if Big East contract depends on GOR, Notre Dame leaves and takes a team with them. The Irish will blow up the league before they sign a GOR. I might be wrong but if they do, Uconn is the only school in the Big East, with sports programs the Irish want to play, and if they want a school thats who comes. Rutgers except in their own mind brings nothing.

 

[whaler11]

time to go indy? if we can fill a fball schedule then whats holding us back?

Besides the fact they can't fill a schedule, would have no bowl tie ins and the program would be dead in five years? Nothing.

 

[observer]

The numbers seem to make sense but from a conference strength standpoint the NBE needs to get all schools on the same page.

The BE's biggest problem has been and continues to be that many of its members have one foot out the door and are looking for any opportunity to jump to a better conference, that is, a Power 5 conference.

 

[Rumrunner]

Indy better than not playing football, but not playing football in the BE isn't likely if UCONN doesn't grant its rights. What is the BE going to do about it? L'ville and Notre Dame will vote the same, albeit for different reasons.

While the Big East has, as is the new catch phrase of the year-" been good to UCONN"-make no mistake that UCONN has been even better to the Big East. The success, money and publicity brought to the Big East is more than the bottom schools combined.

 

[UConnDan97]

...to jump to a better conference, that is, a Power 5 conference.

If I keep saying it, it becomes true....if I keep saying it, it becomes true....if I keep saying it, it becomes true...

...troll...

 

[The Funster]

If ESPN didn't own the ACC soul they wouldn't be referring to the ACC as a Power 5 conference.

 

[Rumrunner]

If the numbers being bandied about are true, roughly $8-10 million a year for BE media rights (assuming only Tier 1 and Tier 2 rights), then at least UConn won't allow its media rights to be granted to the conference.

Also, Aresco had to reach deep down into the barrel and is quoted as saying women's basketball is a consideration in the negotiations.

"Beyond sheer dollars, what are you looking for in the TV contract?
“Exposure for the teams. We want to get as many games on national platforms as possible. Whether it’s broadcast, cable or digital, we want to make sure we get maximum exposure. Not only for football and men’s basketball but also women’s basketball, which as you know the Big East has the best women’s basketball in the country, and Olympic sports, too."
In the end, I wonder how the contract will shape up for UConn's contract with SNY, both football, and men's and women's bb. Digital rights are going to be huge. Will they be included? UConn makes more than any other team in the Big East on its "third tier" media contracts. While this is not exactly equivalent to Texas and the Longhorn network, UConn to a degree, has the such an insane reach into Connecticut across three sports to at least make UConn pause and say, "Exactly why should I share this with Seton Hall or Providence?"

 

[nelsonmuntz]

Who said $8-10 million? ESPN?

 

[Jericho]

A grant of rights only matters to the extent of what's granted. The Big 12 has a grant of rights, but individual schools still retain a large amount of rights (mainly non-television rights, but some TV is retained). It's highly unlikely the women's basketball or non-television rights would be wanted by the Big East. The only reason to ask for them would be in the case a conference network was set-up. I don't see that happening just yet. The big negative with a grant of rights is that it ties a school to a particular conference. I'm not sure anyone wants to sign that with the Big East these days. certainly not Louisville, Rutgers, or UConn.

 

[mattp]

So let me see if I get this right. We make about $7-8m above and beyond our BE contracts from our media rights, whereas other conferences, such as the ACC, have basically given most of their extra media rights away as part of their TV contract. If that's the case all we really need is $8-10m from the Big East contract in order to be financially competitive with ACC teams. That seems pretty reasonable.

How much do middle of the road B12 teams get from their available media rights tiers? Since that extra $7-8m we get from IMG will probably be on the high end for our conference we should be able to stay in the top quarter of the conference in the long run. I know some people have mentioned going independent, and while that would be suicide scheduling wise, by keeping our own media rights we can get the best of both worlds. We can use the Big East for scheduling but still capitalize on our higher value compared to other BE schools

 

[RS9999X]

So let me see if I get this right. We make about $7-8m above and beyond our BE contracts from our media rights, whereas other conferences, such as the ACC, have basically given most of their extra media rights away as part of their TV contract. If that's the case all we really need is $8-10m from the Big East contract in order to be financially competitive with ACC teams. That seems pretty reasonable.

That's misleading. The SNY contract for the men is part of the BE contract and a is sub-contracted. No real change in a media rights grant.

Most colleges retain their local IMG Tier III contract for radio, coaches shows, and the various facility management, marketing, and sponsorship deals (see below).

The Conference Sponsorship marketing, ads, and web site and archived streaming games are the new playing field for media rights (digital rights).

The women's deal is unique.

Heres' the IMG release from the contract signing (and some other quips to capture the scope):

IMG will manage all rights with the exception of radio, which will become part of the agreement after UConn’s contract with WTIC expires in three years (this season BTW). UConn will continue to manage its existing women’s basketball broadcast contract with Connecticut Public Television (CPTV) and its 10-year apparel agreement with NIKE.

The UConn Division of Athletics will also derive additional financial benefits as IMG College will be responsible for a portion of the Division's operating expenses in support of marketing and corporate sponsorships

.Under terms of the agreement, IMG College will handle the rights associated with corporate partners, on-site opportunities, signage, corporate suites, game programs and all online components.
.

What IMG also has as part of the deal is control of 21 suites at Rentschler Field. UConn turned over the luxury boxes -- a major piece of "inventory" as it's called in the athletic marketing business -- so they can be used in variety corporate packages.
Also as part of the agreement, IMG will purchase hundreds of season tickets to UConn home games, including 392 for football, 280 for men's basketball, 272 for women's basketball, 98 for men's soccer, 98 for women's soccer and 68 for men's hockey.

The total price of the tickets IMG has agreed to buy, which includes a number of single-game tickets and postseason tournament tickets, is $1,163,000. That money paid to UConn is in addition to the rights fee payments the school will receive each year.
There are a number of other cash payments UConn will receive that have been earmarked for specific projects.

IMG has pledged $2 million toward the construction of a new basketball practice facility. The payments will be made in four annual installments of $500,000.

That building project is still in the planning process, Hathaway says, and the school is just now receiving drawings from the architects. Some $6 million has been raised so far for a project that will cost in the neighborhood of $25 or $30 million.

Another $2 million from IMG has been earmarked for new signage, the majority of which will be spent on new video boards that will be installed in Gampel Pavilion this season.

Webster Bank signed on this summer to become a major sponsor of University of Connecticut athletics and help build a new basketball training center, but UConn has refused to say how much the bank is spending or what exactly it will get in return for its millions.


"The financial arrangement is between Webster and IMG College, not us," UConn spokesman Mike Enright said

.