Update on the BE and the new TV contract

[WestCoastHusky]

BE presidents are expecting payout of $15M to $17M per school.

http://ajerseyguy.com/?p=3501

 

[upstater]

Big East officials are hoping that the combined money will come close to generating a $15-17 million per school per year.

The words "hoping" and "come close" are operative.

 

[WestCoastHusky]

The words "hoping" and "come close" are operative.

Actually, the numbers people are hearing from various BE people are the following:

Low end: $12M to $14M
Middle or expecting: $15M to $17M
High: $18M to $20M

Anything less than $12M would be utter failure.

 

[nelsonmuntz]

I think the low end is the realistic number. $10MM seems to be the floor, and $15MM seems to be the ceiling, although schools with valuable Tier 3 rights could do better.

 

[WestCoastHusky]

I think the low end is the realistic number. $10MM seems to be the floor, and $15MM seems to be the ceiling, although schools with valuable Tier 3 rights could do better.

I am pretty confident the numbers I posted for various ranges will come true. Most likely, deal will happen somewhere between $15M to $17M. The main reason for this is due to multiple networks interested and price for live sports have gone up. Timing is everything and BE will benefit as result of the current market conditions.

 

[SubbaBub]

Actually, the numbers people are hearing from various BE people are the following:

Low end: $12M to $14M
Middle or expecting: $15M to $17M
High: $18M to $20M

Anything less than $15M would be utter failure.

fixed.

 

[ConnHuskBask]

I think the low end is the realistic number. $10MM seems to be the floor, and $15MM seems to be the ceiling, although schools with valuable Tier 3 rights could do better.

Agreed. Anyone expecting ACC money is simply not living in reality.

 

[AJC88]

Where's Observer? I miss that guy and feel like he should have chimed in here already

 

[Husky68]

Agreed. Anyone expecting ACC money is simply not living in reality.

Acc gets $17 so in my book $15 is pretty similar vs. what are getting now. Until the seller says "give me you best and final offer" you never know. We need a couple of the bidders to keep say'n YUP.

 

[nelsonmuntz]

I am sure that the estimate is average per team for all three tiers. The main football contract may only be $8 or 9 million per school, with another $3 or 4 for basketball, and the balance coming from different schools' Tier 3 deals. The ACC contract is all in I believe. ESPN owns the ACC's Tier 3.

 

[ZooCougar]

BE presidents are expecting payout of $15M to $17M per school.

http://ajerseyguy.com/?p=3501

I expect they will be dissappointed.

 

[WestCoastHusky]

Agreed. Anyone expecting ACC money is simply not living in reality.

That might be true if ACC actually got market value for their deal. They went first and got a bad deal with ESPiN. Their media deal is undervalued. Therefore, using ACC's media deal as a comparison is wrong to start with. BE is hitting the market now while it is hot. ACC is tied to ESPiN for the next 16 years. BE will get market value for its products. I suspect basketball value will be huge part of the deal as it should.

 

[NEforceUConn]

That might be true if ACC actually got market value for their deal. They went first and got a bad deal with ESPiN. Their media deal is undervalued. ......

Can you please tell that to the head of Pitt and Cuse - that the ACC deal is undervalued for the next SIXTEEN YEARS! If BE gets $15m (and I think that's possible) then Pitt and Cuse really look stupid.

Can't wait till the boys in Grandover (ACC HQ here in Greensboro) start scheduling a 10:30 am Cuse vs Pitt kickoff time.

 

[ConnHuskBask]

That might be true if ACC actually got market value for their deal. They went first and got a bad deal with ESPiN. Their media deal is undervalued. Therefore, using ACC's media deal as a comparison is wrong to start with. BE is hitting the market now while it is hot. ACC is tied to ESPiN for the next 16 years. BE will get market value for its products. I suspect basketball value will be huge part of the deal as it should.

The bottom line is that no matter how good the current market is, I highly doubt any network executive signs off on paying Memphis/Temple, etc. $17M a year to broadcast their football and basketball games.

 

[upstater]

The bottom line is that no matter how good the current market is, I highly doubt any network executive signs off on paying Memphis/Temple, etc. $17M a year to broadcast their football and basketball games.

You can't look at it like that. I mean, Wake Forest gets millions. So does Vanderbilt and Miss. St., and Baylor and TCU.

 

[ConnHuskBask]

You can't look at it like that. I mean, Wake Forest gets millions. So does Vanderbilt and Miss. St., and Baylor and TCU.

Those schools are infinitely better than Memphis and Temple and in addition to that, when you have the rights to Alabama, Florida, Texas, Oklahoma, etc. you can afford to pay the lower end teams the big bucks.

 

[upstater]

Those schools are infinitely better than Memphis and Temple and in addition to that, when you have the rights to Alabama, Florida, Texas, Oklahoma, etc. you can afford to pay the lower end teams the big bucks.

I don't think Wake Forest has more fan interest than Memphis. In fact, I know they don't. Look at ticket sales alone.

 

[Marty Jackson]

Those schools are infinitely better than Memphis and Temple and in addition to that, when you have the rights to Alabama, Florida, Texas, Oklahoma, etc. you can afford to pay the lower end teams the big bucks.

you can't really compare the $'s between contracts because there are so many dynamics impacting the market today, most of which favor the BE.
Also, don't forget that the other conference contracts were negotiated years ago. The ACC just added roughly $3M/yr per school by adding Pitt and Syr. That suggests ESPN knows there was significant value still in the contract.

The BE getting $15M in today's market with all the market dynamics in play, potentially splitting up the networks, and getting a 14th member isn't outrageous. I think that is a fair target for them to go after. Whether they get there is a different story.