Oh...that new TV contract...

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Jun 1, 2008
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#1
could make it open season for the Big 12 to poach from other conferences:

The Sports Business Journal broke a story today that the Big XII and ESPN were close to finalizing a new television agreement that would net the conference $1.3 billion over the next 13 years. Combined with the Big XII's agreement with Fox ($1.2 billion over 13 years), the conference stands to earn $2.5 billion over the life of both agreements.


Under the new terms, each Big 12 school will average just under $20 million a year. Schools in the Pac-12, which also partnered with ESPN and Fox to generate its record $3 billion deal over 12 years, will average nearly $21 million per school.

Here is where it gets really interesting


The Big XII made a number of strategically brilliant moves w/ this latest contract. If they sign at least 2 additional teams (there are restrictions on whom), there is an automatic escalator in the contract that will raise the total payout by $2.05M per team (this based on the added conference championship game). And, they negotiated an opt out clause that will allow them out of the deal to take it to market if they expand to 12 or further, with ESPN/ABC having the right of first refusal on the contract. Once the language of the contract makes its way back to the ACC, I think there will be some nervous presidents & a nervous commissioner, b/c the Big XII essentially just got a license to hunt, with guaranteed ammo.

And, what’s better, the ABC/ESPN/Fox contracts the Big XII has are only for Tier 1 & Tier 2 broadcasts. So, teams are free to shop their Tier 3 rights. So, just like Texas is netting $10M/season, and KU is netting $8M/season from Tier 3, Florida State, Clemson, etc will have the ability to make $20M + millions more on Tier 3, which would put them above the highest paid SEC teams.
 

CowboyOrangeFan

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While interesting I think the "putting them above the highest paid SEC teams" comment is rather optimistic.
Yeah well, so is this.

"Hey, you saw that very nice bump the Big 12 got in its post-expansion TV contract? We're going to make it look like the 47 cents in your Camry's ashtray."
That is from that article you linked. Which BTW, is just some auburn blogger who somehow got a gig posting drivel like that on CBS Sports.

We all know that the SEC has the most potential value currently. However you just can't ignore the fact they are currently locked up in long term deals. CBS and ESPN aren't just going to tear those up and start over. Their will be a bump, but I think most SEC zealots will be disappointed in the final tally. Of course with that bump, and if they do indeed form a SEC Network (tier 3 content), then they should move into the top spot as far as revenue in the near future. Still, there are a lot of things that have to come to fruition before that happens.
 
Sep 28, 2010
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Yeah well, so is this.

"Hey, you saw that very nice bump the Big 12 got in its post-expansion TV contract? We're going to make it look like the 47 cents in your Camry's ashtray."


That is from that article you linked. Which BTW, is just some auburn blogger who somehow got a gig posting drivel like that on CBS Sports.

We all know that the SEC has the most potential value currently. However you just can't ignore the fact they are currently locked up in long term deals. CBS and ESPN aren't just going to tear those up and start over. Their will be a bump, but I think most SEC zealots will be disappointed in the final tally. Of course with that bump, and if they do indeed form a SEC Network (tier 3 content), then they should move into the top spot as far as revenue in the near future. Still, there are a lot of things that have to come to fruition before that happens.
I thought that line was just incredibly funny personally :)

While that article may be written by a random blogger the fact that SEC commish Mike Slive is renegotiating the SEC tv deals is very factual, and those contracts do have a "look in" clause that provides for those renegotiations when the conference adds new members.

I feel pretty confident that the SEC tv money will exceed every other conference deal currently on the table including the reworked Big 12 deal before any sort of third tier SEC network is formed.

Speaking of, won't you guys get even more cash from that since WVU and TCU aren't full members for several seasons?
 

TouchdownCowboys

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I wasn't trilled about the timing of the Big 12 renegotiations, but I like opt out clauses which reward and attract growth.

CBS cable sports channel and the SEC tier 3 content will go hand in hand if they can make the money work. They will also use it to pressure ESPN to pay top dollar for tier 1 and 2 content as well. I hope they rework their deal to set precedence for the Big 12 renegotiations after expansion. Scott got contracts for the Pac 12 based on other conference deals and not their ratings or performance.
 

O-St8

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The ACC is looking at around $15-6M a team from what is being published.

Please, please, PLEASE...go after some ACC folk. If we want to seal ourselves as one of the top tier conferences going forward we are going to have to press the envelope on this!
 

TouchdownCowboys

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We are a top tier conference with ten teams. The stats don't lie, but the Big 12 brass has done a terrible job of marketing the depth of our league. We led the country in conference SOS, played each conference member, and couldn't get a shot at the MNC. A big part of that is OSU was our champion and not a bigger national brand like UT or OU. The reality is the Big 10, SEC, and Pac 12 are better a supporting all teams. Look how quickly the Big 10 did a 180 on the plus one playoff system they had opposed to preserve their Rose Bowl presence. Once they saw ESPN pimping Alabama they reacted quickly to increase their odds of getting a dog in the fight. I don't think OSU and Kansas State are supported like Oregon, Stanford, Auburn, Georgia, Tennesse and Wisconsin (all less traditional confernce powers). My proof- over half of the media thought Brandon Weeden had arm strength issues after two years of firing bullets. Compare that to the treatment Cam Newton got during his one year at Auburn.
 
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#10
Well, it looks like the contract talks have taken a new twist, and ABC/FOX are going to share the deal. Things are looking up for the Big XII.

I do think it would be good to have the SEC get a renoegotiation at this point. If they are able to match what the B1G, PAC, & Big XII have then that really puts the ACC schools in a world of hurt.

With the networks talking $5M per school a year for each 2 the Big XII adds, then I'd say the SEC going from $17M currently to $22M with the new teams would be reasonable. Now throw on tier 3 and all other sources of revenue and SEC schools will come in around $30M, and Big XII schools around $26-7M. Well the ACC schools would be pulling in about $20M. Then the Big XII and SEC schools get to add their tier 3 rights while the ACC's tier 3 are all in that $20M. So FSU would be collecting $20M while UF is collecting $40M (they have a $10M tier 3 package). Now how serious do you think they'd be about jumping to the Big XII? The SEC and Big XII pulling further away are going to get these schools seriously interested in making the move. The SEC will be happy for us to take them so that they have a shot at VT and NC State which are their targets.


http://www.sportsbusinessdaily.com/Journal/Issues/2012/03/19/Media/Big-12.aspx
 

O-St8

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FSU, GT, Clemson would be HUGE gets if things do start to fall apart in the ACC. Add Louisville and chill at 14 until Notre Dame makes it's move. If they do decide to join with us we can pull in...hell.....whoever we want at that point, but I'd say either Pitt, BC, or possibly Miami.
 

OSUCowboy787

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FSU, GT, Clemson would be HUGE gets if things do start to fall apart in the ACC. Add Louisville and chill at 14 until Notre Dame makes it's move. If they do decide to join with us we can pull in...hell.....whoever we want at that point, but I'd say either Pitt, BC, or possibly Miami.
Even with the probably sanctions coming I'd take Miami in a heartbeat over Pitt or BC.
 
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#14
While interesting I think the "putting them above the highest paid SEC teams" comment is rather optimistic.

Despite denials from some that the SEC can renegotiate their tv deals anytime soon it looks like they're starting to do just that, I'm very curious to see how those numbers turn out.

http://www.cbssports.com/collegefoo...ansion-has-strengthened-us-in-tv-negotiations
I read the article but see no reason for the kind of unbridled optimism expressed in the blog, nor even the somewhat less unrestrained optimism you have expressed. Specifically, Silva said the following:

"We have started discussions with both our television partners. We feel adding Texas A&M and Missouri has strengthened us in lots of ways, but it certainly strengthened us in television."​
Okay, he indicated discussions had started but he didn't mention how the "discussions" were going nor give an indication of when they would end.

The question I have is what specifically are they negotiating? CBS/ESPN have the SEC locked into a long term contract that is generally considered rather generous already. Perhaps you can tell me why CBS/ESPN would throw a lot more money at the SEC when it would appear that they don't have to? What can the SEC offer CBS/ESPN that they don't already have?

Presumably whatever it turns out to be will be concluded by July when Nebraska and A&M officially join the SEC.

BTW, I think it is somewhat interesting that the new Big 12-ABC/ESPN contract--if concluded as described--would end a year after the current SEC contract ends. Sounds like a good move by the Big 12 to me.

 
Sep 28, 2010
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I read the article but see no reason for the kind of unbridled optimism expressed in the blog, nor even the somewhat less unrestrained optimism you have expressed. Specifically, Silva said the following:

"We have started discussions with both our television partners. We feel adding Texas A&M and Missouri has strengthened us in lots of ways, but it certainly strengthened us in television."​
Okay, he indicated discussions had started but he didn't mention how the "discussions" were going nor give an indication of when they would end.

The question I have is what specifically are they negotiating? CBS/ESPN have the SEC locked into a long term contract that is generally considered rather generous already. Perhaps you can tell me why CBS/ESPN would throw a lot more money at the SEC when it would appear that they don't have to? What can the SEC offer CBS/ESPN that they don't already have?
The SEC has a "look in" clause that provides for them to renegotiate their tv contracts with significant additions to the conference membership. I'd imagine this is also why the Big 12 was able to renegotiate their contracts.

As to why I think it'll be lucrative, because the Pac 12 and Big 12 have recently gotten very nice bumps in their deals and the SEC almost doubles their tv viewership. (Specific numbers on that here.)

Presumably whatever it turns out to be will be concluded by July when Nebraska and A&M officially join the SEC.
That would be a revelation indeed. Folks in Nebraska would probably be rather shocked ;)
 
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#16
Gee, I wonder if the SEC gets high numbers because they are the only conference in which gets 75% of their games nationally televised?

Make them regional like all other conferences and their ratings go down hill...and that son is a fact!
 
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#17
Gee, I wonder if the SEC gets high numbers because they are the only conference in which gets 75% of their games nationally televised?

Make them regional like all other conferences and their ratings go down hill...and that son is a fact!
It absolutely does get higher numbers because of the extensive coverage of SEC games nationally. However, the SEC on CBS package was also the highest rated of any college football show for the third consecutive year and the three highest rated games of the season were SEC games.

With more eyes in Texas and Missouri interested in SEC games it would seem likely that the deal ends up more lucrative than the current Pac 12 and Big 12 deals.
 
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It absolutely does get higher numbers because of the extensive coverage of SEC games nationally. However, the SEC on CBS package was also the highest rated of any college football show for the third consecutive year and the three highest rated games of the season were SEC games.

With more eyes in Texas and Missouri interested in SEC games it would seem likely that the deal ends up more lucrative than the current Pac 12 and Big 12 deals.
I agree, that it will probably end up in the $22M per team range. That would be about the bump per 2 teams that they are proposing for the Big XII contract. So $17M + $5M is $22M. So the SEC will stay about $3M ahead of the Big XII for now.

I'm actually in favor of it, because a better SEC package makes it harder for FSU, Clemson, et al to stay in the ACC. The bigger the gap between the ACC and SEC packages, the greater the chance of those schools making the jump to the Big XII.
 
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#19
It absolutely does get higher numbers because of the extensive coverage of SEC games nationally. However, the SEC on CBS package was also the highest rated of any college football show for the third consecutive year and the three highest rated games of the season were SEC games.

With more eyes in Texas and Missouri interested in SEC games it would seem likely that the deal ends up more lucrative than the current Pac 12 and Big 12 deals.
Like I said, no real surprise when that conference gets more nationally televised games than any other conference.

Last year alone including bowl games, they had 68 games that were nationally televised, and this does not include the ones that were on third tier like MSG, and it doesnt include regionally broadcasted games.

Compare that to the Big 12...including bowl games, but excluding tier 3 and regionally broadcasted games, The big 12 had just 40 games nationally televised.

What is my point? When you have more games that are presented to a broader audience, the chances are that they will produce bigger ratings.

Heck, going into 2011, the OU vs. Florida State game was being deemed the game of the year...featuring two top 5 teams. It was not nationally televised, just regionally. The other game shown on ABC at the same time: Ohio State at Miami (FL).
 

TouchdownCowboys

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Like I said, no real surprise when that conference gets more nationally televised games than any other conference.

Last year alone including bowl games, they had 68 games that were nationally televised, and this does not include the ones that were on third tier like MSG, and it doesnt include regionally broadcasted games.

Compare that to the Big 12...including bowl games, but excluding tier 3 and regionally broadcasted games, The big 12 had just 40 games nationally televised.

What is my point? When you have more games that are presented to a broader audience, the chances are that they will produce bigger ratings.
This is true. UT is already the richest and most marketed team in the league without the LHN. Who knows what happens if it succeeds, but even complete failure generates more revenue than other programs can generate even with their third tier rights. The best way to prosper is to get national exposure for all conference members. A national conference network channel (regardless of profitibility) and the recent TV renegotiations by the Big 12 should be able to get to sixteen teams and be as strong as ever. We can offer programs more revenue than the teams that have left the Big 12 will be making in their new conferences. Big 12 schools can continue to make comparable revenue by granting individual schools third tier rights, but you lose in the long run due to exposure.

The SEC proves the point and they just expanded their regional exposure. Although they got the majority of national coverage experts stated Branden Weeden didn't have arm strength and Justin Blackmon was slow. This reflects the current national exposure problems within the Big 12. 68-40 has been going on since the SEC landed on CBS. Many programs in the Big 12 would benefit from 28 extra games. I remember when one national game a year was all OSU could get. The teams that get more than four national appearances (40/10) per year killed the conference network idea. That reality is hurting the national perception of the league and makes it less desirable to potential members. It the Big 12 gets this right it could be amazing. The LHN flaming out could benefit the entire Big 12 would kill Aggies.
 
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