agreeing to TV package with Fox for half of their games. 25 football and 50 basketball games. Whisper number is $250 million per year for 6 years. Current ESPN half package was $1 billion over 10 years if I understood correctly.
Big Ten rumored to be close to...
- Thread starter BigRedPimp
- Start date
So does this mean that ESPN cranks up the B1G sucks campaign, or talks about the B1G as little as possible?
Makes one wonder. Article said ESPN made a non-competitive bid likely due to their cost cutting measures since their viewership is declining rapidly.
This better not mean the end of Pam Ward or there will be blood in the streets!!!
Edit: OK so she has been gone for a while, guess I didn't notice...sentiment remains the same.
Edit: OK so she has been gone for a while, guess I didn't notice...sentiment remains the same.
That seems high, 250 million a year for half of the B1G's tier 1 and 2 rights? So if the other half can be sold for around the same amount, that's 500 million a year divided between 14 teams for 35.7 million per team.
I think we're getting something like 16 million a year right now for tier 1 and 2 rights. Plus around 7 million per team from the BTN, so around 42-43 million per team for just the TV rights. That would be a pretty good deal for us imo.
Someone correct me if I'm not understanding all of this correctly.
I think we're getting something like 16 million a year right now for tier 1 and 2 rights. Plus around 7 million per team from the BTN, so around 42-43 million per team for just the TV rights. That would be a pretty good deal for us imo.
Someone correct me if I'm not understanding all of this correctly.
I doubt the 2nd half will get as much as the 1st. One less motivated bidder for it, for one thing.
They have been saying for the past 2+ years that the Big Ten's next tv package will end up around $38M-$42M per team each year. This part of the contract is right in line with that.
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Your understanding is correct. I think assuming the second half at the same $250 is conservative. I can't see ESPN letting the rights go. I think they will back up the money truck plus you could see NBC get some inventory as well. Conservatively TV will be around $43-$45 million. Plus add bowls/NCAA tourney and digital rights and you could see payouts nearing $60 million per school.
60 million would be fantastic, to say the least.
Might be bad news for the less stable conferences, the deal only lasts until 2023, Big 12 grant of rights ends in 2025, and the ACC's ends in 2026 I believe. I wonder if that's a coincidence.
I know it's hard to believe but ESPN is hurting financially. I believe they will be a very minor player in 20 years. Things are changing in the menu market.
Only if all Big Ten schools put some additional $$ in. You may have to throw some scratch at it too. Winking Quality doesn't come cheap!
how are you calculating the current payout? You mention 16 million for tier 1 & 2, then 7 million more per team and arrive at 42-43. Are you implying each tier is 16 million?
EDIT: http://collegefootballtalk.nbcsport...revenue-shares-jump-to-32-million-per-school/
The article states the half package is up to $250 million, so up to 17.8 million per team. There are other production costs etc. So say 15 million per team. Get a similar deal on the second half, and you're at about 30 million per school.
I don't see how others are arriving at 60 million.
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The conference doesn't pay production costs. Those are on the network and don't come out of the contract money, so 17.8 is 17.8. It has also been speculated that the second deal could possibly include more games than the first and possibly be more than the $250M/year than the first deal. So, the TV deals could be about $35-$36M. When you add in the BTN revenue of $7-$9M/year (not 100% sure of this number) you get $43- $45M. Add in bowl money, licensing money, etc and I could see over $50M per team.
60 mil is reaching pretty far. 17.8 mil x 2 = 35 mil + 8 mil for BTN = 43 mil. Factor in the BTCG and playoff/bowl money, streaming rights (who knows what they are planning there as it is only mentioned as separate from the deal with FOX). So there is the chance we could be looking bigger than the estimated 43 mil.
Things I don't know. I think the 250 mil with FOX is for only half our tier 1 package. If true then the other half is out to bid, correct? What about tier 2 and tier 3 rights? Do all those go to BTN or are tier 2 rights open for another entity like NBC, CBS or Turner?
It would be interesting to hear how the digital rights thing works. If it is separate, then there is a possibility for an additional revenue stream there. I would pay for a season pass and if they are excluding it from the tv deal, then it does open the door for them to stream the games as their own package. Current contracts require customers to have a cable package, so that is probably why.
It does sound like a healthy increase though. I was expecting a much more modest increase.
Thanks for the explanations.
It does sound like a healthy increase though. I was expecting a much more modest increase.
Thanks for the explanations.
Remember this thread when basic cable jumps another $10 because Fox has to recoup those costs with 7 new channels.