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<blockquote data-quote="Buckaineer" data-source="post: 129496684" data-attributes="member: 1428007"><p>Looking further at the need to expand the BIG 12's footprint and create a conference network:</p><p></p><p>One measure of footprint is cable tv households--something that also is important with any thought of starting a conference wide network.</p><p></p><p>First, take a look at some of the competition.</p><p></p><p>The Big Ten has this number of cable tv households currently in their base:</p><p>18,973,520</p><p></p><p>The BIG 12 with the smallest footprint in the P5 has this many cable tv households in their base:</p><p>6,622,140</p><p></p><p>If the conference added Uconn, Cincinnati, USF and UCF then the conference would add a potential 8,997,760 additional cable homes to the footprint (and more tv households).</p><p></p><p>Even if they added just Uconn and Cincinnati that would add 3,705,030 cable tv households</p><p></p><p>Sure the cable model is declining-but it won't go away overnight. Even so, cable tv households indicates people willing to pay extra for product they want. Any way you slice it the BIG 12 needs to add more people.</p><p></p><p>There are about 53 million cable tv subscribers across the U.S. now. If the BIG 12 had its own network and was getting $1.00 per subscriber in its area, and $.20 per subscriber in non BIG 12 territories, that would mean:</p><p></p><p>$6.62 million per month from the base states</p><p>and</p><p>$9.276 million from the rest</p><p>Total of $15.896 million per month x 12 months =$190.752 million per year.</p><p></p><p>divided by 2 (network partner/conference) that would equal $95.376 million left for the conference (divided 11 ways for 10 members and conference share)</p><p>so a total of $8.67 million PER SCHOOL per year in the BIG 12 if they had a conference network making about the minimum anyone is getting for conference networks.</p><p></p><p>This is as much as the Big Ten or SEC are getting per school for their networks with 14 teams and much larger footprints and higher pay in the SEC. Contrast that with some BIG 12 tier 3 deals where schools are making really $2-$4 million for television outside of the university of Texas.</p><p></p><p>Of course Texas is getting a guaranteed $15 million for the LHN.</p><p></p><p>And the BIG 12 doesn't have enough inventory to do a network with 10 schools.</p><p></p><p>If the conference added UC and UConn the numbers for a conference network would become:</p><p></p><p>$10.33 million per month from the base @ $1.00 per month</p><p>$8.534 million per month from the non BIG 12 areas @ $.20 month</p><p>Total=$18.864 million per month or $226.368 million per year</p><p></p><p>Divide by two for network partner/conference share =$113.184 million for 12 members and 1 share for the conference =Total of $8.71 million per school per year</p><p></p><p>If all the other members gave Texas a portion of that to "make them whole" with their guarantee of $15 million? The rest of the membership would need to forego $6.29 million per year to make up what Texas would lose. For 11 members that would total under $572,000 per year each.</p><p></p><p>Each of these schools giving up $572,000 from conference network proceeds though, would also be gaining about $6 million per year every year per school they don't get now.</p><p></p><p>You could even make it so that the new members paid a higher portion of that subsidy to Texas for the LHN as part of their buy in to the P5.</p><p></p><p>The best method to make things equal for everyone would be to make what each school recieves from a conference network based proportionally on what they get for their own tier 3 tv deal until all tier III deals are finished. So if OU and WVU get more than Texas Tech or Iowa State, they would recieve a bit more from the conference network--with the new members getting the least amounts.</p></blockquote><p></p>
[QUOTE="Buckaineer, post: 129496684, member: 1428007"] Looking further at the need to expand the BIG 12's footprint and create a conference network: One measure of footprint is cable tv households--something that also is important with any thought of starting a conference wide network. First, take a look at some of the competition. The Big Ten has this number of cable tv households currently in their base: 18,973,520 The BIG 12 with the smallest footprint in the P5 has this many cable tv households in their base: 6,622,140 If the conference added Uconn, Cincinnati, USF and UCF then the conference would add a potential 8,997,760 additional cable homes to the footprint (and more tv households). Even if they added just Uconn and Cincinnati that would add 3,705,030 cable tv households Sure the cable model is declining-but it won't go away overnight. Even so, cable tv households indicates people willing to pay extra for product they want. Any way you slice it the BIG 12 needs to add more people. There are about 53 million cable tv subscribers across the U.S. now. If the BIG 12 had its own network and was getting $1.00 per subscriber in its area, and $.20 per subscriber in non BIG 12 territories, that would mean: $6.62 million per month from the base states and $9.276 million from the rest Total of $15.896 million per month x 12 months =$190.752 million per year. divided by 2 (network partner/conference) that would equal $95.376 million left for the conference (divided 11 ways for 10 members and conference share) so a total of $8.67 million PER SCHOOL per year in the BIG 12 if they had a conference network making about the minimum anyone is getting for conference networks. This is as much as the Big Ten or SEC are getting per school for their networks with 14 teams and much larger footprints and higher pay in the SEC. Contrast that with some BIG 12 tier 3 deals where schools are making really $2-$4 million for television outside of the university of Texas. Of course Texas is getting a guaranteed $15 million for the LHN. And the BIG 12 doesn't have enough inventory to do a network with 10 schools. If the conference added UC and UConn the numbers for a conference network would become: $10.33 million per month from the base @ $1.00 per month $8.534 million per month from the non BIG 12 areas @ $.20 month Total=$18.864 million per month or $226.368 million per year Divide by two for network partner/conference share =$113.184 million for 12 members and 1 share for the conference =Total of $8.71 million per school per year If all the other members gave Texas a portion of that to "make them whole" with their guarantee of $15 million? The rest of the membership would need to forego $6.29 million per year to make up what Texas would lose. For 11 members that would total under $572,000 per year each. Each of these schools giving up $572,000 from conference network proceeds though, would also be gaining about $6 million per year every year per school they don't get now. You could even make it so that the new members paid a higher portion of that subsidy to Texas for the LHN as part of their buy in to the P5. The best method to make things equal for everyone would be to make what each school recieves from a conference network based proportionally on what they get for their own tier 3 tv deal until all tier III deals are finished. So if OU and WVU get more than Texas Tech or Iowa State, they would recieve a bit more from the conference network--with the new members getting the least amounts. [/QUOTE]
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