Greener Pastures for Nebraska 2

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VectorVictor

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Per Dodd, CBS Sports

The Big 12 is expected to announce a deal with Fox this afternoon for the reconstituted league's secondary television rights. The league has scheduled a 4 pm ET conference call with commissioner Dan Beebe.
The 13-to-15-year deal is expected to approach $90 million annually. It would be worth more than $1 billion in total. ESPN/ABC still hold primary basketball and football rights through 2015-16.

The latest announcement is the upshot of Texas keeping the league together last summer after turning down an offer to join the Pac-10. The new number is expected to a be 350 percent increase in the current rights fees paid by Fox despite the loss of Nebraska and Colorado.

Texas turned down the Pac-10 offer after Fox and ESPN, according to reports, promised rights fees that in the end could be worth $20 million per school per year. Fox reportedly promised a significant increase while ESPN said it would continue its current payouts to the Big 12 despite the loss of Nebraska and Colorado.

The average fan might wonder where the money is coming from. Ultimately, it will come from them in their cable bill. Sports is seen as the ultimate reality show. Because results are immediately available, sports are unlikely to be DVRed which is attractive to advertisers. The ACC doubled its takes in its latest deal with ESPN. Fox finished a close second in that deal. The money left over may be going to the Big 12. There are reports that the new Pac 12 deal may approach the annual take of the SEC and Big Ten. Each of those schools receive a reported $22.2 million per year in rights fees.

The Big 12 broadcast "footprint" represents approximately 16 percent of the nation's TV households. It was worth it for ESPN and Fox to keep the league alive. The alternative could have meant the loss to two BCS leagues for both networks. The Big 12 would have ceased to exist while the new Pac 12 is, as speculated, going out for bid on the open market.
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Five things here (updated from the first thread):

1. This, factored in with the ABC/ESPN agreement, is only (only!) $190 to $220 million/year (per Steve Sipple) for the Big XII to split until 2015-2016.

2. This money is only for airtime on the Fox Sports cable channels, not Fox Over the Air--remember the Big 10 (and soon to be Pac-12) deals are for Fox OTA National broadcasts, not crappy, half-baked FX broadcasts. (see Hank the Tank's blog re: Fox's recent move to bid against ESPN for Fox OtA national broadcasting rights to college football). While these broadcasts will be regional on Fox Sports Net and national on FX, the production values will likely remain moribund.

3. Based off of these numbers, the Big XII did beat what the ACC pulls in (read: $16 million/school). Don't be shocked if it doesn't happen, though.

4. This money isn't split evenly. If you aren't a Texas school or a school that has an antiquated mode of transportation for a mascot and a team name based off of a criminal act, you see jack and **** of this deal.

5. In contract, fully vested B1G schools pulled in approx. $22 million/school for 2009, and an estimated $24 million/school for 2010, IIRC. Add another $1.6 million/school to that B1G number for 2011 (Title game on Fox OtA), and remember the ESPN/ABC contract is up for renegotiation in a couple of years. B1G schools, even after the Fox Sports windfall, will still be pulling in better money.

Folks--once Nebraska is a fully vested member in the B1G (sooner rather than later if we deliver a NC game), Nebraska will still be sitting pretty.

 
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So second tier on Fox is worth 90 million (locked in for 13 years which is way too long) and ESPN is worth 60 million from ESPN for another 4 years. That's 150 million minus anything the conference has for expenses but does not include bowl revenue which in order to equal the loss of the revenue from a championship game will require 2 BCS bids per year. The bow revenue isn't really a factor here anyway since if memory serves me correct isn't included in SEC or B10 figures either.

But if the big 3 take 60 million off the top that leave 90 million between the remaining 8 which is a respectable 12-13 million if revenue was equal. It won't be so some will be in the upper teens of millions while other under 10 million based on TV appearances and other factors. And if TX or one of the other big 3 guys should earn more than the 20 minimum by revenue share which is possible the left overs are even smaller for the little guys. The only thing I can see good is that Texas with Bevo and this deal will be very rich and the rest of the kids will be fighting for scraps.

 
knapplc said:
You said moribund.
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Yes, it's a peccadillo of mine. :)

And you're right Da Huskers. And the $22.9 million/yr. figure we float around here from the B1G is from 2009 information and doesn't include bowl money either IIRC.

Add to that a natural increase in 2010, sprinkle in an extra $20 million to the pot for Nebraska joining, add whatever you project the windfall to be for Nebraska fans embracing having the Big 10 Network to call 'home' now.

Frankly, I think we'll pay for ourselves in a year if we make a NC run--don't know if we'll get a full share quicker that way, but I would think the B1G would reward success, especially if the University remembers to be gracious, complimentary, and publicly supportive of our new home and hosts. That, and while Delaney is a shrewd business man (chess vs. candy land analogy applies here when comparing to Beebe), I would think a move to reward success and quickly embrace the newcomer would be great PR as well and put a positive spin on any potential B1G expansion.

 
Andy Staples says that Dan Beebe followed through on his promise to deliver big money:

We laughed at Big 12 commissioner Dan Beebe last year. We assumed he would preside over the downfall of a conference that should have printed its own money because he couldn't adequately manage the warring factions within. We lampooned him. Someone even started a Twitter feed claiming to be Beebe that gave life to the caricature we created during last year's conference realignment showdown. Even when he brokered a deal that kept the conference together, we gave no credit to Beebe and all the credit to Texas officials for their string-pulling skills. Then we immediately began predicting the Big 12's demise within a few years.
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LINK

 
knapplc said:
Andy Staples says that Dan Beebe followed through on his promise to deliver big money:

We laughed at Big 12 commissioner Dan Beebe last year. We assumed he would preside over the downfall of a conference that should have printed its own money because he couldn't adequately manage the warring factions within. We lampooned him. Someone even started a Twitter feed claiming to be Beebe that gave life to the caricature we created during last year's conference realignment showdown. Even when he brokered a deal that kept the conference together, we gave no credit to Beebe and all the credit to Texas officials for their string-pulling skills. Then we immediately began predicting the Big 12's demise within a few years.
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LINK
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He got money for the three haves. The rest are getting a meh deal. The folks that got hosed in this are Texas Tech. They could've been in a lucrative PAC16 deal but are left out of the big$$ teams in the 12. Their AD was a flat-out idiot for crowing about keeping a con built of haves and have-nots(of which his program is the latter) together.

 
I agree. I mean he did just about double the revenue for the league's TV which from afar looks good. And even the guy at the bottom will make around 3 million more. But what still gets me is that when you're trying to show you're "the league" and "the draw" to TV you need to get more than what everyone else is. Basically they caught (for their top teams) their contracts up to the SEC and Big 10 (that's being generous) and locked them in for way too long. And in the very new future the SEC and Big 10 will be redoing their TV and I doubt very much if they stay at this level or get less money. The Big 12 will then be locked in a sh**ty contract and watching everyone else in envy again. This is one reason why Bevo TV hurt. While on the surface it looks like mostly non revenue sports but in reality what it did is weaken the position of the Big 12 because now ESPN has the there valuable games as a fall back because the reality is that nationally and even regionally Texas won't always be the biggest draw that week. But like Nebraska they are always a draw so if they fall town to third tire ESPN has them anyway. So there is no reason to drive up the 1st and 2nd tire rights for the few weeks they are the big draw and then feel like since you bought those rights for that team you have to show them playing northern plains state you need to show them. You'll take the chance and actually cash in better on your cheaper rights. More or less its like buying things wholesale to sell at retail.

 
da skers said:
I agree. I mean he did just about double the revenue for the league's TV which from afar looks good. And even the guy at the bottom will make around 3 million more. But what still gets me is that when you're trying to show you're "the league" and "the draw" to TV you need to get more than what everyone else is. Basically they caught (for their top teams) their contracts up to the SEC and Big 10 (that's being generous) and locked them in for way too long. And in the very new future the SEC and Big 10 will be redoing their TV and I doubt very much if they stay at this level or get less money. The Big 12 will then be locked in a sh**ty contract and watching everyone else in envy again. This is one reason why Bevo TV hurt. While on the surface it looks like mostly non revenue sports but in reality what it did is weaken the position of the Big 12 because now ESPN has the there valuable games as a fall back because the reality is that nationally and even regionally Texas won't always be the biggest draw that week. But like Nebraska they are always a draw so if they fall town to third tire ESPN has them anyway. So there is no reason to drive up the 1st and 2nd tire rights for the few weeks they are the big draw and then feel like since you bought those rights for that team you have to show them playing northern plains state you need to show them. You'll take the chance and actually cash in better on your cheaper rights. More or less its like buying things wholesale to sell at retail.
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Don't forget the Pac-12--their deal goes to bid this year for 2012.

 
da skers said:
I agree. I mean he did just about double the revenue for the league's TV which from afar looks good. And even the guy at the bottom will make around 3 million more. But what still gets me is that when you're trying to show you're "the league" and "the draw" to TV you need to get more than what everyone else is. Basically they caught (for their top teams) their contracts up to the SEC and Big 10 (that's being generous) and locked them in for way too long. And in the very new future the SEC and Big 10 will be redoing their TV and I doubt very much if they stay at this level or get less money. The Big 12 will then be locked in a sh**ty contract and watching everyone else in envy again. This is one reason why Bevo TV hurt. While on the surface it looks like mostly non revenue sports but in reality what it did is weaken the position of the Big 12 because now ESPN has the there valuable games as a fall back because the reality is that nationally and even regionally Texas won't always be the biggest draw that week. But like Nebraska they are always a draw so if they fall town to third tire ESPN has them anyway. So there is no reason to drive up the 1st and 2nd tire rights for the few weeks they are the big draw and then feel like since you bought those rights for that team you have to show them playing northern plains state you need to show them. You'll take the chance and actually cash in better on your cheaper rights. More or less its like buying things wholesale to sell at retail.
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This is what I see happening. I see this article by Staples as short-sighted. This is a decent TV deal for NOW. But you don't make deals for now, you make deals for the revenue of the future.

The Big 12's last deal was short-sighted, as is this deal. Subsequent contracts by the Pac-12, the SEC and the Big 10 will make this look like chump change. This is going to, very quickly, be on par with the kind of money the ACC and Big East get, or the MWC. This is not improving anything - it's treading water.

 
matthew_m_g said:
Per Dodd, CBS Sports

The Big 12 is expected to announce a deal with Fox this afternoon for the reconstituted league's secondary television rights. The league has scheduled a 4 pm ET conference call with commissioner Dan Beebe.
The 13-to-15-year deal is expected to approach $90 million annually. It would be worth more than $1 billion in total. ESPN/ABC still hold primary basketball and football rights through 2015-16.

The latest announcement is the upshot of Texas keeping the league together last summer after turning down an offer to join the Pac-10. The new number is expected to a be 350 percent increase in the current rights fees paid by Fox despite the loss of Nebraska and Colorado.

Texas turned down the Pac-10 offer after Fox and ESPN, according to reports, promised rights fees that in the end could be worth $20 million per school per year. Fox reportedly promised a significant increase while ESPN said it would continue its current payouts to the Big 12 despite the loss of Nebraska and Colorado.

The average fan might wonder where the money is coming from. Ultimately, it will come from them in their cable bill. Sports is seen as the ultimate reality show. Because results are immediately available, sports are unlikely to be DVRed which is attractive to advertisers. The ACC doubled its takes in its latest deal with ESPN. Fox finished a close second in that deal. The money left over may be going to the Big 12. There are reports that the new Pac 12 deal may approach the annual take of the SEC and Big Ten. Each of those schools receive a reported $22.2 million per year in rights fees.

The Big 12 broadcast "footprint" represents approximately 16 percent of the nation's TV households. It was worth it for ESPN and Fox to keep the league alive. The alternative could have meant the loss to two BCS leagues for both networks. The Big 12 would have ceased to exist while the new Pac 12 is, as speculated, going out for bid on the open market.
Click to expand...
Five things here (updated from the first thread):

1. This, factored in with the ABC/ESPN agreement, is only (only!) $190 to $220 million/year (per Steve Sipple) for the Big XII to split until 2015-2016.

2. This money is only for airtime on the Fox Sports cable channels, not Fox Over the Air--remember the Big 10 (and soon to be Pac-12) deals are for Fox OTA National broadcasts, not crappy, half-baked FX broadcasts. (see Hank the Tank's blog re: Fox's recent move to bid against ESPN for Fox OtA national broadcasting rights to college football). While these broadcasts will be regional on Fox Sports Net and national on FX, the production values will likely remain moribund.

3. Based off of these numbers, the Big XII did beat what the ACC pulls in (read: $16 million/school). Don't be shocked if it doesn't happen, though.

4. This money isn't split evenly. If you aren't a Texas school or a school that has an antiquated mode of transportation for a mascot and a team name based off of a criminal act, you see jack and **** of this deal.

5. In contract, fully vested B1G schools pulled in approx. $22 million/school for 2009, and an estimated $24 million/school for 2010, IIRC. Add another $1.6 million/school to that B1G number for 2011 (Title game on Fox OtA), and remember the ESPN/ABC contract is up for renegotiation in a couple of years. B1G schools, even after the Fox Sports windfall, will still be pulling in better money.

Folks--once Nebraska is a fully vested member in the B1G (sooner rather than later if we deliver a NC game), Nebraska will still be sitting pretty.
Click to expand...

I would venture to guess that by the time this season is concluded, the final numbers will be substantially higher than what internal projections say. Putting our first divisions/title game aside, just the increased viewership for match-ups alone in vs + Nebraska as its own demographic is going to be a great thing for all of us. Regardless of my woes for my particular team, this is going to be one great year for B1G beginnings.

 
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