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ESPN will buy half of the Big Ten for 190mil a year
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pesik Offline
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Post: #1
ESPN will buy half of the Big Ten for 190mil a year
http://www.sportsbusinessdaily.com/Journ...g-Ten.aspx

in total
fs1 will buy the other half at 240 mil a year
CBS Sports will pay 10mil for a small bball package

its a 6year deal for espn/cbssports

ESPN will have around 25 football games and 50 basketball games each year

some AAC reelevant parts of the article:

Quote:More significantly, the deal is a good sign for the broader sports business, showing that ESPN will remain an active player in the live rights business...All the headlines of cost cutting and layoffs coming out of Bristol, Conn., during the last 12 months — combined with dropping rights fees from properties like Conference USA — led some industry observers to expect the Disney-owned company to take a pass on Big Ten rights in order to further save costs....By agreeing to pay a hefty fee for a sizable package of rights, ESPN is showing that it is not paralyzed when it comes to paying for the rights that it wants...nearly triple the amount ESPN and CBS had been paying for the same programming

Quote:ESPN will carry Big Ten football games on ABC, ESPN and ESPN2. ESPNU will see far fewer Big Ten games than it has in the past.
06-20-2016 07:05 AM
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KnightLight Offline
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Post: #2
RE: ESPN will buy half of the Big Ten for 190mil a year
(06-20-2016 07:05 AM)pesik Wrote:  
Quote:ESPN will carry Big Ten football games on ABC, ESPN and ESPN2. ESPNU will see far fewer Big Ten games than it has in the past.

Now that FOX is also a main partner...the inventory will now be chopped up 3 ways (FOX, ESPN Networks and Big Ten TV Network) vs just 2 last year...so that would mean less available inventory/games for ESPN.

This will open up more TV slots on ESPNU for other conf (maybe AAC) that use to go to Big Ten...let alone all the games FOX now will get that ESPN use to get (and show on ESPN, ESPN2, ESPNU, etc...)

Here's a quick glance at Big Ten's former contract:

$100 Million per year by ESPN for 50 football games and approx 75 basketball games
$12 Million per year by CBS for approx 25-30 basketball games
---------------------------
$112 Million per year not counting Big Ten TV Network $$$

New contract:

$250 Million per year by FOX for 25 football games and 50 basketball games
$190 Million per year by ESPN for 2nd tier football games and hoop games
$10 Million per year for some basketball games
-------------------------------
$450 Million per year not counting Big Ten TV Network $$$
06-20-2016 07:51 AM
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Cubanbull Offline
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Post: #3
RE: ESPN will buy half of the Big Ten for 190mil a year
That's good news for the AAC. We won't get BigTen money but it looks like they will have enough to bump us up to keep inventory
06-20-2016 08:14 AM
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MechaKnight Offline
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Post: #4
RE: ESPN will buy half of the Big Ten for 190mil a year
Cordcutting means ESPN will drop from obscenely profitable to just very profitable. Maybe they won't be able to throw away millions on filler anymore, but they will still pay well for content that draws eyeballs.

CUSA fans are trying to rationalize their terrible deal as a reflection of the market, but if you're gonna get paid **** at least get paid **** on a recognizable network. The fact that they're primarily on BeIN and ASN says their deal is more about CUSA than about the overall sports market.
06-20-2016 08:31 AM
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invisiblehand Offline
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Post: #5
RE: ESPN will buy half of the Big Ten for 190mil a year
When do we start renegotiating our TV deal?
06-20-2016 08:35 AM
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CliftonAve Offline
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Post: #6
RE: ESPN will buy half of the Big Ten for 190mil a year
(06-20-2016 08:14 AM)Cubanbull Wrote:  That's good news for the AAC. We won't get BigTen money but it looks like they will have enough to bump us up to keep inventory

Possibly... not only do they need to give us a bump, realistically speaking the bump needs to be significant enough to keep us even with the recent increases that the other conferences have received. Increasing our payouts per team to say $5M will be a nice start, but in all practicality we will be further behind than we were when we first struck this deal. The B1G and SEC were already way ahead of us, now they are even further ahead. The other P5 contracts will continue to escalate. We need to come in at around $8-10M per team, and I just don't see that happening.
06-20-2016 09:31 AM
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KNIGHTTIME Offline
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RE: ESPN will buy half of the Big Ten for 190mil a year
(06-20-2016 09:31 AM)CliftonAve Wrote:  
(06-20-2016 08:14 AM)Cubanbull Wrote:  That's good news for the AAC. We won't get BigTen money but it looks like they will have enough to bump us up to keep inventory

Possibly... not only do they need to give us a bump, realistically speaking the bump needs to be significant enough to keep us even with the recent increases that the other conferences have received. Increasing our payouts per team to say $5M will be a nice start, but in all practicality we will be further behind than we were when we first struck this deal. The B1G and SEC were already way ahead of us, now they are even further ahead. The other P5 contracts will continue to escalate. We need to come in at around $8-10M per team, and I just don't see that happening.

I'll be really happy with $4 million. Doubles our number and really lays a large gap with the G4. If we can make $4 million from tv, plus get a steady diet of ncaa credits, plus get access bowl revenue 70% of the time we will be doing fine.
06-20-2016 10:13 AM
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Attackcoog Offline
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Post: #8
RE: ESPN will buy half of the Big Ten for 190mil a year
Here's The bad news. We basically need a three to $5 million pay increase for media rights in order to simply break even. The reason is, we will be losing income that was coming from the realignment fund about the same time as the new contract would kick in
06-20-2016 10:57 AM
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firmbizzle Offline
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RE: ESPN will buy half of the Big Ten for 190mil a year
(06-20-2016 10:13 AM)KNIGHTTIME Wrote:  
(06-20-2016 09:31 AM)CliftonAve Wrote:  
(06-20-2016 08:14 AM)Cubanbull Wrote:  That's good news for the AAC. We won't get BigTen money but it looks like they will have enough to bump us up to keep inventory

Possibly... not only do they need to give us a bump, realistically speaking the bump needs to be significant enough to keep us even with the recent increases that the other conferences have received. Increasing our payouts per team to say $5M will be a nice start, but in all practicality we will be further behind than we were when we first struck this deal. The B1G and SEC were already way ahead of us, now they are even further ahead. The other P5 contracts will continue to escalate. We need to come in at around $8-10M per team, and I just don't see that happening.

I'll be really happy with $4 million. Doubles our number and really lays a large gap with the G4. If we can make $4 million from tv, plus get a steady diet of ncaa credits, plus get access bowl revenue 70% of the time we will be doing fine.

We just need a really big gap between us and the G4.
06-20-2016 10:58 AM
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robertfoshizzle Offline
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Post: #10
RE: ESPN will buy half of the Big Ten for 190mil a year
We need to be paid what we are worth, which is a whole lot more than what we make now. There is no way the P5 conferences are worth 10-20 times more than us when we are putting up respectable TV ratings.
06-20-2016 01:55 PM
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Bull Offline
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Post: #11
RE: ESPN will buy half of the Big Ten for 190mil a year
(06-20-2016 10:57 AM)Attackcoog Wrote:  Here's The bad news. We basically need a three to $5 million pay increase for media rights in order to simply break even. The reason is, we will be losing income that was coming from the realignment fund about the same time as the new contract would kick in

I guess we factor all that into our pay demands... ESPN can pay or laugh, we can accept or test the waters... ESPN can get pissed and break us apart (again)... all just business.
06-20-2016 02:00 PM
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CliftonAve Offline
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RE: ESPN will buy half of the Big Ten for 190mil a year
(06-20-2016 01:55 PM)robertfoshizzle Wrote:  We need to be paid what we are worth, which is a whole lot more than what we make now. There is no way the P5 conferences are worth 10-20 times more than us when we are putting up respectable TV ratings.

True. The Ohio State's of the world obviously draw ratings but really there is no gap between half the P5 schools and the top half of the AAC.

And if we are being fair the fact that some schools are generating $50M in revenue a year from TV, bowl money, NCAA credits, etc. and G5 schools are making chump change is against everything the NCAA holds itself out to stand for.
06-20-2016 02:00 PM
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chess Offline
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Post: #13
RE: ESPN will buy half of the Big Ten for 190mil a year
Concerning ESPN- The ACC is going to be featured more. Schools like Miami, Florida State, Clemson, North Carolina, and Louisville are going to take many of those slots.

For the AAC- Houston is going to be featured anytime there is an opening. Hopefully, it won't be Wed night and on Saturday. UCF and USF may also be featured more.
(This post was last modified: 06-20-2016 02:20 PM by chess.)
06-20-2016 02:18 PM
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BearcatMan Offline
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Post: #14
RE: ESPN will buy half of the Big Ten for 190mil a year
I hate to be the debbie downer...but I don't think this has any bearing on our Media Deal. The Big Ten is a completely different animal that completely owns nearly all of the Midwest market (which includes 6 of the Top 25 largest cities in America and three of the Top 8 most populated states) and has an established TV Network as well as National Championship competitors in multiple sports every year.
06-20-2016 02:22 PM
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pesik Offline
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Post: #15
RE: ESPN will buy half of the Big Ten for 190mil a year
(06-20-2016 02:22 PM)BearcatMan Wrote:  I hate to be the debbie downer...but I don't think this has any bearing on our Media Deal. The Big Ten is a completely different animal that completely owns nearly all of the Midwest market (which includes 6 of the Top 25 largest cities in America and three of the Top 8 most populated states) and has an established TV Network as well as National Championship competitors in multiple sports every year.

no one ever said we wanted to get a big 10 type deal

i think you are reading into it "they got this deal , we should get similar deal'

we are talking bigger picture, everyone has been saying that the tv rights bubble has burst and use c-usa as an example

espn paid 100mil a year last year for the majority of big 10 games, and are going to pay 190mil for half of that next year

that espn will still pay top dollar for content it wants

we arent comparing our value to their value but them getting what they are worth is a good indication we will get closer to what we are worth
06-20-2016 02:33 PM
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BearcatMan Offline
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Post: #16
RE: ESPN will buy half of the Big Ten for 190mil a year
(06-20-2016 02:33 PM)pesik Wrote:  
(06-20-2016 02:22 PM)BearcatMan Wrote:  I hate to be the debbie downer...but I don't think this has any bearing on our Media Deal. The Big Ten is a completely different animal that completely owns nearly all of the Midwest market (which includes 6 of the Top 25 largest cities in America and three of the Top 8 most populated states) and has an established TV Network as well as National Championship competitors in multiple sports every year.

no one ever said we wanted to get a big 10 type deal

i think you are reading into it "they got this deal , we should get similar deal'

we are talking bigger picture, everyone has been saying that the tv rights bubble has burst and use c-usa as an example

espn paid 100mil a year last year for the majority of big 10 games, and are going to pay 190mil for half of that next year

that espn will still pay top dollar for content it wants

we arent comparing our value to their value but them getting what they are worth is a good indication we will get closer to what we are worth

I understand what you're saying. Im simply saying that they have gotten an increase because they are a prime product. There is a minimal supply of prime products, which means people will be more likely to pay more money to not lose them. We are not a prime product, so why would anyone pay a premium for us. I'll be happy with maintaining our value.
06-20-2016 05:25 PM
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pesik Offline
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Post: #17
RE: ESPN will buy half of the Big Ten for 190mil a year
(06-20-2016 05:25 PM)BearcatMan Wrote:  
(06-20-2016 02:33 PM)pesik Wrote:  
(06-20-2016 02:22 PM)BearcatMan Wrote:  I hate to be the debbie downer...but I don't think this has any bearing on our Media Deal. The Big Ten is a completely different animal that completely owns nearly all of the Midwest market (which includes 6 of the Top 25 largest cities in America and three of the Top 8 most populated states) and has an established TV Network as well as National Championship competitors in multiple sports every year.

no one ever said we wanted to get a big 10 type deal

i think you are reading into it "they got this deal , we should get similar deal'

we are talking bigger picture, everyone has been saying that the tv rights bubble has burst and use c-usa as an example

espn paid 100mil a year last year for the majority of big 10 games, and are going to pay 190mil for half of that next year

that espn will still pay top dollar for content it wants

we arent comparing our value to their value but them getting what they are worth is a good indication we will get closer to what we are worth

I understand what you're saying. Im simply saying that they have gotten an increase because they are a prime product. There is a minimal supply of prime products, which means people will be more likely to pay more money to not lose them. We are not a prime product, so why would anyone pay a premium for us. I'll be happy with maintaining our value.

navy/army..navy/nd...uconn is a huge bball brand ..so is memphis, temple & cincy.. there is prime content in this league
06-20-2016 06:43 PM
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AlwaysSunny Offline
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Post: #18
RE: ESPN will buy half of the Big Ten for 190mil a year
You may want to consider the fact that, bumping them up while losing more and more money only means that they're going to be making cuts somewhere. I think you'd be setting yourself up to be pissed by believing that they're going to pay any G5 conference much more than they're paying now.
06-20-2016 07:54 PM
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BullsFanInTX Offline
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Post: #19
RE: ESPN will buy half of the Big Ten for 190mil a year
So how much money will each Big 10 school be making per year in TV revenue. Anyone figured that out yet.
06-20-2016 08:25 PM
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Hokie Mark Offline
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Post: #20
RE: ESPN will buy half of the Big Ten for 190mil a year
(06-20-2016 07:51 AM)KnightLight Wrote:  
(06-20-2016 07:05 AM)pesik Wrote:  
Quote:ESPN will carry Big Ten football games on ABC, ESPN and ESPN2. ESPNU will see far fewer Big Ten games than it has in the past.

Now that FOX is also a main partner...the inventory will now be chopped up 3 ways (FOX, ESPN Networks and Big Ten TV Network) vs just 2 last year...so that would mean less available inventory/games for ESPN.

This will open up more TV slots on ESPNU for other conf (maybe AAC) that use to go to Big Ten...let alone all the games FOX now will get that ESPN use to get (and show on ESPN, ESPN2, ESPNU, etc...)

Here's a quick glance at Big Ten's former contract:

$100 Million per year by ESPN for 50 football games and approx 75 basketball games
$12 Million per year by CBS for approx 25-30 basketball games
---------------------------
$112 Million per year not counting Big Ten TV Network $$$

New contract:

$250 Million per year by FOX for 25 football games and 50 basketball games
$190 Million per year by ESPN for 2nd tier football games and hoop games
$10 Million per year for some basketball games
-------------------------------
$450 Million per year not counting Big Ten TV Network $$$

Fox dropped their offer down to $240 million/year based on what ESPN got (remember, it was "up to $250 million"). Still, $440 M/year is a lot. Divide that by 15 (14 teams + the conference share) and you get $29.3 M/year just for television rights.
06-20-2016 09:19 PM
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