(10-30-2022 05:49 PM)JRsec Wrote: (10-30-2022 05:44 PM)TodgeRodge Wrote: (10-30-2022 05:10 PM)JRsec Wrote: (10-30-2022 12:51 PM)knightmite Wrote: (10-30-2022 12:46 PM)CatsClaw1 Wrote: Here you go:
Right. So we won't expand unless it makes the league more money. Of course other things can change that could force a different approach.
Actually, this is even bigger news than the amount of the contract. Why? Because what this clause states is if you do add more teams, they won't cost you a penny to do so. This clause states the networks will pay your new team whatever you are currently making, and it will be a starting point for future increases. This opens the door for expansion and since ESPN holds your T3 rights in this contract it means that in the future you could possibly have a conference network for those rights as new markets added would enhance the profitability for the network and therefore the likelihood. Whether that is OTA or streaming isn't as important because it raises your profile and increases your exposure, and both are paid via subscription fees.
this is 100% incorrect it will cost money to add programs
TV/media rights money is not the only money that comprises a full conference payout and any pro rata clause is not going to include money to make up for splitting that other money between more members and splitting that other money between new members will lessen the per team payout
What then Todge? More schools means more bowl participants, more hoops tourney participants, particularly if they are West Coast schools which add to your viewership potential and therefore advertising money. What other money is there to split???
Schools keep all of their gate, donations, and licensing money. Exposure and market reach is the name of the game and should you develop a network it will eclipse any playoff money which could be lost in a split. And have you considered if the PAC is eliminated your playoff share goes up and not down?
it is real simple the articles lay it out clearly
the current Big 12 media deal is paying out about $26 million and will be about $27 million in the final year of the deal
yet as the article states the Big 12 payout per member is $43 million
that means there is $16 or more million per member that is NOT TV money
you ask where that comes from.....$50 million per year for being a P5 conference from the CFB playoffs
$50 million two out of every 3 years from The Sugar Bowl
so 3 years X $50 million for the CFB playoffs is $150 million
2X $50 million for The Sugar Bowl is $100 million
you add that together that is $250 million over 3 years so divide that by 3 that is $83 million per year on average and divided by 10 teams in the conference that is $8.3 million per member per yea on average
so there is half of that $16 million in non TV money right there
new members to the conference will contribute ZERO dollars to that money they will only take from that money.....every 2 additional members means a reduction in payout to existing members of $1.4 million per year
the Big 12 gets about $2.7 million per member per year from the NCAA tournament
it is highly unlikely that the Big 12 will be adding new members that will be adding to that NCAA tournament payout much less even producing at a level that matches that and covers their share
as for "more bowl participants" that is a money LOSER for the Big 12.....the Big 12 is not going to get a second deal like The Sugar Bowl because they added new members nor are they going to get a deal like The AlamoBowl that actually produces a profit for the conference
the reason being is there is still only going to be one top conference member available for that Sugar Bowl slot after any Big 12 member goes to the playoffs and one member after that for The AlamoBowl
bowl games that feature lower level members that have a record of 7-5 or 6-6 are break even at best or money LOSERS for the conference so they contribute nothing to a conference distribution and can even take from it
and I know someone will try and make the stupid argument that new members could be the teams that come right in and go to The Sugar Bowl and AlamoBowl.....but that is just stupidity and irrelevant because it does not matter what team goes to those bowl games what matters is the Big 12 has those deals and adding new members is not going to result in similar large paying bowl deals for the conference it will simply result in more very low paying break even or money losing bowl games
so new members are not going to be making up for the share of money they take away from the large deals the Big 12 already has just because they exist in the conference.....the Big 12 already has those deals they are not getting more money for those deals or more similar deals because they add new members
unless something happens like Memphis comes in and the Big 12 gets a GUARANTEED NEW multi year sponsorship agreement from FedEx that ADDS TO and does not replace existing sponsors for CCG games ect then having a larger tournament and some (meaningless small amount of ticket sales) is not going to make up for the cost of adding new members
all of the things you are talking about are very small money compared to the very large money the Big 12 already gets from their meaningful money making deals that new members will not add to or increase in value
even if the PAC 12 was killed off the Big 12 would still only get 25% of their share of CFB playoff money and that is IF the reaming P4 schools split that PAC 12 share equally
but the facts are even then with those other conferences getting additional money from that as well the Big 12 needing to add at least 4 schools to make that kill shot means the Big 12 would not really advance their total per member payout in a meaningful way relative to the other P4 conferences.....and staying ahead of at least the ACC still would matter in that case
you seem to think that giving up large share of large amounts of money can somehow be made up for with crumbs from adding many members and collecting up their crumbs while ignoring they have just reduced shares of meaningful money elsewhere and are not going to make up for that with crumbs
