What a 3 x 18 Grouped By Networks For Their Value Might Look Like
Criteria:
How to group conferences by segregating the stronger earners to create high value conferences and value efficient conferences for the networks.
Assumptions: Big 10 and SEC only lose members unwilling to participate in pay for play.
All other conferences are grouped for cost efficiency for the networks:
B1G:
Maryland, North Carolina, Notre Dame, Penn State, Rutgers, Virginia
Illinois, Indiana, Michigan, Michigan State, Ohio State, Purdue
Iowa, Minnesota, Nebraska, Northwestern, Oklahoma, Wisconsin
Avg Cost per school per year $75,000,000
SEC:
Auburn, Clemson, Florida, Florida State, Georgia, South Carolina
Alabama, Louisiana State, Kentucky, Mississippi, Mississippi State, Tennessee
Arkansas, Kansas, Missouri, Texas, Texas A&M, Texas Tech
Avg Cost per school per year $80,000,000
ACC:
Iowa State, Cincinnati, Louisville, Pittsburgh, Syracuse, West Virginia
Central Florida, Georgia Tech, Miami, N.C. State, South Florida, Virginia Tech
Baylor, Brigham Young, Houston, Kansas State, Oklahoma State, T.C.U.
Avg Cost per school per year $37,500,000
Notes:
Boston College- Drops football and joins the Big East
Duke- Drops football and joins the Big East, or drops BB pay for play and joins Ivy
Wake Forest- Drops all pay for play and returns to the So Conf.
Vanderbilt- Drops football and joins the Big East
East Carolina- Drops all pay for play and joins the So Conf.
Memphis- Drops all pay for play and joins CUSA
Southern Methodist- Seeks PAC Membership?
Temple- Drops football and joins the Big East
Tulane- Drops all pay for play and joins CUSA
Tulsa- Drops all pay for play and joins CUSA
Wichita State- Joins a pay for play BB only conference
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Army / Navy / Air Force- All play with no pay for play as independents.
### ESPN
1. Holds 48% of Big 10 Rights: At $75 million for North Carolina and Virginia their share increases 6 million per school. 12 million that will easily be recouped with brand on brand BB in the B10 and with B10 diaspora interest in B10 football in NC and VA. The move costs ESPN 1.5 million for the Sooners, more than eclipsed by OU's higher content matchups in the Big 10. They gain revenue with N.D. joining the B1G even if they pay 48% of ND's full share as they have greater access to must see ND football.
Total extra outlay: 13.5 million for OU / UNC / UVa. 22.5 million for N.D. = 36 million.
2. ESPN pays out 25 million more for UT to the SEC, 33 million more for Kansas to the SEC, 40 million more for Texas Tech, and 50 million more for each of FSU and Clemson.
Total extra outlay: 98 million for UT / KU / TTU and 100 million for Clemson / FSU
But, 4 of the 5 move the needle for hoops 4 of the 5 for football, and 4 of the 5 for baseball and all now exclusively in ESPN hands against the best branded conference in the nation. Easily worth 198 million for an industry which measures its profits in billions.
3. ACC/B12/AAC
Seven ACC schools earn 7.5 million more per year. Six B12 schools earn the same, but ESPN picks up the other half by placing them under full contract. So 18.75 million per school equals 112.5 million more. And the 4 AAC schools cost 30 million each so 120 million. BYU is in likely for around 6 million more. So 244 million for games that could fill T2 slots any day of the week with larger viewing numbers and would also stream well.
Total extra outlay: 238.5 million:
Grand Total: 459 million
Offsets:
Remaining Cost of ACC departed (30 million x 3) = -90 million
Remaining Cost of AAC (7 members x 8 million a year) = -56 million
Remaining Cost of LHN (avg of 18.5 million a year) =-18.5 million
Remaining Cost of ACCN (avg of 4 million a year per school x 11) = -44 million.
Grand Total Reduction: - 208.5
Final Cost of all moves: 230 million to Disney.
(This post was last modified: 07-17-2021 10:02 PM by JRsec.)
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