Fishpro10987
1st String
Posts: 2,313
Joined: Feb 2019
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I Root For: Temple
Location: Eugene, OR
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RE: Aresco gets 3-year Contract Extension
(09-21-2021 07:16 PM)quo vadis Wrote: (09-21-2021 04:19 PM)Fishpro10987 Wrote: (09-21-2021 02:18 PM)quo vadis Wrote: (09-21-2021 11:38 AM)b0ndsj0ns Wrote: (09-21-2021 11:33 AM)quo vadis Wrote: My answer to that question is "probably nothing, but I also think somebody else could have achieved the same, and for a lot lower salary".
IIRC, Aresco gets paid between $1.5m and $2m a year. IMO, we could have been getting the same results, in terms of TV deals and bowl contracts, for what the other G5 have been paying - e.g., the Sun Belt pays its commissioner about $600,000 a year. The MW pays its commissioner about the same, maybe a bit more.
IMO, the AAC commissioner, whoever he or she is, should be making no more than $750k a year. There just isn't a lot of room to add value for us. We are what we are, a G5 league.
Now, if he can convince the top MW teams - like Boise, SDSU and Air Force - to join us? IMO, he will be going above and beyond what is expected, and will merit the salary. But if it's just another case of "what else could he have done"?, then ....
I agree with a lot of that. If he pulls off the MWC teams he's absolutely worth what he's paid and the extension. If he adds the random collection of schools anyone else could have pulled off then it's hard to justify why you are paying him basically what P5 commissioners are paid. Now what I'll give him credit for is I think he made a choice on the first TV deal to maximize short term exposure over short term dollars that the MWC and C-USA didn't do and it was correct. The marketing value of those games was worth way more than another 1-2 million per team you maybe could have squeezed out of the deal.
Eh, I have a differing view of that. To summarize:
1) I'm not sure Aresco ever had any other option. That is, I'm not sure there ever was an alternative deal on the table whereby NBC was saying "we will give you more money to televise fewer of your games".
Which IMO is kind of a screwy concept to begin with. I mean, imagine going to a baker to buy donuts, and the baker says here are two deals: you can have 12 donuts for $5 or six donuts for $8. I think you'd look at him like he's crazy right? Or maybe ask, are those twelve donuts the same as the six, or are they four-day old moldy donuts? Because otherwise it's obvious the baker would want to sell fewer donuts for more dollars, and a buyer would want to buy more donuts for fewer dollars. We were a baker that sold more donuts (games) for fewer dollars, LOL.
Because if NBC was offering to pay $3m per school for 40 games (more money, less exposure) instead of a hypothetical $2m per school for 60 games (less money, more exposure), then it would seem to make sense that we would take the $3m deal, and then turn around and sell the games NBC doesn't want for even more money.
So I've never bought the "traded money for exposure" view. I've never seen documentation of it, and on its face it seems nonsensical to me. But maybe there are things I don't know about it?
2) If the issue is ESPN exposure, it bears noting that Aresco initally spurned ESPN during the exclusive negotiating window and then signed a deal with the fledgling NBCSN network. Now, ESPN did match the deal, and Aresco surely knew ESPN had the right to match it, but he could not have known they would match it. ESPN could have just not matched the offer and we would have been 'stuck' on NBCSN. If being with The Mothership was so important, that was an IMO risky way to go about doing it. Why couldn't we have just negotiated that same deal with ESPN to begin with? But maybe that's why I don't make the big commissioner bucks.
3) In any event "exposure" is a concept, like "cable markets" that IMO didn't age very well. It's a very 2012 kind of concept. Because nowadays, streaming has become a big thing, so basically everyone has 'exposure'. In 2012, there was a big deal made about being on a national cable channel, but Smart TVs soon came along as did streaming, and so now we have a 2020 deal that has a significant streaming component. In 2012, it was regarded as a big deal if your game was televised nationally at all. Now, just about every FBS game is available nationally, and the bragging is reduced to "well our game is on ESPNu while your game is on ESPN+!", as if it is harder for me to click the ESPN+ link on my Roku TV as the ESPNu link. Yeah, I know ratings are still higher on some channels than others, but it just isn't the thing it was in 2012.
4) Finally, even if added exposure was potentially a thing the first few years of the 2013 contract, I'm not sure how much good that exposure did us. Some AAC schools seemed to increase in value over the past 8 years, but many of us treaded water or went backwards. My USF definitely went backwards, despite having a lot more exposure than we did under the Big East TV deal. I would say your ECU went backwards as well - neither USF or ECU are as prominent in stature as we were in 2012, IMO. I think that is true of Temple and UConn as well.
Think about that: In 2012, the TV deal we signed stipulated four higher-value "Group A" members whose departure could trigger ESPN renegotiating the deal. Who were those four? Cincy, UConn, Temple and Houston. Would anyone say that two of those, Temple and UConn, are as valuable now as in 2012?
Even a school like UCF, probably the first school that comes to mind when we think of schools that raised their profile in the AAC, isn't IMO a clear-cut case. UCF came in to the AAC on a big upswing. In their very first year, 2013, UCF won the AAC title and a BCS bowl game. They also drew 42,000 fans in attendance. That's pretty much where they are right now.
So I'm just not sure how much good the 2012 TV deal reflected especially wise bargaining, or how much good it did our member schools. Some seem to have benefitted, others no. What I think is known for sure is that we were paid little money for it, it was a nice bargain for ESPN given our TV ratings.
What I remember is that it went out to bid, NBC offered their contract with low dollars and all the exposure and ESPN agreed to match it. Aresco went with ESPN because of the platform (gave us more potential eyeballs). It was the right move. Not a hard decision. It did pay off.
That's something else I've always been a bit fuzzy about. I thought the matching clause meant that ESPN automatically retained the Big East/AAC rights by matching whatever deal was reached with another network, meaning Aresco and the AAC did not have a choice in the matter. That the only role Aresco had was the right to peruse the ESPN offer to make sure it "matched" what NBC offered and presumably the AAC could challenge ESPN if wanted to dispute that ESPN was in fact matching the NBC offer. But I don't recall for sure. This ESPN article by McMurphy from back then seems to indicate that ESPN got the rights merely by matching.
"Last month, ESPN matched an offer made by NBC Sports Network and was awarded the Big East's media rights. Because ESPN is the primary rights holder, it was able to retain the conference's media rights simply by matching the league's best offer."
https://www.espn.com/college-sports/stor...ng-sources
Yes this is how it went down. ESPN had some kind of right of first refusal to match any outside offer and they did. It was NBC who offered all the TV windows. Aresco may have negotiated that part of it. Don't think those kind of details were ever disclosed.
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