06-22-2016, 04:46 PM
Because it's time to shift the paradigm.
Big Ten's new deal triples TV payouts. The article provides details, but the B1G is going to increase their revenue for 1st and 2nd Tier by roughly a factor of 3. That's before BTN and other conference payouts. The numbers may end up getting revised down a bit, but that's not the point.
I'm annoyed by this. It's not just about conference rivalry, that much is obvious. I'm annoyed by the fact that a league with an inferior fan base, inferior ratings, and an inferior product is getting more money from ESPN than we are.
We get about $150M per year for a lot more content than what the B1G will be giving Disney. I could be off on the number a little bit as this article implies we got a bump after the renegotiation in 2014.
Still, the B1G is getting more cash for less product. Not only that, they got a short term deal which ultimately means they will get yet another raise before we've seen a single one. True enough though that the market may demand that one be more modest.
It's true that the full potential of the SECN has yet to be realized and that will close the gap a bit when it finally does. The BTN, absent any new major additions, has pretty much peaked. As it stands though, the SECN will need to double it's profits from last year just to get level with the B1G's 1st and 2nd Tier revenue. Again, that's before BTN revenue is added to the pot. The other conference payouts will be roughly the same between the 2 leagues.
I realize that most of the B1G's raise comes from FOX. I really don't care about that as FOX tends to overspend for everything these days. What I care about is our media partner giving us the business.
What's potentially concerning here is that ESPN might very well give in to the B1G raiding the ACC in a few years. If the B1G is too important to ESPN to allow them to find another suitor then they are too important to turn down when the beast gets hungry again. Of course, that means the SEC could get some of those schools as well, but what difference does it make if the B1G is going to get favored status at the negotiating table? If Jim Delaney can plop down and demand a raise any old time then some of the more valuable ACC properties will certainly be tempted by that.
Something is wrong here. Someone has messed up. I'm not sure who though. Was it someone at the SEC who didn't demand we get paid what we're worth? Or was it ESPN that stuck a finger in the eye of the league because they could? I don't know about everyone else, but I value loyalty. Loyalty should be rewarded, not taken advantage of.
So I propose 2 potential courses of action:
1. Go to ESPN and bust a few heads.
2. Say "screw ESPN" and start crafting a future where we dictate to the media companies rather than being dictated to.
Option 2 involves taking ACC properties that ESPN refuses to pay us for. Why? Because ESPN needs them. Why not wreck the ACC if we're not going to get a premium price for our content under the current Power conference structure? This is what I mean by shifting the paradigm.
The reason I have always advocated for going to 24 is not because I think the value of the market additions would increase the payouts of the current contract no matter how large we grow. The reason I advocate for that is simply supply and demand. The more content under one roof, the more leverage our league has when at the negotiating table. Turn down our asking price and we take a whole heck of a lot of content elsewhere. ESPN can't afford to do that. No network can afford to lose that much. Paradigm shifted.
So I say take 10 schools from the ACC and gut the sucker. Take who you need to take and if ESPN doesn't want to pay for it right now, that's fine. Someone else will down the line. Either that or ESPN loses the core of its content at a later date. Supply and demand. The public demands college athletics, we supply college athletics. Networks are the middle men. There's no good reason for them to be running the show other than university presidents have allowed it to be so.
Hey AllTideUp, what if no one is willing to pay a premium price? What are we stuck with then? We're stuck with more robust academic associations. We're stuck with a league that exposes each school in multiple parts of the country where the current exposure is limited. We're stuck with splitting a greater portion of NCAA tournament money. We're stuck with a content base that allows us to capitalize on the coming streaming model rather than being more dependent on a major outlet to simply hold the rights of our content as a division of a broader package.
It's entirely possible we don't get the serious bump in money for 1st and 2nd Tier rights. It's also possible we blow the doors off our competitors. If we have to live with slightly smaller payouts in the short term in order to achieve the paradigm shift in the long term then I don't see a problem with that. At worst, we'll be no worse off than our current position.
Am I overreacting here? Or is my annoyance with ESPN justified?
Big Ten's new deal triples TV payouts. The article provides details, but the B1G is going to increase their revenue for 1st and 2nd Tier by roughly a factor of 3. That's before BTN and other conference payouts. The numbers may end up getting revised down a bit, but that's not the point.
I'm annoyed by this. It's not just about conference rivalry, that much is obvious. I'm annoyed by the fact that a league with an inferior fan base, inferior ratings, and an inferior product is getting more money from ESPN than we are.
We get about $150M per year for a lot more content than what the B1G will be giving Disney. I could be off on the number a little bit as this article implies we got a bump after the renegotiation in 2014.
Still, the B1G is getting more cash for less product. Not only that, they got a short term deal which ultimately means they will get yet another raise before we've seen a single one. True enough though that the market may demand that one be more modest.
It's true that the full potential of the SECN has yet to be realized and that will close the gap a bit when it finally does. The BTN, absent any new major additions, has pretty much peaked. As it stands though, the SECN will need to double it's profits from last year just to get level with the B1G's 1st and 2nd Tier revenue. Again, that's before BTN revenue is added to the pot. The other conference payouts will be roughly the same between the 2 leagues.
I realize that most of the B1G's raise comes from FOX. I really don't care about that as FOX tends to overspend for everything these days. What I care about is our media partner giving us the business.
What's potentially concerning here is that ESPN might very well give in to the B1G raiding the ACC in a few years. If the B1G is too important to ESPN to allow them to find another suitor then they are too important to turn down when the beast gets hungry again. Of course, that means the SEC could get some of those schools as well, but what difference does it make if the B1G is going to get favored status at the negotiating table? If Jim Delaney can plop down and demand a raise any old time then some of the more valuable ACC properties will certainly be tempted by that.
Something is wrong here. Someone has messed up. I'm not sure who though. Was it someone at the SEC who didn't demand we get paid what we're worth? Or was it ESPN that stuck a finger in the eye of the league because they could? I don't know about everyone else, but I value loyalty. Loyalty should be rewarded, not taken advantage of.
So I propose 2 potential courses of action:
1. Go to ESPN and bust a few heads.
2. Say "screw ESPN" and start crafting a future where we dictate to the media companies rather than being dictated to.
Option 2 involves taking ACC properties that ESPN refuses to pay us for. Why? Because ESPN needs them. Why not wreck the ACC if we're not going to get a premium price for our content under the current Power conference structure? This is what I mean by shifting the paradigm.
The reason I have always advocated for going to 24 is not because I think the value of the market additions would increase the payouts of the current contract no matter how large we grow. The reason I advocate for that is simply supply and demand. The more content under one roof, the more leverage our league has when at the negotiating table. Turn down our asking price and we take a whole heck of a lot of content elsewhere. ESPN can't afford to do that. No network can afford to lose that much. Paradigm shifted.
So I say take 10 schools from the ACC and gut the sucker. Take who you need to take and if ESPN doesn't want to pay for it right now, that's fine. Someone else will down the line. Either that or ESPN loses the core of its content at a later date. Supply and demand. The public demands college athletics, we supply college athletics. Networks are the middle men. There's no good reason for them to be running the show other than university presidents have allowed it to be so.
Hey AllTideUp, what if no one is willing to pay a premium price? What are we stuck with then? We're stuck with more robust academic associations. We're stuck with a league that exposes each school in multiple parts of the country where the current exposure is limited. We're stuck with splitting a greater portion of NCAA tournament money. We're stuck with a content base that allows us to capitalize on the coming streaming model rather than being more dependent on a major outlet to simply hold the rights of our content as a division of a broader package.
It's entirely possible we don't get the serious bump in money for 1st and 2nd Tier rights. It's also possible we blow the doors off our competitors. If we have to live with slightly smaller payouts in the short term in order to achieve the paradigm shift in the long term then I don't see a problem with that. At worst, we'll be no worse off than our current position.
Am I overreacting here? Or is my annoyance with ESPN justified?