Good Info


http://www.sportsbusinessdaily.com/Journ...-Fees.aspx



I would suggest for you guys to subscribe to this magazine. Street amd Smith publishes it. I subscribed to it for FREE last month. I just got my second issue today. There is a lot of info in it that really educates one about the sports media business. Its free too.

BTW, did I mention that its free?

Yes. Very worthwhile. On and off I've subscribed to it along with following several of their writers on Twitter. Very informative.

Timing was perfect for the BE. Time to really cash in on the next deal. ACC is screwed for the next 12 years :) Karma is a biatch.

Great article. Thanks for posting.

I haven't read too many articles on the potential BE deal. Any idea how long a potential deal could be? I think a short term deal that gets us negotiating at the same time as another conference would be ideal. I don't like the idea of a 12 year deal esp with the dollar losing more and more of its value. The deal may look good now but 10 years from now it may not be as good as once thought.

(06-17-2011 09:07 PM)Joey_Niklas Wrote:  I haven't read too many articles on the potential BE deal. Any idea how long a potential deal could be? I think a short term deal that gets us negotiating at the same time as another conference would be ideal. I don't like the idea of a 12 year deal esp with the dollar losing more and more of its value. The deal may look good now but 10 years from now it may not be as good as once thought.

I read somewhere that the ESPN deal that the BE walked away from was for 7 years. That would put us within a couple of years of all the other bcs conference deals and when they would renew.

(06-17-2011 08:49 PM)SF Husky Wrote:  Timing was perfect for the BE. Time to really cash in on the next deal. ACC is screwed for the next 12 years :) Karma is a biatch.

We'll see. I think timing was perfect for the Big East and they should have signed the deal with ESPN this year. If the economy tumbles in the next year (and even if the bottom doesn't fall out yet, I think that's likely) the value of these contracts could drop in a hurry. My personal guess is that the PAC-10's recent contract is the highest (inflation adjusted) we will see for a long time (and that includes when the next Big Ten and SEC contracts).

(06-17-2011 10:00 PM)ohio1317 Wrote:  

(06-17-2011 08:49 PM)SF Husky Wrote:  Timing was perfect for the BE. Time to really cash in on the next deal. ACC is screwed for the next 12 years :) Karma is a biatch.

We'll see. I think timing was perfect for the Big East and they should have signed the deal with ESPN this year. If the economy tumbles in the next year (and even if the bottom doesn't fall out yet, I think that's likely) the value of these contracts could drop in a hurry. My personal guess is that the PAC-10's recent contract is the highest (inflation adjusted) we will see for a long time (and that includes when the next Big Ten and SEC contracts).

The guys who actually know the business seem to think differently. In fact they even seem to think that its possible for the rights fees to get even higher. The presidents of the BE schools just may be the most conservative of all of the BCS presidents. For them to turn the Espn deal down, it really means something.

For Espn to request to renegotiate the BE deal early is even more unusual. I think they offered the BE early in an attempt to get the league out of the market and locked up as they saw the writing on the wall regarding rights fees rising. Keep in mind that while ESPN was offering this low deal to the BE, they were at the same time working on this huge deal with the Pac 10 in a partnership with Fox.

Further, with all of the new networks starting up and seeking content to broadcast, its not likely that the economy is going to affect tv rights deals. The economy today is not much better than it has been the last 4 years. I really doubt its going to get much worse in 2012, unless the Mayans were right. If they are right than its all moot anyway.

(06-17-2011 10:28 PM)cuseroc Wrote:  

(06-17-2011 10:00 PM)ohio1317 Wrote:  

(06-17-2011 08:49 PM)SF Husky Wrote:  Timing was perfect for the BE. Time to really cash in on the next deal. ACC is screwed for the next 12 years :) Karma is a biatch.

We'll see. I think timing was perfect for the Big East and they should have signed the deal with ESPN this year. If the economy tumbles in the next year (and even if the bottom doesn't fall out yet, I think that's likely) the value of these contracts could drop in a hurry. My personal guess is that the PAC-10's recent contract is the highest (inflation adjusted) we will see for a long time (and that includes when the next Big Ten and SEC contracts).

The guys who actually know the business seem to think differently. In fact they even seem to think that its possible for the rights fees to get even higher. The presidents of the BE schools just may be the most conservative of all of the BCS presidents. For them to turn the Espn deal down, it really means something.

For Espn to request to renegotiate the BE deal early is even more unusual. I think they offered the BE early in an attempt to get the league out of the market and locked up as they saw the writing on the wall regarding rights fees rising. Keep in mind that while ESPN was offering this low deal to the BE, they were at the same time working on this huge deal with the Pac 10 in a partnership with Fox.

Further, with all of the new networks starting up and seeking content to broadcast, its not likely that the economy is going to affect tv rights deals. The economy today is not much better than it has been the last 4 years. I really doubt its going to get much worse in 2012, unless the Mayans were right. If they are right than its all moot anyway.

ESPN was definitely double dealing behind BE's back. They were offering a ton to the PAC-12 while trying to get BE on the cheap. Glad to see BE saw through that and told ESPN to take a number and come up with a better offer.

I do agree with you, I doubt economy will get much worse. Only thing I can see is if U.S. government goes bankrupted or they print so much dollars they really devalue the dollar. If we don't cut back our spending, U.S. government going bankrupted is a definite possibility. China is not going to financing our debt forever.

I definitely see a default coming for the US and its prob sooner than most think. The IMF has been doing some strange things this past year and may dump the dollar. The QE's hasn't really worked plus the bad loans that caused the banking crisis in 2007/08 is now owned by the Treasury. There's a bunch of bad stuff going on w/ our financial industry. There has been some bailouts these past few months for smaller regional banks to buy other smaller banks. Who knows whats going to happen on that front.

I do agree with Ohio that it is a gamble to wait till next year. The way TV contracts are being handed out these days that market indicates that the Big East will make more money going into the open market. The other question is, will there be a market to go to if the dollar is destroyed(not saying the dollar will be destroyed either).

I don't know how much the economy will affect a tv contract. When the economy is down the people stay home and watch tv, which equals higher ratings......this past dip didn't stop tv networks from signing large contracts, which means the advertising dollars are there.....which to me is the only strange part, that the advertising is being paid for, because sure people are watching the commercials, but is there any cash in their wallet to go buy their product....hummmm

Still don't see an issue do to economy.....now our conference getting good enough ratings to justify higher than ACC payouts or better is a different story.

(06-17-2011 10:00 PM)ohio1317 Wrote:  

(06-17-2011 08:49 PM)SF Husky Wrote:  Timing was perfect for the BE. Time to really cash in on the next deal. ACC is screwed for the next 12 years :) Karma is a biatch.

We'll see. I think timing was perfect for the Big East and they should have signed the deal with ESPN this year. If the economy tumbles in the next year (and even if the bottom doesn't fall out yet, I think that's likely) the value of these contracts could drop in a hurry. My personal guess is that the PAC-10's recent contract is the highest (inflation adjusted) we will see for a long time (and that includes when the next Big Ten and SEC contracts).

None of that is going to affect the Big East's TV deal. That's why I tell people who think the Big East can't possibly get a great deal to actually look at the situation not give their personal opinions and then bring up things that have zero to do with TV negotiations. The bottom isn't going to fall out of the economy next year and even if it did it's not going to affect the value of TV deals next year. But lets say that it true, how is taking a lowball offer now going to help the Big East? With what you're saying that deal is going to be worse by this time next year. I still don't see how people think that the dollar is going to affect TV deal. The entertainment industry is actually booming, and TV, IPods, and other entertainment products, these are industries that are barely affected by this because these are things people enjoy doing, whether they have money or not. TV most of all.

That was a great article by the way, and proof the Big East made the right decision.

(06-18-2011 06:53 AM)CatsClaw Wrote:  None of that is going to affect the Big East's TV deal. That's why I tell people who think the Big East can't possibly get a great deal to actually look at the situation not give their personal opinions and then bring up things that have zero to do with TV negotiations. The bottom isn't going to fall out of the economy next year and even if it did it's not going to affect the value of TV deals next year. But lets say that it true, how is taking a lowball offer now going to help the Big East? With what you're saying that deal is going to be worse by this time next year. I still don't see how people think that the dollar is going to affect TV deal. The entertainment industry is actually booming, and TV, IPods, and other entertainment products, these are industries that are barely affected by this because these are things people enjoy doing, whether they have money or not. TV most of all.

That was a great article by the way, and proof the Big East made the right decision.

Neogitation for the ACC deal was affected by the economy. I remember reading articles saying that the ACC could have opened up negotiations with ESPN in 2009, but held out until 2010 hoping that the economy would help them out.

Ad sales, along with consumers' sub fees to cable/satellite, pay for these rights deals.

http://ncaabbs.com/showthread.php?tid=337262

There's a reason the Olympic bidding for 2014 only started this year, when it was supposed to start in 2008. Economy. It DOES matter.

(06-17-2011 10:00 PM)ohio1317 Wrote:  We'll see. I think timing was perfect for the Big East and they should have signed the deal with ESPN this year. If the economy tumbles in the next year (and even if the bottom doesn't fall out yet, I think that's likely) the value of these contracts could drop in a hurry. My personal guess is that the PAC-10's recent contract is the highest (inflation adjusted) we will see for a long time (and that includes when the next Big Ten and SEC contracts).

Why am I not surprised that a Ohio State fan would be negative about The Big East. The ONLY place the bottom is falling out is in Columbus. Shouldn't you be out trying to buy your next QB a car? Or perhaps trading tattoos for swag?
CJ

CJ, jeez ease up a bit. ohio's a good guy and a great poster. He's offering a different point of view that isn't scarlet-colored glasses, yes. But he's not being a jerk about it either and I've never seen him be one either.

I'm surprised the Texas Rangers' TV deal with Fox SPorts SW isn't included in the article-- 30 years, 3 billion. It's it the most lucrative local television deal for a team that does not own its own regional sports network-- or it was in late 2010. I dunno if it's still true.

(06-18-2011 07:38 AM)CardinalJim Wrote:  Why am I not surprised that a Ohio State fan would be negative about The Big East. The ONLY place the bottom is falling out is in Columbus. Shouldn't you be out trying to buy your next QB a car? Or perhaps trading tattoos for swag?
CJ

Way to over-react there.

(06-18-2011 06:53 AM)CatsClaw Wrote:  None of that is going to affect the Big East's TV deal. That's why I tell people who think the Big East can't possibly get a great deal to actually look at the situation not give their personal opinions and then bring up things that have zero to do with TV negotiations. The bottom isn't going to fall out of the economy next year and even if it did it's not going to affect the value of TV deals next year. But lets say that it true, how is taking a lowball offer now going to help the Big East? With what you're saying that deal is going to be worse by this time next year. I still don't see how people think that the dollar is going to affect TV deal. The entertainment industry is actually booming, and TV, IPods, and other entertainment products, these are industries that are barely affected by this because these are things people enjoy doing, whether they have money or not. TV most of all.

That was a great article by the way, and proof the Big East made the right decision.

I don't think the Big East offer was a low ball. It wasn't what the conference could likely get on the open market right now, but it probably wasn't significantly lower either and probably would have started a year earlier (the Big East wouldn't have even seriously considered the offer if it was a low ball with no benefits).

My comment isn't specifically toward the dollar so much as the economy in general (while the dollar is going to go down long term, since this contract is in dollars that point is somewhat lessened). People have been cutting back even when we aren't officially in a recession. There are bright spots as there always are, but even areas that were supposed to be "recession proof" have been shown to be anything but (video games being one big example). If advertisers willingness to pay big bucks drops, so do these TV contracts.

College football contracts have been accelerating forward almost exponentially. The problem with that kind of growth is that it is usually followed by a crash. The system might not crash back to the level it was even a decade ago, but from its height it can definitely feel like a big fall. Timing is almost impossible to predict. Economic indicators have definitely been pushing downward though and this will spill over into sports contracts. Maybe the sport is still growing enough that the growth will offset general economic declines, but all I see when I see growth of the magnitude we've seen in college contracts is a bubble ready to pop.

Note: All of this is only on a guess of a general economic decline. I'm not talking about a full on economic collapse (which I think it coming and maybe soon, but whose implications are probably best left for another board).

(06-18-2011 11:48 AM)superdeluxe Wrote:  Way to over-react there.

This is a Big East Board. We don't need him or you here telling us how much we suck. You are a guest here. You need to act like it.
CJ

(06-18-2011 02:04 PM)CardinalJim Wrote:  

(06-18-2011 11:48 AM)superdeluxe Wrote:  Way to over-react there.

This is a Big East Board. We don't need him or you here telling us how much we suck. You are a guest here. You need to act like it.
CJ

He didn't say the Big East sucks. He simply stated that the ESPN offer may be the best offer granted due to economic reasons.