(04-13-2013 02:01 AM)ChrisLords Wrote: (04-12-2013 10:51 PM)Hokie Mark Wrote: (04-12-2013 08:46 PM)orangefan Wrote: The B1G should enjoy a very generous bump (more thant $10 millin per school) when it's ABC contract runs out in 2016. It should be able to offer a similar number of games to the P12 and B12 packages and still have plenty of inventory for the BTN. I look for a split package between FOX and ESPN as we've seen in some other recent deals.
With respect to the BTN, it seems to me like they have achieved their target penetrations in their historic territory. Am I wrong about that?. If I'm right, it's not clear to me how much upside the BTN really has. The NJ/MD thing is a long term play at best. The BTN will likely have to discount substantially to get meaningful penetrations in those markets.
That was a joke, right? I don't see any way they get anything like that.
I don't think it's unreasonable. Unless ESPN and Fox make no effort to keep the Big 10 from NBC.
I can't find the numbers on what the Big 10 is getting from their current ESPN deal but you probably have that information available.
Just based on when they signed it 2006 and how much the market has jumped since then, $10 or more sounds about right. And they're new contract will probably end before the current ACC deal.
http://espn.go.com/blog/playbook/dollars/post/_/id/705/
$1,000,000,000/10years=$100,000,000/year
$72,000,000/6years=$12,000,000/year
$145,000,000/6years=$24,166,667/year
TOTAL: $100,000,000/yr+$12,000,000/yr+$24,166,667/yr=$136,166,667/year
PER TEAM TOTAL: $136,166,667/year/12teams=$11,347,222/team*
PERCENT INCREASE: $10,000,000/$11,347,222=88.1%
Do you think that the B1G's best games have increased in value by 88.1% over the last 9 years?** If so, then you think a $10,000,000 per school increase is reasonable, assuming that the new contracts are shorter than or equal to about 9 years long. Otherwise you don't.***
*I divided by 12 teams because there were 12 teams in the conference at that time.
**I said 9 years because the weighted average life of the contracts that are expiring is 8.9 years, weighted by value of the contract. The Top tier football contract had a 10 year contract life and a disproportionately large payout, so it pulled the average contract length MUCH closer to 10 years than 6 years, which was the length of the other contracts.
***Keep in mind that for many years, TV contract projections were consistently low, but now they seem to be consistently high (i.e. LHN, Pac-12 Network).
**NOTE: This site does not relect updated info concerning the Big XII deal, but the info on the B1G deal is up to date.**