Hello There, Guest! (LoginRegister)

Post Reply 
Fox buys 80% of YES Network
Author Message
OrangeCrush22 Offline
Heisman
*

Posts: 6,426
Joined: Feb 2011
Reputation: 267
I Root For: Syracuse
Location:
Post: #1
Fox buys 80% of YES Network
I don't consider this off topic, with how important TV is in college sports.

21st Century Fox to acquire majority stake in YES Network

Quote:Since its inception in 2002, the YES Network has grown its footprint to include local availability in New York, Connecticut, New Jersey, and parts of Pennsylvania, as well as national availability on several cable and satellite television distributors. The network currently showcases live Yankees and Nets games to approximately 9 million households in the teams' television territory in the New York area. Outside of the New York area, the YES Network also distributes a variety of national programming to millions of homes across the country.

Quote:"Our investment in the YES Network underscores our commitment to growing our global sports portfolio with offerings that are exceptional and unique," said James Murdoch, Deputy Chief Operating Officer, 21st Century Fox. "We look forward to expanding our partnership with Yankee Global Enterprises and to working with the network's management team to build on the YES Network's success."
01-24-2014 07:13 PM
Find all posts by this user Quote this message in a reply
Advertisement


MJG Offline
1st String
*

Posts: 2,278
Joined: Aug 2013
Reputation: 30
I Root For: U I , UMich, SC
Location: Myrtle Beach
Post: #2
RE: Fox buys 80% of YES Network
So will ESPN only talk about the red Sox now .
01-24-2014 08:00 PM
Find all posts by this user Quote this message in a reply
Frank the Tank Offline
Hall of Famer
*

Posts: 18,722
Joined: Jun 2008
Reputation: 1775
I Root For: Illinois/DePaul
Location: Chicago
Post: #3
RE: Fox buys 80% of YES Network
Sign that there IS NOT a TV rights bubble: Fox is paying this money out knowing full well about chord cutting trends and the rise of online streaming, so they must have a lot of confidence that the current basic cable business model will live on for the foreseeable future (and that any declines in subscribers would be made up for with higher subscriber fees).

Sign that there IS a TV rights bubble: YES is valued at $3.9 billion for this deal. The New York Yankees franchise itself was valued at $2.092 billion (excluding its interest in YES) last year:

http://www.bloomberg.com/infographics/20...alues.html

So, the TV network that shows Yankees games is now valued almost twice as much as the Yankees themselves. We'll see how sustainable that is.
01-24-2014 08:01 PM
Visit this user's website Find all posts by this user Quote this message in a reply
Hokie Mark Online
Hall of Famer
*

Posts: 23,726
Joined: Sep 2011
Reputation: 1392
I Root For: VT, ACC teams
Location: Greensboro, NC
Post: #4
RE: Fox buys 80% of YES Network
(01-24-2014 08:01 PM)Frank the Tank Wrote:  Sign that there IS NOT a TV rights bubble: Fox is paying this money out knowing full well about chord cutting trends and the rise of online streaming, so they must have a lot of confidence that the current basic cable business model will live on for the foreseeable future (and that any declines in subscribers would be made up for with higher subscriber fees).

Sign that there IS a TV rights bubble: YES is valued at $3.9 billion for this deal. The New York Yankees franchise itself was valued at $2.092 billion (excluding its interest in YES) last year:

http://www.bloomberg.com/infographics/20...alues.html

So, the TV network that shows Yankees games is now valued almost twice as much as the Yankees themselves. We'll see how sustainable that is.

Excellent point, Frank! This isn't just a bubble, it's a value inversion! Seems highly unstable to me...
01-24-2014 08:10 PM
Visit this user's website Find all posts by this user Quote this message in a reply
Advertisement


chargeradio Offline
Vamos Morados
*

Posts: 7,466
Joined: Mar 2007
Reputation: 121
I Root For: ALA, KY, USA
Location: Louisville, KY
Post: #5
RE: Fox buys 80% of YES Network
So will YES become FSN New York?
01-24-2014 08:27 PM
Visit this user's website Find all posts by this user Quote this message in a reply
orangefan Offline
Heisman
*

Posts: 5,208
Joined: Mar 2007
Reputation: 354
I Root For: Syracuse
Location: New England
Post: #6
RE: Fox buys 80% of YES Network
(01-24-2014 08:01 PM)Frank the Tank Wrote:  Sign that there IS NOT a TV rights bubble: Fox is paying this money out knowing full well about chord cutting trends and the rise of online streaming, so they must have a lot of confidence that the current basic cable business model will live on for the foreseeable future (and that any declines in subscribers would be made up for with higher subscriber fees).

Sign that there IS a TV rights bubble: YES is valued at $3.9 billion for this deal. The New York Yankees franchise itself was valued at $2.092 billion (excluding its interest in YES) last year:

http://www.bloomberg.com/infographics/20...alues.html

So, the TV network that shows Yankees games is now valued almost twice as much as the Yankees themselves. We'll see how sustainable that is.

My guess is that Fox, ESPN and Comcast all have fallback plans in case cord cutting reaches an inflection point. For instance, ESPN could make high value properties like the CFP and Monday Night Football available online on a pay per view or subscription basis to supplement cable subscriptions. It could offer ACC and SEC networks on a direct online basis. Comcast might bundle Comcast Sports Net with high speed broadband packages.

Bottom line, sports properties are valuable even if the cable model does not continue in its current form and these companies will find ways to monetize their investments.
(This post was last modified: 01-24-2014 09:33 PM by orangefan.)
01-24-2014 08:54 PM
Find all posts by this user Quote this message in a reply
Dasville Offline
Heisman
*

Posts: 7,796
Joined: Jan 2013
Reputation: 246
I Root For: UofL
Location:
Post: #7
RE: Fox buys 80% of YES Network
Just as predicted. Fox will now couple the BTN with Fox Sports NY and demand a premium. This is how they force the BTN on NY. If you want to watch the Yankees and Nets, you will also pay premium for BTN.
01-24-2014 08:55 PM
Find all posts by this user Quote this message in a reply
Advertisement


Wedge Offline
Moderator
*

Posts: 19,862
Joined: May 2010
Reputation: 964
I Root For: California
Location: IV, V, VI, IX
Post: #8
RE: Fox buys 80% of YES Network
(01-24-2014 08:01 PM)Frank the Tank Wrote:  Sign that there IS NOT a TV rights bubble: Fox is paying this money out knowing full well about chord cutting trends and the rise of online streaming, so they must have a lot of confidence that the current basic cable business model will live on for the foreseeable future (and that any declines in subscribers would be made up for with higher subscriber fees).

Sign that there IS a TV rights bubble: YES is valued at $3.9 billion for this deal. The New York Yankees franchise itself was valued at $2.092 billion (excluding its interest in YES) last year:

http://www.bloomberg.com/infographics/20...alues.html

So, the TV network that shows Yankees games is now valued almost twice as much as the Yankees themselves. We'll see how sustainable that is.

"Only" $3.9 billion for YES?

The Dodgers' deal with TWC for a Dodgers channel pays almost $8.5 billion over 25 years.

MLB got their claws into it and forced the Dodgers to cough up almost $2 billion to be distributed by MLB as "revenue sharing", which leaves the Dodgers with "only" somewhat more than $6 billion for themselves. See http://articles.latimes.com/2013/jun/13/...v-20130614

As that article notes, the Dodgers' ownership group bought the franchise for $2.15 billion in 2012.
(This post was last modified: 01-24-2014 09:29 PM by Wedge.)
01-24-2014 09:28 PM
Find all posts by this user Quote this message in a reply
SeaBlue Offline
1st String
*

Posts: 1,190
Joined: Mar 2013
Reputation: 43
I Root For: Michigan
Location: Indy
Post: #9
RE: Fox buys 80% of YES Network
I see this as a way for Fox to bundle, regardless of the delivery mechanism. If you want to stream, great, but it will be priced to make a bundled option attractive and they'll have enough content in their portfolio to make it a sensible choice. Whether they bundle and deliver or someone else delivers their bundled content, they'll be able to cross-promote content and ask for a price that turns a reasonable profit
01-25-2014 09:09 AM
Find all posts by this user Quote this message in a reply
Wolfman Offline
All American
*

Posts: 4,459
Joined: Nov 2011
Reputation: 181
I Root For: The Cartel
Location: Raleigh, NC
Post: #10
RE: Fox buys 80% of YES Network
The bubble is coming. TCM is now offering its own streaming player. There are several others out there including the broadcast networks. The advantage to these players is they can force you to watch the commercials. DVRs ability to avoid commercials has weekend the desire for live sports. Why pay a million dollars for a commercial when the viewer is not going to watch it? They rewind and watch the big play, leave the room, switch channels, whatever and have the ability to rewind a bit and join it where they left off.

Another reason it is critical for conferences to have their own network.
01-25-2014 10:00 AM
Find all posts by this user Quote this message in a reply
Advertisement


Rube Dali Offline
1st String
*

Posts: 1,018
Joined: Jan 2014
Reputation: 46
I Root For: UST, BSU, Minn
Location: Maplewood, MN
Post: #11
RE: Fox buys 80% of YES Network
(01-24-2014 08:00 PM)MJG Wrote:  So will ESPN only talk about the red Sox now .

Given that the World Wide Monopolizer devotes 99.99999999% of all MLB talk to the Yanks and the Sawx, that discussing only the Sawx is impossible to consider realistically.
01-25-2014 01:45 PM
Find all posts by this user Quote this message in a reply
JRsec Offline
Super Moderator
*

Posts: 37,888
Joined: Mar 2012
Reputation: 7737
I Root For: SEC
Location:
Post: #12
RE: Fox buys 80% of YES Network
(01-24-2014 08:01 PM)Frank the Tank Wrote:  Sign that there IS NOT a TV rights bubble: Fox is paying this money out knowing full well about chord cutting trends and the rise of online streaming, so they must have a lot of confidence that the current basic cable business model will live on for the foreseeable future (and that any declines in subscribers would be made up for with higher subscriber fees).

Sign that there IS a TV rights bubble: YES is valued at $3.9 billion for this deal. The New York Yankees franchise itself was valued at $2.092 billion (excluding its interest in YES) last year:

http://www.bloomberg.com/infographics/20...alues.html

So, the TV network that shows Yankees games is now valued almost twice as much as the Yankees themselves. We'll see how sustainable that is.

Frank, by buying 80% of YES does FOX in any way increase it's share stake in the BTN? I'm unclear as to the relationship between the three.
01-25-2014 03:37 PM
Find all posts by this user Quote this message in a reply
Frank the Tank Offline
Hall of Famer
*

Posts: 18,722
Joined: Jun 2008
Reputation: 1775
I Root For: Illinois/DePaul
Location: Chicago
Post: #13
RE: Fox buys 80% of YES Network
(01-25-2014 03:37 PM)JRsec Wrote:  
(01-24-2014 08:01 PM)Frank the Tank Wrote:  Sign that there IS NOT a TV rights bubble: Fox is paying this money out knowing full well about chord cutting trends and the rise of online streaming, so they must have a lot of confidence that the current basic cable business model will live on for the foreseeable future (and that any declines in subscribers would be made up for with higher subscriber fees).

Sign that there IS a TV rights bubble: YES is valued at $3.9 billion for this deal. The New York Yankees franchise itself was valued at $2.092 billion (excluding its interest in YES) last year:

http://www.bloomberg.com/infographics/20...alues.html

So, the TV network that shows Yankees games is now valued almost twice as much as the Yankees themselves. We'll see how sustainable that is.

Frank, by buying 80% of YES does FOX in any way increase it's share stake in the BTN? I'm unclear as to the relationship between the three.

No, the BTN is a separate partnership. Fox owns 51% of the BTN, while the Big Ten owns 49%. Those percentages were flipped when the BTN was originally created, but Fox exercised an option to become the majority owner a couple of years ago. To my knowledge, there isn't a clause where Fox has an option to buy a supermajority interest in the BTN like YES. Note that YES had a number of third party investors, sch as Goldman Sachs, that are cashing out in this new Fox deal that don't exist in the BTN ownership structure. Ultimately, the relationship between YES and BTN is that they're sister networks by virtue of being both having majority control by Fox, but the Big Ten's ownership interest isn't impacted by what happens to YES.
(This post was last modified: 01-25-2014 04:28 PM by Frank the Tank.)
01-25-2014 04:27 PM
Visit this user's website Find all posts by this user Quote this message in a reply
Advertisement


JRsec Offline
Super Moderator
*

Posts: 37,888
Joined: Mar 2012
Reputation: 7737
I Root For: SEC
Location:
Post: #14
RE: Fox buys 80% of YES Network
(01-25-2014 04:27 PM)Frank the Tank Wrote:  
(01-25-2014 03:37 PM)JRsec Wrote:  
(01-24-2014 08:01 PM)Frank the Tank Wrote:  Sign that there IS NOT a TV rights bubble: Fox is paying this money out knowing full well about chord cutting trends and the rise of online streaming, so they must have a lot of confidence that the current basic cable business model will live on for the foreseeable future (and that any declines in subscribers would be made up for with higher subscriber fees).

Sign that there IS a TV rights bubble: YES is valued at $3.9 billion for this deal. The New York Yankees franchise itself was valued at $2.092 billion (excluding its interest in YES) last year:

http://www.bloomberg.com/infographics/20...alues.html

So, the TV network that shows Yankees games is now valued almost twice as much as the Yankees themselves. We'll see how sustainable that is.

Frank, by buying 80% of YES does FOX in any way increase it's share stake in the BTN? I'm unclear as to the relationship between the three.

No, the BTN is a separate partnership. Fox owns 51% of the BTN, while the Big Ten owns 49%. Those percentages were flipped when the BTN was originally created, but Fox exercised an option to become the majority owner a couple of years ago. To my knowledge, there isn't a clause where Fox has an option to buy a supermajority interest in the BTN like YES. Note that YES had a number of third party investors, sch as Goldman Sachs, that are cashing out in this new Fox deal that don't exist in the BTN ownership structure. Ultimately, the relationship between YES and BTN is that they're sister networks by virtue of being both having majority control by Fox, but the Big Ten's ownership interest isn't impacted by what happens to YES.

Thanks Frank.
01-25-2014 04:42 PM
Find all posts by this user Quote this message in a reply
goodknightfl Offline
Hall of Famer
*

Posts: 21,110
Joined: Feb 2004
Reputation: 499
I Root For:
Location:
Post: #15
RE: Fox buys 80% of YES Network
"YES!!!!!"
01-25-2014 07:28 PM
Find all posts by this user Quote this message in a reply
Post Reply 




User(s) browsing this thread: 1 Guest(s)


Copyright © 2002-2024 Collegiate Sports Nation Bulletin Board System (CSNbbs), All Rights Reserved.
CSNbbs is an independent fan site and is in no way affiliated to the NCAA or any of the schools and conferences it represents.
This site monetizes links. FTC Disclosure.
We allow third-party companies to serve ads and/or collect certain anonymous information when you visit our web site. These companies may use non-personally identifiable information (e.g., click stream information, browser type, time and date, subject of advertisements clicked or scrolled over) during your visits to this and other Web sites in order to provide advertisements about goods and services likely to be of greater interest to you. These companies typically use a cookie or third party web beacon to collect this information. To learn more about this behavioral advertising practice or to opt-out of this type of advertising, you can visit http://www.networkadvertising.org.
Powered By MyBB, © 2002-2024 MyBB Group.