JRsec
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RE: A Few Assumptions Might Yield A Totally Different Realignment Perspective
(04-07-2014 01:57 AM)jhawkmvp Wrote: One thing to remember is that consolidation results in more leverage and less competition so you will get more money as the networks and others have less places to go for the content they need and have to bid against each other to land the same content. That is a key reason why every pro sports league always merges or absorbs competitors that last more than a few years (AFL merged with the NFL, ABA teams were absorbed by the NBA, AL and NL merged into MLB). The NFL makes more than the AFL and NFL could separately because of it's monopoly power. There is nowhere else to go for that content.
In college sports the networks can go to 5 sources for the best content (B1G, SEC, PAC, B12, ACC). The more those are reduced the more the networks will end up paying for the content. The networks would have preferred that there were still six or more conferences, as that keeps the price for content lower since there are more sources of content; however, at this point I think they realize that consolidation is on the way, so the best thing ESPN could do, while it has so much control over college sports, is try to manage this consolidation in a way that it is most advantageous to ESPN. In my mind that is merging the conferences who are undervalued and ESPN controlled (ACC and SEC are both being paid less than they are worth) and paying more, but in return getting a long term (20+ years) contract to lockdown that content and keep it away from other networks, Google, Netflix, Hulu, and others while content delivery is going through upheaval over the next decade or so. Fox could do the same with the B1G and PAC. The B12 could get split between the two.
There are too many positives for some kind of merger not to eventually come to fruition. Culturally speaking the schools of Oklahoma and Texas and those of the SEC and ACC really do have so much in common that not considering such would be foolish. Kansas, Kansas State, and Iowa State could fit in anywhere. Admittedly the Big 10 might be a bit more natural but there would be enough ties to a merged SEC/ACC to accompany their Big 12 brethren comfortably into the fold. I actually think the PAC would be the toughest fit for them.
Anyway I think we a fairly much in agreement of the potentialities here. And it's always good to hear your views.
I look for a period of more news following the championship game this Monday night and prior to the College World Series later this Summer. Most of the presidents and commissioners keep fairly quiet during major sporting events so as not to take the focus off of those athletes and their moment.
Take care, JR
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04-07-2014 03:04 AM |
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