(06-13-2014 02:38 PM)CougarRed Wrote: (06-13-2014 02:17 PM)TodgeRodge Wrote: so you need 2 teams worth 19 million and a CCG worth 24 million to break even
Assuming your numbers are right . . .
And assuming the Big 12 TV money is 75% football, 25% basketball.
Then the Big 12 gets paid on average $2.3M for every conference football game and nonconference home game. ($150M/65 games). The actual number is higher because the $150M is Tier 1/Tier 2 rights for which less than 65 games are sold.
And the Big 12 gets paid on average $333K for ever conference basketball game and nonconference home game. ($50M/150 games). Again, $333K is conservative because the Big 12 sells less than 150 games in exchange for $50M.
Two new members provide the Big 12 with 13 more games inventory in football and 30 more games inventory in basketball.
13 * $2.3M = $29.9M
30 * $333K = $10M
Equals ~$39.9M.
In other words, just on extra inventory alone, the two new teams bring a lot of money to the table. Perhaps they aren't worth $2.3M and 333K per game when playing their new Big 12 foes. But they'll be close.
1. the Big 12 has tier 1 and tier 2 deals worth 200 million on average annually not 150 million
2. my numbers are right because the recent payout to the Big 12 was announced ans is well known
3. the Big 10 CCG price is well known
4. where your analysis falls apart is the "content" aspect of the equation using ANY dollar amount
A. "content" is not of value of value if no one values it
B. when you have only 24 hours in a day and it takes about 4 hours on average to play a college football game and to mix in a little bit of talking heads talking before and after the game to "set the stage" that means if you played football 24 hours a day you would only be able to show 6 games per day on a single channel
even if you managed to cut it to 3 hours per game for everything or you interrupted games or came into games late that is still only 8 games a day per channel SHOWING GAMES 24 HOURS PER DAY
so if you show college football 24 hours a day for 3 days a week that is 24 games a week you could show
they are not going to show college football 3 days a week 24 hours a day......college football is not going to last with interrupted games and coming into games late
so if you show college football 12 hours a day and it takes 4 hours per game that is 3 games a day per channel you can show
if you do THAT 3 days a week that is 9 games you can show
if you are going to show 54 games a week you would need 6 channels showing games 12 hours per day 3 days a week
at some point and time you realize that the "content" you are so excited to get a hold of is only serving to lessen the number of viewers on the multiple channels that you own and you can't afford to pay the same price for "content" that you are going to show on ESPN The Ocho as you are paying for "content" that you are going to show on ABC or ESPN and all the more so when the games with huge viewership and massive numbers of loyal fans are the games you have already locked up for big huge crackalacking dolla dolla bills and it makes no sense to pay near the same money for "content" that does not have the viewership or value and that will be placed on competing channels that you already own and have enough content for
5. basketball is just along for the ride