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CBS Sports: Is Pac-12 about to fall far behind Big Ten and SEC financially?
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CBS Sports: Is Pac-12 about to fall far behind Big Ten and SEC financially?
http://www.cbssports.com/collegefootball...en-and-sec

Still, an alarm sounded around the Pac-12 in March when San Jose Mercury News reporter Jon Wilner wrote a series projecting the league's financial future. Wilner's conclusion: Even if the Pac-12 Network eventually gets distribution with DirecTV -- a never-ending saga that frustrates the Pac-12 and its fans -- the conference will soon lag far behind.

Wilner estimated that starting in 2017-18, TV revenue for conferences will look like this: SEC $35.6 million, Big Ten $33 million, Pac-12 $22.95 million. No Pac-12 athletic director who spoke with CBSSports.com would go on record about the topic. But several ADs privately shared concerns represented in Wilner's series, especially as new costs for athletes kick in, such as cost of attendance and post-college medical expenses.

Pac-12 schools currently receive about $1 million each year from the Pac-12 Network. South Carolina athletic director Ray Tanner recently told his trustees that the new SEC Network, flush with leverage from ESPN/Disney as partners, could pay at least $5 million per school this year. The Big Ten Network pays out more than $10 million to each school annually and the conference has a new TV deal for Tier 1 rights coming in 2017-18.

Wilner's numbers in the series “at least from our perspective were not completely accurate,” Scott told CBSSports.com in March. “But overall, I don't disagree with the trends. I think the Big Ten is going to have a significant uptick in their rights knowing they'll get more in 2017. And the SEC Network I believe is going to kick out significant resources. It's a big, big success. What we haven't shared with anyone was our projections for how our network is going to grow. The numbers that (Wilner) used and what he thinks it will be is nowhere near that.”

How consumers watch programming continues to quickly change. More people are cutting off their cable and using mobile and streaming devices to watch television. There could be a day when Apple and/or Google enter the world of owning live sports programming.

“One of the reasons I was attracted to (full ownership of the Pac-12 Network) is I feel like we're in a very fast-changing dynamic world when it comes to the value of college sports rights, and changes in technology and distribution,” Scott said. “It's happening before our eyes.”

Scott said the Pac-12 is not currently considering selling equity in the Pac-12 Network. He views the network's value as being “significantly greater” five years from now.

“We very much like the position we're in, and more importantly, feel like we're in a growing market (for the value of college sports),” Scott said. “So as long as the market is still growing and increasing in value, it's an enviable position to be in.”
05-22-2015 04:55 PM
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