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How much of a bump did Nebraska, Maryland, Rutgers provide?
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nzmorange Offline
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Post: #21
RE: How much of a bump did Nebraska, Maryland, Rutgers provide?
(05-30-2016 05:28 PM)krup Wrote:  
(05-30-2016 04:52 PM)nzmorange Wrote:  
(05-30-2016 04:24 PM)Nebraskafan Wrote:  
(05-30-2016 03:52 PM)nzmorange Wrote:  
(05-30-2016 03:24 PM)Nebraskafan Wrote:  OP, I am going over some BTN revenue data and a Texas move to the B1G generates over 100 million dollars of revenue to just the BTN. Notre Dame would generate 48 million dollars to BTN. Kansas is 46 million dollars to BTN. Rutgers brought in over 60 million dollars to BTN.

If your theory is that Rutgers is worth 25% more than Notre Dame, then I strongly suggest that you re-evaluate your methodology.

The same goes for Kansas - ESPECIALLY if you're primarily looking at non-football sports.

Most of the ND value is Tier 1.

That's true with every school. However, unlike many schools, ND has excellent Olympic sports and basketball.

Getting ND doesn't add make cable companies pay more for the households in the state containing the new member because they already have Indiana locked up.

You can argue that having ND in the conference would allow for more lucrative BTN deals overall, but I think the original deals the BTN signed still have a ways to run, so for now "how big is the additional footprint" is the main consideration for adding BTN revenue.

1. [Image: demandsupplycurve.jpg]

2. [Image: revenue-formula.png]

3. [Image: Business_Equations.png]

(Most cable contract have material changes in membership clauses, and even then, playing games like that creates distrust, which adversely impacts future contract negotiations.)
(This post was last modified: 05-30-2016 05:51 PM by nzmorange.)
05-30-2016 05:48 PM
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Dasville Offline
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Post: #22
RE: How much of a bump did Nebraska, Maryland, Rutgers provide?
(05-30-2016 04:26 PM)Rob from NJ Wrote:  http://sports.yahoo.com/blogs/ncaaf-dr-s...22365.html

From the above article quoting the USAToday report on B1G tax returns for FY2015 (7/1/2014 - 6/30/2015 - 1st year of Maryland and Rutgers play), overall revenue for the conference increased by approx. $110M. Out of the $110M, sports revenue (TV revenue and revenue from bowl games including the playoffs) increased by approx. $80M compared to FY2014.

Out of the $80M, USAToday backed out the bowl/playoffs revenue based on data from other conferences. Maryland and Rutgers directly increased the TV rights fees in a range of $50M - $60M for the conference. TV rights fees have nothing to do with who plays well or doesn't. Simply due to adding the 2 schools and their marketplaces. Regardless, both schools made good business sense for the B1G

Thanks for the post Rob! This is what I was wondering. Please correct me if I'm wrong, but it looks like the $50-$60 million bump was for the added cable subscription money for the BTN. Would it be safe to say that with people cutting the cord, this could be the high mark for that money?


Btw, welcome to the board!
(This post was last modified: 05-30-2016 06:11 PM by Dasville.)
05-30-2016 06:10 PM
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Rob from NJ Offline
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Post: #23
RE: How much of a bump did Nebraska, Maryland, Rutgers provide?
(05-30-2016 06:10 PM)Dasville Wrote:  
(05-30-2016 04:26 PM)Rob from NJ Wrote:  http://sports.yahoo.com/blogs/ncaaf-dr-s...22365.html

From the above article quoting the USAToday report on B1G tax returns for FY2015 (7/1/2014 - 6/30/2015 - 1st year of Maryland and Rutgers play), overall revenue for the conference increased by approx. $110M. Out of the $110M, sports revenue (TV revenue and revenue from bowl games including the playoffs) increased by approx. $80M compared to FY2014.

Out of the $80M, USAToday backed out the bowl/playoffs revenue based on data from other conferences. Maryland and Rutgers directly increased the TV rights fees in a range of $50M - $60M for the conference. TV rights fees have nothing to do with who plays well or doesn't. Simply due to adding the 2 schools and their marketplaces. Regardless, both schools made good business sense for the B1G

Thanks for the post Rob! This is what I was wondering. Please correct me if I'm wrong, but it looks like the $50-$60 million bump was for the added cable subscription money for the BTN. Would it be safe to say that with people cutting the cord, this could be the high mark for that money?


Btw, welcome to the board!

Dasville, Thanks for the welcome.

Even though I've not read any articles breaking out the B1G TV revenue for FY2015, I would have to think that all or most of the $50M - $60M increase attributed to Maryland and Rutgers would be the BTN subscription fees for the NJ/NY and Maryland/DC areas. Although it's possible that the Tier 1 ESPN contract (and CBS contract for basketball games) could have called for increase in revenue with expansion. I don't know.

As for the future, it's anyone's guess how the B1G plans to move forward. The BTN current contract goes on for a lot more years to come and we'll see how they adjust to what the future brings with streaming and media rights.

I root for the B1G Conference because my 2 daughters are current students of two schools in the B1G (not named Maryland or Rutgers), so I find all of this interesting and enjoy reading the boards although I'm not much of a poster.
(This post was last modified: 05-30-2016 07:12 PM by Rob from NJ.)
05-30-2016 07:08 PM
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nzmorange Offline
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Post: #24
RE: How much of a bump did Nebraska, Maryland, Rutgers provide?
(05-30-2016 07:08 PM)Rob from NJ Wrote:  
(05-30-2016 06:10 PM)Dasville Wrote:  
(05-30-2016 04:26 PM)Rob from NJ Wrote:  http://sports.yahoo.com/blogs/ncaaf-dr-s...22365.html

From the above article quoting the USAToday report on B1G tax returns for FY2015 (7/1/2014 - 6/30/2015 - 1st year of Maryland and Rutgers play), overall revenue for the conference increased by approx. $110M. Out of the $110M, sports revenue (TV revenue and revenue from bowl games including the playoffs) increased by approx. $80M compared to FY2014.

Out of the $80M, USAToday backed out the bowl/playoffs revenue based on data from other conferences. Maryland and Rutgers directly increased the TV rights fees in a range of $50M - $60M for the conference. TV rights fees have nothing to do with who plays well or doesn't. Simply due to adding the 2 schools and their marketplaces. Regardless, both schools made good business sense for the B1G

Thanks for the post Rob! This is what I was wondering. Please correct me if I'm wrong, but it looks like the $50-$60 million bump was for the added cable subscription money for the BTN. Would it be safe to say that with people cutting the cord, this could be the high mark for that money?


Btw, welcome to the board!

Dasville, Thanks for the welcome.

Even though I've not read any articles breaking out the B1G TV revenue for FY2015, I would have to think that all or most of the $50M - $60M increase attributed to Maryland and Rutgers would be the BTN subscription fees for the NJ/NY and Maryland/DC areas. Although it's possible that the Tier 1 ESPN contract (and CBS contract for basketball games) could have called for increase in revenue with expansion. I don't know.

As for the future, it's anyone's guess how the B1G plans to move forward. The BTN current contract goes on for a lot more years to come and we'll see how they adjust to what the future brings with streaming and media rights.

I root for the B1G Conference because my 2 daughters are current students of two schools in the B1G (not named Maryland or Rutgers), so I find all of this interesting and enjoy reading the boards although I'm not much of a poster.

You are the only Carnegie Mellon fan that I've ever seen. If I wasn't on a phone, I'd positive rep you just for that. Stick around.
05-30-2016 08:03 PM
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Rob from NJ Offline
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Post: #25
RE: How much of a bump did Nebraska, Maryland, Rutgers provide?
(05-30-2016 08:03 PM)nzmorange Wrote:  
(05-30-2016 07:08 PM)Rob from NJ Wrote:  
(05-30-2016 06:10 PM)Dasville Wrote:  
(05-30-2016 04:26 PM)Rob from NJ Wrote:  http://sports.yahoo.com/blogs/ncaaf-dr-s...22365.html

From the above article quoting the USAToday report on B1G tax returns for FY2015 (7/1/2014 - 6/30/2015 - 1st year of Maryland and Rutgers play), overall revenue for the conference increased by approx. $110M. Out of the $110M, sports revenue (TV revenue and revenue from bowl games including the playoffs) increased by approx. $80M compared to FY2014.

Out of the $80M, USAToday backed out the bowl/playoffs revenue based on data from other conferences. Maryland and Rutgers directly increased the TV rights fees in a range of $50M - $60M for the conference. TV rights fees have nothing to do with who plays well or doesn't. Simply due to adding the 2 schools and their marketplaces. Regardless, both schools made good business sense for the B1G

Thanks for the post Rob! This is what I was wondering. Please correct me if I'm wrong, but it looks like the $50-$60 million bump was for the added cable subscription money for the BTN. Would it be safe to say that with people cutting the cord, this could be the high mark for that money?


Btw, welcome to the board!

Dasville, Thanks for the welcome.

Even though I've not read any articles breaking out the B1G TV revenue for FY2015, I would have to think that all or most of the $50M - $60M increase attributed to Maryland and Rutgers would be the BTN subscription fees for the NJ/NY and Maryland/DC areas. Although it's possible that the Tier 1 ESPN contract (and CBS contract for basketball games) could have called for increase in revenue with expansion. I don't know.

As for the future, it's anyone's guess how the B1G plans to move forward. The BTN current contract goes on for a lot more years to come and we'll see how they adjust to what the future brings with streaming and media rights.

I root for the B1G Conference because my 2 daughters are current students of two schools in the B1G (not named Maryland or Rutgers), so I find all of this interesting and enjoy reading the boards although I'm not much of a poster.

You are the only Carnegie Mellon fan that I've ever seen. If I wasn't on a phone, I'd positive rep you just for that. Stick around.

Yes, the Carnegie Mellon Tartans. Had a good 2015 campaign. Got off to a slow start losing 3 out of 4, however, finished STRONG by winning the last 7 games including blowing out University of Chicago. 8-3 overall record. Not bad. Tha'ts my school.

I do attend a bunch of B1G games each season. I live close to the Rutgers campus and will occasionally get together with Rutgers fans I know and attend a few home games for them. I also visit my girls and attend at least 1 game a year at their schools. I root for my girls schools, however, am neutral when they play each other.
(This post was last modified: 05-31-2016 07:42 AM by Rob from NJ.)
05-31-2016 07:42 AM
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