(07-20-2016 04:13 PM)Hallcity Wrote: (07-20-2016 03:36 PM)omniorange Wrote: Here is David Teel's article piggy-backing off Clay Travis:
http://www.dailypress.com/sports/teel-bl...-post.html
Matching the SEC and Big Ten's estimated per-school network shares of $7.5 million-$10 million annually is a pipe dream given the ACC's smaller fan base, so let's set a modest base of $5 million.
Multiply the $5 million by 14 fulltime members and you get $70 million. A quarter share for Notre Dame -- that's the Irish's take of other conference revenue -- bumps the total to $71.25 million.
But the ACC doesn't distribute 100 percent of revenue to its schools. The most recent rate was 92.5 percent. So to send $71.25 million to members, the league would need $77.03 million in annual network windfall.
Since ESPN will split profits with the ACC, the network would need to net $154.06 million. Travis estimates annual network expenses at $100 million, bringing the needed revenue to $254.06 million.
Cheers,
Neil
It's all speculative. The SEC is getting $1.40 per subscriber per month in region and $0.25 per subscriber out of region. I'd guess that the ACC can get something like $1.40 per month in NC and Virginia, in the Syracuse, Louisville, Greenville-Spartanburg, and Atlanta areas and some areas of Florida. It can probably get at least the $0.25 in Boston, Pittsburgh, DC and Chicago as well as the rest of NY, Kentucky, SC, Georgia and Florida and maybe some of Ohio. I think Teel isn't paying attention to just how big the NC, Virginia, Louisville, Atlanta and Miami markets are. I'd estimate that the area where the ACC could probably get $1.40 per subscriber per month is more than 10% of the country's population and the area where the ACC can get $.25 per month is far larger than the area where the SEC can get $.25 per month.
However, it's all speculative. Nobody's going to know until it's actually done.
ESPN can charge almost whatever they want in NC, VA, and SC. It's a must have in these states.
I could see $2.00 per in these three states and there are 24 million in the three states or about 10 million households.
All of Florida, Georgia, Kentucky, and Massachusetts would get the full rate without the extortion surchage. And that full rate would also apply to Upstate NY, and Western PA, and DC. This is 55 million or about 26 million households. I'd charge them a $1.00
Then the periphery rate for states without a school, but in the ACC's media footprint/overlap you could get that in Vermont, Rhode Island, Connecticut, New Jersey, NYC metro, Philly metro, Indiana, Chicago Metro, Eastern Alabama, Eastern TN, West Va, MD, DC, and Delaware. I'd charge 50 cents. This is about 60 million or so, or 29 million households.
Then the rate beyond for everyone else at 25 cents.
Assuming 2/3rds in the core, half in the seocndary area, and 1/3 of househods in the teritary area and that's"
6.7 million paying $2 a month
13 million paying $1 a month
9.6 million paying 50 cents a month
And you are at $357 million before the rest of the folks in the country pay. Lets say you get 10% of those households and that's almost 10 million and you charge them a quarter that's another $30 million.
So about $380 million. Take $100 million off the top (that seems high) and you have $280 to split 50/50. The ACC share is 140 million and that amounts to about $9.2 million per share.
I think you can get $160 million a year out of NC, Va, and SC alone and by charging more in these states it might stop some bitching and moaning about equal weight pulling. (SC pays up because of Charlotte).