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Future of TV contracts for FBS
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Kittonhead Online
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Future of TV contracts for FBS
There is real evidence out the past couple of years that networks are skittish about committing themselves to big contracts in light of declining subscribers.

Most of that evidence is centered on mid major contracts which have been out. CUSA absorbed a major paycut while conferences like the CAA are having to pick up production costs to be on TV.

Where could things be headed for bigger conferences? Some guesses below.

B1G: Clubhouse leader. Will make things work by shifting 2nd/3rd tier rights around so the conference is making what they were before.

SEC: Performance has dipped from when they signed their TV deal, not withstanding the NC game this year. They might have to add FSU and Clemson to regain interest.

PAC: USC could be paid more if it controlled its 3rd tier rights. I could see more of a B12 TV model here in the future and an attempt to attract Texas. 1st and 2nd tier payout might be limited to 20 million per school, with USC/Texas going 40/50 million with private networks.

ACC: They may allow 3rd tier rights to be bid with a base distribution of 10-15 million dollars. That way FSU, UNC can cash in instead of having to subsidize Wake Forest.

B12: Whether they survive intact or not they'll be looking at per school hit in first and second tier rights which may drop to 10 million per school or less. That is why a combo with the PAC is a real possibility here.

AAC: Interesting to see with a deal up soon. There are two ways I could see their TV deal going. One way is if they were able to get BE money for all of their rights to the tune of 5 million per school by NBC. Another way is they get a 1st/2nd tier deal with ESPN for about the same money per school but are allowed to sell 3rd tier rights. 3rd tier rights are worth a lot to some of the school in the conference (UConn).

MWC: It doesn't seem like these guys are worth anything on a national platform outside of Boise State. They might be willing to accept a national deal for little or no cash BUT sell the third tier rights which is some cases can be lucrative (Hawaii).

MAC: These guys pimped out their football with ESPN for Tuesday/Wednesday games to the tune of almost 1 million per school. Nobody else is willing to do that so they should be good.

CUSA/SBC: Left to mess around with alternative distribution models like Facebook and Stadium for no cash.
02-04-2018 01:26 PM
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Kittonhead Online
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RE: Future of TV contracts for FBS
The days of USC, Texas, Florida St subsidizing the Oregon St's, Texas Tech's and Wake Forest's of their conference is coming to a close.

07-coffee3
02-04-2018 01:33 PM
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RE: Future of TV contracts for FBS
Big ratings product is getting big $$s. Filler is dropping to nothing.

Just like the rest of the economy. You have to be really big or small and specialized. The middle is getting crushed.

P5 likely to continue to do well. CUSA and Sun Belt get next to nothing. MAC only gets money because they are specialized on T/W nights.

We'll see what MWC and AAC do.
02-04-2018 02:09 PM
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Kittonhead Online
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RE: Future of TV contracts for FBS
A repost from the CUSA board that talks about the conference having to up the game in video production capabilities to keep up with "smaller conferences".

Conference offices always respond by saying we are focused on exposure not money but when has any of these conferences with big money linear TV deals received less exposure than one with small money?

http://csnbbs.com/thread-841856.html

Quote:I posted this around 5 PM today on another thread titled 'Thoughts'....

Today I got a response to an e-mail that I sent to the league office a few weeks ago regarding the poor availability of TV access to the conference Basketball and Football games. I have copied the response below for all to see. I would recommend that instead of beefing about the lack of decent TV coverage here on the forum that you take 5 minutes to send a cordial, direct, and factual e-mail about your own displeasure regarding the lack of coverage compared to other G5 conferences.

Personally I would like to see the conference develop it's own CUSA page on ROKU and the schools be obligated to cover their home events live. My second choice would be for the schools to reach an agreement to cover the home events and the league to have an agreement to get it on ESPN3.

Lastly I respect her for sending me an e-mail that addressed my concerns. I'm hoping that many others on here will follow suit. Remember that the squeaking wheel is the one that gets the grease.

E-MAIL RESPONSE

*****,

Hello and how are you? Your emails below have made their way to me and I wanted to be responsive to you. I do apologize for the delay. We certainly agree with your frustrations and want to get as many of our schools’ events covered by our current multimedia partners as well as future partners. We currently offer fans a mix between linear TV and digital for cord cutters. The smaller conferences who have not had linear TV options are ahead of us at producing their own content that is airing on digital providers like Roku and ESPN3. Those schools have been forced to produce their own content. Getting all of our C-USA schools’ video production capabilities ESPN3 compliant is a priority for Conference USA. We want all of our schools to be able to produce events at the highest level.

Our current partner Stadium just became available on Roku. We have been working for months with our web provider to get CUSA.tv on Roku. Roku has changed their terms and this has caused us problems as CUSA.tv is currently a subscription product and we don’t want fans to have to buy multiple subscriptions. We have had initial conversations with our members about offering CUSA.tv content for free. Ultimately it is their decision since it is their revenue stream. Either way, getting our content on Roku is a priority and we hope to offer this option to fans when football starts next fall.
02-04-2018 02:27 PM
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Kittonhead Online
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RE: Future of TV contracts for FBS
I'd say as rule of thumb we are seeing or will see this model.

P5: Decent 1st/2nd tier deals ($10 million), Big 3rd tier for the giant properites.
G5: Smaller linear TV deal (<$1 million), significant 3rd tier in some cases.
Mid Majors: streaming with little cash attached.

For the G5 the lionshare of their TV money is going to be from the CFP and in most cases is already.

Mid Major basketball conferences are getting their revenue from the NCAA tournament.

ESPN the clubhouse leader has bought Fox Sports net with the intent I believe to turn those channels into 3rd tier networks.

In just a few cases like the AAC or the Big East will they be at a price point in which having 1st/2nd/3rd tier rights all controlled by one network is going to make sense over taking a smaller deal with 3rd tier freedom.
02-04-2018 03:47 PM
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RE: Future of TV contracts for FBS
ACC will not be doing Third Tier anytime soon. The third tier was Raycom which is now moving over to the ACC Network in 2019 with the linear network.
02-04-2018 04:26 PM
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RE: Future of TV contracts for FBS
(02-04-2018 04:26 PM)msm96wolf Wrote:  ACC will not be doing Third Tier anytime soon. The third tier was Raycom which is now moving over to the ACC Network in 2019 with the linear network.

Exactly. Every P5 has a network that owns all the 3rd tier rights. The Big12 and G5 are the only FBS leagues with third tier rights still not married to a dedicated conference network.
(This post was last modified: 02-04-2018 05:59 PM by Attackcoog.)
02-04-2018 05:59 PM
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Kittonhead Online
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RE: Future of TV contracts for FBS
(02-04-2018 05:59 PM)Attackcoog Wrote:  
(02-04-2018 04:26 PM)msm96wolf Wrote:  ACC will not be doing Third Tier anytime soon. The third tier was Raycom which is now moving over to the ACC Network in 2019 with the linear network.

Exactly. Every P5 has a network that owns all the 3rd tier rights. The Big12 and G5 are the only FBS leagues with third tier rights still not married to a dedicated conference network.

Then how will the PAC and B12 handle the lack of national value their conference will have in the cord cutting age? Combine to a 16-18 team conference?

UNC and FSU will have to exit the ACC for the SEC quickly to prevent falling further behind.

We could see a desperate scramble happen.
02-04-2018 06:38 PM
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msm96wolf Offline
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RE: Future of TV contracts for FBS
First, I am not saying the ACC Network will be as successful but that is the reason for the 2019 linear deal with ESPN. If it is half or 3/4 as successful as B10 and SEC. The money goal will be solving itself. 2024/2025 will probably know if it is the ACC or B12 that survives.
02-04-2018 06:48 PM
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Attackcoog Offline
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RE: Future of TV contracts for FBS
(02-04-2018 06:38 PM)Kittonhead Wrote:  
(02-04-2018 05:59 PM)Attackcoog Wrote:  
(02-04-2018 04:26 PM)msm96wolf Wrote:  ACC will not be doing Third Tier anytime soon. The third tier was Raycom which is now moving over to the ACC Network in 2019 with the linear network.

Exactly. Every P5 has a network that owns all the 3rd tier rights. The Big12 and G5 are the only FBS leagues with third tier rights still not married to a dedicated conference network.

Then how will the PAC and B12 handle the lack of national value their conference will have in the cord cutting age? Combine to a 16-18 team conference?

UNC and FSU will have to exit the ACC for the SEC quickly to prevent falling further behind.

We could see a desperate scramble happen.

Well—I wouldn’t read anything into the CUSA contract. That was thier first renewal after being completely picked to death in realignment. The WAC got thier contract cut drastically after the MW was formed. That was not in any way a harbinger of lower tV deals to come.

Here is what I think. A set of eyeballs is a set of eye balls. It doesn’t matter if they are ice skating eyeballs, college football eyeballs, or Friends rerun eyeballs. If you skew toward a target demo or toward a high disposable income demo—then that might be a factor in value. But, there is going to be less and less reason to pay 5x as much for a P5 eyeball as you do for a G5 eyeball. Future value is going to be based on the size of the audience delivered.
02-04-2018 08:12 PM
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