(07-08-2022 09:20 AM)Gamenole Wrote: (07-08-2022 08:14 AM)GTFletch Wrote: How doe this help the ACC?
I have seen projections that the ACC will top out at $50-60M, this new aggreement allows the ACC to create money through Subscriber Fees through current carriage agreements. Since ESPN & ACC split the profits from the ACC Network you can add money by carrying Tier 2 & 3 Pac games along with MBB/WBB games. Lets say the West Coast has 40 million subscribers. Lets say 20 million are in PAC markets (probably more). The going rate is $1/subscriber per month. So that's $240million/year that cable companies will pay ESPN. How much of that will ESPN funnel to the ACC? Half? 120 million? Roughly $10 million/team? Now what if you add San Diego, Las Vegas and others via expansion? all of sudden the ACC is making 20-30 M on top of Full distribution numbers that we will see on the 2023 ACC Tax Return, or basically we could see the ACC per team going from 50-60M to 70-80M with this new aggreement!
Lets be clear the PAC could also have an ESPN+ arrangement. So the ACC is not in the driver seat, but would benefit greatly from this new deal.
I do think there would be money in this for ACC schools, but not that much. Splitting the profits is the key, it isn't like the ACC network would start bringing in $1.00 from West coast cable vs. $.10 because the Golden State suddenly developed a burning desire to watch UVA swimming, FSU beach volleyball, or the Syracuse-Wagner football game. The Western cable money would only come because ESPN bought PAC content to show on the ACC Network, so I think the cost of that investment would have to be removed before determining and splitting up the profits from the move.
So with USC/UCLA heading to the BIG10, we see that the PAC12 are scrambling and ESPN sees this as a time get the PAC on board with ESPN and lock them up. ESPN tried to help the pac with thier network and Larry Scott said NO also the PAC has been quit difficult in years past. I believe ESPN sees the PAC as valuable and is the time to get Tier1-Tier 3 rights.
Look at what is going on the next few years:
2022: BIG10 new media contract cycle
2024:
SEC new ESPN Contract beigns thru 2034
2024: The Pac-12 begins a new media contract cycle
2025: The Big 12 begins a new media contract cycle
2025: Notre Dame’s last year under the current NBC contract
2026: The first season on an expanded CFP
2026: ACC next contract "look-in"
ESPN will have Tier 2 rights of the BIG10, SEC and ACC locked up, all they need is the West Coast PAC12 and their lineup is set. they have just lost Boise State and BYU to FOX/CBSSN.
Can the PAC leave ESPN and go FOX/CBS? Maybe, but I bet ESPN can offer the most Money, FOX alreay has the MTN WEST to go with the BIG10, and BIG12 brand.. The Pac-12 could hunker down with 10 or expand membership to create bulk. (If that’s the case, one option seems obvious. They might conclude that San Diego State is too good to pass up)
Based solely on the number of large media markets within its footprint, the Pac-12 has an advantage over the Big 12 even without USC and UCLA, particularly if it were to add San Diego State. That is why ESPN will pay 500M or more for all three Tier rights.
— Number of Pac-12 markets with at least one million homes in 2021, per Nielsen DMAs (with national ranking):
No. 6 Bay Area - 2.6M homes
No. 11 Phoenix - 2.1M homes
No. 12 Seattle - 2.0M homes
No. 16 Denver - 1.7M homes
No. 21 Portland - 1.3M homes
No. 27 San Diego - 1.1M homes
No. 30 Salt Lake City - 1.1M homes
If they added UNLV or the Las Vegas market (it is under 1M at 833K) they come in at #40 you have a great media market to sell to ESPN and With regard to Fresno State, Central Valley is home to 6.5 million people — it’s the equivalent of Seattle and Portland combined — and a good portion of them are Bulldogs fans.
Lets compare that to the BIG12— Number of Big12 markets with at least one million homes (with national ranking):
No. 5 Dallas - 2.9M homes
No. 8 Houston - 2.5M homes
No. 17 Orlando - 1.7M homes
No. 30 Salt Lake City - 1.1M homes
So you can see why ESPN wants all of the PAC and it is not even close. (ESPN has 100% SEC, 100% ACC and they want 100% PAC)
So why would the ACC Partner with ESPN? Well the ACC wants to increase the bottomline between know and 2026. The PAC Network is not making any money. So if ESPN pays for all three rights they need a place to put tier 2 games. I am 100% positive that the boat has sailed with ESPN wanting to help the the PAC Network after the PAC snubbed them in 2018. However it does make sense that the ACC Network would jump with ESPN on the chance to add ACCN in-footprint subscriber fees from out-of-footprint per-subscriber fees. You are correct I may be wrong on the ACC rate of .10 to 1.00 but lets look at what the SEC gets according to Sports Business Journal, the channel's rate card is at $1.40 per subscriber per month within the SEC's 11-state footprint and $0.25 per month outside of it. According to awfulannouncing.com, the BIG10 channel's rate card is at $1.50 per subscriber per month within the footprint and $0.10 per month outside of it. (
https://twitter.com/colecubelic/status/1...twork.html)
So lets look at how USC & UCLA helps the BTN, and that’s key to their adding USC and UCLA, who play in the second-largest designated media market in the U.S. (as per Nielsen’s 2021-22 DMA rankings, the LA DMA’s estimated 5,735,230 TV homes was second only to NYC’s 7,452,620).
So a way to calculate a conservative UCLA-USC LA market impact for the BIG10 Network is as follows: keep the in-footprint and out-of-footprint fee estimates at $1.50 and $0.10, assume that BTN will receive a similar percentage of penetration in LA as it does nationally (54.3/122.4=42.7 percent), and assume that that 42.7 percent all already had BTN at the out-of-market price (so going from $0.10 to $1.50). That gives 42.7 percent home penetration * 5.73 million homes = 2.45 million homes, which multiplied by $1.40 is $3.43 million extra per month, or $41.16 million extra per year. I say this is conservative becuase I can see the whole state of california demanding BIG10 Network becuase UCLA-USC will be on the BIG10 Network.
So how can the PAC12 on the ACC Network help the ACC. Well ESPN & ACCN share profits 50/50. However ESPN will front the cost of the Tier1-Tier3 rights. ESPN may or may not sublicense PAc tier 3 rights to BALLy RSN, they could start a ESPN+ network and maybe produce the sam income that the PACN brought them. But for the ACCN. Having Tier2 games on the ACCN and taking the .10 subscriber fee from out of footprint rate to the 1.00 in foot print rate will add a ton of money, not to mention the extra advertising dollars that will come to the network. Can you imagine if the ACCN took the entire PAC10 Market (not counting San Diego & Las Vegas) 11.9M homes and were able to get 50 percent to watch or subscribe at the in footprint rate that would be 5.95M homes at an incerease of .90 cents. which woud be 5.35M in monthly revenue for an annual payout of 64.26M that would before new advertisement dollars and is really a conservative estimate I have heard it may be as high as 75-80% of that number and I can see that ESPN may charge 1.50 rate for that same content. SO I think it is a no brainer for the ACC to allow ESPN to put PAC12 games on that network. The real number from the impact may well be higher. ACCN becomes more attractive carry in the entire states of California, Oregon, Washington, Arizona, Utah, Colorado when they carry PAC12 content, and some of those entre states could certainly wind up as in-footprint ACCN as well.
However it is not going to make the 15 ACC schools a ton of money we are talking 1-10M increase after profits are split with ESPN and the member schools. However if you are the ACC and you can't renegotiate your TV contract until the next look-in which is 2026, getting an extra 5-10M on top of your current media payout certianly doesn't hurt.