gulfcoastgal
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RE: AAC TV Deal
(05-19-2015 03:03 PM)Attackcoog Wrote: (05-19-2015 02:47 PM)SMUmustangs Wrote: (05-19-2015 01:15 PM)Attackcoog Wrote: (05-19-2015 12:30 PM)SMUmustangs Wrote: (05-19-2015 11:37 AM)Attackcoog Wrote: We already get 2 million---so that's not even a raise. Lets look at this logically. We are currently selling EVERYTHING for 22 million (assuming we believe the CBS basketball contract is 2 million a year).
Lets look at other non-power leagues. Meanwhile, The MW sells its first and second tier rights, along with a CCG for 20 million---but retains its 3rd tier rights. CUSA gets 14 million currently, and retains its 3rd tier rights. A-10 basketball gets 5 million a year. Big East basketball gets 40 million per year. Finally, the MAC just renegotiated a 1 million per year deal into a 10 million per year deal with its 10 year extension (a ten fold increase).
Lets add to that information other relevant things we know. The MW CCG is rumored to be worth 2 million a year. UConn Women's basketball is worth 3 million a year to the YES network alone (and that's an old contract, the value is likely higher now). The Navy-Army game alone is currently worth 5 million a year under its old contract. The new Army-Navy contract is expected to at least double in value. ESPN is selling games to CBS-Sports Network. CBS-Sports Network currently pays 7 million a year to show CUSA games and 12 million a year to show MW games (under an old renegotiated contract). It should be noted that CBS-Sports pays the same for the second tier CUSA rights as Fox pays for the first tier rights. Finally, the AAC has a more populated footprint than the MW or CUSA. The CUSA contracts were made when many of the current AAC brands were in CUSA.
So, based upon the above---here is where I think our value reasonably lies---
Base Tier One Football Rights including Navy--ESPN--20 million
Second Tier Football Rights including Navy--CBS-Sports-20 million
Foofball CCG-2-3 miilion
Basketball---Here's the make or break thing for us. The Big East contract indicated our value is close to 40 million, the A-10 contract points to a much lower 5 million figure. My guess is the BE is overpaid and the AAC is more valuable than the A-10 (bigger footprint and more visable names). That said, this is the MAIN reason I think we are foolish not to add a cople of very high profile non-football schools to tip the balance for network executives (Wichita and VCU maybe?). I'll split the difference and say our value is 15-20 million for basketball.
Third Tier/Digital Rights---we get nothing for them now. UConn womens basketball is worth 3-4 million by itself. If we want to build up the value of our conference digital network we will need these rights. My feeling is we should retain those rights or get SOMETHING for them. I think we need at least 5-10 million, or we just retain them and find a way to monetize them ourselves.
So, taking the high end number everywhere---I get 73 million a year with Navy as a football only. Navy would get 5.25 million a year. The all-sports schools would get about 7 million a year. That would be a 3 to 4 fold increase over our current earnings. That's less than the MAC 10 fold increase, but given our much higher staring place, we shouldn't expect the same percentage increase. Here's the problem with my estimate---we cant get there for 5 more years. We would need to be on the open market to strike a separate deal with CBS-Sports Network. If we want to cash in earlier, we will need to extend the current ESPN contract. Would ESPN be willing to pay that 7-8 million dollar per team range? Perhaps. Perhaps not. My guess is they would want a discount to renegotiate a super low contract early. But I have to admit, the MAC deal surprised me. With the SEC Network potentially taking some current ESPN inventory, the possible ACC Network doing the same, and the Big-10 contract possibly ending up providing ESPN with less (and a competitor or the Big-10 Network more inventory), ESPN might finally be willing to build the AAC if they can lock in our relatively cheap inventory for a long period of time.
Posters keep saying we currrently get $2million....but IIRC isn't it actually closer to $1.5 million per school. Not a significant amount, but if the contract is doubled that means each school gets $3 million instead of $4 million...or if it is tripled .....$4.5 million as opposed to $6 million..
20 million ESPN
2 million CBS
22 million a year
22 million divided by 11 (Navy is under a separate indy contract until 2018), is 2 million each. That's where the 2 million a year number you keep hearing is coming from.
Thanks for the good info and I am sure you are correct. But, I keep thinking there was a report on actual money distributed after the conference took its share along with other expenses or whatever and the result was around $1.5 to $1.7 million. Maybe you can clear this up also.
That may be correct. That said, when we talk media contracts we talk raw numbers because each conference funds their conference offices differently. For instance, the ACC gives the conference a full share of the media deal to provide it funding.
However, I will tell you that total conference distribution (money from media, NCAA tournament credits, bowl payout sharing, entry/exit fee income, etc) is waaaaay above 1.5 million. Plus its also different for individual schools in the AAC due to the agreement on how income from entry/exit fees and left behind NCAA credits from defecting schools like Syracuse, Pittm Louisville, and W Virginia will be dispersed (lol, seniority counts). My understanding is UConn, USF, and Cinci get about 9 million each a year from the AAC. Houston, SMU, Temple, UCF, and Memphis each get around 6 million a year in total distributions. ECU, Tulane, and Tulsa get a little less than 6 million (I want to say they get between 4 and 5 million each---but Im really not sure on that one).
Yep, most folks forget about the separate CBS bball deal that pushes it to $2M.
Quote:From 2014-15 through the 2019-2020 school year, the former Big East is expected to receive $20 million annually for both football and basketball. Sources are also reporting the former Big East is nearing a new deal with CBS for select basketball games that will pay approximately $2 million per year.
http://espn.go.com/blog/playbook/dollars...sion-deals
FYI, Memphis reported an increase in conference distributions of @$2.7M moving from CUSA to AAC. Not sure if that included all/any exit fees as Louisville and Rutgers were still in the league at that time.
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