(03-21-2019 02:14 PM)quo vadis Wrote: (03-21-2019 01:04 PM)BullsFanInTX Wrote: Here’s a nugget at the end. The pac 12’s current tv deal is for 12 years 3 billion. The AACs new deal is for 12 years 1 billion. The AAC deal is EXACTLY 1/3 of the value of PAC deal. Just a nugget I found interesting on conference tv deals. Not 10x as much as some believe. 3x as much.
But ... the PAC deal was signed in 2011 and expires in 2024, and they have their own network which is distributing about $2m per school, even though badly mismanaged. They could sell that too if they get rid of Scott.
at this point I doubt they could sell it
they distribute $2 million to each school with nothing left over
so unless the investor is going to take zero return the only way an investor could get a return is to take part of the $24 million going to the PAC 12 members
even if they took 100% of that if an investor was OK with a 5% return they could invest $480 million
but of course that leaves nothing for any of the PAC 12 members so why would they do it unless they feel the up front $480 is worth it
and of course no one is going to invest $480 million because there is little chance they could ever sell that channel to anyone else, cable subscribers are declining especially for the PAC12n and it would take forever to get their money back $24 million a year in returns and that is not including the fact that they could get 3% in Tbills with no risk and probably better than 5% in sticks and bonds with little risk
so the cost of that $480 million in capital is high so they would need well over a 5% return
someone might be willing to pay well under $100 million for all of the PAC12n, but I doubt that even because it would take a long time to get their money back unless they were taking most all of the payments that used to go to the conference members and even then there is little chance they could ever sell it
and the idea that anyone would buy it and be able to gain more carriage (and thus boost profits and return on investment) is pretty much out the window now because it has been pretty much proven that no one is demanding the PAC12n and any of the companies that could probably force carriage by bundling with other channels are not going to be willing to push the limits with the known "not in demand" PAC12n especially when that purchase comes with the overhead of running an entire network that no current companies need