(03-14-2013 08:36 AM)Hokie Mark Wrote: It's pretty obvious that both the ACC and the Big 12 are looking up at the Big Ten, Pac-12, and soon the SEC (once they get their network up & running). It just doesn't make sense to make this an ACC vs. Big 12 issue. Bowlsby is smart to look into the possibility of an alliance to benefit both leagues. We'll see if it pans out (I hope so).
Not sure I agree with this at all. The Pac-12, even with a network, is not really seen as a huge money maker. There is at least potential there. But the Pac-12 has yet to demonstrate either the on the field success or the off the field success to clealy show it will distance itself from the other conferences.
The SEC also brings similar questions. Although the on the field product is clearly top notch, the SEC is not making signifcantly more money than the other conferences are. The belief seems to be that the SEC will magically make more money once they have a network. However, that analysis seems to be nothing more than the Big 10 network makes money and the SEC is better than the Big 10. It ignores possible distribution issues (see Pac-12) and more importantly ignores the fact that the SEC actually owns none of its broadcast rights.
The Big 10 contributed all its Tier 2 and Tier 3 stuff to the Big Ten Network and still only holds a minority share in the Big 10 Network. It's a very profitable minority share, but a minority nonetheless. Unfortunately, the SEC owns neither its Tier 2 or Tier 3 rights. ESPN bought the Tier 2 stuff and the schools sold off their Tier 3 stuff to various third parties. How exactly is the SEC going to make money off a network it contributes nothing to?
I think the belief is that the SEC will negotitate buyouts of the existing Tier 3 deals and then bundle them in a package to ESPN. This at least means the SEC brings
something to the network. The idea is that the whole is more than a sum of it parts. But one has to acknowledge several things:
(1) The SEC will spend money to buy-out existing deals. So it needs to make a certain amount of money just to break even and cover these costs. Eventually those deals would have expired, which means long-term these costs will go away. But short term, it may not be the huge financial boon some think.
(2) ESPN will likely provide much of the legwork for setting up, running, and distributing the network (much like Fox has for the Big 10). Fox got 51% of the Network (initially) to do this. ESPN will likely command a similar number. ESPN will also be providing the Tier 2 content as they already own it via their prior deals. And Tier 2 content is much more valuable than Tier 3 content. So ESPN will be contributing the overwhelming majority of content and work to the network. It won't be the same financial set-up the Big 10 Network has.
All of which isn't to say the SEC cannot make money off this set-up. But the idea the SEC will get what the Big 10 gets is laughable, even if it ends up being a more successful network. The SEC is still rock solid and should earn more than the ACC, Pac-12, or Big 12. But I don't see how it reaches Big 10 territory.