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Upper hand in future expansion: ESPN or the SEC? - Printable Version

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Upper hand in future expansion: ESPN or the SEC? - PeteTheChop - 05-26-2023 09:17 AM

From the Sports Business Journal video podcast last August:

Andrew Marchand (SBJ): "What is your criteria (wrt to conference expansion)? Do you look at these institutions and say, 'they're worth this much to us TV-wise, and, if you add those teams to your league, it's worth this much.' How do you look at it from a TV perspective?"

Burke Magnus (ESPN): "A very important nuance here because this often gets mischaracterized - certainly about us. The kind of analysis you're talking about, we don't get involved until it happens, right. If Conference X comes to us and says, 'hey, we've extended invitations to these two institutions' ... There are, in every contract we have, usually very specific provisions about how a negotiation would then commence — but it's after the fact, right, it's not before. We don't sit there ever and get involved in 'hey, guys you should do this school instead of that school and here's why.'

"But downstream, its our job to assess market value for institutions that are coming and those provisions have been specifically constructed in the rights agreements for a long time now. It used to be more of an open-ended process. In some contracts it's a specific number. You've heard the phrase pro rata, meaning like whoever comes in regardless of who it is gets a share equal to a per-institution share the others get (so) sometimes it's actually prescribed, sometimes it's a negotiation. Sometimes it's both (where) 'hey the baseline is a pro rata and we go from there' depending on who it is.

"I know people out there are looking for smoke and guns and suspect involvement (from ESPN) on the front end, but trust me when I tell you my day is full enough."

1. As ESPN's most valuable college property, does the SEC's pro rata clause likely fall in the (quoting Magnus) "whoever comes in regardless of who it is get a share equal to a per-institution share the others get" category?

2. Is it likely the SECret 7 were aware of the SEC's pro rata provisions during their (previously) confidential meetings? If so, how might that impact their collective determination in finding an escape hatch from the ACC?

3. What kind of leverage, if any, does an unrestricted pro rata clause for the SEC give Greg Sankey in negotiations with ESPN?

4. Or is Magnus simply being less than forthcoming and, in fact, as many here and elsewhere proclaim, ESPN can simply say "yes, we'll play a full share" or "no, we won't pay a full share" to any potential new members and thus the pro-rata clause isn't unrestricted at all?


RE: Upper hand in future expansion: ESPN or the SEC? - Frank the Tank - 05-26-2023 09:43 AM

ESPN is the one paying the bills.

ESPN has the super-favorable ACC contract where there is absolutely no rational interest for them to end it outside of Magnificent 7/SEC (or even Big Ten) fans trying to paint a biased picture of how the ACC breaking apart is somehow financially favorable to the Walt Disney Company that is in austerity mode right now.

Without ESPN, there is no additional money for the SEC. The SEC can’t go to the open market. As we see in the other thread, it’s an open question whether ESPN will even fund a 9th SEC conference game with freaking Texas and Oklahoma (who are more valuable brands than FSU and Clemson). If ESPN won’t kick in money so that UT-A&M is reinstated or preserving games like Alabama-Tennessee or UGA-Auburn, then they’re showing me that the extra value of adding games like FSU-UGA or Clemson-Alabama actually is NOT as important as keeping costs down. ESPN can instantly get a bunch of more marquee college football games with the SEC *now* but they’re wavering on spending anything on it.


RE: Upper hand in future expansion: ESPN or the SEC? - ArmoredUpKnight - 05-26-2023 10:52 AM

I do think we blame ESPN for a lot of these moves and its really the consultants in the commissioner's ear.


RE: Upper hand in future expansion: ESPN or the SEC? - The Sicatoka - 05-26-2023 11:14 AM

Who has the money? They have the upper hand.


RE: Upper hand in future expansion: ESPN or the SEC? - johnbragg - 05-26-2023 11:19 AM

(05-26-2023 09:43 AM)Frank the Tank Wrote:  ESPN is the one paying the bills.

ESPN has the super-favorable ACC contract where there is absolutely no rational interest for them to end it outside of Magnificent 7/SEC (or even Big Ten) fans trying to paint a biased picture of how the ACC breaking apart is somehow financially favorable to the Walt Disney Company that is in austerity mode right now.

Without ESPN, there is no additional money for the SEC. The SEC can’t go to the open market. As we see in the other thread, it’s an open question whether ESPN will even fund a 9th SEC conference game with freaking Texas and Oklahoma (who are more valuable brands than FSU and Clemson). If ESPN won’t kick in money so that UT-A&M is reinstated or preserving games like Alabama-Tennessee or UGA-Auburn, then they’re showing me that the extra value of adding games like FSU-UGA or Clemson-Alabama actually is NOT as important as keeping costs down. ESPN can instantly get a bunch of more marquee college football games with the SEC *now* but they’re wavering on spending anything on it.

you're overstating.

Texas -Texas A&M will happen, no doubt.

tge 9th game is about Texas-Tennessee or Georgia-Okkahoma. or Kentucky-Ole Miss


RE: Upper hand in future expansion: ESPN or the SEC? - Frank the Tank - 05-26-2023 11:21 AM

(05-26-2023 11:19 AM)johnbragg Wrote:  
(05-26-2023 09:43 AM)Frank the Tank Wrote:  ESPN is the one paying the bills.

ESPN has the super-favorable ACC contract where there is absolutely no rational interest for them to end it outside of Magnificent 7/SEC (or even Big Ten) fans trying to paint a biased picture of how the ACC breaking apart is somehow financially favorable to the Walt Disney Company that is in austerity mode right now.

Without ESPN, there is no additional money for the SEC. The SEC can’t go to the open market. As we see in the other thread, it’s an open question whether ESPN will even fund a 9th SEC conference game with freaking Texas and Oklahoma (who are more valuable brands than FSU and Clemson). If ESPN won’t kick in money so that UT-A&M is reinstated or preserving games like Alabama-Tennessee or UGA-Auburn, then they’re showing me that the extra value of adding games like FSU-UGA or Clemson-Alabama actually is NOT as important as keeping costs down. ESPN can instantly get a bunch of more marquee college football games with the SEC *now* but they’re wavering on spending anything on it.

you're overstating.

Texas -Texas A&M will happen, no doubt.

tge 9th game is about Texas-Tennessee or Georgia-Okkahoma. or Kentucky-Ole Miss

Texas-Oklahoma is almost certainly being protected no matter what happens. So, UT-A&M can’t be an annual rivalry if the SEC has a 1-7 format.


RE: Upper hand in future expansion: ESPN or the SEC? - johnbragg - 05-26-2023 11:26 AM

(05-26-2023 11:21 AM)Frank the Tank Wrote:  
(05-26-2023 11:19 AM)johnbragg Wrote:  
(05-26-2023 09:43 AM)Frank the Tank Wrote:  ESPN is the one paying the bills.

ESPN has the super-favorable ACC contract where there is absolutely no rational interest for them to end it outside of Magnificent 7/SEC (or even Big Ten) fans trying to paint a biased picture of how the ACC breaking apart is somehow financially favorable to the Walt Disney Company that is in austerity mode right now.

Without ESPN, there is no additional money for the SEC. The SEC can’t go to the open market. As we see in the other thread, it’s an open question whether ESPN will even fund a 9th SEC conference game with freaking Texas and Oklahoma (who are more valuable brands than FSU and Clemson). If ESPN won’t kick in money so that UT-A&M is reinstated or preserving games like Alabama-Tennessee or UGA-Auburn, then they’re showing me that the extra value of adding games like FSU-UGA or Clemson-Alabama actually is NOT as important as keeping costs down. ESPN can instantly get a bunch of more marquee college football games with the SEC *now* but they’re wavering on spending anything on it.

you're overstating.

Texas -Texas A&M will happen, no doubt.

tge 9th game is about Texas-Tennessee or Georgia-Okkahoma. or Kentucky-Ole Miss

Texas-Oklahoma is almost certainly being protected no matter what happens. So, UT-A&M can’t be an annual rivalry if the SEC has a 1-7 format.

Then they just wont have a pure 1-7 format. If the Big Ten is looking at a "flex" model where some teams have 1 protected rival, some have 2, some have 3, why can't the SEC? Or everyone gets three protected rivals, and you play 5 of the other 12 schools instead of 6.

Games like Texas- Texas A&M aren't going to get reduced. It's games like Texas vs (throws darts) Kentucky and Georgia. Texas vs Texas A&M every year is more important than making sure Texas visits Kentucky and Georgia once every four years. Maybe four, maybe five, maybe six years.


RE: Upper hand in future expansion: ESPN or the SEC? - PeteTheChop - 05-26-2023 11:31 AM

(05-26-2023 11:14 AM)The Sicatoka Wrote:  Who has the money? They have the upper hand.

So does a mandatory pro rata for all SEC newcomers exist or not?

Does ESPN have the power if Greg Sankey can get a full per-institution share for every addition to his conference?


RE: Upper hand in future expansion: ESPN or the SEC? - DC Texan - 05-26-2023 11:39 AM

(05-26-2023 11:21 AM)Frank the Tank Wrote:  
(05-26-2023 11:19 AM)johnbragg Wrote:  
(05-26-2023 09:43 AM)Frank the Tank Wrote:  ESPN is the one paying the bills.

ESPN has the super-favorable ACC contract where there is absolutely no rational interest for them to end it outside of Magnificent 7/SEC (or even Big Ten) fans trying to paint a biased picture of how the ACC breaking apart is somehow financially favorable to the Walt Disney Company that is in austerity mode right now.

Without ESPN, there is no additional money for the SEC. The SEC can’t go to the open market. As we see in the other thread, it’s an open question whether ESPN will even fund a 9th SEC conference game with freaking Texas and Oklahoma (who are more valuable brands than FSU and Clemson). If ESPN won’t kick in money so that UT-A&M is reinstated or preserving games like Alabama-Tennessee or UGA-Auburn, then they’re showing me that the extra value of adding games like FSU-UGA or Clemson-Alabama actually is NOT as important as keeping costs down. ESPN can instantly get a bunch of more marquee college football games with the SEC *now* but they’re wavering on spending anything on it.

you're overstating.

Texas -Texas A&M will happen, no doubt.

tge 9th game is about Texas-Tennessee or Georgia-Okkahoma. or Kentucky-Ole Miss

Texas-Oklahoma is almost certainly being protected no matter what happens. So, UT-A&M can’t be an annual rivalry if the SEC has a 1-7 format.

As a Texas fan I want to see OU & A&M played annually. Non-Conference I would like to see Texas go between TECH & Baylor.

These series should be played annually.
Old SWC series
A&M vs. TECH
A&M vs. Baylor
Arkansas vs. Baylor
Arkansas vs. TECH

Old Big8 series
OU vs. OSU
OU vs. Kansas
OU vs. KSU
Missouri vs. Kansas
Missouri vs. OSU
Missouri vs. KSU

Rivalries matter in college sports.


RE: Upper hand in future expansion: ESPN or the SEC? - Frank the Tank - 05-26-2023 11:54 AM

(05-26-2023 11:26 AM)johnbragg Wrote:  
(05-26-2023 11:21 AM)Frank the Tank Wrote:  
(05-26-2023 11:19 AM)johnbragg Wrote:  
(05-26-2023 09:43 AM)Frank the Tank Wrote:  ESPN is the one paying the bills.

ESPN has the super-favorable ACC contract where there is absolutely no rational interest for them to end it outside of Magnificent 7/SEC (or even Big Ten) fans trying to paint a biased picture of how the ACC breaking apart is somehow financially favorable to the Walt Disney Company that is in austerity mode right now.

Without ESPN, there is no additional money for the SEC. The SEC can’t go to the open market. As we see in the other thread, it’s an open question whether ESPN will even fund a 9th SEC conference game with freaking Texas and Oklahoma (who are more valuable brands than FSU and Clemson). If ESPN won’t kick in money so that UT-A&M is reinstated or preserving games like Alabama-Tennessee or UGA-Auburn, then they’re showing me that the extra value of adding games like FSU-UGA or Clemson-Alabama actually is NOT as important as keeping costs down. ESPN can instantly get a bunch of more marquee college football games with the SEC *now* but they’re wavering on spending anything on it.

you're overstating.

Texas -Texas A&M will happen, no doubt.

tge 9th game is about Texas-Tennessee or Georgia-Okkahoma. or Kentucky-Ole Miss

Texas-Oklahoma is almost certainly being protected no matter what happens. So, UT-A&M can’t be an annual rivalry if the SEC has a 1-7 format.

Then they just wont have a pure 1-7 format. If the Big Ten is looking at a "flex" model where some teams have 1 protected rival, some have 2, some have 3, why can't the SEC? Or everyone gets three protected rivals, and you play 5 of the other 12 schools instead of 6.

Games like Texas- Texas A&M aren't going to get reduced. It's games like Texas vs (throws darts) Kentucky and Georgia. Texas vs Texas A&M every year is more important than making sure Texas visits Kentucky and Georgia once every four years. Maybe four, maybe five, maybe six years.

That’s all possible, but as we have seen in both the SEC and Big Ten, individual athletic departments have very different ideas about what’s best for the conference (as evidenced by the “shock and horror” from schools like Michigan, Ohio State and Penn State that in order to receive the full value of the NBC prime time contract with the Big Ten, they actually have to play prime time games the whole year as opposed to only before Halloween).

Look at how Nick Saban (who had been a proponent of a 9-game SEC schedule) got miffed when he perceived Alabama’s set of annual rivals would be more difficult than everyone else. These schools can’t handle the perception of one school getting better or more favorable treatment than another one, which is why having schools get a different number of annual rivals is so difficult in practice.

So, I’d agree that’s a possible solution if the SEC schools would consider it, but my impression is that the SEC schools are even more obsessed with the perceived strength/weakness of their annual games than the Big Ten schools and, as a result, no one is agreeing to any format that doesn’t apply equally to everyone.


RE: Upper hand in future expansion: ESPN or the SEC? - esayem - 05-26-2023 12:02 PM

(05-26-2023 11:31 AM)PeteTheChop Wrote:  
(05-26-2023 11:14 AM)The Sicatoka Wrote:  Who has the money? They have the upper hand.

So does a mandatory pro rata for all SEC newcomers exist or not?

Does ESPN have the power if Greg Sankey can get a full per-institution share for every addition to his conference?

Does it matter? What’s the incentive? I mean, go ahead and invite ECU and Old Dominion because there aren’t any other possibilities until the early or mid 30’s.


RE: Upper hand in future expansion: ESPN or the SEC? - The Sicatoka - 05-26-2023 12:24 PM

(05-26-2023 11:31 AM)PeteTheChop Wrote:  
(05-26-2023 11:14 AM)The Sicatoka Wrote:  Who has the money? They have the upper hand.

So does a mandatory pro rata for all SEC newcomers exist or not?

Does ESPN have the power if Greg Sankey can get a full per-institution share for every addition to his conference?

ESPN would not have signed the contract if they weren't amenable to it.


RE: Upper hand in future expansion: ESPN or the SEC? - UCbball21 - 05-26-2023 12:38 PM

(05-26-2023 09:43 AM)Frank the Tank Wrote:  ESPN is the one paying the bills.

ESPN has the super-favorable ACC contract where there is absolutely no rational interest for them to end it outside of Magnificent 7/SEC (or even Big Ten) fans trying to paint a biased picture of how the ACC breaking apart is somehow financially favorable to the Walt Disney Company that is in austerity mode right now.

Without ESPN, there is no additional money for the SEC. The SEC can’t go to the open market. As we see in the other thread, it’s an open question whether ESPN will even fund a 9th SEC conference game with freaking Texas and Oklahoma (who are more valuable brands than FSU and Clemson). If ESPN won’t kick in money so that UT-A&M is reinstated or preserving games like Alabama-Tennessee or UGA-Auburn, then they’re showing me that the extra value of adding games like FSU-UGA or Clemson-Alabama actually is NOT as important as keeping costs down. ESPN can instantly get a bunch of more marquee college football games with the SEC *now* but they’re wavering on spending anything on it.

Agreed, the GOR is very likely ironclad no matter how much Clemson, FSU, and Miami whine. They should have never accepted such a long deal/GOR in the first place, much less extend it again in order for ESPN to add a conference network that no one watches.

It's unclear that even if they are able to dissolve the conference, will they still even be able to retain their media rights? Unless the ACC GOR is leaked, we really have no way of knowing.

I don't have any sympathy though, all of their pain is 100% self-inflicted. They got fleeced by ESPN and it took them 3 years to realize it. They are just going to have to make do with the bed they made until sometime next decade.


RE: Upper hand in future expansion: ESPN or the SEC? - johnbragg - 05-26-2023 12:41 PM

(05-26-2023 11:54 AM)Frank the Tank Wrote:  
(05-26-2023 11:26 AM)johnbragg Wrote:  
(05-26-2023 11:21 AM)Frank the Tank Wrote:  
(05-26-2023 11:19 AM)johnbragg Wrote:  
(05-26-2023 09:43 AM)Frank the Tank Wrote:  ESPN is the one paying the bills.

ESPN has the super-favorable ACC contract where there is absolutely no rational interest for them to end it outside of Magnificent 7/SEC (or even Big Ten) fans trying to paint a biased picture of how the ACC breaking apart is somehow financially favorable to the Walt Disney Company that is in austerity mode right now.

Without ESPN, there is no additional money for the SEC. The SEC can’t go to the open market. As we see in the other thread, it’s an open question whether ESPN will even fund a 9th SEC conference game with freaking Texas and Oklahoma (who are more valuable brands than FSU and Clemson). If ESPN won’t kick in money so that UT-A&M is reinstated or preserving games like Alabama-Tennessee or UGA-Auburn, then they’re showing me that the extra value of adding games like FSU-UGA or Clemson-Alabama actually is NOT as important as keeping costs down. ESPN can instantly get a bunch of more marquee college football games with the SEC *now* but they’re wavering on spending anything on it.

you're overstating.

Texas -Texas A&M will happen, no doubt.

tge 9th game is about Texas-Tennessee or Georgia-Okkahoma. or Kentucky-Ole Miss

Texas-Oklahoma is almost certainly being protected no matter what happens. So, UT-A&M can’t be an annual rivalry if the SEC has a 1-7 format.

Then they just wont have a pure 1-7 format. If the Big Ten is looking at a "flex" model where some teams have 1 protected rival, some have 2, some have 3, why can't the SEC? Or everyone gets three protected rivals, and you play 5 of the other 12 schools instead of 6.

Games like Texas- Texas A&M aren't going to get reduced. It's games like Texas vs (throws darts) Kentucky and Georgia. Texas vs Texas A&M every year is more important than making sure Texas visits Kentucky and Georgia once every four years. Maybe four, maybe five, maybe six years.

That’s all possible, but as we have seen in both the SEC and Big Ten, individual athletic departments have very different ideas about what’s best for the conference (as evidenced by the “shock and horror” from schools like Michigan, Ohio State and Penn State that in order to receive the full value of the NBC prime time contract with the Big Ten, they actually have to play prime time games the whole year as opposed to only before Halloween).

Look at how Nick Saban (who had been a proponent of a 9-game SEC schedule) got miffed when he perceived Alabama’s set of annual rivals would be more difficult than everyone else. These schools can’t handle the perception of one school getting better or more favorable treatment than another one, which is why having schools get a different number of annual rivals is so difficult in practice.

So, I’d agree that’s a possible solution if the SEC schools would consider it, but my impression is that the SEC schools are even more obsessed with the perceived strength/weakness of their annual games than the Big Ten schools and, as a result, no one is agreeing to any format that doesn’t apply equally to everyone.

Then everybody gets 3 permanent rivals, and you play 5 of the other 12 teams.

But the answer is NOT, under any permutation of circumstances, that Texas doesn't play A&M and Oklahoma every year or Alabama doesn't play Tennesee and Auburn every year.

I think 9 games happens, probably in 2024. But I don't think "the SEC can't play 8 games, because Texas has two massive TV rivalry games" is a sufficient argument.

"Texas has two massive TV rivalry games, and nobody in the SEC will accept a flex-rivalry schedule" maybe.

"ESPN comes up with the cash and makes it happen" pretty likely, actually.


RE: Upper hand in future expansion: ESPN or the SEC? - PeteTheChop - 05-26-2023 12:42 PM

(05-26-2023 12:24 PM)The Sicatoka Wrote:  
(05-26-2023 11:31 AM)PeteTheChop Wrote:  
(05-26-2023 11:14 AM)The Sicatoka Wrote:  Who has the money? They have the upper hand.

So does a mandatory pro rata for all SEC newcomers exist or not?

Does ESPN have the power if Greg Sankey can get a full per-institution share for every addition to his conference?

ESPN would not have signed the contract if they weren't amenable to it.

So to be clear: ESPN is good with a paying the increase necessary so that each and every school Sankey invites to the SEC receives a full share from Day 1?


RE: Upper hand in future expansion: ESPN or the SEC? - UCbball21 - 05-26-2023 12:45 PM

(05-26-2023 10:52 AM)ArmoredUpKnight Wrote:  I do think we blame ESPN for a lot of these moves and its really the consultants in the commissioner's ear.

Of course, Burke is going to say they don't meddle in conference realignment. The last thing ESPN needs is a lawsuit.


RE: Upper hand in future expansion: ESPN or the SEC? - johnbragg - 05-26-2023 12:45 PM

(05-26-2023 12:42 PM)PeteTheChop Wrote:  
(05-26-2023 12:24 PM)The Sicatoka Wrote:  
(05-26-2023 11:31 AM)PeteTheChop Wrote:  
(05-26-2023 11:14 AM)The Sicatoka Wrote:  Who has the money? They have the upper hand.

So does a mandatory pro rata for all SEC newcomers exist or not?

Does ESPN have the power if Greg Sankey can get a full per-institution share for every addition to his conference?

ESPN would not have signed the contract if they weren't amenable to it.

So to be clear: ESPN is good with a paying the increase necessary so that each and every school Sankey invites to the SEC receives a full share from Day 1?

Much like Florida State being stuck in the ACC, whether they're good with it or not, it's what they signed on for.

But ESPN has much more leverage to get that contract change. I'm talking about carrots, not about using muscle to change the contract.


RE: Upper hand in future expansion: ESPN or the SEC? - RUScarlets - 05-26-2023 12:47 PM

(05-26-2023 09:17 AM)PeteTheChop Wrote:  From the Sports Business Journal video podcast last August:

Andrew Marchand (SBJ): "What is your criteria (wrt to conference expansion)? Do you look at these institutions and say, 'they're worth this much to us TV-wise, and, if you add those teams to your league, it's worth this much.' How do you look at it from a TV perspective?"

Burke Magnus (ESPN): "A very important nuance here because this often gets mischaracterized - certainly about us. The kind of analysis you're talking about, we don't get involved until it happens, right. If Conference X comes to us and says, 'hey, we've extended invitations to these two institutions' ... There are, in every contract we have, usually very specific provisions about how a negotiation would then commence — but it's after the fact, right, it's not before. We don't sit there ever and get involved in 'hey, guys you should do this school instead of that school and here's why.'

"But downstream, its our job to assess market value for institutions that are coming and those provisions have been specifically constructed in the rights agreements for a long time now. It used to be more of an open-ended process. In some contracts it's a specific number. You've heard the phrase pro rata, meaning like whoever comes in regardless of who it is gets a share equal to a per-institution share the others get (so) sometimes it's actually prescribed, sometimes it's a negotiation. Sometimes it's both (where) 'hey the baseline is a pro rata and we go from there' depending on who it is.

"I know people out there are looking for smoke and guns and suspect involvement (from ESPN) on the front end, but trust me when I tell you my day is full enough."

1. As ESPN's most valuable college property, does the SEC's pro rata clause likely fall in the (quoting Magnus) "whoever comes in regardless of who it is get a share equal to a per-institution share the others get" category?

2. Is it likely the SECret 7 were aware of the SEC's pro rata provisions during their (previously) confidential meetings? If so, how might that impact their collective determination in finding an escape hatch from the ACC?

3. What kind of leverage, if any, does an unrestricted pro rata clause for the SEC give Greg Sankey in negotiations with ESPN?

4. Or is Magnus simply being less than forthcoming and, in fact, as many here and elsewhere proclaim, ESPN can simply say "yes, we'll play a full share" or "no, we won't pay a full share" to any potential new members and thus the pro-rata clause isn't unrestricted at all?

Pure and total BS.... but nice cover story. Exactly how the Big East was dismantled, right? Or why WVU was added to the Big 12? Will be sure to ignore this bum on all future things realignment.


RE: Upper hand in future expansion: ESPN or the SEC? - Skyhawk - 05-26-2023 12:48 PM

(05-26-2023 09:17 AM)PeteTheChop Wrote:  From the Sports Business Journal video podcast last August:

Andrew Marchand (SBJ): "What is your criteria (wrt to conference expansion)? Do you look at these institutions and say, 'they're worth this much to us TV-wise, and, if you add those teams to your league, it's worth this much.' How do you look at it from a TV perspective?"

Burke Magnus (ESPN): "A very important nuance here because this often gets mischaracterized - certainly about us. The kind of analysis you're talking about, we don't get involved until it happens, right. If Conference X comes to us and says, 'hey, we've extended invitations to these two institutions' ... There are, in every contract we have, usually very specific provisions about how a negotiation would then commence — but it's after the fact, right, it's not before. We don't sit there ever and get involved in 'hey, guys you should do this school instead of that school and here's why.'

"But downstream, its our job to assess market value for institutions that are coming and those provisions have been specifically constructed in the rights agreements for a long time now. It used to be more of an open-ended process. In some contracts it's a specific number. You've heard the phrase pro rata, meaning like whoever comes in regardless of who it is gets a share equal to a per-institution share the others get (so) sometimes it's actually prescribed, sometimes it's a negotiation. Sometimes it's both (where) 'hey the baseline is a pro rata and we go from there' depending on who it is.

"I know people out there are looking for smoke and guns and suspect involvement (from ESPN) on the front end, but trust me when I tell you my day is full enough."

1. As ESPN's most valuable college property, does the SEC's pro rata clause likely fall in the (quoting Magnus) "whoever comes in regardless of who it is get a share equal to a per-institution share the others get" category?

2. Is it likely the SECret 7 were aware of the SEC's pro rata provisions during their (previously) confidential meetings? If so, how might that impact their collective determination in finding an escape hatch from the ACC?

3. What kind of leverage, if any, does an unrestricted pro rata clause for the SEC give Greg Sankey in negotiations with ESPN?

4. Or is Magnus simply being less than forthcoming and, in fact, as many here and elsewhere proclaim, ESPN can simply say "yes, we'll play a full share" or "no, we won't pay a full share" to any potential new members and thus the pro-rata clause isn't unrestricted at all?

One word:

Back-channels.


RE: Upper hand in future expansion: ESPN or the SEC? - The Sicatoka - 05-26-2023 12:52 PM

(05-26-2023 12:42 PM)PeteTheChop Wrote:  
(05-26-2023 12:24 PM)The Sicatoka Wrote:  
(05-26-2023 11:31 AM)PeteTheChop Wrote:  
(05-26-2023 11:14 AM)The Sicatoka Wrote:  Who has the money? They have the upper hand.

So does a mandatory pro rata for all SEC newcomers exist or not?

Does ESPN have the power if Greg Sankey can get a full per-institution share for every addition to his conference?

ESPN would not have signed the contract if they weren't amenable to it.

So to be clear: ESPN is good with a paying the increase necessary so that each and every school Sankey invites to the SEC receives a full share from Day 1?

It's trust and it's a signal that ESPN believes Sankey will only make "value add" additions to the SEC.

Sankey is going to protect the brand. He's not going to add Savannah State and Gardner-Webb just to test ESPN's checkbook. Sankey knows that would not end well for him or the next SEC deal.

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