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AAC and ESPN Exclusive Negotiating Window?
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Attackcoog Offline
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RE: AAC and ESPN Exclusive Negotiating Window?
(03-03-2019 03:54 PM)Shannon Panther Wrote:  
(03-03-2019 12:55 PM)Attackcoog Wrote:  
(03-03-2019 06:09 AM)CougarRed Wrote:  So this very explicit slide from the Memphis BOR presentation says:

$3.45M per school from ESPN next year (about 100% raise during what was to be the final year of the current deal).

$6.95M per school from ESPN in following years.

The TV contract being worth $83M and change per year.

The numbers are quite specific. With the Memphis president on the TV negotiating committee, they would know...

As for UConn, I looked at the latest Big East Form 990. They distributed about $3.55M to their members. Their TV deal is about 40% of the future American deal.

So UConn can keep football and collect $8.5M from the American. Or UConn can punt on football, pay $10M to leave the American, pay $X to join the Big East and collect $3.55M per year.

I think UConn stays put, at least until the tectonic plates shift in the next round of P5 realignment.

[Image: 5fc28d156a415ea1779d674e163483e8.jpg]

This also tends to verify its an “all in with ESPN” deal as the income projection from the small CBS side deal for basketball abruptly falls to zero when the new deal starts. Also, your right—the numbers are very specific. It indicates an 4.094 fold increase in value. That’s awfully specific to be just a “projected” guess.

It doesn't mean that you are all in with ESPN. Aresco has said there will be multiple tiers and multiple partners. It is entirely possible that this is the Tier 1 or Tier 1 & 2 rights with tier 3 yet to be negotiated. If it is only Tier 1 and you are getting $7 million it bodes well for the conference. Even if you are all in at $7 million per year, that is 85% of the expected number of $8 million. Not the best but hardly pocket change either.

At $7 million per school the AAC will be 3.5x better compensated than the other schools outside of the P5. That creates a measurable separation and also moves you forward in the race to keep up. Your performance on the field has separated you over the last few years. This codifies it with hard currency.

If that were the case, then there would be projected income other than "ESPN" on the slide my comment was based upon. Its clearly an "all in" deal. It apparently even includes a small slice of basketball content that ESPN never had the rights to (Im referring to the small CBS OTA contract the AAC currently has that shows up in the first year of the slide). It is possible that some sublicensing by ESPN will continue to occur---but it doesnt appear the AAC will be selling content directly to any other network.
(This post was last modified: 03-03-2019 05:22 PM by Attackcoog.)
03-03-2019 05:17 PM
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RE: AAC and ESPN Exclusive Negotiating Window? - Attackcoog - 03-03-2019 05:17 PM



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