http://www.sportsbusinessdaily.com/Journ...yoffs.aspx

It is getting more complicated by the second. What does this mean for the BE? If ESPN is willing to pay $80M for one game, that $130M they offered to ESPN per year for all the inventory is peanuts. BE should definitely use this info and get as much money as possible next couple of months.

the Beast should sign a deal that is a combined deal, just have to find a bowl that we can lock in.

(07-16-2012 05:02 PM)dantes69 Wrote:  the Beast should sign a deal that is a combined deal, just have to find a bowl that we can lock in.

BE would be wise to start a new bowl with its new TV partner. BE just needs to promote its own bowl going forward. It would help alot if new BE schools can actually perform on the football field. In a couple of years, BE might be in a total different situation if all the new schools bring something to the table.

(07-16-2012 04:58 PM)SF Husky Wrote:  http://www.sportsbusinessdaily.com/Journ...yoffs.aspx

It is getting more complicated by the second. What does this mean for the BE? If ESPN is willing to pay $80M for one game, that $130M they offered to ESPN per year for all the inventory is peanuts. BE should definitely use this info and get as much money as possible next couple of months.

I don't think it really says that much about the conference deals themselves. The inventory itself doesn't matter that much - 1 very high-rated game is very often worth substantially more than a couple of hundred football and basketball games that don't draw high ratings. TV rights rise in logarithmic fashion. That is, a game with a 9.0 rating isn't just worth 3 times as much as a game with a 3.0 rating. Instead, that 9.0 rating game could be worth 10 times as much (or even more) as a game with a 3.0 rating because of the premium assigned to any program that can draw that many people at one time. There's a scarcity of programs that draw ratings as high as the Rose Bowl (and not just in sports, but the entire landscape of TV entertainment), so that's why it can command such a high price for only one game per year.

What's more important is the detail contained in that news story: the Big Ten and Pac-12 are splitting ALL of that Rose Bowl media revenue. They are going to be making $40 million per year each (over twice as much as they're getting paid in the current BCS system) from the Rose Bowl alone even BEFORE taking into account any semifinal and championship game revenue distributions. That shows you how massive of a financial advantage there's going to be for the conferences that have a contractual tie-in to one of the major bowls. Note that the ACC is keeping the media revenue from the Orange Bowl, too, while the Champions Bowl is going to provide the same to the Big 12 and SEC.

Exactly. Heck, the Rose Bowl is still getting a lot less money than ESPN pays for each Monday Night Football game. This sets the bar for the value of the other 6 major bowls tho. The 2 semifinals are probably worth a little more, the Champions Bowl is probably worth a little less, the Orange Bowl and 2 access bowls probably slot in behind that.

(07-16-2012 05:23 PM)General Mike Wrote:  Exactly. Heck, the Rose Bowl is still getting a lot less money than ESPN pays for each Monday Night Football game. This sets the bar for the value of the other 6 major bowls tho. The 2 semifinals are probably worth a little more, the Champions Bowl is probably worth a little less, the Orange Bowl and 2 access bowls probably slot in behind that.

Yep. TV folks figure the Orange Bowl slots in behind the Champions Bowl because the team opposite the ACC isn't tied to a specific conference/school yet, where the Champions Bowl would always have a Big 12/SEC matchup.

What it means is it's going to be near impossible for teams in the Big East and/or any league without a major bowl tie-in to compete over time. The arms race with facilities, recruiting budgets, stadium expansions, etc will only continue to grow. Thankfully UofL has the top basketball revenue, but over time even that will continue to shrink percentage wise to new football media revenue.

I think it will also be very difficult to keep coaching talent in the league once the divide occurs. I don't want to sound like chicken little but the picture is not rosy.

(07-16-2012 06:06 PM)CollegeCard Wrote:  What it means is it's going to be near impossible for teams in the Big East and/or any league without a major bowl tie-in to compete over time. The arms race with facilities, recruiting budgets, stadium expansions, etc will only continue to grow. Thankfully UofL has the top basketball revenue, but over time even that will continue to shrink percentage wise to new football media revenue.

I think it will also be very difficult to keep coaching talent in the league once the divide occurs. I don't want to sound like chicken little but the picture is not rosy.

Not being a chicken little but facing reality...wait until the SEC Network gets off the ground...some say the B1G Network was a gamechanger...they aint seen nothing yet.

Only the 3 major sports-(NFL, MLB & NBA) will be generating the kind of income the SEC will in the future.

(07-16-2012 06:06 PM)CollegeCard Wrote:  What it means is it's going to be near impossible for teams in the Big East and/or any league without a major bowl tie-in to compete over time. The arms race with facilities, recruiting budgets, stadium expansions, etc will only continue to grow. Thankfully UofL has the top basketball revenue, but over time even that will continue to shrink percentage wise to new football media revenue.

I think it will also be very difficult to keep coaching talent in the league once the divide occurs. I don't want to sound like chicken little but the picture is not rosy.

I hear what you are saying, but what's the difference between $15M and $25M? There's only so many things you can spend the money on, after awhile it just goes to the school and they build a dozen new science buildings every year...

(07-16-2012 06:55 PM)Lord2FLI Wrote:  

(07-16-2012 06:06 PM)CollegeCard Wrote:  What it means is it's going to be near impossible for teams in the Big East and/or any league without a major bowl tie-in to compete over time. The arms race with facilities, recruiting budgets, stadium expansions, etc will only continue to grow. Thankfully UofL has the top basketball revenue, but over time even that will continue to shrink percentage wise to new football media revenue.

I think it will also be very difficult to keep coaching talent in the league once the divide occurs. I don't want to sound like chicken little but the picture is not rosy.

I hear what you are saying, but what's the difference between $15M and $25M? There's only so many things you can spend the money on, after awhile it just goes to the school and they build a dozen new science buildings every year...

As the money continues to spiral upward and schools are seeing tuition rise much faster than inflation, they will want that money. I doubt much of it can be put back into athletics over a starving academic side, the Longhorn network is a prime example of this

(07-16-2012 06:55 PM)Lord2FLI Wrote:  

(07-16-2012 06:06 PM)CollegeCard Wrote:  What it means is it's going to be near impossible for teams in the Big East and/or any league without a major bowl tie-in to compete over time. The arms race with facilities, recruiting budgets, stadium expansions, etc will only continue to grow. Thankfully UofL has the top basketball revenue, but over time even that will continue to shrink percentage wise to new football media revenue.

I think it will also be very difficult to keep coaching talent in the league once the divide occurs. I don't want to sound like chicken little but the picture is not rosy.

I hear what you are saying, but what's the difference between $15M and $25M? There's only so many things you can spend the money on, after awhile it just goes to the school and they build a dozen new science buildings every year...

You can always pay the coach more. And pay the assistants more.

I think a lot of the money will be plowed into what are now non-revenue sports, to try to promote them into being small-revenue sports--baseball, maybe soccer.

(07-16-2012 07:12 PM)MiddleTiger Wrote:  As the money continues to spiral upward and schools are seeing tuition rise much faster than inflation, they will want that money. I doubt much of it can be put back into athletics over a starving academic side, the Longhorn network is a prime example of this

LHN per press releases, guaranteed around $5 million, or 50% of revenue, to the academic side of the house

http://www.texassports.com/genrel/011911aaa.html See paragraph #4

(07-16-2012 08:10 PM)mattsarz Wrote:  

(07-16-2012 07:12 PM)MiddleTiger Wrote:  As the money continues to spiral upward and schools are seeing tuition rise much faster than inflation, they will want that money. I doubt much of it can be put back into athletics over a starving academic side, the Longhorn network is a prime example of this

LHN per press releases, guaranteed around $5 million, or 50% of revenue, to the academic side of the house

Exactly. When these cash strapped schools see all this money flowing in and all the AD's want to do is build newer, non-essential facilities and throw more money at coaches, they will step in and take it.