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BE TV Negotiation is Expected to Start at $2B
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SF Husky Offline
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Post: #1
BE TV Negotiation is Expected to Start at $2B
Last year, the league reportedly turned down an ESPN deal worth $1.4 billion over nine years. The Big East negotiations are expected to start at $2 billion.

Read more: http://www.philly.com/philly/sports/coll...07656.html
Watch sports videos you won't find anywhere else

With some comments from NOVA AD.

http://www.philly.com/philly/sports/coll...07656.html
(This post was last modified: 08-15-2012 12:15 AM by SF Husky.)
08-14-2012 11:50 PM
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TripleA Offline
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RE: BE TV Negotiation is Expected to Start at $2B
Depends on the number of years we're talking, though, and whether Navy and #14 are included, too.

P.S. Link not working.
(This post was last modified: 08-14-2012 11:53 PM by TripleA.)
08-14-2012 11:52 PM
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AirRaid Offline
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RE: BE TV Negotiation is Expected to Start at $2B
15.9 Million are year, if I did my math right. Links not working though.
(This post was last modified: 08-15-2012 12:10 AM by AirRaid.)
08-15-2012 12:09 AM
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SF Husky Offline
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RE: BE TV Negotiation is Expected to Start at $2B
(08-15-2012 12:09 AM)AirRaid Wrote:  15.9 Million are year, if I did my math right. Links not working though.

Their link is all messed up. I fixed it above.

http://www.philly.com/philly/sports/coll...07656.html
08-15-2012 12:15 AM
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CougarRed Offline
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RE: BE TV Negotiation is Expected to Start at $2B
Next month, the Big East will meet with ESPN, which has an exclusive 60-day window. The league is free to negotiate with other networks if no agreement is reached with ESPN.

Last year, the league reportedly turned down an ESPN deal worth $1.4 billion over nine years. The Big East negotiations are expected to start at $2 billion.

"I think it is a terrific hire," Nicastro said.

****************

$2B over 9 years is $222M per year. That's essentially $15M per all sport school ($150M), $10M per football school ($40M) and $5M per basketball school ($40M).

That's a helluva starting point. The key unknown is whether $2B is over 9 years, or over a longer term.
08-15-2012 12:19 AM
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SF Husky Offline
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RE: BE TV Negotiation is Expected to Start at $2B
More positive press from the NY Times:

http://www.nytimes.com/2012/08/15/sports...ioner.html

All the consultants said BE won't have any problem generating interest or money from the next deal.
08-15-2012 12:22 AM
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SF Husky Offline
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RE: BE TV Negotiation is Expected to Start at $2B
Another article from Businessweek:

http://www.businessweek.com/news/2012-08...mmissioner

Quote:The conference is seeking to at least double revenue in its next television contract, Rutgers Athletic Director Tim Pernetti said this year without disclosing a dollar figure. The Big East rejected a $155 million annual deal with ESPN last year.

I don't know what double revenue means, but it got to be something big.
(This post was last modified: 08-15-2012 12:26 AM by SF Husky.)
08-15-2012 12:25 AM
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CommuterBob Offline
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RE: BE TV Negotiation is Expected to Start at $2B
(08-15-2012 12:25 AM)SF Husky Wrote:  Another article from Businessweek:

http://www.businessweek.com/news/2012-08...mmissioner

Quote:The conference is seeking to at least double revenue in its next television contract, Rutgers Athletic Director Tim Pernetti said this year without disclosing a dollar figure. The Big East rejected a $155 million annual deal with ESPN last year.

I don't know what double revenue means, but it got to be something big.

Double revenue at the conference level would be a lowball offer (~$100M). Double revenue at the per-school level would be around the $155M that they turned down from ESPN.
08-15-2012 12:38 AM
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CommuterBob Offline
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RE: BE TV Negotiation is Expected to Start at $2B
If they start at $2B for 12 years, that's $166M/year, which (using the 70/30 FB/BB split) breaks down to:

$8.3M for FB-only
$2.7M for BB-only
$11M for all-sports

BYU's not coming for that.

I tend to believe it will end up as:

$12M for FB-only
$4M for BB-only
$16M for all-sports

Or $240M/year overall and $2.9B over 12 years

Based on speculative statements seen in the press:
"Schools will see ACC-type money" - $16M/year is pretty close to $17M/year
"BE deal could approach PAC-level money" - $2.9B is pretty close to $3B overall for the same 12-year contract

Now if the BE truly saw a $20M/year/school deal, it would be for $300M/year overall or $3.6B over a 12-year contract, or 26% more than the ACC gets per year.
08-15-2012 12:53 AM
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SF Husky Offline
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Post: #10
RE: BE TV Negotiation is Expected to Start at $2B
Another great article from UCONN country:

http://www.courant.com/sports/college/hc...3339.story
08-15-2012 12:56 AM
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SF Husky Offline
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RE: BE TV Negotiation is Expected to Start at $2B
(08-15-2012 12:53 AM)CommuterBob Wrote:  If they start at $2B for 12 years, that's $166M/year, which (using the 70/30 FB/BB split) breaks down to:

$8.3M for FB-only
$2.7M for BB-only
$11M for all-sports

BYU's not coming for that.

I tend to believe it will end up as:

$12M for FB-only
$4M for BB-only
$16M for all-sports

Or $240M/year overall and $2.9B over 12 years

Based on speculative statements seen in the press:
"Schools will see ACC-type money" - $16M/year is pretty close to $17M/year
"BE deal could approach PAC-level money" - $2.9B is pretty close to $3B overall for the same 12-year contract

Now if the BE truly saw a $20M/year/school deal, it would be for $300M/year overall or $3.6B over a 12-year contract, or 26% more than the ACC gets per year.

I would be very happy if the new BE deal is more than the ACC deal. ACC got screwed and they will continue to be screwed for the next 16 years.
08-15-2012 12:57 AM
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FULL_MONTY Offline
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Post: #12
RE: BE TV Negotiation is Expected to Start at $2B
(08-15-2012 12:53 AM)CommuterBob Wrote:  If they start at $2B for 12 years, that's $166M/year, which (using the 70/30 FB/BB split) breaks down to:

$8.3M for FB-only
$2.7M for BB-only
$11M for all-sports

BYU's not coming for that.

I tend to believe it will end up as:

$12M for FB-only
$4M for BB-only
$16M for all-sports

Or $240M/year overall and $2.9B over 12 years

Based on speculative statements seen in the press:
"Schools will see ACC-type money" - $16M/year is pretty close to $17M/year
"BE deal could approach PAC-level money" - $2.9B is pretty close to $3B overall for the same 12-year contract

Now if the BE truly saw a $20M/year/school deal, it would be for $300M/year overall or $3.6B over a 12-year contract, or 26% more than the ACC gets per year.

why 12 years?
08-15-2012 01:04 AM
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templefootballfan Online
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Post: #13
RE: BE TV Negotiation is Expected to Start at $2B
no way BB only take 2.7 a yr on 2 billion dollar contract.
they want to be paid for BE brand name
08-15-2012 01:25 AM
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CommuterBob Offline
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RE: BE TV Negotiation is Expected to Start at $2B
(08-15-2012 01:04 AM)FULL_MONTY Wrote:  
(08-15-2012 12:53 AM)CommuterBob Wrote:  If they start at $2B for 12 years, that's $166M/year, which (using the 70/30 FB/BB split) breaks down to:

$8.3M for FB-only
$2.7M for BB-only
$11M for all-sports

BYU's not coming for that.

I tend to believe it will end up as:

$12M for FB-only
$4M for BB-only
$16M for all-sports

Or $240M/year overall and $2.9B over 12 years

Based on speculative statements seen in the press:
"Schools will see ACC-type money" - $16M/year is pretty close to $17M/year
"BE deal could approach PAC-level money" - $2.9B is pretty close to $3B overall for the same 12-year contract

Now if the BE truly saw a $20M/year/school deal, it would be for $300M/year overall or $3.6B over a 12-year contract, or 26% more than the ACC gets per year.

why 12 years?

It's what seems to be going around with the media deals of late. PAC signed a 12-year deal, XII signed a 13-year deal, etc.
08-15-2012 01:27 AM
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goodknightfl Offline
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RE: BE TV Negotiation is Expected to Start at $2B
"SHOW ME THE MONEY!!"
08-15-2012 05:49 AM
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TripleA Offline
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RE: BE TV Negotiation is Expected to Start at $2B
(08-15-2012 12:22 AM)SF Husky Wrote:  More positive press from the NY Times:

http://www.nytimes.com/2012/08/15/sports...ioner.html

All the consultants said BE won't have any problem generating interest or money from the next deal.
Excerpt:

“It’s a good time to be a rights owner right now because you have a lot of different cable networks and broadcast networks that understand how critical live sporting events are,” McManus said, adding, “I don’t think the Big East is going to have all that difficult a time generating a lot of money and a lot of interest.”

Another interesting thing was the author's shot at Tranghese and Marinatto's egotistic personalities, lol.
08-15-2012 08:48 AM
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TripleA Offline
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RE: BE TV Negotiation is Expected to Start at $2B
(08-15-2012 01:27 AM)CommuterBob Wrote:  
(08-15-2012 01:04 AM)FULL_MONTY Wrote:  
(08-15-2012 12:53 AM)CommuterBob Wrote:  If they start at $2B for 12 years, that's $166M/year, which (using the 70/30 FB/BB split) breaks down to:

$8.3M for FB-only
$2.7M for BB-only
$11M for all-sports

BYU's not coming for that.

I tend to believe it will end up as:

$12M for FB-only
$4M for BB-only
$16M for all-sports

Or $240M/year overall and $2.9B over 12 years

Based on speculative statements seen in the press:
"Schools will see ACC-type money" - $16M/year is pretty close to $17M/year
"BE deal could approach PAC-level money" - $2.9B is pretty close to $3B overall for the same 12-year contract

Now if the BE truly saw a $20M/year/school deal, it would be for $300M/year overall or $3.6B over a 12-year contract, or 26% more than the ACC gets per year.

why 12 years?

It's what seems to be going around with the media deals of late. PAC signed a 12-year deal, XII signed a 13-year deal, etc.
The last offer from ESPN was for 9 years, so you cannot make the assumption that $2B and 12 years go together.
08-15-2012 08:49 AM
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RUfan03 Offline
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RE: BE TV Negotiation is Expected to Start at $2B
Sounds encouraging. Lets hope we negotiate a favorable contract that finally helps stabilize the conference.
08-15-2012 10:13 PM
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RE: BE TV Negotiation is Expected to Start at $2B
Interesting what happens when you start hiring top quality professionals to handle your affairs.
08-15-2012 10:17 PM
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TripleA Offline
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RE: BE TV Negotiation is Expected to Start at $2B
(08-15-2012 10:17 PM)Attackcoog Wrote:  Interesting what happens when you start hiring top quality professionals to handle your affairs.
Well, so far, nothing has happened, other than the conversation became more positive. The proof is in the contract and BCS deals. I'm extremely positive now, but we ain't there yet.

I do believe that Aresco was a grand slam hire, likely the best possible out there, and Bevilacqua and Gold have already proven they are the best at what they do.

Things certainly have turned around from an attitude and possibilities standpoint.
(This post was last modified: 08-15-2012 10:28 PM by TripleA.)
08-15-2012 10:28 PM
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