Will ESPN continue to make payments to the SEC and ACC if there are no live broadcasts to make?

(03-25-2020 07:30 AM)XLance Wrote:  Will ESPN continue to make payments to the SEC and ACC if there are no live broadcasts to make?

Don't they still charge subscriber fees to customers?

No they don't.

Force majeur clauses are in almost every contract. They won't have to pay.

(03-25-2020 11:00 AM)bullet Wrote:  No they don't.

Force majeur clauses are in almost every contract. They won't have to pay.

That depends on the language of the clause. I have negotiated contracts where payment could not be paused during a force majeure event because payments were electronically provided. Also, this may or may not be a force majeure event for ESPN. Its not as cut and dry as it may seem.

They money ESPN funnels to those conferences comes almost entirely from football and basketball. Those seasons were already played for the year.

If we come into the Fall and there's no football then ESPN might have a cash flow issue and then it gets a little hairy.

Depends on each contract, probably. What is the payment schedule, does the contract say that a certain payment is for a certain season or school year, does the contract allow the network to withhold payment if the games are not played.

If ESPN and Fox can withhold payments for the 2020-21 school year, they probably will until it's certain that the football season will begin on time. Or, they might make the payments conditional, maybe they get a contract extension on terms favorable to the networks or they get the right to not make the 2021-22 payments if some or all of the 2020-21 games are cancelled.

(03-25-2020 01:12 PM)AllTideUp Wrote:  If we come into the Fall and there's no football then ESPN might have a cash flow issue and then it gets a little hairy.

At some point cable and other TV providers might ask to not pay sports channels for the period of disruption, or to pay them less, but that would publicly raise the question of whether those TV providers are going to lower the monthly fees charged to their customers.

TV providers won't drop ESPN, but it wouldn't surprise me to see more TV providers discontinue RSNs or ask for the per-subscriber rates to be negotiated way downward.

(03-25-2020 11:00 AM)bullet Wrote:  No they don't.

Force majeur clauses are in almost every contract. They won't have to pay.

I started to post the same thing. You can bet there is an “Act of God” clause in the contract if ABC / ESPN’s attorneys are worth and I’m sure they are.

There could also be a joint escrow account to help protect both parties in the event of something like this.

(03-25-2020 11:09 AM)BePcr07 Wrote:  

(03-25-2020 11:00 AM)bullet Wrote:  No they don't.

Force majeur clauses are in almost every contract. They won't have to pay.

That depends on the language of the clause. I have negotiated contracts where payment could not be paused during a force majeure event because payments were electronically provided. Also, this may or may not be a force majeure event for ESPN. Its not as cut and dry as it may seem.

I’m sure glad I haven’t done contract administration since mid 90’s. That’s crazy a force majeure clause that can’t kick in because of how the payment is made.

(03-25-2020 11:09 AM)BePcr07 Wrote:  

(03-25-2020 11:00 AM)bullet Wrote:  No they don't.

Force majeur clauses are in almost every contract. They won't have to pay.

That depends on the language of the clause. I have negotiated contracts where payment could not be paused during a force majeure event because payments were electronically provided. Also, this may or may not be a force majeure event for ESPN. Its not as cut and dry as it may seem.

To your point, this is a good article about force majeure.

https://www.fastcompany.com/90482640/wha...rus-crisis

Wouldn't conf & ESPN have insureance

(03-31-2020 03:01 AM)templefootballfan Wrote:  Wouldn't conf & ESPN have insureance

Probably, but it may not cover 100%. In the case of CBS and the NCAAT, the insurance only covers 30%
NCAA Revenue Hit: How Bad?

(03-30-2020 01:35 PM)ken d Wrote:  

(03-25-2020 11:09 AM)BePcr07 Wrote:  

(03-25-2020 11:00 AM)bullet Wrote:  No they don't.

Force majeur clauses are in almost every contract. They won't have to pay.

That depends on the language of the clause. I have negotiated contracts where payment could not be paused during a force majeure event because payments were electronically provided. Also, this may or may not be a force majeure event for ESPN. Its not as cut and dry as it may seem.

To your point, this is a good article about force majeure.

https://www.fastcompany.com/90482640/wha...rus-crisis

That's a good article. Force majeure is thrown around when events occur. I think its because people like saying it.