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ESPN's return on investment from broadcasting AAC vs. P5 (e.g., Big 12) football.
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jedclampett Offline
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Post: #21
RE: ESPN's return on investment from broadcasting AAC vs. P5 (e.g., Big 12) football.
(04-14-2021 01:54 PM)Enriquillo Wrote:  That the AAC creates perhaps a higher profit margin for the four-letter-network is a mixed blessing. On the one hand, it would suggest that the network will continue to promote AAC content. On the other hand, the network would have no interest in paying more to the B12 or ACC for adding an American school because it is presently already getting that school’s content under the existing AAC contract for relative cheap.

"Mixed blessing" seems like a perfect way to describe it.

Perhaps one of the reasons why the conference was satisfied with the deal was that they considered the contractual increase in exposure for the conference to be an indirect form of compensation, in and of itself. If so, then perhaps the deal wasn't quite as problematic as it might seem when we consider the revenue stream to be the only benefit in the contract.

When the details of the deal were first reported, most of the fans on the message boards seemed happy about both the boost in revenue and the increase in exposure for the conference.

From the standpoint of most Temple fans, one of the greatest advantages about being in the AAC from the get-go from the beginning was the significant increase in television exposure for the university's teams; another bump up in exposure from the current deal would be regarded as one of the positives from that standpoint.

Quote:The converse is true for Boise or BYU moving to the American. That’s why those schools are against the move unless the pot is sweetened.


A slight correction - - BYU certainly wasn't, but Boise was willing to play for that amount, if they could have joined for all sports. They might have also found the prospects of a partnership with ESPN appealing.

However, with the MWC teams getting close to $5 million, and with the extra travel costs of joining the AAC (and the exit fees they would have to pay) the MWC schools certainly wouldn't end up with much more net broadcasting revenue if they were to join the American.

Perhaps that helps to explain why the Commissioner stated that the conference may have to come up with a new expansion strategy when he suggested that the hopes of getting the go-ahead for CFP expansion in the Spring meetings have faded.

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If Boise really is the only western school that would be prepared to join the American before 2033, perhaps the conference should reconsider its decision to reject Boise's request to join as an all-sports member.

Aresco made it clear in his news conference that the American now views expansion as being necessary in order advance toward A6/P6 status. Adding Boise as an all-sports member might be a mixed blessing, just like the AAC's broadcasting deal is, but if it's the only way to create a renewed sense of momentum for the conference, perhaps it would be a worthwhile investment.

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(This post was last modified: 04-14-2021 07:07 PM by jedclampett.)
04-14-2021 06:59 PM
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