I expected to hear something about the rights deals for the B1G by now, alas I am left to speculate as no new information has been forthcoming.

For my finance and TV expert guys out there my question is this. It has been reported that both CBS and NBC will be paying roughly 350 Million per year for a game a week. Ostensibly this is for a rotation between the 2nd and 3rd pick each week. If Fox is, as speculated, going to be getting the top game every week then approximately how much would those rights be worth? I assume at least double and maybe close triple the 350M (so between 700M to 1.05B per year which would make the total package worth between 1.4B to 1.75B. Get at me, is my thinking wrong?

It's a little more complicated than that, because Fox isn't just buying the top game, but also (indirectly) all of the BTN inventory, likely a major basketball package, and some women's hoops as well.

The last number somebody who would know told me was the total package was going to be in the 1.1-1.3B range, but with the potential to grow beyond that, depending on BTN's valuation over the course of the deal. The headline number might end up being a little higher than that, but the devil is really going to be in the details, given how complicated the total package is (i.e, what MMR stuff Fox is buying into as well besides pure broadcast rights)

(08-14-2022 08:49 AM)MattBrownEP Wrote:  It's a little more complicated than that, because Fox isn't just buying the top game, but also (indirectly) all of the BTN inventory, likely a major basketball package, and some women's hoops as well.

The last number somebody who would know told me was the total package was going to be in the 1.1-1.3B range, but with the potential to grow beyond that, depending on BTN's valuation over the course of the deal. The headline number might end up being a little higher than that, but the devil is really going to be in the details, given how complicated the total package is (i.e, what MMR stuff Fox is buying into as well besides pure broadcast rights)

I believe the B1G has a separate contract with BTN that runs through 2031-32 that is not affected by any of this. FOX and the B1G are partners in this, and the B1G's share of the profits will be on top of the new contracts coming out of this round of negotiations.

That said, I expect that the FOX package will include a weekly game on FS1 that will presumably compete with the NBC and CBS package games in many weeks. The FOX package will also include the B1G CCG.

It remains unclear to me whether the rights to a streaming package are still in negotiation or whether those have been awarded to Peacock as part of the NBC deal. I am assuming the latter, so that those revenues are already captured.

My guess is that the FOX package will be in the $500+ million range, which, with BTN profits, probably puts the total media rights in the $1.3 billion range.

With so many different ways to post content now (broadcast, cable, streaming, etc.), it seems that we are past due for a purely capitalist way of selling broadcast rights -- instead do game-by-game sales, with bidding for each a week or so in advance via a secure, invited website. Old-school would hate such a new, modern system.

(08-14-2022 09:33 AM)PlayBall! Wrote:  With so many different ways to post content now (broadcast, cable, streaming, etc.), it seems that we are past due for a purely capitalist way of selling broadcast rights -- instead do game-by-game sales, with bidding for each a week or so in advance via a secure, invited website. Old-school would hate such a new, modern system.

You’d still likely end up with forward contracts- risk exchange between the bundled rights of the conference and networks is fundamentally the TV deal. A fixed for floating swap. For multiple decades now, the networks getting the better of the conferences on the back end of the deal, which is why Delaney went with shorter GOR.

But it could be tweaked with a better spot market exchange, and going more with options contracts

at 1.1 billion Fox is paying 400 for #1 FB, #4 FB, #5 FB games, all of BB & olympic sports
sounds like good deal

(08-14-2022 09:05 AM)orangefan Wrote:  

(08-14-2022 08:49 AM)MattBrownEP Wrote:  It's a little more complicated than that, because Fox isn't just buying the top game, but also (indirectly) all of the BTN inventory, likely a major basketball package, and some women's hoops as well.

The last number somebody who would know told me was the total package was going to be in the 1.1-1.3B range, but with the potential to grow beyond that, depending on BTN's valuation over the course of the deal. The headline number might end up being a little higher than that, but the devil is really going to be in the details, given how complicated the total package is (i.e, what MMR stuff Fox is buying into as well besides pure broadcast rights)

I believe the B1G has a separate contract with BTN that runs through 2031-32 that is not affected by any of this. FOX and the B1G are partners in this, and the B1G's share of the profits will be on top of the new contracts coming out of this round of negotiations.

That said, I expect that the FOX package will include a weekly game on FS1 that will presumably compete with the NBC and CBS package games in many weeks. The FOX package will also include the B1G CCG.

It remains unclear to me whether the rights to a streaming package are still in negotiation or whether those have been awarded to Peacock as part of the NBC deal. I am assuming the latter, so that those revenues are already captured.

My guess is that the FOX package will be in the $500+ million range, which, with BTN profits, probably puts the total media rights in the $1.3 billion range.

Right. And I've heard the $500 million + number mentioned several times. Don't know what sources that comes from. So $350 CBS, $380 NBC (game + streaming) and $500 Fox gets to $1.23 billion before you add in money from the BTN which at one point was in the vicinity of $10 million per school.

Big ten get 55 cents per household per month that HS a big 10 team in its state. They get 5 cents a month from states without a Big 10 team. For whatever reason Rutgers got them the bump in NY and NJ. Its quite laughable the lack of business sense from “experts” that do not understand the value Rutgers brought to the Big 10. The money is split evenly with Fox Sports. Fox also gets 55 and 5 cents per household per month.

(08-14-2022 11:50 AM)bullet Wrote:  

(08-14-2022 09:05 AM)orangefan Wrote:  

(08-14-2022 08:49 AM)MattBrownEP Wrote:  It's a little more complicated than that, because Fox isn't just buying the top game, but also (indirectly) all of the BTN inventory, likely a major basketball package, and some women's hoops as well.

The last number somebody who would know told me was the total package was going to be in the 1.1-1.3B range, but with the potential to grow beyond that, depending on BTN's valuation over the course of the deal. The headline number might end up being a little higher than that, but the devil is really going to be in the details, given how complicated the total package is (i.e, what MMR stuff Fox is buying into as well besides pure broadcast rights)

I believe the B1G has a separate contract with BTN that runs through 2031-32 that is not affected by any of this. FOX and the B1G are partners in this, and the B1G's share of the profits will be on top of the new contracts coming out of this round of negotiations.

That said, I expect that the FOX package will include a weekly game on FS1 that will presumably compete with the NBC and CBS package games in many weeks. The FOX package will also include the B1G CCG.

It remains unclear to me whether the rights to a streaming package are still in negotiation or whether those have been awarded to Peacock as part of the NBC deal. I am assuming the latter, so that those revenues are already captured.

My guess is that the FOX package will be in the $500+ million range, which, with BTN profits, probably puts the total media rights in the $1.3 billion range.

Right. And I've heard the $500 million + number mentioned several times. Don't know what sources that comes from. So $350 CBS, $380 NBC (game + streaming) and $500 Fox gets to $1.23 billion before you add in money from the BTN which at one point was in the vicinity of $10 million per school.

FOX now holds 59% of the BTN. The split has changed by 10%

So when all the dust settles sounds like estimates for final annual gross payout per school to be about $80 million. Any one else got a guess?

(08-14-2022 01:36 PM)Strut Wrote:  So when all the dust settles sounds like estimates for final annual gross payout per school to be about $80 million. Any one else got a guess?

That's just 1st and 2nd tier. It will probably be over $100 million with 3rd tier, CFP, bowl, basketball and other revenue sharing by the conference.

(08-14-2022 01:53 PM)bullet Wrote:  

(08-14-2022 01:36 PM)Strut Wrote:  So when all the dust settles sounds like estimates for final annual gross payout per school to be about $80 million. Any one else got a guess?

That's just 1st and 2nd tier. It will probably be over $100 million with 3rd tier, CFP, bowl, basketball and other revenue sharing by the conference.

The base payout from the CFP for P5 conferences is $66 million. The B1G also gets $40 million in years that the Rose Bowl is played, plus payouts for its other bowls, including for appearances in the CFP semifinals and finals and when it has multiple teams in the NY6. The average payout from bowls is therefore in excess of $100 million per year.

The NCAA distributes money through a number of funds, including the NCAA Tournament Fund (a formula tied to success in the NCAA tournament over a six year period), the Sports Sponsorship Fund (tied to the number of NCAA championship sports sponsored), the Grants In Aid Fund (tied to the number of scholarships offered), the Academic Enhancement Fund, and others. The most recent year I have numbers for is 2014-15 when the B1G received $55 million in total from the NCAA. It is almost certainly more now.

Other money would come from corporate sponsorships, revenues from the B1G CCG and B1G Basketball Tournament.

When all is said and done, the B1G should be approaching $100 million per school per year.

Remember more complicated than FOX getting #1 too. If like current contract, they get 1st choice half the time and 2nd choice half time. They might still have that or have #1 a third, #2 a third, and #3 a third. Regardless they do have the Big Ten Championship and first pick at weeks they want to choose first (so have Ohio State/Michigan).