Big12 to David Boren:

[Texas Jefe]

the only way the Big12 will get a network is if they can get espn or fox to bite, if they are battling each other for teams in the conference and it starts a bidding war of sorts.

that's exactly why LHN got so much money for Texas; it's like a loss leader, because they didn't want Texas going all in with fox. So espins bit and coughed up the money to keep Texas in the Big12 and under espins contract.

imo, that's the only way the conference will get a network.

 

[GoldRusher]

 

[HuskerinBig10]

Brady Deaton of Missouri was President of the BOD in 2011. Just saying.

Emails show extensive efforts to prevent Missouri from leaving Big 12

 

[Lance Armstrong]

The PAC could find a partner and sweeten the pot considerably at any time but right now they are in prime position to do two things:

1. Expand.
2. Gravitate to an online product.

That makes them more flexible than any other conference by a long shot and they have no partner that they have to get permission from or renegotiate with to do either. I'm not sure what Scott's justification was for making the moves he did but he is in better positioned for a long play than anyone else.

If the Big 12 blows up he picks up 4 teams in the central time zone in new markets and all of sudden the cash will fall from the sky. Again I'm not sure he did this by accident or if he was a better visionary then the rest of us but kudos regardless.

Now that the networks have stopped throwing money around, the pac 12's best bet is to go the online route. I'm not a fan of a pac team, but I'm sure the ones here in Texas that are would love the option.

 

[Codaxx]

The PAC could find a partner and sweeten the pot considerably at any time but right now they are in prime position to do two things:

1. Expand.
2. Gravitate to an online product.

That makes them more flexible than any other conference by a long shot and they have no partner that they have to get permission from or renegotiate with to do either. I'm not sure what Scott's justification was for making the moves he did but he is in better positioned for a long play than anyone else.

If the Big 12 blows up he picks up 4 teams in the central time zone in new markets and all of sudden the cash will fall from the sky. Again I'm not sure he did this by accident or if he was a better visionary then the rest of us but kudos regardless.

The issue is the PAC owns their network. I am not sure that is a good thing or bad thing. Personally, it seems longer term it is a bad bet. It is impossible to figure out what PAC teams are making on the PAC network. We know it is cash-flowing 1 million a year to league members, but we do not know about the capital gains. If ESPN or FOX comes in and offers to buy the network and members get a 100 million payment for it and a payment for content going forward, then all of a sudden it does not look like they are way behind. SEC just gets payment for content. You really can not compare the numbers between the 2. The one thing you are right about is they have flexibility.

 

[Wild Turkey]

The issue is the PAC owns their network. I am not sure that is a good thing or bad thing. Personally, it seems longer term it is a bad bet. It is impossible to figure out what PAC teams are making on the PAC network. We know it is cash-flowing 1 million a year to league members, but we do not know about the capital gains. If ESPN or FOX comes in and offers to buy the network and members get a 100 million payment for it and a payment for content going forward, then all of a sudden it does not look like they are way behind. SEC just gets payment for content. You really can not compare the numbers between the 2. The one thing you are right about is they have flexibility.

They are positioned for the long play which might or might not be a good thing. When you look at the money that is being paid out for NFL games there is a ton of room for these conference networks to grow and still be a smaller percentage of the overall sports market.

I'm not sure why the PAC hasn't found a partner but if they can expand into the central time zone with quality teams their potential worth will sky rocket. If they were to add Texas, Oklahoma and Kansas (4th member doesn't even matter) they could get a deal on par with the SEC.

At that point it makes financial sense for Texas to fold the LHN into a conference network.

 

[Codaxx]

They are positioned for the long play which might or might not be a good thing. When you look at the money that is being paid out for NFL games there is a ton of room for these conference networks to grow and still be a smaller percentage of the overall sports market.

I'm not sure why the PAC hasn't found a partner but if they can expand into the central time zone with quality teams their potential worth will sky rocket. If they were to add Texas, Oklahoma and Kansas (4th member doesn't even matter) they could get a deal on par with the SEC.

At that point it makes financial sense for Texas to fold the LHN into a conference network.

Why I said that the PAC is the most likely destination for Big 12 teams. I wouldnt use NFL as a proxy for conference networks. Networks dont air the same type of content. The games that conference networks air are more like professional bowling in terms of interest.

 

[Lance Armstrong]

They are positioned for the long play which might or might not be a good thing. When you look at the money that is being paid out for NFL games there is a ton of room for these conference networks to grow and still be a smaller percentage of the overall sports market.

I'm not sure why the PAC hasn't found a partner but if they can expand into the central time zone with quality teams their potential worth will sky rocket. If they were to add Texas, Oklahoma and Kansas (4th member doesn't even matter) they could get a deal on par with the SEC.

At that point it makes financial sense for Texas to fold the LHN into a conference network.

Problem is adding Texas, Oklahoma, and Kansas gets them on par with the SEC which gets what, 5 mil per school? All 3 schools already make that.

 

[Codaxx]

Problem is adding Texas, Oklahoma, and Kansas gets them on par with the SEC which gets what, 5 mil per school? All 3 schools already make that.

But whats the value of the network? That is another part of the equation. Assume the PAC network is worth 120 million today (if they attempted to sell it). That means each PaC team has a 10 million stake in the network plus a 1 million annual payment from cash flow. Lets say adding those 3 brings the value to $300 million. Now each Pac team has a stake worth 20 million. Now the payment looks a lot more competitive. If the Pac paid Kansas, OU, and Texas what they are currently making all 3 leave instantly (assuming they are free agents). They would probably take less payments today, because the new entity would appear to have potential for much higher payments in the future. The question is how much less and how to compare current licensing deals to owneship stake.

 

[Lance Armstrong]

But whats the value of the network? That is another part of the equation. Assume the PAC network is worth 120 million today (if they attempted to sell it). That means each PaC team has a 10 million stake in the network plus a 1 million annual payment from cash flow. Lets say adding those 3 brings the value to $300 million. Now each Pac team has a stake worth 20 million. Now the payment looks a lot more competitive. If the Pac paid Kansas, OU, and Texas what they are currently making all 3 leave instantly (assuming they are free agents). They would probably take less payments today, because the new entity would appear to have potential for much higher payments in the future. The question is how much less and how to compare current licensing deals to owneship stake.

With Cable dying do you really think the network is worth that much? It has low distribution, and it doesn't seem to be fixing that problem any time soon.

 

[Codaxx]

With Cable dying do you really think the network is worth that much? It has low distribution, and it doesn't seem to be fixing that problem any time soon.

It was just an example to illustrate that the payment is more than 1 million that gets reported. PAC teams are building equity also. I would assume adding OU, Kansas, and Texas would significantly add to demand.

 

[Wild Turkey]

Problem is adding Texas, Oklahoma, and Kansas gets them on par with the SEC which gets what, 5 mil per school? All 3 schools already make that.

Year 1 that included startup cost. Before you get too sure of yourself let's see what year 2 & 3 bring in.

 

[4down20]

Year 1 that included startup cost. Before you get too sure of yourself let's see what year 2 & 3 bring in.

They'll never change their tune until they are forced too. I think they should release new numbers in about a month.

 

[Lance Armstrong]

Year 1 that included startup cost. Before you get too sure of yourself let's see what year 2 & 3 bring in.

We'll see, I don't doubt the number rises. The thing is, does it rise enough to make it worth it for big 12 schools?

 

[Codaxx]

We'll see, I don't doubt the number rises. The thing is, does it rise enough to make it worth it for big 12 schools?

Lets just say the number will be between Lance's projections and Travis Clays projections..

 

[Wild Turkey]

We'll see, I don't doubt the number rises. The thing is, does it rise enough to make it worth it for big 12 schools?

Nobody thinks the Big 12 can or will pull in SEC numbers and that's why we are talking about an expanded PAC. What will happen in the Big 12 eventually is that revenue will drop at the other schools in relation to the B1G, SEC and the PAC which will impact facilities and recruiting. As teams fall behind they will become less competitive and ratings will drop. People bitch all the time that teams like Ole Miss and Miss State are overrated but the fact is they are competitive and that is being fueled by cash.

No cash will strangle the majority of the Big 12 over time.

 

[Deep Creek]

Nobody thinks the Big 12 can or will pull in SEC numbers and that's why we are talking about an expanded PAC. What will happen in the Big 12 eventually is that revenue will drop at the other schools in relation to the B1G, SEC and the PAC which will impact facilities and recruiting. As teams fall behind they will become less competitive and ratings will drop. People bitch all the time that teams like Ole Miss and Miss State are overrated but the fact is they are competitive and that is being fueled by cash.

No cash will strangle the majority of the Big 12 over time.

Agree, but TV revenue "cash" is more vital to the non flagship members of ALL the conferences than it is to the big boys...which is why Ole Miss, Miss State can compete as you say. It is great for everyone.

But the Ohio States, Bamas, Texas', USCs, Notre Dames, etc of the CFB world can send out a cash call and quickly generate revenue the others can't come close to matching. That portion of the equation will never be equalized...and shouldn't. There are probably only 2 or 3 in each conference that can reach a certain level of revenue generation like that.

 

[Codaxx]

Nobody thinks the Big 12 can or will pull in SEC numbers and that's why we are talking about an expanded PAC. What will happen in the Big 12 eventually is that revenue will drop at the other schools in relation to the B1G, SEC and the PAC which will impact facilities and recruiting. As teams fall behind they will become less competitive and ratings will drop. People bitch all the time that teams like Ole Miss and Miss State are overrated but the fact is they are competitive and that is being fueled by cash.

No cash will strangle the majority of the Big 12 over time.

I think Big 12's issues are bigger than just cash. The recruiting grounds are pretty shaky. Its pretty much Texas and Texas. The rest are small producers. That is a major SEC advantage. It should be a ACC advantage also. Mississippi schools are relevant, because the state produces an amazing amount of talent considering the population.

 

[Lance Armstrong]

Nobody thinks the Big 12 can or will pull in SEC numbers and that's why we are talking about an expanded PAC. What will happen in the Big 12 eventually is that revenue will drop at the other schools in relation to the B1G, SEC and the PAC which will impact facilities and recruiting. As teams fall behind they will become less competitive and ratings will drop. People bitch all the time that teams like Ole Miss and Miss State are overrated but the fact is they are competitive and that is being fueled by cash.

No cash will strangle the majority of the Big 12 over time.

That's what I meant, the big 12 school's moving to the pac only if the money is right. Money isn't the issue in the Big 12, shoot west Virginia makes 9mil a year from tier 3 rights. Issue like Codaxx said is recruiting grounds. The Texas schools are recruiting fine, the problem is the big 12 has nowhere else to grab top kids. That is why Cincy is at the front of the expansion line, and Tulane should be as well.

 

[Wild Turkey]

That's what I meant, the big 12 school's moving to the pac only if the money is right. Money isn't the issue in the Big 12, shoot west Virginia makes 9mil a year from tier 3 rights. Issue like Codaxx said is recruiting grounds. The Texas schools are recruiting fine, the problem is the big 12 has nowhere else to grab top kids. That is why Cincy is at the front of the expansion line, and Tulane should be as well.

If you think Tulane should be a member of the Big 12 then I've given you way to much credit for having a clue.