SECN revenue > B1G and PAC combined, plus 115 mil

[Shanemansj13]

Nobody gives a shit, ya old fart.

 

[4down20]

I'm back. Yes, its great for those 14 fanbases to share a network, glad its financially working out.

 

[LawDawg]

TV revenue is huge and its importance should be self evident. Texas has all the money and facilities but how did it get them? With money. Texas runs the Big XII because it has the money. If anyone should understand the importance of money it should be Texas fans. They are just so used to having all the money they don't realize what it's like to not have it. The importance of any given additional $ made isn't important to them but when combined it is very important.

If you need an example of how important money is to a conference look no further than my PAC. They expanded to add a championship game, launched their own network and more importantly got a new TV deal. In three years the play has gotten better every year. New facilities, better coaches and the ability to retain the good coaches and even poach good coaches from other places.

Conference network deals are very nice and they are important, but depending on the conference they don't help teams against their competition (conference) because the money is divided equally among everyone. The LHN is a much bigger advantage for Texas than what teams in SEC, B1G or Pac get because it not only provides them with more total money but it also provides them with more money than everyone in their conference. Also remember that the SEC revenue is divided by 14 while TLN was originally divided by 1 (although that may have changed after the conference nearly collapsed). I'd rather have all of $15 million than 1/14 of $150 million.

One thing to consider though when weighing these conference TV network deals is they are all structured differently. I know the PAC owns their network completely. They may not generate the revenue now but any growth will bill all theirs as opposed to half of the growth with other conference networks that have production partners.

I agree with your analysis, but your numbers are way off. If LHN is at 15 million, it is not likely to grow as they can't expand. No one outside Texas wants the LHN. The teams from the other 3 conference networks are already making (or will make) far more than the $15 million that UT is getting from the LHN, and I am assuming they are making 15 mil. I recall numbers that show the B1G will be at 30 million for their network in the next few years, and at launch, each team in the SEC will get far more than what Texas gets from the LHN.

 

[TexasExes98]

I agree with your analysis, but your numbers are way off. If LHN is at 15 million, it is not likely to grow as they can't expand. No one outside Texas wants the LHN. The teams from the other 3 conference networks are already making (or will make) far more than the $15 million that UT is getting from the LHN, and I am assuming they are making 15 mil. I recall numbers that show the B1G will be at 30 million for their network in the next few years, and at launch, each team in the SEC will get far more than what Texas gets from the LHN.

What you and the UCLA fan are not understanding is that the LHN is 3rd tier revenue for Texas, that's all. The majority of Texas's revenue will come from 1st and 2nd tier revenue from the Big 12's TV contracts. UF, Arkansas, Bama, AU and I'm even sure UGA are all making money off their 3rd tier rights, the way Texas does.

 

[TexasExes98]

TV revenue is huge and its importance should be self evident. Texas has all the money and facilities but how did it get them? With money. Texas runs the Big XII because it has the money. If anyone should understand the importance of money it should be Texas fans. They are just so used to having all the money they don't realize what it's like to not have it. The importance of any given additional $ made isn't important to them but when combined it is very important.

If you need an example of how important money is to a conference look no further than my PAC. They expanded to add a championship game, launched their own network and more importantly got a new TV deal. In three years the play has gotten better every year. New facilities, better coaches and the ability to retain the good coaches and even poach good coaches from other places.

Conference network deals are very nice and they are important, but depending on the conference they don't help teams against their competition (conference) because the money is divided equally among everyone. The LHN is a much bigger advantage for Texas than what teams in SEC, B1G or Pac get because it not only provides them with more total money but it also provides them with more money than everyone in their conference. Also remember that the SEC revenue is divided by 14 while TLN was originally divided by 1 (although that may have changed after the conference nearly collapsed). I'd rather have all of $15 million than 1/14 of $150 million.

One thing to consider though when weighing these conference TV network deals is they are all structured differently. I know the PAC owns their network completely. They may not generate the revenue now but any growth will bill all theirs as opposed to half of the growth with other conference networks that have production partners.

As I stated before, all the LHN is 3rd tier revenue for Texas. Schools have been making money off of their 3rd tier contracts long before Texas signed their deal with ESPN, so schools in the SEC and B1G are making more money than other conference members off 3rd tier alone. UCLA isn't broke; their school's endowment is worth over $2B......

 

[LawDawg]

What you and the UCLA fan are not understanding is that the LHN is 3rd tier revenue for Texas, that's all. The majority of Texas's revenue will come from 1st and 2nd tier revenue from the Big 12's TV contracts. UF, Arkansas, Bama, AU and I'm even sure UGA are all making money off their 3rd tier rights, the way Texas does.

You can spin it any way that you want, but UGa gets it's money from 1st and 2nd tier rights, just like UT, but then we get 3rd tier rights that are going to be around 1/14th of over 500 million through the SEC Network.

Texas is currently the richest program, no one is denying that. It won't be true in the future due to the success of the conference networks.

 

[LawDawg]

As I stated before, all the LHN is 3rd tier revenue for Texas. Schools have been making money off of their 3rd tier contracts long before Texas signed their deal with ESPN, so schools in the SEC and B1G are making more money than other conference members off 3rd tier alone. UCLA isn't broke; their school's endowment is worth over $2B......

First, a school's endowment has no relation to its athletic budget ... it is strictly used for non-athletic expenditures. Second, SECN is the 3rd tier for the SEC schools, and each teams payout will vastly exceed that of UT.

What you fail to understand is this: UGa's (or any SEC team's) 3rd tier revenue < UGa's SECN share will be. The SECN is the SEC teams 3rd tier. SEC tiers - CBS/ESPN is 1st/2nd tier, SECN is 3rd Tier. Same as UT, just a lot more money in the 3rd tier.

 

[TexasExes98]

You can spin it any way that you want, but UGa gets it's money from 1st and 2nd tier rights, just like UT, but then we get 3rd tier rights that are going to be around 1/14th of over 500 million through the SEC Network.

Texas is currently the richest program, no one is denying that. It won't be true in the future due to the success of the conference networks.

What the fuck am I spinning??!!

 

[HuskerOC]

The numbers stated for the Pac12 and Big 10 are the ending split the teams shared and nowhere close to the total.revenue generated by those networks.

Did the SEC create a deal with ESPN in which they keep all revenue and ESPN eats all expenses? That would be truly amazing.

 

[LawDawg]

What the fuck am I spinning??!!

You are totally misrepresenting the values and composition of the various tiers in relation to the conference networks. Maybe you aren't spinning ... you just don't understand how it works. That's plausible.

 

[tometom]

i think the info is a little misleading.

1. look at the cost per consumer. SEC is at $8.16 a year and Big 10 is at $4.56. So, yea, you are going to have a higher revenue when you double the cost.

2. As others have mentioned, ESPN is backing SECN. its a lot easier getting on people's TV's because ESPN can threatin to pull their channels.

3. More of an FYI: I'm pretty sure Revenue is not a 1:1 to what is paid out per school. the BTN only paid out about 7M per member last year, that's only 84M in total, but their Revenue was $237M based on the article.

4. Let's face it, the South is a lot more into football than the Midwest. so more people are going to want it/need it

 

[4down20]

The numbers stated for the Pac12 and Big 10 are the ending split the teams shared and nowhere close to the total.revenue generated by those networks.

Did the SEC create a deal with ESPN in which they keep all revenue and ESPN eats all expenses? That would be truly amazing.

Do you know what the word revenue means?

 

[Lance Armstrong]

Actually some SEC teams are really eating the costs, having to update their media booths on campus just to accomidate the SEC network.

 

[LawDawg]

i think the info is a little misleading.

1. look at the cost per consumer. SEC is at $8.16 a year and Big 10 is at $4.56. So, yea, you are going to have a higher revenue when you double the cost.

2. As others have mentioned, ESPN is backing SECN. its a lot easier getting on people's TV's because ESPN can threatin to pull their channels.

3. More of an FYI: I'm pretty sure Revenue is not a 1:1 to what is paid out per school. the BTN only paid out about 7M per member last year, that's only 84M in total, but their Revenue was $237M based on the article.

4. Let's face it, the South is a lot more into football than the Midwest. so more people are going to want it/need it

It doesn't really matter how the higher revenue is obtained ... they can charge more because there is more demand, and clearly the higher price didn't effect the number of households into which they were able to get the SECN. Remember that the B1G started this whole thing which in a primary way was the reason for all the expansion crap we've had over the past few years. If the B1G could get into 75 million households at twice the price, they would most certainly do it.

I agree with you on how much the teams will actually split. I've been talking mostly gross revenue. There certainly will be expenses, especially upfront capital expenses in the first few years to get started, and then I think the SEC and ESPN split it 50/50. It is still going to be a hell of a lot of money, and we really haven't even included advertising in that we've only been counting the subscription money. One thing is for sure, the net profit is going to be a lot more than $15 million per team.

We had some pretty contentious debates over on CBS about all this stuff when the B1G fans were basically saying that they could take any teams they wanted (they even said UGa .. LOL) because their network was going to be so successful (and it has been). I'm not sure any of us had any idea that the SECN was going to launch with 75 million households. I am pretty shocked by it, hence the discussion.

 

[4down20]

Actually some SEC teams are really eating the costs, having to update their media booths on campus just to accomidate the SEC network.

Which has nothing to do with...revenue.

 

[LawDawg]

Actually some SEC teams are really eating the costs, having to update their media booths on campus just to accomidate the SEC network.

I'm pretty sure that the $20 million plus that each school will get in the first year will cover the media booth renovations.

As to the ongoing costs ... production, licensing, salaries, etc., that will be paid by the network and will obviously reduce the gross revenue. That's how business works.

 

[Lance Armstrong]

I'm pretty sure that the $20 million plus that each school will get in the first year will cover the media booth renovations.

As to the ongoing costs ... production, licensing, salaries, etc., that will be paid by the network and will obviously reduce the gross revenue. That's how business works.

Yeah, looks like we agree on this point.

 

[eaterfan]

Having a network partner has its advantages and disadvantages. It has certainly helped the SEC get into more homes. I know the PAC is having a hard time getting into homes without ESPN or Fox backing them. They haven't reached a deal with DirecTV. Right now it seems the only hope that the PAC has is that DirecTV may be bought by AT&T who has a deal with the PAC and is their official technology partner. The other hope for getting into more housholds is that DirecTV may lose its NFL Sunday Ticket exclusivity and people will leave for cable/other satellite providers.

 

[iowajerms]

To me, it's just one more step towards

 

[iowajerms]

Actually

1) ESPN
2) ESPN 2
3) ESPNNEWS
4) ESPNU
5) ESPN3.com
6) ESPN Classic
7) ESPN Deportes

8) ESPN SEC Network

It's ESPN 8 The Ocho!