SECN revenue > B1G and PAC combined, plus 115 mil

[4down20]

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.

I hope I get all of them. I watched BTN all summer, even watched Alabama lose to Michigan/Brady. Pac12 was great when I lived on the west coast.

LHN I doubt I'd watch very often, but I wouldn't mind the option.

 

[Hook'Em0608]

I still don't understand how the SECN in 3rd tier fashion is going to pay out better than their 1st and 2nd tier games. Either ESPN has been screwing over conferences for their 1st or 2nd tier games for a long time or people suddenly care more about the crappy football games and olympic sports than the biggest games every year. Got to give them credit though, ESPN made the cable companies pay up big time this go around. Whoever has 1st and 2nd tier games up for negotiations next is gonna make huge bank based off the SECN alone...

 

[4down20]

I still don't understand how the SECN in 3rd tier fashion is going to pay out better than their 1st and 2nd tier games. Either ESPN has been screwing over conferences for their 1st or 2nd tier games for a long time or people suddenly care more about the crappy football games and olympic sports than the biggest games every year. Got to give them credit though, ESPN made the cable companies pay up big time this go around. Whoever has 1st and 2nd tier games up for negotiations next is gonna make huge bank based off the SECN alone...

There is more to it than just t3 games isn't it?

 

[Wild Turkey]

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!

You were so proud of yourself that a post wasn't enough you followed it up with a thread? I have to be honest I find that kinda pathetic not to mention I doubt even know what you are trying to say. From the standpoint of numbers of homes the SEC ranks only behind ESPN and the NFL Network so it is number 3 ahead of ESPN 2, 3, U, etc.

 

[Wild Turkey]

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.

Your best hope is expansion and getting into new time zones so your teams aren't playing all their night games at 1AM on the East Coast.

 

[Hook'Em0608]

There is more to it than just t3 games isn't it?

I have no idea what the long term plan for content of the SECN will be. I know this year it seems ESPN put some decent games on the channel you would think they would want on ESPN to maximize their advertising revenue. It's a sweetheart deal for the SEC that's for sure. I just don't understand what ESPN is doing by giving up content they already paid for to another specialty channel which will require them to pay for it again. Strange business practice IMO. But they are pretty darn successful so who am I to judge.

 

[UTVolCountry]

I'm about to destroy some chicken wings right now so > SEC BIG PAC combined

 

[HuskerinBig10]

Congrats to the SEC for striking while the iron is hot. The B1G has something to base their asking price on in the next contract.

These are the knowns

1. It is a forecast for the SECN. It could be higher, it could be lower.
2. The BTN contract is up for renegotiation.
3. The PAC 12 contract is stuck for a dozen years or whatever it is.
4. The ACC Contract is stuck for a dozen years or whatever it is.
5. The Big 12 contract is not stuck because there isn't one.

Hopefully, my cable bill does not rise because of it.

There are over 100,000,000 people in the actual B1G footprint. Not including the adjoining states.

(my quick population add up in my head, these numbers could very easily be wrong.)
The PAC 12 has around 60,000,000.
The SEC has around 86,000,000.

You do the math. If the SEC network is worth 9 bucks per household, the BTN could be worth more.

When you then apply the median household incomes of each conference's states, the SEC viewing population might not even be able to afford cable TV, let alone able to afford to buy anything advertised on SECN.

Don't you think advertisers want to spend money on ads that will actually cause people to buy their advertised product?

 

[Hook'Em0608]

When you then apply the median household incomes of each conference's states, the SEC viewing population might not even be able to afford cable TV, let alone able to afford to buy anything advertised on SECN.

Don't you think advertisers want to spend money on ads that will actually cause people to buy their advertised product?

Shots fired shots fired

 

[4down20]

I have no idea what the long term plan for content of the SECN will be. I know this year it seems ESPN put some decent games on the channel you would think they would want on ESPN to maximize their advertising revenue. It's a sweetheart deal for the SEC that's for sure. I just don't understand what ESPN is doing by giving up content they already paid for to another specialty channel which will require them to pay for it again. Strange business practice IMO. But they are pretty darn successful so who am I to judge.

Same kind of games the BTN and Pac12 run.

I've watched Stanford kick the crap outta Oregon more times than I have seen Alabama beat Texas.

 

[Hook'Em0608]

Same kind of games the BTN and Pac12 run.

I've watched Stanford kick the crap outta Oregon more times than I have seen Alabama beat Texas.

I just believe ESPN is about to screw themselves long term. Cable and Satellite will at some point pass all these new networks cost on to the consumer. I'm already getting sick of my bill now and I'm pretty fanatic about live sports. The average fan is going to rebel at some point as many of the non sports types have already jumped ship to netflix, hulu, and Amazon Prime. Live sporting content is all that is holding cable and satellite afloat right now. If ESPN gets too greedy they are going to cut off their own foot. The numbers being thrown around for the SECN are borderline insane and is going to cause unreal TV contracts for the top games in the future if bottom tier games and reruns are getting this kind of loot.

 

[HuskerinBig10]

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.

I am pretty sure the expansion crap mostly started once the Big 8 and some of the SWC merged. Then, the ACC kept robbing the Big East, eventually forcing the Big East Football out of existence. There are more Big East schools in the ACC than founding members of the ACC.

The BTN came into existence only after ESPN tried to screw the Big Ten over and Delany told ESPN to take a hike. The BTN launched in 2007.

Once ESPN learned that if they kept losing schools/conferences their broadcast money maker would be shot. So, ESPN opened up the wallet to lock in broadcast properties.

I would say ESPN caused it the escalation of broadcast prices. Eventually, the market will not be able to bear the costs that are being passed down to the consumer.

 

[eaterfan]

Your best hope is expansion and getting into new time zones so your teams aren't playing all their night games at 1AM on the East Coast.

The Pac has been reworking their deal with Fox/ESPN to ensure fewer late kickoff times.

But expansion was the right answer. Should have taken Oklahoma and Oklahoma St. when they had the chance and hoped Texas and Texas Tech followed. Larry Scott wasn't able to get the member schools to accept that. I think that was his biggest blunder as commish.

 

[Hornsstampede2.0]

These are just somebodies wild guess at revenue numbers.
They don't reflect any costs or payouts.


Without cost numbers, it is almost useless data.
And by merely guessing revenues, it is less than useless data.

 

[4down20]

I just believe ESPN is about to screw themselves long term. Cable and Satellite will at some point pass all these new networks cost on to the consumer. I'm already getting sick of my bill now and I'm pretty fanatic about live sports. The average fan is going to rebel at some point as many of the non sports types have already jumped ship to netflix, hulu, and Amazon Prime. Live sporting content is all that is holding cable and satellite afloat right now. If ESPN gets too greedy they are going to cut off their own foot. The numbers being thrown around for the SECN are borderline insane and is going to cause unreal TV contracts for the top games in the future if bottom tier games and reruns are getting this kind of loot.

sports is only reason I have cable outside family. I'd probably still cancel my cable if not for family honestly.

But I think what you are overlooking is that there is a great deal of difference between a network that is on 24/7, and individual games.

 

[Hook'Em0608]

sports is only reason I have cable outside family. I'd probably still cancel my cable if not for family honestly.

But I think what you are overlooking is that there is a great deal of difference between a network that is on 24/7, and individual games.

Don't get it twisted man, the reason your launch was so successful was because of those live football games. Hell, I even switched companies my damn self because Directv was dragging their feet. 45 games is a lot of football to potentially miss out on even if my team doesn't play in the SEC. I finally have the LHN too which is nice. But I wasn't gonna give up Sunday ticket for 2 Longhorn games a year. 2 Longhorn games plus 45 SEC games was a deal breaker combined though when another company offered both and a discounted rate. Bye bye NFL Sunday Ticket...

 

[outofyourmind]

This is why Oklahoma should have made the jump to the SEC.

 

[LawDawg]

Congrats to the SEC for striking while the iron is hot. The B1G has something to base their asking price on in the next contract.

These are the knowns

1. It is a forecast for the SECN. It could be higher, it could be lower.
2. The BTN contract is up for renegotiation.
3. The PAC 12 contract is stuck for a dozen years or whatever it is.
4. The ACC Contract is stuck for a dozen years or whatever it is.
5. The Big 12 contract is not stuck because there isn't one.

Hopefully, my cable bill does not rise because of it.

There are over 100,000,000 people in the actual B1G footprint. Not including the adjoining states.

(my quick population add up in my head, these numbers could very easily be wrong.)
The PAC 12 has around 60,000,000.
The SEC has around 86,000,000.

You do the math. If the SEC network is worth 9 bucks per household, the BTN could be worth more.

When you then apply the median household incomes of each conference's states, the SEC viewing population might not even be able to afford cable TV, let alone able to afford to buy anything advertised on SECN.

Don't you think advertisers want to spend money on ads that will actually cause people to buy their advertised product?

It's not people, it's households. Can't see how the B1G can get any more households as I believe the SEC got on all there is to get on. I could be wrong. Clearly they won't get more than ESPN has, so that seems to be the ceiling.

In the debates we had on old CBS, I was totally willing to admit that the B1G should have more alumni than any other conference. How that converts to cable households, I don't know. How that converts to what they can charge, I don't know.

Interestingly, I was at a Yankees game a few weeks ago and there was a B1G advertisement, a Rutgers football advertisement, and a Syracuse advertisement (ACC). Still not sure NYC is going to be a college town.

 

[LawDawg]

These are just somebodies wild guess at revenue numbers.
They don't reflect any costs or payouts.


Without cost numbers, it is almost useless data.
And by merely guessing revenues, it is less than useless data.

The guy making the wild ass guess is in the business of making wild ass guesses. This isn't some Bleacher Report idiot. Don't get me wrong ... it is certainly projections, but these guys know their industry and I'll bet it is good within 10% either way.

As a lawyer who became a businessman, the whole making wild ass guess part of business always amazed me. As a lawyer we can evaluate the facts after the fact. Business people have to make wild ass guesses and then adjust on the fly as it all become reality.

By the way, the guy making the wild ass guesses does nothing but compare gross revenue. I am sure he understands the difference between gross revenue and net profit.

 

[Churchillin]

The writer of the attached article is slobbering all over himself. Look at his words.

Revenues are not the end game. Profits are. The article cites revenue only and is not apples to apples. ESPN could put its name on a tiddly-winks competition and it would generate revenue. How much of it goes back into ESPN's coffers though?

Money in the schools pockets are the end game. What are the profits? Revenue is merely a piece of the equation. You have to subtract expenses, including dollars that will disappear right back into ESPN's balance sheet (and not the school's).

There is obviously going to be hype surrounding this. Much of it warranted. The discrepancy between the B1G and SEC is in terms of dollars going back to schools is nowhere near what is being pushed right now.