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Yet another SEC Network "cashcow" article
Posted on 8/10/14 at 3:48 pm
Posted on 8/10/14 at 3:48 pm
Motley Fool article
Fwiw, I think these numbers are a tad high... I think the revenue per school for the SECnw is going to be about $15-20 million bringing each school tv revenue to about $40mil each.... Regardless, it's obvious to everyone at this point that the SEC network is going to be a financial windfall for everyone involved
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How much money will the SEC and ESPN make? The network is set to bring in the big bucks. If half of all households are subject to the in-conference rate, that's a little over $700 million a year in revenue. The remaining non-SEC customers should pitch in another $130 million or so. In terms of sheer carriage revenue, that would be near the size of ESPN2, and over three times as large as the Big Ten and Pac-12 networks, Fox Sports estimates.
If ad sales and programming costs cancel out -- a fair assumption -- that leaves $830 million in annual revenue up for grabs between both sides. While the exact terms of the ESPN-SEC deal aren't public, a 50-50 split is reasonable, Fox says. And in reality, a 60-40 or even 70-30 split in favor of the SEC isn't out of the question. The conference's popularity may have created a better negotiating position.
Given these estimates, the SEC's portion of revenue should be no less than $400 million annually. In that scenario, each of its 14 universities would net an extra $28 million per year, a truly astounding number, considering the average SEC school made close to $21 million from 2013's conference payout. If it holds, that sum -- $49 million -- would be a few million dollars more than what the Big Ten, Big-12, and Pac-12 expect to pay their schools in the future.
Fwiw, I think these numbers are a tad high... I think the revenue per school for the SECnw is going to be about $15-20 million bringing each school tv revenue to about $40mil each.... Regardless, it's obvious to everyone at this point that the SEC network is going to be a financial windfall for everyone involved
This post was edited on 8/10/14 at 3:53 pm
Posted on 8/10/14 at 3:57 pm to JPLSU1981
Errybody gonna build 100k seat stadiums and sign da best coaches. Rawl Tahd SEC SEC SEC!
No seriously, this is gonna be awesome for the conference.
No seriously, this is gonna be awesome for the conference.
Posted on 8/10/14 at 4:38 pm to AllBamaDoesIsWin
We need to add some men's sports with the extra money.
Posted on 8/10/14 at 4:40 pm to RebelExpress38
I move that he bass fishing team get full scholarships.
Posted on 8/10/14 at 6:19 pm to Aggball
Make it a red fishing team and I'd go back to school.
Posted on 8/10/14 at 6:34 pm to Jobu93
Men's soccer needs to added. Would be easy to do as all schools have good facilities.
Imagine how great it would be to have our athletes become stars on the world soccer stage. Us cannot duplicate the soccer club model that exist in Europe very efficiently. But I believe it can be done through our universities.
Imagine how great it would be to have our athletes become stars on the world soccer stage. Us cannot duplicate the soccer club model that exist in Europe very efficiently. But I believe it can be done through our universities.
Posted on 8/10/14 at 7:07 pm to AllBamaDoesIsWin
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Errybody gonna build 100k seat stadiums and sign da best coaches.
UK is shrinking their stadium by about 10K seats, and if they replace Rupp it will be substantially smaller. Long term venues will get smaller and only corporate folks will be able to afford seats. It happen in Rome, it will happen again.
Posted on 8/10/14 at 7:15 pm to Cheese Grits
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It happen in Rome, it will happen again
WTF ?
Posted on 8/10/14 at 7:16 pm to sorrycholly
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WTF ?
The gays and hip hop music are ruining this country is what he meant to say.
Posted on 8/10/14 at 7:24 pm to sorrycholly
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WTF ?
When things get popular and seating gets tight it is the little man who gets left behind. Did you not study history in school? Just because each SEC school will be getting an extra 30 million per year does not mean the schools will reduce the ticket prices.
Posted on 8/10/14 at 7:25 pm to RebelExpress38
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We need to add some men's sports with the extra money.
I would say it's premature to talk about that.
The smarter move would be to reinvest the money in your strength, ie everyone should start immediately upgrading their football facilities even beyond where they are currently at. If the power 5 agree to things like expanding cost coverage for athletes, then that has to be accounted for.
Right now the thing to do is ensure the football and basketball programs which are the strengths, are well funded and kept at the top of college standards. Keep the machine well greased and tuned and in a few years look into things like expanding to new programs.
Posted on 8/10/14 at 7:45 pm to JPLSU1981
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Fwiw, I think these numbers are a tad high... I think the revenue per school for the SECnw is going to be about $15-20 million
$24 million per school, from the ESPN deal alone, is the generally considered most conservative estimate.
What most fail to do is deduct the old ESPN money from the $21 million last year. When you do that you end-up at around $36 million per school in the first year after production costs.
Second year estimates, once the ratings come in for the first year, figure to put is in the $40 million per year range and it could climb from there.
Posted on 8/10/14 at 7:46 pm to RebelExpress38
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We need to add some men's sports with the extra money.
If any sport gets added I say it is women's sand volleyball. Where are your priorities man?
Posted on 8/10/14 at 7:50 pm to scrooster
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Second year estimates, once the ratings come in for the first year, figure to put is in the $40 million per year range and it could climb from there.
That's crazy. Wow.
Posted on 8/10/14 at 8:22 pm to Cheese Grits
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If any sport gets added I say it is women's sand volleyball. Where are your priorities man?
SCAR, UF and a couple of other programs already have sand volleyball.
Posted on 8/10/14 at 10:06 pm to JPLSU1981
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bringing each school tv revenue to about $40mil each
That would be great. A lot of what drove realignment was the goal to get to $20 million per team. To double that would kick some conferences (ACC, PAC) in the balls.
Posted on 8/10/14 at 11:14 pm to cjared036
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Men's soccer needs to added. Would be easy to do as all schools have good facilities.
I'd also like to see men's soccer added. Women's soccer is doing well and, as you say, the facilities are already there. UK and USC wouldn't have to play in the C-USA anymore.
I'd also like to see men's volleyball or wrestling added. UK had a wrestling team in the past and it was a great spectator sport.
Posted on 8/10/14 at 11:18 pm to Kentucker
Men's soccer in the SEC is inevitable.
Posted on 8/10/14 at 11:22 pm to scrooster
quote:God I hope not. Why can't we use that extra money to pay our top notch coaches more and ensure our dominance in college football? You know, reinvesting it in the business
Men's soccer in the SEC is inevitable.
This post was edited on 8/10/14 at 11:32 pm
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