re: Auburn inks 10 year $120 million deal with Fox Sports

Vader, it just looks like they signed off, essentially leased, a series of rights to Fox for a fixed fee, perhaps with an upfront component but with rising yearly amounts.

Sounds like Fox gets to sell ads in the stadium and charge what the market will bear, run and charge whatever for corporate hospitality events for home games, sell radio ads, even some use of AU intellectual property it seems. Looks like AU bundled 10 years of all the non TV, non SEC controlled rights and Fox must believe they can squeeze well more than $120 mil of them. It certainly simplifies things and moves responsibilities out of the AD's direct control for 10 years. Considering how maligned the AD is, perhaps fans should rejoice. The negative is that if they had an in house team, or a series of contractors they could oversee every dime of revenue after their costs/commissions is kept.

When I see deals like this I think of the certainly expired deal ATL made a decade or so ago to privatize parking tickets and enforcement. They sold the yearly right for X (was millions) but the company cleaned up the system put out new meters and ramped up enforcement. Even after capital investments profits were several times the contract rate. Oops. Where can I get a deal like that from a public official?

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Vader, it just looks like they signed off, essentially leased, a series of rights to Fox for a fixed fee, perhaps with an upfront component but with rising yearly amounts.

Sounds like Fox gets to sell ads in the stadium and charge what the market will bear, run and charge whatever for corporate hospitality events for home games, sell radio ads, even some use of AU intellectual property it seems. Looks like AU bundled 10 years of all the non TV, non SEC controlled rights and Fox must believe they can squeeze well more than $120 mil of them. It certainly simplifies things and moves responsibilities out of the AD's direct control for 10 years. Considering how maligned the AD is, perhaps fans should rejoice. The negative is that if they had an in house team, or a series of contractors they could oversee every dime of revenue after their costs/commissions is kept.

When I see deals like this I think of the certainly expired deal ATL made a decade or so ago to privatize parking tickets and enforcement. They sold the yearly right for X (was millions) but the company cleaned up the system put out new meters and ramped up enforcement. Even after capital investments profits were several times the contract rate. Oops. Where can I get a deal like that from a public official?

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This deal is like the deal Bama signed last year with Learfield Sports(10 year/150 mil)

This thread is hilarious.

I wish they would 'ink' a deal with Nike.

So if it nets Auburn $120mm over 10 years, exactly how much is it worth to Fox and how is money generated for Fox? I would assume it would be worth more to Fox than to Auburn otherwise, why would they do it? I don't understand the business model associated with such an arrangement.

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So what is Learfield Sports in comparison to Fox Sports?

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Learfield is Nike. They are paying Bama between $150-160M. A&M is receiving a similar offer from Learfield.

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This thread is hilarious.

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How so? It's a simple thread about an SEC program signing a contract with a giant media company. How is that funny?

UA >>>>>>> Adidas

Fox is looking to get into the Sports Marketing business in a big way. AUs dealing with FOX is similar with their contract with Under Amour 10 years ago. They get into the market at a higher than normal fee (2x IMG), but it allows them credibility to go to other programs. It has worked well for UA and Auburn.