re: Tanner: Year 1 SEC Network Payout to be at least $5 million per school

We see you, horn.
Hang in there.
You're special.

makes sense good info. Obviously I'd never really paid attention to this all before.

quote:

---

That's a far cry from the $30 million per year payout I've seen aggies spew across the Internet...

Might have to sell more bonds or raise the hotel tax more to pay for all those upgrades.

---

They were saying 30 mil for ONLY the SECN payout per school, or 30 mil for all per school including the SECN plus bowls?? If it was the former, then yeah that's a bit enthusiastic....

Interesting

Nobody has seen the deal, so we don't know what the agreement is with regard to start up costs, but I sort of think that the respective parties are bearing their own costs--each school is having to invest in on campus infrastructure (A&M is spending $11 million, for example) while ESPN had some costs for setting up its studio in Charlotte (although not all that much--that's why they went to their existing facility in Charlotte).

Where will the increase come from? Well, this year's revenue is going to be based upon 10 months (or less) subscription revenue, instead of 12, so we should expect an increase based upon that, alone. And, there will be an increase in ad revenue, given the overwhelming success in market penetration.

Combined with revenue from the other TV deals, it should get SEC TV revenue up to $30 million in short order.

quote:

---

here was a Missouri fan claiming $30 million per school, per year solely from the SEC Network.

Aggies have been counting that money for four years now. They must be quite crestfallen.

---

\

link?

(no message)

I think we're going to exceed $15 million/year from the SEC Network by year four. Am I being overly optimistic?

So we will all get like around $26 million in TV money per school instead of $30 million.

Woah is us.

quote:

---

I think we're going to exceed $15 million/year from the SEC Network by year four. Am I being overly optimistic?

---

Maybe. Who knows until we see the ratings on this thing. Ad money is really way gets you from $10 million to $15 million as there is kinda a ceiling on medium term per-subscriber costs. I mean the NFL gets $1.34 per subscriber per month for its network, so it would be hard to see the SEC leap past in five years that despite a lot more content.

You see ESPN learned its lesson with the LHN- distribution first then stick it to them.

What is exciting is if the demand is high then ESPN can start to inch up the costs like it has done with ESPN 1. Unlike the old TV deals that would be great early in the contract and below market value later, the SEC Network might keep inching up as a revenue source. Stable is good for planning.

I don't see the SEC catching the B1G this decade, but that is because their Tier 1 rights are going up for renewal at the perfect time. We should be ahead of everyone else sans maybe Texas.