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re: SEC Network, the thread
Posted on 5/30/14 at 11:10 am to CGSC Lobotomy
Posted on 5/30/14 at 11:10 am to CGSC Lobotomy
Pretty good Q&A about the SEC Network from the ULSU perspective
This one caught my eye
This one caught my eye
quote:
Currently, each SEC school gets about $20 million per year in TV revenue, so it’s easy to see what a huge impact the network will have on SEC bottom lines. LSU Athletic Director Joe Alleva has said he hopes revenue from the SEC Network will reduce or at least postpone the need for raising ticket prices.
3
Posted on 5/30/14 at 11:23 am to tmc94
quote:
LSU Athletic Director Joe Alleva has said he hopes revenue from the SEC Network will reduce or at least postpone the need for raising ticket prices.
Unfortunately, I could never imagine our AD saying something similar.
Posted on 5/30/14 at 11:28 am to tmc94
quote:
How much is the network going to be worth to each school?
It’s hard to count that high.
Based on the rate within SEC states alone, if you multiply $1.30 times 12 months times the estimated 30 million subscribers in that footprint, you get $468 million. That would be $33.4 million per school — per year. And that’s without counting advertising revenue or subscribers from non-SEC states. Factor that in, and the SEC Network could easily be worth $500 million per year or $35.7 million per school once full distribution is achieved.
This part is misleading, as it assumes that all revenue is profit, and that ESPN gets no cut in the profits.
...though I do think he's underestimating advertising revenue.
Posted on 5/30/14 at 11:33 am to tmc94
Good link. Corndogs are in for a rough awakening if they think that they can roll that money back into the budget. The SEC Network is going to increase the pace of the arms race of facilities.
I found this part interesting:
So many SEC fans seem to assume that they will get the network before the fall, but it has been obvious to me that isn't the case.
If the big ones (like DirecTV, Comcast, TWC, etc.) bite year one you left money on the table for future years. The negotiations will ramp up when SEC fans can't get access and they are poisoning the trees around your office building.
Since 2011 it has been obvious to me the plan was to cash in on SEC passion to sell a product for more than its worth on paper to avoid negative PR (and other) repercussions.
I found this part interesting:
quote:
Meanwhile, people like Alleva and SEC Commissioner Mike Slive suggested the network is available to any and all who want to drop their current provider and switch to AT&T or Dish Network. That rather cavalier attitude reflects the SEC’s hard line and confident bargaining position.
So many SEC fans seem to assume that they will get the network before the fall, but it has been obvious to me that isn't the case.
If the big ones (like DirecTV, Comcast, TWC, etc.) bite year one you left money on the table for future years. The negotiations will ramp up when SEC fans can't get access and they are poisoning the trees around your office building.
Since 2011 it has been obvious to me the plan was to cash in on SEC passion to sell a product for more than its worth on paper to avoid negative PR (and other) repercussions.
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