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re: Pac-12 zooms past Big Ten, SEC in college sports revenue
Posted on 5/25/14 at 6:49 pm to TeLeFaWx
Posted on 5/25/14 at 6:49 pm to TeLeFaWx
quote:
They own all their network, correct?
Correct
100% of carriage + 100% of advertising.
Of all the Big 5 they have the biggest upside by the time contracts renegotiate around 2024. Having only 12 teams also means fewer slices of the pie. Unlike the B12, they have a solid footprint with growing states, a natural moat, and monopoly pricing power.
3
Posted on 5/25/14 at 6:54 pm to Cheese Grits
Grits, how do you know the SEC will get none of the advertising profit from the network? I'm curious because it seems to me everything is worded as the SEC will get a share of profits. Is there somewhere that says the SEC only negotiated for part of the subscriber fees? Since the financial details have not been provided yet, where are you getting your info from?
Posted on 5/25/14 at 7:02 pm to Cheese Grits
quote:
quote: They own all their network, correct? Correct 100% of carriage + 100% of advertising. Of all the Big 5 they have the biggest upside by the time contracts renegotiate around 2024. Having only 12 teams also means fewer slices of the pie. Unlike the B12, they have a solid footprint with growing states, a natural moat, and monopoly pricing power.
This is why we shouldn't have done the deal with ESPN. The coverage and immediate guaranteed money in the short term will be great, but 10 years from now we will know we signed a deal with the devil and wish we owned 100% of SEC network
Posted on 5/25/14 at 7:46 pm to Cheese Grits
quote:
they have a solid footprint with growing states, a natural moat, and monopoly pricing power.
I will agree that they potentially have the biggest upside, but at least right now: They have a big lack of enough content problem, carriage problem, and lack of exposure east of the Rockies problem.
The Pac Network only paid out $800,000 to member schools, where as the Big Ten Network was paying out $7.2 million in 2012
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