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re: Auburn inks 10 year $120 million deal with Fox Sports
Posted on 3/7/16 at 10:50 am to VermilionTiger
Posted on 3/7/16 at 10:50 am to VermilionTiger
quote:
What exactly do they have the privilege of showing?
According to the release, Home Team Sports (owned by FOX Sports) will manage “athletics-related radio, corporate hospitality, in-venue signage, social media integration, promotional activities, and intellectual property rights, as well as other mutually agreed upon inventory” for the university.
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Posted on 3/7/16 at 10:56 am to allin2010
This deal won't include televising football. All 14 teams gave up their football television rights to the conference.
Posted on 3/7/16 at 11:06 am to allin2010
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?
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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