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re: How much TV revenue would Texas and OU add realistically?
Posted on 7/21/21 at 6:02 pm to ibldprplgld
Posted on 7/21/21 at 6:02 pm to ibldprplgld
A&M/the SEC is already in those (other) markets.
The deals aren’t negotiated based on how many additional folks tune in.
The deals aren’t negotiated based on how many additional folks tune in.
1
Posted on 7/21/21 at 6:04 pm to Hailstate15
Not much. The SEC is a revenue sharing conference.
SEC Network = Loss of money. The prices are based on state, Texas is already at the highest price because of A&M. Oklahoma is a decent market, but not really huge. It might could be enough to pay for itself. But since you now have to share with Texas, it's a loss.
Lower tier rights are handled by the schools, no extra income.
The only place where extra revenue could come in is on the tier 1 TV contracts, which the SEC just signed the largest one ever less than a year ago worth 3 billion.
However, in order for the SEC to gain money, they need to first pay for themselves. Meaning whatever the average is now, each of them needs to add enough value so that the SEC teams don't lose money by sharing. That seems doable.
But what about beyond that? Well you have share with 16 teams. So that means for every extra $16 million they bring extra, the school itself will only see $1 million. So they'll need to bring in like an extra $160 million plus, MORE than what the SEC already averages on it's 3 billion contract to really get into numbers double digit millions numbers.
And yet, if they could average that much, they probably wouldn't be looking to join the SEC.
So the end result for most SEC teams = not much extra, unless ESPN wants to pay a shite ton of extra money. From what I understand about their financials, it doesn't seem likely.
SEC Network = Loss of money. The prices are based on state, Texas is already at the highest price because of A&M. Oklahoma is a decent market, but not really huge. It might could be enough to pay for itself. But since you now have to share with Texas, it's a loss.
Lower tier rights are handled by the schools, no extra income.
The only place where extra revenue could come in is on the tier 1 TV contracts, which the SEC just signed the largest one ever less than a year ago worth 3 billion.
However, in order for the SEC to gain money, they need to first pay for themselves. Meaning whatever the average is now, each of them needs to add enough value so that the SEC teams don't lose money by sharing. That seems doable.
But what about beyond that? Well you have share with 16 teams. So that means for every extra $16 million they bring extra, the school itself will only see $1 million. So they'll need to bring in like an extra $160 million plus, MORE than what the SEC already averages on it's 3 billion contract to really get into numbers double digit millions numbers.
And yet, if they could average that much, they probably wouldn't be looking to join the SEC.
So the end result for most SEC teams = not much extra, unless ESPN wants to pay a shite ton of extra money. From what I understand about their financials, it doesn't seem likely.
Posted on 7/21/21 at 6:05 pm to Hailstate15
Schools like state, ole miss, Arkansas, Missouri, etc could forget about ever competing for a conference title in football if this happens...well, they don't already, but it would never happen if Texas and ou get added to the big time programs that already exist.
Posted on 7/21/21 at 6:06 pm to TideFaninFl
Donations aren’t revenue
Posted on 7/21/21 at 6:09 pm to Hailstate15
Who cares Hail.. Chicken would have to make a steel cage board just for the Aggie/Horn fights. Who doesn't want to see that?
Posted on 7/21/21 at 6:10 pm to Hailstate15
quote:
Because of the election you numb nuts. Been that way since November.
So we got our election stolen and you are blaming the rape victim. Even more cringy. Go frick yourself.
Posted on 7/21/21 at 6:12 pm to Hailstate15
Texas generates the most sports revenue in the country at $223,879,781. Oklahoma is 8th at $163,126,695
Posted on 7/21/21 at 6:41 pm to RelentlessTide
The only way it makes sense is if the SEC is going to break away from the NCAA. Now that NIL is legal what do they offer anyway? Why give them money when they're not needed. Let the SEC, B10, Pac12 run things...they kinda do now anyway.
Posted on 7/21/21 at 6:45 pm to Hailstate15
quote:
Is there a way to find out? I don’t know why a school would vote no if their additions brought in 10+ million a year.
I think this calculation could be done. Think of it this way..
If you remove Texas & Oklahoma from the Big 12.. is there really a big difference between the Big 12 and the AAC?
The AAC is currently getting about $7 million per school, per year. There would be 8 teams left in the Big 12.. lets bump it to $10 milion.
8 teams x $10 million = $80 million a year
In 2019, the Big 12 distributed $38.5 million per school..
10 teams x $38.5 million = $385 million a year
So Texas & Oklahoma bring approximately $300 million per year to the table.
If the SEC is paying out $70 million each, then there would be $160 million left over once Texas & OU get their share, to divide among 16 teams..
So in this example, each SEC team would make $80 million a year instead of $70 million.
These numbers aren’t exact, but I think it might be pretty close.
Posted on 7/21/21 at 6:52 pm to Hailstate15
Way more than NC state and Va Tech
Posted on 7/21/21 at 6:54 pm to Hailstate15
quote:
How much TV revenue would Texas and OU add realistically?
In all honesty, in a world where football is dying off in interest among young people, I have no hesitation in adding to historic programs rich in football tradition and suppor regardless of the TV dollars and viewership bump for the SEC.
This post was edited on 7/21/21 at 6:55 pm
Posted on 7/22/21 at 7:02 am to ImayGoLesMiles
quote:
Schools like state, ole miss, Arkansas, Missouri, etc could forget about ever competing for a conference title in football if this happens...well, they don't already, but it would never happen if Texas and ou get added to the big time programs that already exist.
Last time Ole Miss played either of those schools, we beat them.
This post was edited on 7/22/21 at 7:03 am
Posted on 7/22/21 at 7:08 am to deeprig9
quote:
because of existing shite schools like Miss St bring in basically nothing.
We have been to 11 straight bowl games which bring revenue to the conference
Posted on 7/22/21 at 7:35 am to 3down10
quote:
ESPN wants to pay a shite ton of extra money. From what I understand about their financials, it doesn't seem likely.
Eh, now they don’t have to pay 8 other Big 12 teams anymore. Those savings are probably going right into this deal to push it along.
Posted on 7/22/21 at 7:50 am to mulletproof
quote:
Chicken would have to make a steel cage board just for the Aggie/Horn fights. Who doesn't want to see that?
While I would love to see it - the A&N fans will tap out longgg before we get to that point.
They boycotted the rant because mods wouldn’t ban 3-4 Texas fans/alters that were picking on them
I honestly won’t be shocked if all Aggie posters (especially the one with shark teeth) simply leave this site.
Don’t think I’ve ever seen a rivalry with such a clear “little bro/big bro” dynamic. And Little Aggie just accepts it (I assume because most of their bosses went to Texas?)
Embarrassing af tbh.
Posted on 7/22/21 at 11:11 am to cardboardboxer
quote:
Eh, now they don’t have to pay 8 other Big 12 teams anymore. Those savings are probably going right into this deal to push it along.
Good point. Although IIRC the Big12 had deals with Fox. Or maybe both?
Posted on 7/22/21 at 11:19 am to Hailstate15
With Google and Amazon and the like getting in on streaming sports it’s all about what can you persuade people to pay per month to watch. There’s a reason Disney plus is now releasing shows once a week rather than dumping an entire season like Netflix did. It makes people have to subscribe another month for that content.
With OU and UT you literally create what will probably be 20 of the top 60 watched college football games. People will pay $15 a month out of pocket for that all over the country. To be a college fan and not have that SEC stream would be impossible to resist.
With OU and UT you literally create what will probably be 20 of the top 60 watched college football games. People will pay $15 a month out of pocket for that all over the country. To be a college fan and not have that SEC stream would be impossible to resist.
Posted on 7/22/21 at 11:36 am to BigBro
The TV money is what really matters. The new contract is $330 million a year or 23.5 for each of the 14 schools.
If we go to 16 teams ESPN would have to bump the contract to 376 million for the 23.5 to stay the same for each school. If each team were to get a 5 million raise to 28.5 million the ESPN contract would have go to 456 million.
Is adding TX and OU going to generate an addition 126 million dollars for ESPN to give all 16 teams a 5 million dollar raise. Probably not. ESPN is only getting one more SEC game a week. The OOC games don't move the needle on ratings.
If we go to 16 teams ESPN would have to bump the contract to 376 million for the 23.5 to stay the same for each school. If each team were to get a 5 million raise to 28.5 million the ESPN contract would have go to 456 million.
Is adding TX and OU going to generate an addition 126 million dollars for ESPN to give all 16 teams a 5 million dollar raise. Probably not. ESPN is only getting one more SEC game a week. The OOC games don't move the needle on ratings.
This post was edited on 7/22/21 at 11:41 am
Posted on 7/22/21 at 12:11 pm to 3down10
quote:
Not much. The SEC is a revenue sharing conference.
SEC Network = Loss of money. The prices are based on state, Texas is already at the highest price because of A&M. Oklahoma is a decent market, but not really huge. It might could be enough to pay for itself. But since you now have to share with Texas, it's a loss.
Lower tier rights are handled by the schools, no extra income.
The only place where extra revenue could come in is on the tier 1 TV contracts, which the SEC just signed the largest one ever less than a year ago worth 3 billion.
However, in order for the SEC to gain money, they need to first pay for themselves. Meaning whatever the average is now, each of them needs to add enough value so that the SEC teams don't lose money by sharing. That seems doable.
But what about beyond that? Well you have share with 16 teams. So that means for every extra $16 million they bring extra, the school itself will only see $1 million. So they'll need to bring in like an extra $160 million plus, MORE than what the SEC already averages on it's 3 billion contract to really get into numbers double digit millions numbers.
And yet, if they could average that much, they probably wouldn't be looking to join the SEC.
So the end result for most SEC teams = not much extra, unless ESPN wants to pay a shite ton of extra money. From what I understand about their financials, it doesn't seem likely.
This is very well said. There is no gain from allowing them in.
Posted on 7/22/21 at 12:15 pm to weadjust
quote:
Is adding TX and OU going to generate an addition 126 million dollars for ESPN to give all 16 teams a 5 million dollar raise. Probably not. ESPN is only getting one more SEC game a week. The OOC games don't move the needle on ratings.
I showed the math in a post above. Maybe the calculation is wrong, but I don’t think it is far off. Adding Texas & OU should result in about $10 million for every SEC team.
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