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re: Revenue comparison for SEC Network and Longhorn Network

Posted on 5/2/13 at 5:08 pm to
Posted by CGSC Lobotomy
Member since Sep 2011
80115 posts
Posted on 5/2/13 at 5:08 pm to
quote:

I wish my fellow LSU fans would learn this. It's amazing how they honestly believe any coach in the nation would jump at the chance to coach at LSU if Miles left.


We've already been through it during the Groff/Slocum years, then the Byrne years.
Posted by Hook Em Horns
350000 posts
Member since Sep 2010
15087 posts
Posted on 5/2/13 at 5:34 pm to
i would just like to know how many threads are started about texas..Just curious..
Posted by CGSC Lobotomy
Member since Sep 2011
80115 posts
Posted on 5/2/13 at 5:49 pm to
Ask the LSU fan who started it.
Posted by Sheetbend
Member since Apr 2013
1267 posts
Posted on 5/2/13 at 6:07 pm to
quote:

I wish my fellow LSU fans would learn this. It's amazing how they honestly believe any coach in the nation would jump at the chance to coach at LSU if Miles left.



Are you saying LSU football is not one of the best head coacing jobs in the country?
Posted by thefloydian
Member since Dec 2012
4771 posts
Posted on 5/2/13 at 7:50 pm to
quote:

i would just like to know how many threads are started about texas..Just curious..


Not enough. Laughing at UT is something we can all bond over.
Posted by tigerbait2010
PNW
Member since May 2006
29218 posts
Posted on 5/2/13 at 7:53 pm to
quote:

i would just like to know how many threads are started about texas..Just curious..


Texas is hardly ever mentioned on here, and why would they? You assclowns are irrelevant in just about everything these days. But yeah one multi-page thread laughing at your bust of a network makes us so obsessed.
Posted by LuzianaFootball
Bay Area
Member since Dec 2008
7846 posts
Posted on 5/2/13 at 8:13 pm to
Not enough. Laughing at UT is something we can all bond over.
Posted by Kentucker
Cincinnati, KY
Member since Apr 2013
19351 posts
Posted on 5/2/13 at 9:09 pm to
As one who has followed the A&M/TU rivalry for many years (and always having rooted for the Aggies) it's amazing to see the results of good decision making versus bad. DeLoss Dodds' unbridled arrogance is rapidly painting the Longhorns into the proverbial corner.

His confidence that TU (1) is the unchallenged king of Texas and (2) has the best athletic department in the country is proving to be a misjudgment that will resonate for years to come; and will ultimately relegate TU to a lower level amongst major college programs nationally. The LHN is the, almost literal, handwriting on the wall.

Conversely, the Aggies have made all the best decisions in the last three years. As quickly as the Longhorns' decline is precipitating, A&M's star is rising.

I love great stories, especially a real one like this that has a strong moral at its heart: If you persist in being an a-hole to everybody, karma is going to do an intervention and sit you on your arse; and we all know what comes out of an a-hole. Eventually you'll wind up sitting all alone in your own shite.
Posted by texashorn
Member since May 2008
13122 posts
Posted on 5/2/13 at 9:40 pm to
Are you guys sure about that $400 million total/$28.5 million per team figure being solely applicable to an SEC Network?

It appears that number is being pulled from this article, which is from mid-April, and states that's the total of all television tiers (assuming CBS does not increase):

quote:

One sports television source not directly affiliated with the SEC or the deal estimates an eventual worth of around $400 million per year in SEC television revenue from ESPN and CBS (which pays $55 million per year). That'd be $28.5 million per team before factoring in bowl game earnings or NCAA credits.

cbssports.com


Those numbers have been parroted in reputable sources just today:

USA Today, from May 2:

quote:

Some believe the combination of the current contract with CBS and the arrival of the SEC Network will produce in the neighborhood of $400 million in revenue annually — about $28.5 million per conference school.

USA Today

Memphis Commercial Appeal, May 2:

quote:

Slive would not disclose financial figures, but sports business journalists previously said that such a contract, along with the league’s CBS contract, could provide each league school as much as $28.5 million annually alone in just TV revenue.

Memphis Commercial Appeal

So let's extrapolate.

What's the current payout for all tiers per SEC team, as the contracts currently exist without the network?

Is it $20 million per team? Then that means the SEC Network is worth $8.5 million per year, per team.

Is it $21 million per team? Then it would mean the SEC Network adds $7.5 million per team.


Sorry, but that's less than the $9 million-$10 million (quoted earlier) The University of Texas as a whole earned from its network (the allocation to the scholastic side is purely at the discretion of UT). The contract is for $300 million guaranteed over 20 years, which comes to $15 million per year (perhaps there's some contractual backloading involved).

If anyone would like to dispute these figures, go right ahead.

There was a thread on here awhile back bemoaning these numbers, which are now being celebrated:

LINK

ETA: Did a little more hunting, and it appears that SEC teams get $17 million per year from television revenue.

That would mean after all is accounted for (it's not all so cut and dried, but for simplicity's sake)... the SEC Network means $11.5 million per team in additional revenue, which is slightly more than the Longhorn Network as it stands now (someone earlier mentioned $10 million), and less than the straight-up $15 million per year the contract guarantees over the life of the Longhorn Network contract.
This post was edited on 5/2/13 at 9:58 pm
Posted by Gradual_Stroke
Bee Cave, TX
Member since Oct 2012
20917 posts
Posted on 5/2/13 at 9:40 pm to
Dude
Posted by DWag215
Houston, TX
Member since Aug 2011
7215 posts
Posted on 5/2/13 at 10:03 pm to
I share your understanding of the figures.

The parties from ESPN who are responsible for the LHN's terms committed arguably the greatest faux pas in media rights negotiating history. The gross overestimation of demand for all things longhorn was nothing short of reckless. How could they be so wrong?
This post was edited on 5/2/13 at 10:15 pm
Posted by Elleshoe
Wade’s World
Member since Jun 2004
143616 posts
Posted on 5/2/13 at 10:03 pm to
Ok look... Let's put the A&M jerkoff fest into perspective. Yes they did the right thing by leaving the sips. But are they getting nearly the attention without Manziel? I'm sorry if I'm not ready to bow down at the alter but lets let them accomplish something besides getting an invite to join the SEC
Posted by DWag215
Houston, TX
Member since Aug 2011
7215 posts
Posted on 5/2/13 at 10:11 pm to
A simple "thank you" would suffice.

Who cares why we're getting attention?

"Arrghh Manziel's the reason!!!"

Ok? He plays for A&M. He's an Aggie. What use is there to ask "what if he wasn't"?

Oh, it's the "once he's gone, they'll slip back to a Fran-like place"--a place that's literally the second worst in our history. Not exactly normal, yet given a peculiar emphasis by many.

Because after all, it stands to reason that we'll stop recruiting well under Sumlin, and that the classes we've secured for 2013 & 2014 will be abject failures and won't serve as the fulcrum of Aggie football's future.

Nope, 77-0 is just around the corner.

Seems legit.
This post was edited on 5/2/13 at 10:14 pm
Posted by bgator85
Sarasota
Member since Aug 2007
6022 posts
Posted on 5/2/13 at 10:13 pm to
quote:

Is it $20 million per team? Then that means the SEC Network is worth $8.5 million per year, per team.

Is it $21 million per team? Then it would mean the SEC Network adds $7.5 million per team.


I certainly hope we get far bigger numbers than that eventually. We are trading SunSports for the Network and already get $10 million from them.
Posted by texashorn
Member since May 2008
13122 posts
Posted on 5/2/13 at 10:22 pm to
It has been difficult to nail down an exact figure for how much each SEC team realizes in television revenue per year. I've seen varying figures, even as low as $15 million per year.

But nonetheless, whatever the number is currently, subtracted from the $28.5 million projection of all tiers including the SEC Network, would give you a good estimate as to how much the SEC Network has padded the bottom line.

If SEC teams currently get as low as $15 million/team in television payouts, then that makes the SEC Network figure jump to $13.5 million in additional revenue.

And we all know that A&M needs every penny it can get. SEC members, the Aggies are praying you can come through (for their sake), especially with a stadium remodel coming down the pike.

quote:

"We don't have a lot of financial maneuverability here in the athletic department right now," Hyman said. "But hopefully, when the [SEC] television network comes on in a couple of years we'll have more flexibility."

aggiesports.com, Feb. 26, 2013
This post was edited on 5/2/13 at 10:28 pm
Posted by DWag215
Houston, TX
Member since Aug 2011
7215 posts
Posted on 5/2/13 at 10:26 pm to
Troll harder.

He's specifically referencing the complete absence of any media revenue from this past year. We had to forgo it to leave your shitty conference.

Obviously money well spent.
Posted by texashorn
Member since May 2008
13122 posts
Posted on 5/2/13 at 10:33 pm to
That "loss" from leaving the Big 12 was only about $9 million.

The illustrious BCS Eagle

I thought you peckerwoods were just rollin' in the dough?
Posted by DWag215
Houston, TX
Member since Aug 2011
7215 posts
Posted on 5/2/13 at 10:39 pm to
Yes, losing $9M in liquid cash encumbers the AD's ability to provide across the board raises to the football staff. Nevertheless, we still put Sumlin and co. at top 4-5 in the conference.

The loss of $9M is especially felt in light of the $9M weight room we built, the $4M lobby in Bright we're building, and the $12M nutrition center we're building for our athletes.

It's unfortunate we're not the beneficiary of ESPN's worst mistake ever. But even then, we'd still be out $6M.
This post was edited on 5/2/13 at 10:42 pm
Posted by texashorn
Member since May 2008
13122 posts
Posted on 5/2/13 at 10:46 pm to
I think your last post is actually proving my point.

Don't get me wrong, things are going well for A&M, but Jesus, you guys sure come across like white trash who hits the lottery or gets a big insurance payout, then starts spending lavishly... and then some, all the while telling everyone how rich you are before things go "splat" and you're back in the shithouse.
Posted by DWag215
Houston, TX
Member since Aug 2011
7215 posts
Posted on 5/2/13 at 10:51 pm to
We're spending loads of cash. That doesn't prove your point. Money is a finite object, even for successful ADs.

We're spending because we have to if we're to compete in this conference. We were behind in a lot--still are. And the Kyke redevelopment is a necessity, one that would have been addressed regardless of conference.

Frame the expenditures as you please. The unavoidable fact is they're lifting the program to heights its never seen.
This post was edited on 5/2/13 at 10:53 pm
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