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re: Some recent info on media rights money...
Posted on 6/30/17 at 10:10 pm to Hugh McElroy
Posted on 6/30/17 at 10:10 pm to Hugh McElroy
A&M continues to leave the Longhorns in the dust. But it's about time you guys put some results on the field.
1
Posted on 6/30/17 at 11:25 pm to The Winner
My God, how do you people, suffering with only an aggy-level education in financial literacy, function in society?
The LHN deal isn't a media rights deal. It is a licensing agreement. ESPN pays an annual licensing fee to the university. The ESPN deal with the SEC member schools is a media rights deal where the net revenue is shared between ESPN and the conference. The difference is that the UT/ESPN/LHN deal offers a set amount each year that is independent of the number of ESPN subscribers. The ESPN/SEC deal exposes the member schools to cord-cutting and declining subscriber numbers.
Look at Item 15 "Royalties, Licensing, Advertisements and Sponsorships." P5 on the aggy report, P4 on the UT report. UT kicks the ever living shite out of aggy, in part because of the LHN licensing payment. And remember, this report doesn't include the 15 year, $250 million NIKE deal that kicked in in late 2016.
The aggy Adidas deal is for $4.5 million in uniforms (retail prices) and $2.6 million in cash annually. The new UT/NIKE deal was for $20 million upfront (not included in the linked report), $6.5 million annually in cash as a base amount, uniforms and apparel, etc, etc. That works out to over $16 million/yr.
UT has higher ticket sales than aggy, lower debt service, higher NCAA distributions, higher conference distributions, higher concession sales, higher athletics endowment income.
Do you people not read or do you not understand what you read? Which is it? Help me out here.
The LHN deal isn't a media rights deal. It is a licensing agreement. ESPN pays an annual licensing fee to the university. The ESPN deal with the SEC member schools is a media rights deal where the net revenue is shared between ESPN and the conference. The difference is that the UT/ESPN/LHN deal offers a set amount each year that is independent of the number of ESPN subscribers. The ESPN/SEC deal exposes the member schools to cord-cutting and declining subscriber numbers.
Look at Item 15 "Royalties, Licensing, Advertisements and Sponsorships." P5 on the aggy report, P4 on the UT report. UT kicks the ever living shite out of aggy, in part because of the LHN licensing payment. And remember, this report doesn't include the 15 year, $250 million NIKE deal that kicked in in late 2016.
The aggy Adidas deal is for $4.5 million in uniforms (retail prices) and $2.6 million in cash annually. The new UT/NIKE deal was for $20 million upfront (not included in the linked report), $6.5 million annually in cash as a base amount, uniforms and apparel, etc, etc. That works out to over $16 million/yr.
UT has higher ticket sales than aggy, lower debt service, higher NCAA distributions, higher conference distributions, higher concession sales, higher athletics endowment income.
Do you people not read or do you not understand what you read? Which is it? Help me out here.
This post was edited on 6/30/17 at 11:35 pm
Posted on 6/30/17 at 11:35 pm to Randolph Duke
quote:
The LHN deal isn't a media rights deal.
Ha! You are a special kind of delusional, Randy.
Somebody go find those posts with Randy talking about how much financially worse off A&M was going to be in the SEC than the Big 12.
This post was edited on 6/30/17 at 11:42 pm
Posted on 6/30/17 at 11:39 pm to Randolph Duke
Who fricking cares about all this anyways?
Posted on 6/30/17 at 11:56 pm to Killean
quote:
I suspect that the money from the CBS games won't be as high as people think. TV money for college sports has probably peaked as overall television viewership goes down.
I don't think so. Sports is the last appointment TV, and appointment TV is advertiser gold.
Posted on 7/1/17 at 12:00 am to I-H8-BAMA
aggy cares about this big time. They live and die by the Burnt Orange Yardstick. Everything aggy has and everything they do has to be measured against UT Austin.
What aggy doesn't want to discuss is that their financials have been skewed as of late by the contributions for their new stadium. They borrowed roughly $350 million in taxable municipal debt and financed the rest through contributions that they are SOOOO proud of.
And while their stadium contributions are material, what aggy doesn't want to admit is their "wealthy alumni base" couldn't even match what the Oklahoma State alumni ponied up for their stadium project. So, while aggy claims to be rich, they aren't even Okie Lite rich. Or Oregon rich. Or UT rich. Or....
aggy's problem is that aren't a wealthy group. Kyle Field was originally built the same year as the Big House in Ann Arbor. Because Michigan has regular success, they have the revenues to do regular maintenance and expansions. The Big House is, and pretty much always has been, a mecca for college football and a damned nice stadium. aggy, on the other hand, only has success once every couple of decades (again, they have only finished above .500 in conference play twice in the past decade and they haven't even sniffed a conference championship in almost 20 years. Hell, aggy couldn't even win a BCS game, a feat even Kansas, Connecticut, Utah and West Virginia managed). The fact is aggy barely can pay their bills in many years and they have to let their stadium maintenance suffer. Their old stadium was horribly decrepit, non-ADA compliant, and deemed a safety hazard by the Fire Marshall (Seriously. Ask them why they couldn't even light the letters on the outside of the old stadium, It was because the electrical system was that dangerous).
aggy used the conference switch and the 2012 season to fuel a fund raising drive to catch up on stadium infrastructure issues. Sadly, they still haven't been able to pay back their academic side for the debt they have owed them since 2006 (aggy athletics couldn't pay their bills in 2006, 2007, 2008, 2009 or 2012 so they had to beg tens of millions from the academic side to payLINK debts).
Now that aggy has to begin to pay their immense athletics debt (over $400 million if you add bond debt and commercial paper debt) the fun begins.
Good luck aggy.
One quick fun fact - aggy hasn't been able to afford an outdoor track facility on their campus for years. They finally found the money to build one. It will seat 3,000 spectators. The Texas state high school track meet draws about 20,000 peak attendance, so the new aggy stadium won't be even close to being big enough to handle the state high school track meet. Where is the Texas state high school track meet meet held? At the track stadium on the UT Austin campus. Why is that? Because only UT Austin can afford the facilities. When a major university can't even afford to build facilities to host a high school track meet, something is very aggy. lol.
Remember, my SEC friends - No Givebacks!
What aggy doesn't want to discuss is that their financials have been skewed as of late by the contributions for their new stadium. They borrowed roughly $350 million in taxable municipal debt and financed the rest through contributions that they are SOOOO proud of.
And while their stadium contributions are material, what aggy doesn't want to admit is their "wealthy alumni base" couldn't even match what the Oklahoma State alumni ponied up for their stadium project. So, while aggy claims to be rich, they aren't even Okie Lite rich. Or Oregon rich. Or UT rich. Or....
aggy's problem is that aren't a wealthy group. Kyle Field was originally built the same year as the Big House in Ann Arbor. Because Michigan has regular success, they have the revenues to do regular maintenance and expansions. The Big House is, and pretty much always has been, a mecca for college football and a damned nice stadium. aggy, on the other hand, only has success once every couple of decades (again, they have only finished above .500 in conference play twice in the past decade and they haven't even sniffed a conference championship in almost 20 years. Hell, aggy couldn't even win a BCS game, a feat even Kansas, Connecticut, Utah and West Virginia managed). The fact is aggy barely can pay their bills in many years and they have to let their stadium maintenance suffer. Their old stadium was horribly decrepit, non-ADA compliant, and deemed a safety hazard by the Fire Marshall (Seriously. Ask them why they couldn't even light the letters on the outside of the old stadium, It was because the electrical system was that dangerous).
aggy used the conference switch and the 2012 season to fuel a fund raising drive to catch up on stadium infrastructure issues. Sadly, they still haven't been able to pay back their academic side for the debt they have owed them since 2006 (aggy athletics couldn't pay their bills in 2006, 2007, 2008, 2009 or 2012 so they had to beg tens of millions from the academic side to payLINK debts).
Now that aggy has to begin to pay their immense athletics debt (over $400 million if you add bond debt and commercial paper debt) the fun begins.
Good luck aggy.
One quick fun fact - aggy hasn't been able to afford an outdoor track facility on their campus for years. They finally found the money to build one. It will seat 3,000 spectators. The Texas state high school track meet draws about 20,000 peak attendance, so the new aggy stadium won't be even close to being big enough to handle the state high school track meet. Where is the Texas state high school track meet meet held? At the track stadium on the UT Austin campus. Why is that? Because only UT Austin can afford the facilities. When a major university can't even afford to build facilities to host a high school track meet, something is very aggy. lol.
Remember, my SEC friends - No Givebacks!
This post was edited on 7/1/17 at 12:19 am
Posted on 7/1/17 at 12:01 am to Hugh McElroy
Do you not understand third tier rights and capitalism
With a conference network third tier rights are bundled and sold together as a conference so lesser known programs are awarded and big programs are punished
Universities that hold onto their third tier rights can sell them on an open market like what UT did
This upsets ESPN because UT is an important and well known university and could command big money on an open market
What does ESPN do because of this?
They tried to damage UT so once the LHN contract ends UT would be forced into a conference that ESPN controls. Some of these conferences are being screwed by ESPN and even if they add UT cannot open negotiations for a new contract.
With a conference network third tier rights are bundled and sold together as a conference so lesser known programs are awarded and big programs are punished
Universities that hold onto their third tier rights can sell them on an open market like what UT did
This upsets ESPN because UT is an important and well known university and could command big money on an open market
What does ESPN do because of this?
They tried to damage UT so once the LHN contract ends UT would be forced into a conference that ESPN controls. Some of these conferences are being screwed by ESPN and even if they add UT cannot open negotiations for a new contract.
This post was edited on 7/1/17 at 12:02 am
Posted on 7/1/17 at 4:31 am to Randolph Duke
quote:
Remember, my SEC friends - No Givebacks.
FUTU
Posted on 7/1/17 at 6:47 am to Killean
quote:
I suspect that the money from the CBS games won't be as high as people think. TV money for college sports has probably peaked as overall television viewership goes down.
Who has to think? It has long been known the CBS contract is for $55M per season. Which breaks down to $3.67M per share (15 shares). Which is like one person pissing in the Gulf of Mexico in the grand total.
CBS almost always has Bama on the 5 maximum games. That is $734K per game. What a fricking joke.
This post was edited on 7/1/17 at 6:53 am
Posted on 7/1/17 at 8:39 am to ALA2262
quote:
CBS almost always has Bama on the 5 maximum games. That is $734K per game. What a fricking joke.
And still 7 more years of that crap.
Posted on 7/1/17 at 8:41 am to Herman Frisco
This is the level of obsession we have to deal with. They just can not let go.
Posted on 7/1/17 at 9:53 am to Hugh McElroy
quote:
And still 7 more years of that crap.
CBS had first option on TV rights to Bama-FSU Kickoff classic. They passed. Why pay $5M each to Bama and FSU when they can get Bama for $734K a game?
Posted on 7/1/17 at 10:44 am to Randolph Duke
Hey ole Dukie,
You Texas boys talk a good game, about how much money you have! Where has that got you in athletics? When was the last time Texas was relevant in any sport? Maybe when Alabama kicked your a$$ in the last national championship, ya'll were in!
Ya'll can't even agree on a coach, since ya'll fired Mack Brown, your last championship winning coach. Look Dukie, everybody is laughing at Texas and ya'll brought it on yourself!
You are picking on the Aggies about their finances, let me tell you this, the Aggies are our SEC brethren. The Southeastern Conference is the leading moneymaker in this game. Hell ya'll ain't even 2nd, Big 10 makes more money than the Big 12 or 11 or 10 or whatever.
Your Big Whatever is fixing to be through, you already have conference members looking at options.
If you think the Pac 10 wants ya'll, you better revamp your television package because that ain't going to fly in California!
Dukie, if you want to keep picking on Texas AM, c'mon over to the SEC side of the street, we will show you how it's done.
P.S. Please forgive my colloquialisms such as ain't and Ya'll, I was trying to communicate in terms Dukie could undrstand
You Texas boys talk a good game, about how much money you have! Where has that got you in athletics? When was the last time Texas was relevant in any sport? Maybe when Alabama kicked your a$$ in the last national championship, ya'll were in!
Ya'll can't even agree on a coach, since ya'll fired Mack Brown, your last championship winning coach. Look Dukie, everybody is laughing at Texas and ya'll brought it on yourself!
You are picking on the Aggies about their finances, let me tell you this, the Aggies are our SEC brethren. The Southeastern Conference is the leading moneymaker in this game. Hell ya'll ain't even 2nd, Big 10 makes more money than the Big 12 or 11 or 10 or whatever.
Your Big Whatever is fixing to be through, you already have conference members looking at options.
If you think the Pac 10 wants ya'll, you better revamp your television package because that ain't going to fly in California!
Dukie, if you want to keep picking on Texas AM, c'mon over to the SEC side of the street, we will show you how it's done.
P.S. Please forgive my colloquialisms such as ain't and Ya'll, I was trying to communicate in terms Dukie could undrstand
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