Big news. There was some doubt about whether this would come to fruition. 6 year deal. Important to maintain a presence with ESPN, regardless of what people feel about them
ESPN buys second half of B1G rights for $190M/year
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That is really big news.
Now let the speculation begin as to whether RU will get any acceleration and/or increase in its payout from this deal. The sliding scale payout (which was appropriate in my opinion) was due in large part to RU having to "buy in" to the BTN share. But this new media rights deal is separate from the BTN business, and there is no doubt that RU and Maryland's media market presence was CERTAINLY a big part of the Big Ten's ability to ramp up the Fox and ESPN deals.
Now let the speculation begin as to whether RU will get any acceleration and/or increase in its payout from this deal. The sliding scale payout (which was appropriate in my opinion) was due in large part to RU having to "buy in" to the BTN share. But this new media rights deal is separate from the BTN business, and there is no doubt that RU and Maryland's media market presence was CERTAINLY a big part of the Big Ten's ability to ramp up the Fox and ESPN deals.
From the article linked above, "ESPN signed a 10-year deal worth $100 million annually in 2006 — a payout that increased to $150 million this year due to the addition of Nebraska, Maryland and Rutgers to the conference." So yes, there is no doubt that the additions of the additional schools added additional value. The RU and MD administrations knew that there would be new TV rights deals when they signed-on, so I would assume that the agreement addresses how this situation is handled somewhere.
The deals ($190/yr ESPN + $240 Fox + $10 CBS = $440/yr total) works out to $31MM/yr per school. On top of that is BTN, bowl, and NCAA revenue.
For the extra $50 million, Fox gets the conference championship game every year and gets first pick so the article speculates tOSU-UM on Fox every year.
Just think what we used to get paid by BE or last conf.,,,,,, just wow
At this point, it feels like football has a budget that adequately meets it's needs. We settled on a first time Head Coach which saved a big chunk. We don't have any high ticket assistants but Ash seems to want that, anyway.
An increase would help the AD as a whole but not sure it would change much n the football side of things. Does that sound right?
Anyway, life in the B1G is just amazing. Thank God it happened.
An increase would help the AD as a whole but not sure it would change much n the football side of things. Does that sound right?
Anyway, life in the B1G is just amazing. Thank God it happened.
Probably true for the time being. At the same time, Indiana enclosed one end of their football stadium with a very nice addition several years ago, and that wasn't driven by football demand...so clearly they had more money floating around than they knew what to do with.
If I ran Rutgers athletic department, I would make sure football has what it needs on a more modest scale (i.e. Hale Center is sufficiently up to date, weight room, training room, locker room, etc.), but wouldn't invest big dollars in the program until other lower cost programs get something to make them more competitive.
At some point, when you are cashing big checks year after year, though, you can make bigger investments.
Hopefully we will need raises to keep our staff. If you compare out football to other big ten programs adding 5mil in spending would put us on par with programs we want to be like.
Plus you should get 20 responses on facilities...
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My best guess is that the increase does nothing for RU because we signed on for a specific money payout, till we are full members.... Even if so, we do have big money to look forward to down the line.
Yup.
The figure is slightly less than the low end I gave of 200M but the 240M is also less than the reported 250M. I wondered what that would mean in terms of bells and whistles for the 2nd half. The 2nd half of the package is cheaper but with less bells and whistles. Looks like Fox got most of them by getting first choice every week and the B10 champ game every year.
It's a good deal IMO. Both needed the other and I didn't think either wanted separate from one another. The B10 is a premium sports property and no matter what anyone says about ESPN or their dislike for it, it's still the leading sports broadcaster. It's a good marriage for both.
Wasn't sure if it would be 6 years for both halves, looks like Delany is willing to take the gamble that the sports market will at the very least remain stable if not overheated. I'm guessing by that time the B10 will have a new commissioner as well.
I know many on this board will criticize everything, but is this a good deal for us and the B1G? What were we expecting to get? Not sure why a TV contract should generate a knock on our coaches saying we "settled", but whatever. I guess haters are gonna hate.
Even worse, think what the UConns and USFs of the world are getting in the AAC now. That's going to be loose change for us soon.
It most likely never was going to be. I said as much in those discussion threads. I said ESPN might get a slight discount plus I said the 2nd half of the package might not get all the bells and whistles so it would be cheaper anyway. I gave a low end of 200M and this turned out to be 190 but the reported figure was also 240 vs. 250 from Fox. I don't think the number is surprising and it is a good marriage between a premium sports property and the leading sports broadcaster with tons of exposure. I don't like ESPN like many here but business is business and you have to do what's best with that in mind.
No inside info but that was always my thinking as well, would be happy to be wrong though. :stuck_out_tongue_winking_eye:
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Delaney probably knew we would take a set amount because even that set amount was more than the AAC could provide, and we still wait for the bigger payday.
On the Cuse board a fan there said that the big ten network generates about seven million per team, and the
Rose bowl another 5.5 million per team, taking the total tv payout to almost 44 million per team in conference
Have no idea if these additional figures are true, the Rose bowl number sound awfully high to me.
About six months ago, I thought the consensus here was that both deals combined would net each school approximately $40 million. So, this is a bit less than what we all thought, right? The Fox deal was good. So, doesn't this mean that the ESPN a deal is a bit of a disappointment? Were we all waiting for another network to swoop in and make a better offer?
Rose Bowl payout is 80M but that's for both the PAC12 and B10. Take 1/2 of that at 40M and divide by 14 teams it's about 2.85M back of the napkin calculation.
The B10 network numbers have been published somewhere but I can't remember them off the top of my head. All the start up costs have been recouped by Fox now though and there has been profit sharing on top of the fixed payout from Fox the last few years.
EDIT: BTN pays each team 8M annually.
http://www.sportsbusinessdaily.com/Journal/Issues/2016/04/25/Media/Big-Ten.aspx
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In full agreement with you. I don't think we get our share of the increase.
That said if I was the B1G (and easy as a RU fan to suggest it) I would say we will allow RU to take their pro-rata increase but $X needs to spent on upgrading facilities like Yurcak and Bainton to allow BTN to broadcast, $X needs to be spent on fully funding sports, etc. That way we get the benefit but so does conference with increased inventory and hopefully better competition.
For Maryland I'd say your increase goes in to servicing your loan.
I think quite a few were expecting the 2nd half to equal the first half so I guess a "disappointment" for some. I didn't rule it out because you can't know how these deals break down but it was very plausible that the 2nd half would be cheaper than the first. If you assume Fox's high premium quite likely could have included all the bells and whistles like the B10 champ game every year and first picks of games then by default the other half wouldn't be worth the reported 250M Fox paid. On top of that I don't think the B10 wanted to leave ESPN if at all possible and maybe a small discount for the leading name in sports broadcasting so then these numbers weren't all that surprising.
It's good marriage for both parties. I've always said no matter how much ESPN is cutting costs, its premium content is its lifeblood not the sports personalties or lesser properties and that is the place it has to be careful in how much it cuts. The 190M figure shows that's the case. From the B10 side, even though you're a premium property there is risk in leaving the leader in sports broadcasting and all its exposure. I gave some possible alternatives that might work but who's to know how realistic those may have been in their talks. Both needed the other and in the end I think they both came to that conclusion as well and came up with a reasonable figure given Fox's figure.
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As I posted elsewhere, the big ten and rose bowl money are not factored in..... So schools will wind up in the 40 million range, but not with these two deals alone... We're we expecting these two deals to get to 40 mill?
Not sure if it would make sense to have different Contract Terms (different expiration dates) for the 1st half and the second half. When TV rights expire in 7 years (1 left under current contract and 6 unders new contracts), I'm sure B1G wants its full volume to leverage during negotiations. Plus who knows what the landscape will look like. The Conference may be involving new distribution channels that would not be possible in today's world. My limited understanding is the 6 years term was not what Delany wanted. He wanted a longer term arrangement. Regardless, the revenue increase compared to the current ESPN agreement is phenomenal.
I believe one article did mention Delany wanted a longer deal but who knows if that's true or not. I suggested possibly one longer and the 6 year deal so you have a foot in both to gamble in the current market in 6 years and also some stability at the same time.
I tend to think at the very least they feel the market will be stable at that time if not overheated like it has been the last few years. So maybe some what of a status quo type growth rather than hyper growth of recent times. I believe there are some other properties coming up around that time and maybe some NFL ones as well so there will be media companies looking out for content at that time. I think Delany is right when he says that premium content will be treated well over time, at least on a relative basis. And again the ESPN's of the world need premium content, it's their lifeblood. It's going to be up to the new commissioner at that time because I'd be surprised if Delany is around in 6 years. He's 68 right now and I think this tv contract is likely his last big act before he rides off into the sunset.
Yes it is. Anybody that thought because ESPN was shedding expensive talking heads meant they would forgo paying for content with a premier college football provider were very mistaken. ESPN can't afford to be left out of it.
I believe the est payout for everything was $40-45 mil. The ESPN and Fox deals are only a portion of that. It sounds right on target to me.
Somebody ran all the numbers on the NU board and came up with $53mil for the full share teams. Not sure how can get a solid number when nobody knows how much Maryland and RU are getting. NU goes to full share when this deal starts.
I hope we get a huge increase but I'm not sure either. Each school will likely get over $50M/yr from media rights, NCAA & CFP, as this article predicted $57M in April, but that was with a 2nd party paying $250M/yr.
http://awfulannouncing.com/2016/big...ia-revenues-skyrocket-thanks-new-tv-deal.html
http://awfulannouncing.com/2016/big...ia-revenues-skyrocket-thanks-new-tv-deal.html
Does the knowledge staffers are getting more money and driving nicer cars offset the pain your football team isn't competitive and your basketball program is consistently among the nation's worst ?
I suspect RU's deal with the Big Ten is based on percentages of a share. That would seem the logical interpretation.
Overall it doesn't do the Big Ten any good to 'short change' new members; the conference is better as a whole when everyone has the resources to invest in their programs.
Overall it doesn't do the Big Ten any good to 'short change' new members; the conference is better as a whole when everyone has the resources to invest in their programs.
This is incredible news and solidifies the models.
To those that feel this alone is enough, think again. We aren't competing against also rans anymore. We are competing against the blue bloods of the sport, in our division. Their spending is much higher than soley what their conference allocation would dictate.
All I can say is donate.
To those that feel this alone is enough, think again. We aren't competing against also rans anymore. We are competing against the blue bloods of the sport, in our division. Their spending is much higher than soley what their conference allocation would dictate.
All I can say is donate.
numbers floating around online:
First-tier rights (full members) $31.4 million (440million/14)
Other rights and BTN ~$12.5 million
College Football Playoff $4.7 million
NCAA distribution $4.4 million
Big Ten Tournament and Championship Game $740,000
Total ~$53.75 million/year
First-tier rights (full members) $31.4 million (440million/14)
Other rights and BTN ~$12.5 million
College Football Playoff $4.7 million
NCAA distribution $4.4 million
Big Ten Tournament and Championship Game $740,000
Total ~$53.75 million/year
If this is true, maybe this lights a fire under the SEC to expand, adding a few teams so they can renegotiate their media contract?
And the best free drama on the internet would take another turn.
Those #s are from this article in April: http://awfulannouncing.com/2016/big...ia-revenues-skyrocket-thanks-new-tv-deal.html.
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