ESPN buys second half of B1G rights for $190M/year
- Thread starter Local Shill
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Advisers and layers: Make the financial terms these or we will stay in the AAC
Jim Delaney: Bursts out laughing
Exactly what bargaining power do you think we had?
If the article is correct in the 1st year of this new deal RU will make $11.6 mil. all others (except Maryland) close or over $60 mil.. Either RU said whatever deal Jim we'll sign or RU's buy in just went up significantly. This contract they signed seems to be ever changing.
Originally I read we were buying equity into the B1G network to get a full share. You would think that was a set number. Now that the price for that has tripled two years later, were now paying the difference. I guess that was the deal. I know RU had no bargaining position but that's getting bent over the barrel and raked over the coals for the life of the buy in. That wasn't a negotiation, it was more like the surrender and signing of the Treaty of Versailles.
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This should clear things up a bit:
According to a report from the Sports Business Journal, ESPN will purchase half of the Big Ten's media rights under a six-year deal at an average of $190 million annually. The same website reported in April that Fox Sports will pay an average of $240 million annually over the same six-year period beginning with the 2017 football season.
In addition, CBS Sports will reportedly pay the Big Ten $10 million annually to renew its basketball-only package — a deal that will see the men's basketball tournament championship game on CBS through 2023.
How much each member of the Big Ten receives once the new deals come into effect in is unclear, but industry sources told NJ Advance Media that the long-standing members figure to draw in north of $50 million in 2017 and beyond
SOURCE: http://www.nj.com/rutgersfootball/i...fox_sports_to_reportedly_pay_big_ten_264.html
According to a report from the Sports Business Journal, ESPN will purchase half of the Big Ten's media rights under a six-year deal at an average of $190 million annually. The same website reported in April that Fox Sports will pay an average of $240 million annually over the same six-year period beginning with the 2017 football season.
In addition, CBS Sports will reportedly pay the Big Ten $10 million annually to renew its basketball-only package — a deal that will see the men's basketball tournament championship game on CBS through 2023.
How much each member of the Big Ten receives once the new deals come into effect in is unclear, but industry sources told NJ Advance Media that the long-standing members figure to draw in north of $50 million in 2017 and beyond
SOURCE: http://www.nj.com/rutgersfootball/i...fox_sports_to_reportedly_pay_big_ten_264.html
Must be a terrible thing to be completely, absolutely, and irrevocably stuck in an afterthought conference, (since no P5 conference will ever even give you a look), and know you'll be getting chump change for decades and decades to come while RU will be making the kind of money your school can only hallucinate about. -Oh well, keep on enjoyin' life in the AAC.
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The deal is likely graduated over time... Articles say avg 190m this can start lower an
We should of bargained against ACC membership where the full share for schools like Syracuse and Louisville was immediate. Ask this... How many years in to be equal to Louisville ACC money (we will eventually be much better off, but won't break even until year 8-9 at best).
We should of bargained against ACC membership where the full share for schools like Syracuse and Louisville was immediate. Ask this... How many years in to be equal to Louisville ACC money (we will eventually be much better off, but won't break even until year 8-9 at best).
I'll take being in Rutgers shoes all day over ACC membership, not that the ACC was an option. Big Ten Conference has a great future and along with the SEC will break away financially from the pack. Not so sure about the ACC and dreams of their network, or re-branding of ESPNews, or whatever.
No one thinks ACC was better, your asking what position we should of bargained from... That's the position.
All 3 expansion schools are integrated with a 6 years plan and partial revenue share is based on where they came from, not where schools from their prior conferences realigned to. Nebraska should have bargained based on where Texas A&M ended up (Rutgers had no idea Louisville was destined for the ACC, nor did Nebraska know A&M and Missouri would head south). Nebraska's revenue stream was $14M, $15.4M, $16.9M, $18.7M and approx. $22M for this past season. The Nebraska payouts reflect prior revenue payouts of the Big 12, of which Big 12 schools are now making significantly more than Nebraska until they're fully integrated. Rutgers is in a similar boat.
The school negotiated from a position of zero leverage. Accept the terms of the Big Ten or stay in the AAC and die.
...and can't wait to see your new stadium!! I think you should name it, 'Done Deal Stadium', especially with groundswell of support the project has picked up.
No idea who he is where is from but from some of the bolded stuff from you guys I guess should be hints for me.
But in reality...too stupid, don't care.
ACC Management too stupid to lock up the eastern seaboard. We'd still be waiting by the mailbox for the invite
So basically we're worth less to the B1G than Nebraska. I could agree with this if corn stalks have eyeballs, but they don't. It's been proven and written that RU's entrance has brought eyeballs through cable subscribers and the all important advertising dollars to the BTN. No more International Harvestor commercials for them. But yet we have too pay more of an entrance fee? Nebraska needed the B1G championship to justify their entrance, RU just needed to show up.
I'm not saying in the long run, but the deal is as bad as you can get during the buy in period. This is a money game and we proved our worth by bringing eyeballs and advertising, yet can't partake in the spoils till 2021. We should have sent a trained gorilla to those negotiations with a set of pens and a sign that read "Whatever you say Jim". Instead of paying lawyers, they were useless.
Yeah, you figured it out. I also was able to snag an exclusive pic of the construction signs leading to the site of Done Deal Stadium:
Joe P.
I agree with you if this was solely based on marketplace. However, the B1G based integration payouts on where you came from, not future possibilities. Nebraska came from the Big 12 with larger payouts than what was the old Big East. Rutgers came from what became a sinking Conference as WV, Pitt and Syracuse had already left.
I doubt that anyone who responded to "Nipsy" really cares deep down either. The team he follows is the one mired in no man's land, not RU, so that's all that matters in the end.
But he's a guest here, (and an uninvited one, at that) and if he feels the need to make negative comments about Rutgers there's his own team's board for that. -He chose to do it here, though, and by doing so, whether what he wrote is stupid or not, he's fair game for a few replies.
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Question - do you guys think RU does as well in your MSA without the B1G?
I propose that the arrangement has been mutually beneficial. You are more similar to the B1G blue bloods than any other conference. Put another way, does a home game against PSU or Florida State generate more viewership? I'd venture to say the PSU is more compelling for your fan base because of how close the schools are geographically and how much you all hate PSU. The only ACC school with a similar alumni base as the B1G blue bloods in NYC is Notre Dame and they're only a quasi-member.
As such I don't think RU was as valuable to the ACC or was the ACC best positioned to maximize your value.
I propose that the arrangement has been mutually beneficial. You are more similar to the B1G blue bloods than any other conference. Put another way, does a home game against PSU or Florida State generate more viewership? I'd venture to say the PSU is more compelling for your fan base because of how close the schools are geographically and how much you all hate PSU. The only ACC school with a similar alumni base as the B1G blue bloods in NYC is Notre Dame and they're only a quasi-member.
As such I don't think RU was as valuable to the ACC or was the ACC best positioned to maximize your value.
I have never heard or read anything from a legit source that supports this claim. The ACC just never seemed to 'get' Rutgers. Maybe eventually they would have come around, but it wasn't happening around the time of the B1G invite.
O your spot on with this assessment. The B1G was the best place to maximize RU's value. We just can't partake in any of the spoils that are now being maximized until 2021. We're broke and not getting any richer with this new deal. We're already behind the 8 ball and this deal we signed during the buy in process is going to put us further behind until 2021.
It's a great place to be in if your fully vested, but until that point we're going to lag behind. So get used to hearing some more stories how we lose so much money for the next 4 years. Me I'm tired of them thus my angst.
I meant he was stupid and I don't care about him.
I enjoyed the comments left by fellow Rutgers fans. ;)
It was told to me from someone in the department whom I trust. It doesn't matter either way. We are in the greatest conference there is.
No prob. I got 'ya, e5fdny. -Knew you were talking about "The Nipster". [thumb2][cheers]
Just was pointing out why somebody coming to "R" board to do that sort of thing is gonna get, (and deserves), a response.
And because of the talent some of you guys possess, the responses are always way better than what the guy said in the first place.
I think Rutgers is a great fit with the Conference. As an academic institution, we're very similar to our Conference mates. There are large alumni bases of B1G schools in our MSA. The current Network model for BTN means that Rutgers immediately added financial value. Big Ten went into this knowing that competitively Rutgers was a long term play. In time, we'll become competitive in football and basketball.
The ACC was no where near as good a fit. No foresight for a network so marketplaces the way we measure today doesn't mean as much. Always thought the ACC was a weird conference with a number of marketplaces where schools played second fiddle to their SEC counterparts. You have football only schools in FSU, Clemson, VT and then a strong base of basketball first schools and it was clear from the addition of Syracuse/Pitt, the basketball schools had won out for that round.
Over 30(!) years ago I can remember having discussions over chicken patties (with cheese sauce of course) in Brower about our future and the ACC was considered at the time to be "it" if a Northeast conference never materialized. BE was still just BB and PSU wasn't in the B1G yet. So the B1G to me was not even on the radar. But the ACC was.
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Look, another sign leading the way towards Done Deal Stadium:
It's supposed to be halfway between Emerald City and Narnia.
Joe P.
It'll be a tough couple years -- not only keeping up with conference mates who make $30+ million more, but also every other Power 5 team that makes more. I guess we need to reach into out own pockets for more contributions, which seems not so right, given that we are is a conference which just signed such big media deal. It is what is though.
Who cares, in 5 years we'll be making $50mm a year and the years leading up to then we'll have a few extra mil to take care of some other stuff. It's more important to hit the $100mm B1G Build Fund goal in the next year or so.
I doubt it works like that. I would guess there is a certain amount to be paid each year until full equity is earned in the network. Money the others schools have already paid, and Neb has finally gotten paid off. Our schools took less money at first until it all got rolling.
Or Notre Dame will be 3rd in the state of Indiana in TV revenue.
Then please explain to me how it works. Because the way I read it in the 1st year of the new TV deal RU makes 11.6 mill you 60 mill., 2nd year RU makes 14 mil you 60 mil.. If our payout has now stayed the same as before the new TV, then after the new TV deal we're now paying a larger entrance fee. The equity amount to buy in to BTN has now changed, it was never a set number.
The point is our entrance never caused other schools to take less. We made you money in year one, but can't partake in those additional spoils until 2021. Why does it now cost triple to enter the B1G three years later? The only answer is this is an ever changing contract. You pay whatever the BTN equity is worth right up until your fully vested at the end of 6 years.
If that's the case RU was better off taking no money for 3 years and paying off the BTN before the new TV contract hits. This way we're locked into the old TV contract numbers and receive more in the end.
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We are going to be in the Big Ten for as long as the Big Ten and College Football exist!
Just to make it clear for those of you who have such a hard time seeing the big picture.
It won't be long before we not only catch up to everyone else but long term leave all but the wealthiest non-Big Ten schools in the dust.
Just to make it clear for those of you who have such a hard time seeing the big picture.
It won't be long before we not only catch up to everyone else but long term leave all but the wealthiest non-Big Ten schools in the dust.
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