Big 12 begins TV Deal Negotiations

[Muskie]

Link

The Big 12 plans to engage in discussions with Fox and ESPN about the league's next television contract, the conference announced Wednesday.
The conference said in a release that it would "be entering into discussions with its multi-media partners to explore an accelerated extension of its current agreements." Sources had previously told ESPN that the two networks had agreed to the talks.

[xubrew]

This is interesting (if that's the right word).

Under their old deal, they had the option of adding schools, and for each school added ESPN and Fox would have had to increase the amount of money it paid to the conference for each school that the conference added. This was back when it looked like they were going to add Cincinnati, and Memphis, and perhaps even two more to get to either 12 or 14. They decided not to. The reason they decided not to was because they felt that maintaining a good relationship with the networks would be important to future negotiations.

Well, now that they don't have Oklahoma and Texas....I wonder how they now feel about their previous decision to not add more schools. I guarantee you the networks aren't thinking "We need to pay them as much as we always have so we can maintain a good relationship for future negotiations."

[XUGRAD80]

This is interesting (if that's the right word).

Under their old deal, they had the option of adding schools, and for each school added ESPN and Fox would have had to increase the amount of money it paid to the conference for each school that the conference added. This was back when it looked like they were going to add Cincinnati, and Memphis, and perhaps even two more to get to either 12 or 14. They decided not to. The reason they decided not to was because they felt that maintaining a good relationship with the networks would be important to future negotiations.

Well, now that they don't have Oklahoma and Texas....I wonder how they now feel about their previous decision to not add more schools. I guarantee you the networks aren't thinking "We need to pay them as much as we always have so we can maintain a good relationship for future negotiations."

You might want to rethink that….

Going UP from 42 to 50 million per school…..without Texas and Oklahoma….with the new contract.

[X-band '01]

It's a short term bump, but it's going to be half of what the B1G gets in their new TV deal. The SEC will command that kind of money when they redo their TV deal for their members but not conferences like the ACC/Big 12/Pac-12.

[xudash]

You might want to rethink that….

Going UP from 42 to 50 million per school…..without Texas and Oklahoma….with the new contract.

I’m coming up with $38mm, which still beats what analysts thought the haircut would be:

“The once-beleaguered Big 12 has stabilized its future by coming to terms with ESPN and Fox Sports on a six-year media rights agreement worth a total of $2.28B, an annual average of $380M, according to sources.”

[STL_XUfan]

I’m coming up with $38mm, which still beats what analysts thought the haircut would be:

“The once-beleaguered Big 12 has stabilized its future by coming to terms with ESPN and Fox Sports on a six-year media rights agreement worth a total of $2.28B, an annual average of $380M, according to sources.”

Six years seems like a good length too. Probably get them to the next conference shakeup and will be in a position to renegotiate to be as competitive as possible to keep/add teams.

[XUGRAD80]

I’m coming up with $38mm, which still beats what analysts thought the haircut would be:

“The once-beleaguered Big 12 has stabilized its future by coming to terms with ESPN and Fox Sports on a six-year media rights agreement worth a total of $2.28B, an annual average of $380M, according to sources.”

If you add in CFPlayoff money and NCAA payouts, it comes to around 50 million per school verses the current 42 million they get for the same package….a pretty good increase. (AND well over the current 7 million per school that the current AAC affiliation pays out to schools like UC.)

The point being that despite what many here thought would happen, the B12 will actually get more money per school in the future, not less…..even though Texas and Oklahoma are leaving and there will be an additional number of schools in the league. If this shows nothing else, it certainly shows that when it comes to TV contracts that college football is still the king. Xavier, and the BE schools, will never get that kind of money coming in form their TV contracts.

[Xville]

If you add in CFPlayoff money and NCAA payouts, it comes to around 50 million per school verses the current 42 million they get for the same package….a pretty good increase. (AND well over the current 7 million per school that the current AAC affiliation pays out to schools like UC.)

The point being that despite what many here thought would happen, the B12 will actually get more money per school in the future, not less…..even though Texas and Oklahoma are leaving and there will be an additional number of schools in the league. If this shows nothing else, it certainly shows that when it comes to TV contracts that college football is still the king. Xavier, and the BE schools, will never get that kind of money coming in form their TV contracts.

Where are you getting those numbers? It’s 380 divided by 12 which rounded off is 32. If your team is in the playoff you get paid out, the conference total gets 6 million and for bowls 4 million per team. Let’s say big 12 gets 1 in and 7 more bowl teams. That’s 34 million dollars so 414 million divided by 12 is 34.5 per team. It’s not anything close to 50million even with March madness dollars

[xudash]

If you add in CFPlayoff money and NCAA payouts, it comes to around 50 million per school verses the current 42 million they get for the same package….a pretty good increase. (AND well over the current 7 million per school that the current AAC affiliation pays out to schools like UC.)

The point being that despite what many here thought would happen, the B12 will actually get more money per school in the future, not less…..even though Texas and Oklahoma are leaving and there will be an additional number of schools in the league. If this shows nothing else, it certainly shows that when it comes to TV contracts that college football is still the king. Xavier, and the BE schools, will never get that kind of money coming in form their TV contracts.

No problems with what you posted.

I am only concerned about the value of the media rights component. I understand that football money will always exceed basketball money, but football expenses absolutely dwarf basketball expenses.

Beyond all of that, I’m looking for bits and pieces of indications that suggest that the Big East might be well positioned for a media agreement increase, especially with the addition of UConn, as well as the possible addition of Gonzaga.

[xudash]

Where are you getting those numbers? It’s 380 divided by 12 which rounded off is 32. If your team is in the playoff you get paid out, the conference total gets 6 million and for bowls 4 million per team. Let’s say big 12 gets 1 in and 7 more bowl teams. That’s 34 million dollars so 414 million divided by 12 is 34.5 per team. It’s not anything close to 50million even with March madness dollars

Thanks for the correction. I am the one that went too quickly with the math error. It is 32, not 38.