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SEC Network announcement next week.
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Dasville Offline
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Post: #1
SEC Network announcement next week.
http://www.mrsec.com/2013/04/sec-and-esp...n-tuesday/



Quote:After months of talk — heck, after years of talk — the SEC Network is just days away from being formally announced. At noon ET, Tuesday in Atlanta, the SEC and ESPN will publicly share their plans for the new channel.

SEC commissioner Mike Slive, university presidents and athletic directors, and ESPN executives will all be on hand for the presser. According to The SportsBusiness Daily, the two parties have already begun calling “key constituents” and inviting the SEC’s corporate sponsors to the event.

The new channel is expected to be based in Charlotte at ESPN’s regional television hub. (Note to self: If/when league expands into the Tar Heel State, prepare for cries of local bias.) Sales for the channel are expected to be handled out of Atlanta.

It’s still believed the network will launch in August, just in time for football season.

As we first reported in December, it’s expected member schools (and the SEC office which gets an even split) will bring in yearly shares of $30-35 million once the league’s television and bowl contracts are all re-worked and signed. A USA Today sports analysis projected the same numbers in January. Currently, the average payout for SEC schools is $20.1 million.

There is certainly the possibility for the league to bring in even more cash with its network down the road, depending on distribution agreements. For a start-up network, however, it’s difficult to imagine ESPN — which has been stung by distribution troubles with its Longhorn Network — placing too large a subscriber fee on cable/satellite providers and their viewers right off the bat.

It is expected the SEC and ESPN will co-own the network with one party holding 51% ownership. The SEC will likely be the one holding 51%, just as the Big Ten controls 51% of its network with FOX owning 49%.


When are we projected to get some info. on a new ACC network?
04-12-2013 10:32 AM
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Hokie Mark Offline
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Post: #2
RE: SEC Network announcement next week.
They tried to slip 2 things past us... did you guys catch them?

Quote:$30-35 million once the league’s television and bowl contracts are all re-worked and signed

so that number includes bowl revenue.

Quote:Currently, the average payout for SEC schools is $20.1 million

Since we know for a fact that the TV revenue alone is less than this, that just confirms that we are talking about TV + bowl revenue.

Looking at it this way, what is the ACC's annual revenue? $18.2M for TV alone + new playoff bowl revenue = ???
04-12-2013 10:58 AM
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curtis0620 Offline
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Post: #3
RE: SEC Network announcement next week.
Sucks for the SEC. The B1G is projecting 40-50 million. How soon before Florida and Georgia to the B1G?
04-12-2013 11:20 AM
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orangefan Offline
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Post: #4
RE: SEC Network announcement next week.
(04-12-2013 10:58 AM)Hokie Mark Wrote:  They tried to slip 2 things past us... did you guys catch them?

Quote:$30-35 million once the league’s television and bowl contracts are all re-worked and signed

so that number includes bowl revenue.

Quote:Currently, the average payout for SEC schools is $20.1 million

Since we know for a fact that the TV revenue alone is less than this, that just confirms that we are talking about TV + bowl revenue.

Looking at it this way, what is the ACC's annual revenue? $18.2M for TV alone + new playoff bowl revenue = ???

BCS + Orange Bowl money will be a minimum of $5 million per year. Non-BCS bowl money should be $1 million+ per school, assuming $4 million for the Chick-fil-A replacement, 3-4 bowls at $2 million each, and 2-3 bowls at $1 million each, but with ND in the non-BCS bowl mix.
04-12-2013 11:23 AM
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Hokie Mark Offline
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Post: #5
RE: SEC Network announcement next week.
Last year the SEC made almost $4M per team on bowls alone. With the playoffs coming, that is expected to increase to around $6M per team. So that $30M per team should be $24 for TV (including SEC Network) and $6 for bowls... right?

So the ACC network needs to get us up around $24M/year also.
04-12-2013 11:36 AM
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Dasville Offline
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Post: #6
RE: SEC Network announcement next week.
(04-12-2013 11:23 AM)orangefan Wrote:  
(04-12-2013 10:58 AM)Hokie Mark Wrote:  They tried to slip 2 things past us... did you guys catch them?

Quote:$30-35 million once the league’s television and bowl contracts are all re-worked and signed

so that number includes bowl revenue.

Quote:Currently, the average payout for SEC schools is $20.1 million

Since we know for a fact that the TV revenue alone is less than this, that just confirms that we are talking about TV + bowl revenue.

Looking at it this way, what is the ACC's annual revenue? $18.2M for TV alone + new playoff bowl revenue = ???

BCS + Orange Bowl money will be a minimum of $5 million per year. Non-BCS bowl money should be $1 million+ per school, assuming $4 million for the Chick-fil-A replacement, 3-4 bowls at $2 million each, and 2-3 bowls at $1 million each, but with ND in the non-BCS bowl mix.

So $18.2m + $5m + $1m = $24m+

Looks like we are a Network away from being on equal ground and that is not considering the "non-disclosed" revenue that Duke's Pres. was talking about.
04-12-2013 11:44 AM
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curtis0620 Offline
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Post: #7
RE: SEC Network announcement next week.
A conference network needs programming. What has more, Football or Basketball? ACC Basketball is much more valiable than SEC Basketball. The handfull of Football that the SEC has will be dwarfed by the ACC Basketball inventory. The ACC Network should be more valuable than a SEC Network.
04-12-2013 12:28 PM
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HtownOrange Offline
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Post: #8
RE: SEC Network announcement next week.
(04-12-2013 11:36 AM)Hokie Mark Wrote:  Last year the SEC made almost $4M per team on bowls alone. With the playoffs coming, that is expected to increase to around $6M per team. So that $30M per team should be $24 for TV (including SEC Network) and $6 for bowls... right?

So the ACC network needs to get us up around $24M/year also.

Isn't the $24MM an average and like every other conference actually back loaded? This makes the "differences" closer than advertised, like usual.
04-12-2013 12:35 PM
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cuseroc Offline
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Post: #9
RE: SEC Network announcement next week.
(04-12-2013 11:44 AM)Dasville Wrote:  
(04-12-2013 11:23 AM)orangefan Wrote:  
(04-12-2013 10:58 AM)Hokie Mark Wrote:  They tried to slip 2 things past us... did you guys catch them?

Quote:$30-35 million once the league’s television and bowl contracts are all re-worked and signed

so that number includes bowl revenue.

Quote:Currently, the average payout for SEC schools is $20.1 million

Since we know for a fact that the TV revenue alone is less than this, that just confirms that we are talking about TV + bowl revenue.

Looking at it this way, what is the ACC's annual revenue? $18.2M for TV alone + new playoff bowl revenue = ???

BCS + Orange Bowl money will be a minimum of $5 million per year. Non-BCS bowl money should be $1 million+ per school, assuming $4 million for the Chick-fil-A replacement, 3-4 bowls at $2 million each, and 2-3 bowls at $1 million each, but with ND in the non-BCS bowl mix.

So $18.2m + $5m + $1m = $24m+

Looks like we are a Network away from being on equal ground and that is not considering the "non-disclosed" revenue that Duke's Pres. was talking about.

Seems like it may include other revenue like NCAA money
04-12-2013 01:32 PM
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Hokie Mark Offline
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Post: #10
RE: SEC Network announcement next week.
Ok, I think you guys are on the right track. Forbes reported that the ACC received total income of $293 million in 2012, and that was for 12 teams + the office. That means the average pay out per team was $22.5M ($24.4M if you don't count the money going to the ACC HQ). That jives pretty well with what you have here.
04-12-2013 01:33 PM
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Dasville Offline
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Post: #11
RE: SEC Network announcement next week.
04-12-2013 01:37 PM
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Hokie Mark Offline
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Post: #12
RE: SEC Network announcement next week.
Also, based on Forbes numbers the SEC paid out an average of around $19M per team, but only $14.6M of that was from TV; the rest was $50M total for all bowls + $15M in NCAA credits = $65M, divided by 14 = $4.6M per team per year; 14.6 + 4.6 = 19.2 (NOTE: If you account for the SEC HQ share, it's really only $13.7M + $4.3M = $18M; there seems to be a lot of back & forth in some of these estimates as to whether they include the HQ share or not).
04-12-2013 01:43 PM
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Dasville Offline
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Post: #13
RE: SEC Network announcement next week.
Seems to me that creating the ACC Network would be profitable almost immediately. The SEC had to buy back a lot of content from different sources to gain the inventory needed for a network, including 1 football game for each team (that isn't cheap). ESPN would just have to move ACC inventory from one place to the other.
04-12-2013 02:48 PM
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Hokie Mark Offline
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Post: #14
RE: SEC Network announcement next week.
(04-12-2013 02:48 PM)Dasville Wrote:  Seems to me that creating the ACC Network would be profitable almost immediately. The SEC had to buy back a lot of content from different sources to gain the inventory needed for a network, including 1 football game for each team (that isn't cheap). ESPN would just have to move ACC inventory from one place to the other.

While that is true, what % stake would the ACC have in it? The SEC put up money for the tier 3 games, so they have equity. What equity would the ACC have? The conference would probably have to buy back tier 3 (or something to that effect) to acquire a share in the network. [unless they retained rights that I'm not aware of?]
04-12-2013 03:02 PM
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westmc9th Offline
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Post: #15
RE: SEC Network announcement next week.
Just got off the phone with my contact and while this is preliminary, how do you guys feel about ESPNU becoming ESPNACC or something to that matter? this is something the two are discussing, not a done deal or anything near that, but it would be IMMEDIATELY PROFITABLE are the words used. If a deal is done where ESPNU is converted into solely ACC property, it could begin the year after the deal is complete, already be on directv and other major networks so there will have to be no hassling with Directv or cable to take the product. Either way it looks like ESPN is warm to the idea of an ACC "network"....
04-12-2013 03:02 PM
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nzmorange Offline
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Post: #16
RE: SEC Network announcement next week.
(04-12-2013 03:02 PM)westmc9th Wrote:  Just got off the phone with my contact and while this is preliminary, how do you guys feel about ESPNU becoming ESPNACC or something to that matter? this is something the two are discussing, not a done deal or anything near that, but it would be IMMEDIATELY PROFITABLE are the words used. If a deal is done where ESPNU is converted into solely ACC property, it could begin the year after the deal is complete, already be on directv and other major networks so there will have to be no hassling with Directv or cable to take the product. Either way it looks like ESPN is warm to the idea of an ACC "network"....

Help me out. I don't see where the money is coming from. You want to buy back content, which is being shown on "ESPNU," from ESPN, and buy a partial ownership in ESPNU. Then it seems like you want to air that content on "ESPNU" under the name "ESPNACC." It seems like we could cut down on a lot of transaction costs by just buying a ton of stock in ESPN and leaving everything like it is now. Seriously though, I don't see any new value. It just seems like you're accepting mroe risk so that you get a higher payout when/if the channel exceeds expectations, which is balanced out by a lower payout when/if the channel fails to meet expectations.

I think that it's a great idea from an educational perspective because it would have the effect of taking regional content and packaging it in a way where it reaches a disproportionally large group of undergraduate college students at excellent universities, like Duke, WF, UNC, Miami, BC, and so on, which would be good for Syracuse graduate programs. However, I don't see the financial windfall that everyone is talking about.
(This post was last modified: 04-12-2013 03:21 PM by nzmorange.)
04-12-2013 03:16 PM
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westmc9th Offline
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Post: #17
RE: SEC Network announcement next week.
I'm sure there are financial gains the ACC wouldn't do it without it, some combination of ESPNU And raycom? Ill find out more later if possible, I doubt we can "buy" ESPNU. Again just something going on in the discussions
04-12-2013 03:33 PM
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4x4hokies Offline
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Post: #18
RE: SEC Network announcement next week.
Having an SEC Network should free up air time on ESPN that the ACC could fill. The B1G may be taking their ESPN games off in the future as well. That is why I could see it being possible that ESPNU becomes an ACC network. What other "U's" would really be left with the B10 having all their content pieced out and SEC, PAC, and B1G with their own network. You could plug in an interesting Sun Belt game on the SECN or a MAC game on the ACCN if you needed to. Similar to how the LHN shows other Texas schools now.
04-12-2013 03:39 PM
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Dasville Offline
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Post: #19
RE: SEC Network announcement next week.
From the link I provided earlier:


http://www.sportsbusinessdaily.com/Speci...4/SEC.aspx



Quote:The conference channel cleared its biggest obstacle in recent weeks when it reacquired the third-tier TV rights from IMG College, Learfield Sports and CBS Collegiate Sports Properties, the three rights holders that work with the conference’s 14 schools. Those third-tier TV rights represent one football game, eight men’s basketball games, baseball, women’s basketball and all other nonrevenue sports that are not picked up by ESPN or a syndicated partner.

Those live games will move to ESPN for the conference channel, which is an important development because it means that ESPN will control the entire inventory of SEC football games, with the exception of CBS’s single game each week. That gives ESPN a lot of flexibility to use specific games in markets where it’s having trouble gaining distribution. If, for example, one of Louisiana’s biggest distributors, Cox, is holding out and not agreeing to carry the channel, it will be easier for ESPN to place more LSU games on it to help it gain more leverage in those negotiations.

Such leverage is important, as negotiations with distributors have been the most difficult part in the launch of college conference networks. The Big Ten Network went through bruising carriage battles, particularly with Comcast and Time Warner Cable. The Pac-12 Networks still has yet to cut a deal with the nation’s biggest satellite distributor, DirecTV.

The value of the third-party rights the conference bought back is significant and comes after nine months of off-and-on negotiations. The rights holders agreed to give up TV rights valued at roughly $15 million a year. In return, those rights holders will lessen the guarantees to their schools by the same amount — a little more than $1 million a year for each school — for the next several years, industry sources said.

The conference also gained control of its digital and sponsorship rights that will be rolled over to ESPN as well. That will enable ESPN to have TV, digital and sponsorship rights for the conference under one umbrella. Being able to package TV and digital advertising in corporate sponsorship deals is considered a vital revenue component, and neither the conference nor ESPN wanted multiple partners selling those rights in the marketplace.
(This post was last modified: 04-12-2013 03:57 PM by Dasville.)
04-12-2013 03:55 PM
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Hokie Mark Offline
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Post: #20
RE: SEC Network announcement next week.
(04-12-2013 03:02 PM)westmc9th Wrote:  Just got off the phone with my contact and while this is preliminary, how do you guys feel about ESPNU becoming ESPNACC or something to that matter? this is something the two are discussing, not a done deal or anything near that, but it would be IMMEDIATELY PROFITABLE are the words used. If a deal is done where ESPNU is converted into solely ACC property, it could begin the year after the deal is complete, already be on directv and other major networks so there will have to be no hassling with Directv or cable to take the product. Either way it looks like ESPN is warm to the idea of an ACC "network"....

I LOVE IT.
Actually, if y'all had been reading my blog, you'd know that I told you this could happen back on 12/19/2012. One of the reasons cited was location: ESNPU headquarters is just 16 miles from Raycom Sports HQ in Charlotte.

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04-12-2013 04:00 PM
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