Somebody's "sources" are wrong.
In this Sports Business Daily article, on January 14, it says that ESPN is preparing to launch an SEC channel in August 2014. However, two days later, on January 16, USA Today reports sources as saying that the new SEC Network will be a 100%, fully owned separate entity, with ESPN having no ownership interest at all.
In other words, according to USA Today, the SEC will be using the Pac 12 Network model where they take on ALL the risk, as opposed to the Big Ten Network model where there is NO risk.
The Big Ten's separate entity, the Big Ten Network, is a 49/51% Partnership with FOX where Fox owns 51% of the separate entity. The entity is backed by News Corp with a guaranteed annual increasing rights fee to each of the separate Universities in the Conference. In return for that annually increasing rights guarantee from News Corp, there is a 30/70% profit sharing split above the guarantee, with FOX getting the 70% and the Big Ten Conference getting the 30%. If there is no profit, or the Big Ten Network actually loses money, News Corp guarantees the annually increasing rights payout until 2032.
The Big Ten Network's revenue and profit has grown every year of its existence. In 2011, it had revenues of $242 million and showed a profit of $79.2 million.
This is just one of MANY reasons your administration prefers the Big Ten over the SEC if it ever came to that. The established Conference Network revenue backed by News Corp, along with an "unofficial" OPENING bid by FOX of between $25 and $30 million per Big Ten school for their 1st tier television rights which expire in 2017, is hard to pass up.
Remember, as opposed to everyone else, the Big Ten won't just be renegotiating their 1st tier contract rights with an existing Network. Their 1st tier rights with ESPN will actually expire all together. Those 1st tier rights will be thrown out onto the open market where there will be an all out bidding war.
Since FOX is an actual partner with the Big Ten through their association with the Big Ten Network, they have been working with Delany every step of the way. The Big 10 is in a unique (and extremely advantagous) financial situation because of their contract calendar, their close association with FOX, and the fact that they are the only Conference that has their own actual over the air Network that is actually turning increasing profits every year.
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--- buckeye4573 wrote:
it's quite simple to other folks, Notre Dame just joins and everything is magically fixed......but seriously yeah, ESPN is already working on the SEC network, the ACC network is uh, well not a primary concern to them.
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--- CharlotteTarHeel wrote:
The ACC is exploring the formation of an ACC Network.
Link:
www.sportsbusinessdaily.com/Jo...lleges/ACC.aspxSome excerpts from the article:
"ESPN would represent a major voice in any channel launch and it is believed to be lukewarm on forming one, according to sources close to the discussions. ESPN currently has a contract to pay the ACC $3.6 billion over 15 years — averaging $240 million a year — for the conference’s media rights. It then sublicenses a syndication package to Raycom Sports, which, in turn, sublicenses some rights to Fox Sports Net."
My comment: To that I say to heck with ESPN.
"Another reason for ESPN’s reluctance to move forward is that it is preparing to launch an SEC channel in August 2014, sources said, which would make it difficult to launch an ACC channel in many of those same markets, like Florida, Georgia and South Carolina where the SEC and ACC footprints overlap."
My comment: Repeat above sentiment.
"Plus, ESPN’s experience with branded college channels has been difficult in Texas, where it has had problems getting significant distribution for Longhorn Network."
My comment: A network for one university is going to be more difficult to get traction on than a network for an entire conference. If an ACC Network is available, I think most people would find it surprising how many people would subscribe (dependant on cost and whether it was packaged with other premium options).
"The outlier among the big five conferences is the Big 12. Commissioner Bob Bowlsby confirmed last week that the Big 12 will not be launching its own channel since all of the conference’s game inventory is tied up in deals with ESPN and Fox. Most of the 10 schools in the Big 12 have sold their third-tier TV games to Fox as part of separate deals, while Texas partnered with ESPN on the Longhorn Network."
My comment: Ha ha.
"Wasserman Media Group was brought on board to consult with the ACC’s athletic directors on future plans. Dean Jordan in WMG’s Raleigh, N.C., office will lead the agency’s relationship with the conference. He also consulted with the ACC when it renegotiated its TV contract with ESPN last year."
My comment: Given the lackluster TV contract, this worries me.
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