Pac-12 Television Deal Press Conference
Pac-12 commissioner Larry Scott will host a press conference at 9:00 am MT/ 8:00 am PT to discuss the record breaking television rights deal. It is expected that he will announce a 12-year deal for football and men's basketball worth $3 billion with ESPN and Fox, an average of $250 million a year or $21 million annually per school. The press conference can be watched here on Pac-10.org.
Most believe the conference got such a rich deal because of the size of the Pac-12's markets, it's football success and maybe most important, the fact that the Pac-12 conference was one of the the only conferences not already locked up in a long term deal. If you wanted a top tier conference for your network, now was the time. Scott had a ton of leverage with this deal and it shows in the numbers. Scott must also get a ton of credit for the deal and has been impressive throughout. He absolutely followed up on his commitment back when the expansion occurred that he would bring a big time television deal to the conference. I think Scott exceeded expectations with this one.
The $250 million annual deal is the largest of any major conference, exceeding the SEC's $205 million deal. Also supposedly worked into the deal was the ability to keep content for showing on it's own Pac-12 network and just as important, the Pac-12 will own the network, unlike the Big 10 Network or Longhorn Network. By doing these things, television revenue may not be capped at $250 million annually if the Pac-12 Network grows.
According to the New York Times, "games will be carried on two broadcast networks - Fox and ABC - and five cable channels - ESPN, ESPN2, ESPNU, FX and Fox Sports Net. Fox and ESPN will rotate coverage of the conference's football championship game and its basketball tournament."
To put this in perspective, according to the Boulder Daily Camera, Colorado's television, bowl game and other media rights revenue the past few years has been around $10 million from the Big 12. With the new Pac-12 deal alone, Colorado will double that overnight. The University will have to pay the Big 12 a penalty for switching conferences and we all know about the need for more funds into the athletic program. This television deal will go a long way into solving both of those problems.
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I swear I can't make this stuff up
David Ubben pulls one of the most ridiculous arguments out of his ass and defends the Big 12/10’s contract as still being better than what the Pac 12. His arguments are laughable. He starts out on a completely unrelated topic, parity. He argues that the Big 10 splits revenue evenly and Ohio State ends up winning the conference every year. He even tries to reference the fact that in the SEC the 5 championships have only been won by 4 teams?!?!
He starts hitting the pipe real hard when he finally gets around to addressing the huge gap in revenue that now exists between the Pac 10 and the Big 12/10. His argument is that, yeah the Pac 12 scored a major coup in revenue generation but the Big 12/10 will be able to top that (IN FOUR YEARS!). By then each of the Pac 12 teams will have earned 84 million while most of the Big 12/10 teams will have earned 43 million. He figures Americas hunger for college sports will not be quelled by the time the Big12/10 contract is up which should continue to increase market demand and the value of a Big 12/10 contract. While I don’t disagree that viewers will continue to demand more live football David completely ignores the debacle that almost burnt the Big12/10 to the ground. Apparently he assumes the almost solidified mass exodus was just a onetime flair up. I think there might even be a good chance that a Big 12/10 team (Texas A&M) might even bolt before contracts are up for renegotiation.
This again highlights how CU landed in a much better position monetarily, academically, and we won’t have to read one of the worst blogs in sports history. Thank you Larry Scott, thank you Mike Bohn and thank you Ted Miller.
Shoulder to Shoulder
My god, that dude is a clown
"Me fail english, that unpossible" - Ralph Wiggum
"Duffman is thrusting in the direction of the problem" - Duffman
"Good, bad, I'm the guy with the gun" - Ash from Army of Darkness
"H.I., you're young and you got your health, what you want with a job?" - Evelle from Raising Arizona
"It happens sometimes. People just explode. Natural causes." - Agent Rogersz from Repoman
Scott did mention that this would allow
departments to bring back sports that had been cut.
Shoulder to Shoulder
that's awesome
now we all just have to hope that whatever provider we have carries all this stuff. I’m moving somewhere that only has sketchy Bresnan cable so my fingers are crossed
Pac12 will air 80 football games. 44 on ESPN's & Fox. 36 on new Pac-12 network.
Shoulder to Shoulder
10 regular-season football games per year will be on a combination of the ABC and FOX broadcast networks with full national clearance with a substantial commitment for primetime coverage.
Shoulder to Shoulder
Think this means we might be able to watch the CU ski team kick ass in realtime
Shoulder to Shoulder
unlikely
as skiing isn’t a Pac-12 sport and only 2 of the 12 teams actually have a team. Ya never know though… maybe highlights or something…
We have a club team here at WSU that would be willing to compete!
If only as an excuse to get on tv haha
Does anyone know the breakdown of our 21 million?
Does a portion go to the academic side of the university?
Any word on cost of the PAC 12 Network for viewers?
"C-O-L-O-R-A-D-O"
"No Rebounds, No Rings"
"Things turn out best for the people who make the best of the way things turn out"
-John Wooden
From what I can gather the athletic department does not share revenue with the rest of the university
. Athletic department expenses primarily go to facilitates, administrative salaries (athletic department staff), bonuses, athletic student aid, and coach/staff salaries.
Check out the USA today link and you can track expenses and revenue for the CU athletic department. You will notice that CU came out of the year with a $930,602 profit even with only receiving half of the Big 12 revenue, due to the penalty for withdrawing from the conference. CU earned $9,564,214.00 from the Big 12 in TV revenue. CU should make roughly $12,000,000 more in TV revenue with the Pac 12.
http://www.usatoday.com/sports/college/ncaa-finances.htm
Shoulder to Shoulder
I'm way, way late to the game due to a hellacious month of work
but if anyone’s still reading this far down the blog, I’d like to make a few points:
1: It’s not an even split among years. I think the deal starts at around $15 million per year and then escalates from there
2: We also have to factor in the operating expenses of the PAC 12 network, so drop another $2 mil or so, initially
3: There’s a very real chance that skiiing will get some exposure, as the PAC 12 network will be scrambling for content. There’s even talk about farming out some airtime to the WAC and WCC and the like
4: The biggest takeaway from this is exposure. Not only for football/ basketball on TV, but also because the PAC 12 is committed to an online ESPN3-like arm as well. This will be outstanding for our Olympic sports and go along way toward fulfilling Dick Tharp’s grandiose visions. I really hope they hire bloggers for every school to try and make their website a daily bookmark for college sports fans.
Look, I've already told Utah to suck it. There's no going back now.
I hadn't heard the WAC/WCC thing.
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