New "Big 12" TV Deal will be Substantial...

[ahaselhu]

In 2009, the Big XII was 3rd in TV revenue. We're now 4th as the ACC bumped up from $67 million a year to $155 million a year:

Big Ten: $242
SEC: $205
Big 12: $78
ACC: $67 (Update 2010: new deal worth $155 million per year, 12 years)
Pac 10: $58
Big East: $33

I'm not sure how our markets stack up to the ACC, but if they could go from $67 million to $155 million, I guess I don't find it that unreasonable that we could go from $78 million to $200 million. If we were to maintain the same percentage advantage over the ACC, that would put us at $180 million. Given that our deal would be a couple of years later, tacking on $5-10 million wouldn't be surprising.

$200 million still seems a bit high, but not ridiculously so, and still leaves us behind the SEC and Big 10.

 

[XLK9]

In 2009, the Big XII was 3rd in TV revenue. We're now 4th as the ACC bumped up from $67 million a year to $155 million a year:



I'm not sure how our markets stack up to the ACC, but if they could go from $67 million to $155 million, I guess I don't find it that unreasonable that we could go from $78 million to $200 million. If we were to maintain the same percentage advantage over the ACC, that would put us at $180 million. Given that our deal would be a couple of years later, tacking on $5-10 million wouldn't be surprising.

$200 million still seems a bit high, but not ridiculously so, and still leaves us behind the SEC and Big 10.

Does anyone else feel a 'mortgage market'-type of crash coming on here?

 

[isufbcurt]

Um, share it with the rest of us?

No, that is just crazy talk!

If you are in a partnership with 9 other guys and you are bringing in most of the business to the partnership would you want to share equally with the other partners? I sure as heck wouldn't. So why should a school who brings the most to a conference share equally?

 

[d4nim4l]

This is a great question that I would like to know as well. TV rights fees have increased exponentially since the last deal was signed, but 6x is a big leap.

I think the article essentially justifies the leap by Fox's concern with the Pac 10 essentially dominating the TV landscape with a 16 team concerfence. It would essentially turn in to 3 big players that way. Pac 16 Network, Big 10 Network, ESPN.

Fox will pay more to keep the Big 12 and the central time zone if they feel they can make all of that back in advertising.

Also, I am somewhat worried about signing over all the licensing deals to Fox but it could have its plusses. I worry more about how this will affect ISU's rights to use highlights and video packages. Although I imagine the administration would not change and Fox would use it as another revenue stream.

 

[cyclonewino]

How many times have you seen a quote exagerrated? Tell me how they are going from 19.5 to 130 million. That seems to defy any rational analysis.

Simple, owning rights to sporting events has been like printing money. If you have a few mega conferences with their own networks they WILL cut out everyone else, scares the bejeepers out of the networks. They will do anything to keep conferences from building competing networks including crazy payouts. They may even try to sabatoge the Big 10 network (FOX sports will try to a part of all basic cable and dish packages with a ton of live action).

 

[everyyard]

The thing is, we are always going to be behind the USC's, Texas's, OU's, OSU's, etc. But, what this does is give us a jump to elevate ourselves above the MAC, CUSA, even the BigEast and MWC who aren't going to sniff this much cash. The next time things get ugly we might look a LOT more attractive. Now, if GG is smart, he will also be working the hell out of getting research grants upped, like he isn't already.

 

[mustangcy]

Bump - this is an important thread.

 

[tm3308]

I agree. You can only do so much, with so much money. Texas already has the best of the best, in coaches and facilities, what are they going to do with the extra millions of dollars? Put in new seats? Buy a bigger godzillatron? Re-paint all of their facilities?
That is why this helps ISU more than Texas. Texas' athletic budget reminds me of that Mexican drug lords house, money sitting all over the place and nothing to do with it.

Texas doesn't give a crap about the money, because they are just as well aware of the fact that they don't need it as the rest of us are. What Texas wants is CONTROL. And their efforts have resulted in that. People with the kind of arrogance as those at UT have can have enough money to sneeze at an extra $10 million, but they can NEVER have enough control. Which is EXACTLY why they weren't ever going to go to the Big Ten (and as a Big Ten guy, I'm certainly glad for that).

 

[StPaulCyclone]

It does defy rational analysis, but it recently happened for the SEC and ACC...

Agreed. It also became clear that there are those in power, including major networks, that are not excited about Superconferences.

 

[alarson]

I can't help but notice Jamie lowering expectations throwing out the $13 million number at the press conference..

 

[cayin]

Check the link from the Sports Business Daily FSN is going to increase their payout from $19.5 M to $130-140 M. The new contract would start in the '12-13 season. ESPN will not reduce their $60 M annual payout.

So...the Big 12 stands to make around $200 million JUST in TV revenue annually starting in 2012-2013. And it is split between 10 schools instead of 12.

When you add in the other Big 12 generators (BCS and NCAA tourney appearances) Iowa State will probably double and possibly triple the revenue generated from the conference.

Yeah but what about high def? I get sick of watching Miami of Ohio and Bowling Green play in high def while the Big 12 sucks eggs with the crappy picture on fox sports.

 

[cayin]

If you are in a partnership with 9 other guys and you are bringing in most of the business to the partnership would you want to share equally with the other partners? I sure as heck wouldn't. So why should a school who brings the most to a conference share equally?

aahhh, because you are in a conference. Ask yourself this, which conference business model is the most stable and works the best in form and function? The answer is the Big 10 of course. If the Big 12 members as a whole want to compete on a national stage, then the Iowa States and Northwesterns should have close to equal resources. Otherwise, get used to the Big 12 being inferior other than at the top.

 

[ajk4st8]

Yeah but what about high def? I get sick of watching Miami of Ohio and Bowling Green play in high def while the Big 12 sucks eggs with the crappy picture on fox sports.

so true.. no sports should ever be broadcast in standard def

 

[dmclone]

aahhh, because you are in a conference. Ask yourself this, which conference business model is the most stable and works the best in form and function? The answer is the Big 10 of course. If the Big 12 members as a whole want to compete on a national stage, then the Iowa States and Northwesterns should have close to equal resources. Otherwise, get used to the Big 12 being inferior other than at the top.

This is all find and dandy until someone like Texas comes along and makes 2 times as much as Ohio State or Michigan. If this happens you'll see problems in the Big 10 with the big boys.

 

[clonedude]

This is all find and dandy until someone like Texas comes along and makes 2 times as much as Ohio State or Michigan. If this happens you'll see problems in the Big 10 with the big boys.

Bingo.

Texas is going to set the pay scale pretty high. Others will demand the same eventually.

 

[dualthreat]

Bump - this is an important thread.

This.

If you are in a partnership with 9 other guys and you are bringing in most of the business to the partnership would you want to share equally with the other partners? I sure as heck wouldn't. So why should a school who brings the most to a conference share equally?

Communist 10 Conference!

 

[ripvdub]

But will FSN be in HD?!?

 

[cyclonenum1]

Check the link from the Sports Business Daily FSN is going to increase their payout from $19.5 M to $130-140 M. The new contract would start in the '12-13 season. ESPN will not reduce their $60 M annual payout.

So...the Big 12 stands to make around $200 million JUST in TV revenue annually starting in 2012-2013. And it is split between 10 schools instead of 12.

When you add in the other Big 12 generators (BCS and NCAA tourney appearances) Iowa State will probably double and possibly triple the revenue generated from the conference.

Great info...thanks!

 

[cyclonenum1]

They won't, but if it works like it does now, half of the TV money is split evenly (so 100 million/10=$10 million per school), the other half depends on how many times schools are on TV. Texas and OU would be on more national games you would assume so they would get a bigger percentage of the 2nd half of the $$$, but I-State would still get a cut (likely more than $5 million).

This is as it should be...there should be some level of sharing but those that are responsible for bringing in the most should be rewarded. Their must always be some reward for exceptionalism.

 

[cyclonenum1]

This is a great question that I would like to know as well. TV rights fees have increased exponentially since the last deal was signed, but 6x is a big leap.

I'm not surprised...all of these deals have been exponentially increasing...the SEC deal that was recently done is a great example. This is the market at work.