MUScoop

MUScoop => Hangin' at the Al => Topic started by: dw3dw3dw3 on September 23, 2011, 01:55:57 PM

Title: $ questions...
Post by: dw3dw3dw3 on September 23, 2011, 01:55:57 PM
Say the bball conference only thing happens with Xavier, Butler thrown in and it captures a TV deal worth 500k per team per year vs the 2 mil per year now from the Big East...add in the fact that there might need to be 1 less home game to get a decent SOS by adding a home-home with a BCS team.  Does MU have a booster who will put in that extra 1.5 - 2 million to keep the program at the top level or will the university just pick it up and just charge the students an extra $200? The new BEast TV contract that was expected had to have a part in thinking we had enough money to start a LAX team. 





Title: Re: $ questions...
Post by: Tulsa Warrior on September 23, 2011, 02:17:35 PM
If Marquette continues to win all other issues will be solved.  Remember the FInal Four season was as a member of Conference USA and that fueled everything since.  Coach, players, facilty are all in place for a continued run.
Title: Re: $ questions...
Post by: WellsstreetWanderer on September 23, 2011, 02:28:58 PM
Agreed!  Just win baby!
Title: Re: $ questions...
Post by: Aughnanure on September 23, 2011, 02:34:22 PM
Say the bball conference only thing happens with Xavier, Butler thrown in and it captures a TV deal worth 500k per team per year vs the 2 mil per year now from the Big East...add in the fact that there might need to be 1 less home game to get a decent SOS by adding a home-home with a BCS team.  Does MU have a booster who will put in that extra 1.5 - 2 million to keep the program at the top level or will the university just pick it up and just charge the students an extra $200? The new BEast TV contract that was expected had to have a part in thinking we had enough money to start a LAX team. 


TV revenues will continue to go up, bank it. A conference w/ Georgetown, St. John's, Villanova, Notre Dame, Marquette, Xavier, Seton Hall, Providence, St. Louis, Butler, Dayton and Creighton will net at least somewhere around 10 years, $25million/year, and thats probably being conservative. Plus it doesn't even include second and third tier TV rights.

People keep acting like this league will have no value, but in actuality sporting events will only become more desirable for tv networks to air. These teams are different than the state schools, many are nationally known and most do not have regionally-tied names - making their marketability to outside audiences potentially higher.
Title: Re: $ questions...
Post by: brewcity77 on September 23, 2011, 03:40:07 PM
TV revenues will continue to go up, bank it. A conference w/ Georgetown, St. John's, Villanova, Notre Dame, Marquette, Xavier, Seton Hall, Providence, St. Louis, Butler, Dayton and Creighton will net at least somewhere around 10 years, $25million/year, and thats probably being conservative. Plus it doesn't even include second and third tier TV rights.

People keep acting like this league will have no value, but in actuality sporting events will only become more desirable for tv networks to air. These teams are different than the state schools, many are nationally known and most do not have regionally-tied names - making their marketability to outside audiences potentially higher.

Another reason for that is DVR. So few people are watching live television anymore, but live sporting events are usually the exception to that rule. I really feel that going forward, sports will be able to command more money for advertising space because it's more likely people will actually sit through the ads. That will only increase the amount of money networks will be willing to pay.
Title: Re: $ questions...
Post by: Aughnanure on September 23, 2011, 03:42:35 PM
Another reason for that is DVR.

this is THE reason.
Title: Re: $ questions...
Post by: Litehouse on September 23, 2011, 04:33:27 PM
Will it really increase the amounts for sports?  or just decrease the amounts for everything else?  If there isn't that big of a difference in the number and demographics of the people watching, are advertisers really going to be willing to pay more?  How much more beer, chips and pick-up trucks can those same people really buy?
Title: Re: $ questions...
Post by: avid1010 on September 23, 2011, 05:09:45 PM
Say the bball conference only thing happens with Xavier, Butler thrown in and it captures a TV deal worth 500k per team per year vs the 2 mil per year now from the Big East...add in the fact that there might need to be 1 less home game to get a decent SOS by adding a home-home with a BCS team.  Does MU have a booster who will put in that extra 1.5 - 2 million to keep the program at the top level or will the university just pick it up and just charge the students an extra $200? The new BEast TV contract that was expected had to have a part in thinking we had enough money to start a LAX team. 

I don't think you can ever make up for lost money.  Eventually, it's that simple.
Title: Re: $ questions...
Post by: Tribby on September 23, 2011, 05:48:13 PM
Will it really increase the amounts for sports?  or just decrease the amounts for everything else?  If there isn't that big of a difference in the number and demographics of the people watching, are advertisers really going to be willing to pay more?  How much more beer, chips and pick-up trucks can those same people really buy?
If you're an advertiser, you've got to spend somewhere. If everyone is trying to spend on the same events, the price for those will go up. So while the total ad spend may not change, the market share for sports will.
Title: Re: $ questions...
Post by: Aughnanure on September 23, 2011, 09:53:18 PM
Will it really increase the amounts for sports?  or just decrease the amounts for everything else?  If there isn't that big of a difference in the number and demographics of the people watching, are advertisers really going to be willing to pay more?  How much more beer, chips and pick-up trucks can those same people really buy?

Not at all. If anything it increases it drastically.
Title: Re: $ questions...
Post by: brewcity77 on September 24, 2011, 05:24:44 AM
Will it really increase the amounts for sports?  or just decrease the amounts for everything else?  If there isn't that big of a difference in the number and demographics of the people watching, are advertisers really going to be willing to pay more?  How much more beer, chips and pick-up trucks can those same people really buy?

It won't be the same advertising companies. You'll see a more diverse range of advertisers. I've already regularly seen a resort in Florida (The Breakers) advertising on Marquette games. Are MU basketball fans necessarily their target audience, or is it just that there's a higher likelihood of someone, anyone watching their ad?
Title: Re: $ questions...
Post by: martyconlonontherun on September 25, 2011, 04:49:19 PM
I'm more worried about less nationally televised games. We were spoiled in the Big East being on ESPN all the time and being on Sportscenter because we were playing tons of top 25 teams. How many top 25 teams will be in that BBall only conference annually, maybe 2?
Title: Re: $ questions...
Post by: Tugg Speedman on September 26, 2011, 10:05:15 AM
Say the bball conference only thing happens with Xavier, Butler thrown in and it captures a TV deal worth 500k per team per year vs the 2 mil per year now from the Big East...add in the fact that there might need to be 1 less home game to get a decent SOS by adding a home-home with a BCS team.  Does MU have a booster who will put in that extra 1.5 - 2 million to keep the program at the top level or will the university just pick it up and just charge the students an extra $200? The new BEast TV contract that was expected had to have a part in thinking we had enough money to start a LAX team.  

Can anyone confirm this number of $2million/year.  That seems awfully low.  The Football superconferenes are looking at $10 to $15 million a year ($160 million to $200 million a year for the conference).  That is why everyone is bolting.

If the BE, arguably the best bball conference in the country only produces $32 million a year, that is criminal!  I thought our conference revenues were more in the $7 to $10 million range.

Remember the Tourney generates about $250 million a year in revenues as well.  

I think we are making more than you suggest in conference revenues alone.  Add tickets, merchandise, concessions, parking, etc. and MU bball is north of $10 million/year.
Title: Re: $ questions...
Post by: bilsu on September 26, 2011, 11:40:35 AM
Another reason for that is DVR. So few people are watching live television anymore, but live sporting events are usually the exception to that rule. I really feel that going forward, sports will be able to command more money for advertising space because it's more likely people will actually sit through the ads. That will only increase the amount of money networks will be willing to pay.
You can tape a Packer game that starts at noon and start watching it a 1. Speed through the commercials and you will finish about the same thime the game actually ends.
Title: Re: $ questions...
Post by: martyconlonontherun on September 28, 2011, 10:02:41 PM
You can tape a Packer game that starts at noon and start watching it a 1. Speed through the commercials and you will finish about the same thime the game actually ends.
I do that, but most people watch it live and are live tweeting or facebooking so even a few minutes will make a difference. Also, would you ever go to a packer party with a guy controling the DVR? I would shoot myself
Title: Re: $ questions...
Post by: bilsu on September 29, 2011, 09:02:41 AM
Commercials also give you time to go to the bathroom and get snacks, so there is some value to them.
Title: Re: $ questions...
Post by: dw3dw3dw3 on September 29, 2011, 09:40:37 AM
Can anyone confirm this number of $2million/year.  That seems awfully low.  The Football superconferenes are looking at $10 to $15 million a year ($160 million to $200 million a year for the conference).  That is why everyone is bolting.

If the BE, arguably the best bball conference in the country only produces $32 million a year, that is criminal!  I thought our conference revenues were more in the $7 to $10 million range.

Remember the Tourney generates about $250 million a year in revenues as well.  

I think we are making more than you suggest in conference revenues alone.  Add tickets, merchandise, concessions, parking, etc. and MU bball is north of $10 million/year.
I was just talking about the Beast TV contract. The numbers were taken from this report in relation to West Virginia. They received 2 million for non-football sports. Granted its a bleacher report, but it seems well researched:
http://bleacherreport.com/articles/345357-big-east-to-split-or-not-to-split

Other reports put the total current deal at 6 years 200 million or around 34 million a year for the entire league. Divided by 16 teams, 2 million actually seems high for a school without football.

This report (previously linked here) suggests MU revenues at 13.8 million for basketball and 22 million overall which probably is mostly related to basketball as well.
http://www.forbes.com/sites/sportsmoney/2011/03/09/louisville-syracuse-and-marquette-the-top-big-east-schools-in-mens-basketball-revenue/

So the point is the Big East contract is a fairly small portion of MU revenues, but there's a million or two there that will have to be replaced if there wasn't a solid new TV deal. In addition, the BCS conferences and their gigantic TV deals would be able to justify spending much more on basketball now, especially traditional basketball schools who happen to have a football team (Kansas, Duke, NC, Kentucky, Ville if they move, Indiana, etc...).  Lately we seem to be on top of the charts for men's basketball expenses, I can see us having a lot more company now. Spending money doesn't mean success, but it will help the other schools in a disproportional amount with their super-sized TV contracts.  If MU was in the ACC and received say 7 million for being a basketball only school in their new contract, that +5 million would go a long way in the athletic department, creating a better product.