+$500M/12 Year Catholic 7 TV Deal

[TallTitan34]

http://espn.go.com/mens-college-basketball/story/_/id/8817624/fleeing-big-east-schools-working-lucrative-tv-deal-basketball

Sources say that Fox, whose Fox Sports 1 channel is set to launch in August, has an initial high offer on the table of more than $500 million for a 12-year deal. Fox Sports 1 will replace the network's motorsports channel Speed, already in 81 million homes. Sources say officials with Fox are scheduled to meet with those representing the interest of the "Catholic 7" in New York City on Wednesday. A Fox spokesman could not immediately be reached for comment. A high-ranking source at NBC Sports Network, which has so far engaged in preliminary discussions with the "Catholic 7," declined comment. ESPN spokesman Josh Krulewitz also declined comment on the network's interest in the "Catholic 7" games.

[TallTitan34]

Quick math assuming $500M:

$500M/12yr = $42M a year

7 schools = $6M
8 schools = $5.25M
9 schools = $4.67M
10 schools = $4.2M
11 schools = $3.82M
12 schools = $3.5M

[brewcity77]

At a glance, for a 12-team league, that comes to around $3.5M per school. For 10 teams, it's over $4.1M each. If true, this is setting up to work nicely. And with that much money behind it, you know they'll market it.

[PaintTouches]

Plus, it says that only the C7 will share the revenue evenly, with the add-ons taking a lower cut.

[forgetful]

Rest of the article says the money won't be distributed evenly, the C7 to get $5 mil each.

[chapman]

It notes that shares will likely not be even, with the C7 taking closer to $5M for being the founders and doing the negotiating and new invitees getting a lesser payout. A-10 schools might get exit fee assistance and will still be offered 5x or more what they get now to sign up.

[DegenerateDish]

Plus, it says that only the C7 will share the revenue evenly, with the add-ons taking a lower cut.

That is the most interesting piece of info. For those who said Georgetown was lukewarm, who you crappin?

[TallTitan34]

I didn't realize that the network was already in 81 million homes. 

[TallTitan34]

12 years is a long time for members of a conference to be getting different levels of pay.  I can't imagine some schools would be very happy about that over time.

Does Providence deserve more than Xavier or Butler? 

[DegenerateDish]

Be interesting still to see if this is 10 or 12 team league. Now that this info is public, it's huge for the new league. Well played by Georgetown and St. John's.

[The Process]

Hooollllyyy crap indeed, if true.  Looks like MU will be in a great revenue position when all's said and done if this is true.

[DegenerateDish]

12 years is a long time for members of a conference to be getting different levels of pay.  I can't imagine some schools would be very happy about that over time.

Does Providence deserve more than Xavier or Butler? 

It'd be a step up in class/pay from the A10/WCC. Muddle around in those leagues or move up?

[chapman]

12 years is a long time for members of a conference to be getting different levels of pay.  I can't imagine some schools would be very happy about that over time.

Does Providence deserve more than Xavier or Butler? 

Perhaps it'll even out more over time.  Even so, if they're getting $400k now and are given maybe $2M to join, plus the C7's supposed cash pile takes care of their A-10 exit fee, plus increased ticket revenue a certainty, plus more national exposure...a huge raise and all of the work already done for them still looks like a really sweet deal.

[Aughnanure]

Umm wow.

[ChicosBailBonds]

http://www.newscorp.com/news/bunews_206.html  Eric Shanks...one of my former colleagues for five years at DTV is now the President of Fox Sports...he's an IU guy and one of the two brains behind Fox Sports 1.  


In terms of Fox Sports 1, it doesn't exist today. http://www.sportsbusinessdaily.com/Journal/Issues/2012/11/26/Media/FoxSports1.aspx They are hoping to compete with ESPN, that's a tall order but Shanks will make a go of it.  Shanks and Hill have done some pretty cool stuff over the years, like the yellow first down line on broadcasts.  Of course, they also did the glowing puck, so you can't be right all the time.   You'll notice on some providers that Speed Channel has been moved to a lower tier package as a result of recent renegotiation with FOX. That means they are broadening their distribution. We just went through this last year and had to move Speed as well.  They've been building up for this for over a year now.

As a result, you can imagine the arms race that could start for rights fees...good for a seller like the C7. Fox is reportedly about to drop $6.5billion on the Dodger rights here in Los Angeles. Bad for the consumer who will be paying for this in MUCH higher cable and satellite fees (cue up Benny B).  This is why I kept saying the last few weeks it's all about who owns the rights, not the technology to deliver it.  You have to find a way to monetize the amount of money in play here, and that means a known source of revenue.  A la carte doesn't give you known sources of revenue so get ready to open up your wallets fellas, but at least you know some of it is going back to MU.  

Sports is the king for live television because people watch it live.  It's a revenue beast.

[dpucane]

[TallTitan34]

[77ncaachamps]

[4everwarriors]

Screw the bread boys, I just wanna know if we'll see more of Erin?

[Tums Festival]

Darren Rovell is a top sports/business insider.

[brewcity77]

12 years is a long time for members of a conference to be getting different levels of pay.  I can't imagine some schools would be very happy about that over time.

Does Providence deserve more than Xavier or Butler?

I was thinking that too. And it really makes me think that we're more likely looking at a 10-team league than a 12-team league. After you take the C7 $35M annual cut, here's what you have left for the new teams:

8-team league: $6.67M
9-team league: $3.33M
10-team league: $2.22M
11-team league: $1.67M
12-team league: $1.33M
14-team league: $952K

Considering that right now Xavier, Butler, and any other prospective A-10 schools are in a league where they keep the lion's share of their earned NCAA credits, we need a lucrative TV deal to draw them in. Making more than 2 million per year might be enough to do that. I'm not sure making $1.3 million would be enough, and I certainly don't think less than one million will do the trick.

[ShannonSmith]

What about Gonzaga now that we have more revenue? We should be hoping the best hoops conference possible as the Big East was founded. I' m sure Fox would want one of the best hoops schools in the West.

[GGGG]

This is good news, but I'm not sure I like the idea of two tiers of rights though.  In the long-run I'm not sure that brings stability.

[Silkk the Shaka]

This is good news, but I'm not sure I like the idea of two tiers of rights though.  In the long-run I'm not sure that brings stability.

Totally agree. Could breed Texas-like resentment as in the Big 12. Look how well that turned out. It arguably started this whole mess.

[Irishdawg]

As a Butler fan, I would be really upset if we knowingly put ourselves at a competitive disadvantage (especially by this great of an amount) for a 12 year period.  Schools like Providence and Seton Hall (who have neither good basketball nor a large TV market on their own) don't deserve to have more money than a Butler, Xavier, Creighton, SLU, Dayton, etc.  People from those "outsider" schools will not be happy about it if that's the case, regardless if they're making more than they are now because they are already thought of as second-class citizens within the conference, and that is not a good foot to start out on with your fellow conference members.

Obviously if you get this kind of split, good for you and obviously I would take it if you can get it from your end.  But don't think for a moment that this kind of thing won't breed instability and dissention from the moment these new schools join.