+$500M/12 Year Catholic 7 TV Deal

[buckchuckler]

Equal shares after some reimursement of up-front league formation costs or MU and the C7 are no better than the football greedmongers.   Let's not be greedy hypocrites.   Also, let's give Xavier and Butler their just due for their performance over the last decade.   From their perspective, the C-7 is really the C-2 plus a bunch of Daytons.   How can anyone in good conscience not consider them equals?    If the dollar figures floated in the original article argument are accurate, there is plenty to go around.   MU and the C7 would be fools to do something (read: get greedy and not instantly make them equal partners) that keeps X and BU from joining. 

Who is the C-2? Gtown and MU?  Gtown and Nova?  There seem to be a big 3 to me, with Nova being a bit down currently, but they are a great program with a great coach. 

[Tums Festival]

Maybe I misspoke.  I was talking about the overall creation of Fox Sports 1 out of the ashes of Speed.  Frankly, I had not known.  I did find this:

http://bleacherreport.com/articles/1423414-fox-sports-one-what-the-upcoming-all-sports-network-could-mean-for-the-ufc

Here's another article on the FS1 start-up. I really like the idea of doing a "soft" launch in August with a full-scale unveiling during the Super Bowl in NYC.

[dpucane]

any one who wants an even split is a communist and a traitor to our university and country.

spoken like a true MU grad

[Dr. Blackheart]

Equal shares after some reimursement of up-front league formation costs or MU and the C7 are no better than the football greedmongers.   Let's not be greedy hypocrites.   Also, let's give Xavier and Butler their just due for their performance over the last decade.   From their perspective, the C-7 is really the C-2 plus a bunch of Daytons.   How can anyone in good conscience not consider them equals?    If the dollar figures floated in the original article argument are accurate, there is plenty to go around.   MU and the C7 would be fools to do something (read: get greedy and not instantly make them equal partners) that keeps X and BU from joining. 

This point to me isn't about greed but good business as to what brings value.  There are two parts of the buying brain:  The rational and the emotional.  DePaul brings in rational benefits with TV market and enrollment size. Those are worth a lot to a conference.  Georgetown adds a lot on the rational side as well...but it also adds a lot more on the emotional side to add brand equity to a conference based on its continued success.  SJU adds on both...with the emotional side being its history and location.  Each adds value to a conference because media companies will pay for it.

Dayton has a strong, internally run athletics program.  It is successful from a business sense for that school.  But what do they add to a conference in terms of value?  A shrinking TV market that already bleeds over with Xavier's?  A great national following that adds on the emotional side like Georgetown or Gonzaga?  Nope. Great for Dayton, not so great for a major conference.

SLU seems to add something on the rational side...not much on brand equity for a conference.  If Biondi gets $5mm a year for joining, will he sweep it from athletics like he did from the Law School? Make them earn it for the conference.  Why pay them $5mm when you can get them for $2mm until they prove they build their own conference equity?  That is not greed, that is a solid long-term business model.

[Pakuni]

Equal shares after some reimursement of up-front league formation costs or MU and the C7 are no better than the football greedmongers.   Let's not be greedy hypocrites.   Also, let's give Xavier and Butler their just due for their performance over the last decade.   From their perspective, the C-7 is really the C-2 plus a bunch of Daytons.   How can anyone in good conscience not consider them equals?    If the dollar figures floated in the original article argument are accurate, there is plenty to go around.   MU and the C7 would be fools to do something (read: get greedy and not instantly make them equal partners) that keeps X and BU from joining.  

<Imperfect analogy alert>

Let's say you were to start a restaurant. You come up with the concept, the theme, find a location, design the exterior and interior, create the menu, foot the initial startup costs, negotiate deals with vendors, hire a lawyer to draw up contracts, hire a marketing consultant, etc. The last thing you need is a few investors to get the restaurant off the ground.
Now, given those circumstances, would you be greedy and unfair by not making those investors equal partners, but instead insisting that you get a disproportionate share of the restaurant's future earnings to reflect your respective contributions?

Now, I recognize this is an imperfect analogy (see above alert), as Xavier, Butler, etc. offer more value to this new enterprise than simply a financial investment.
But still, the C7 schools are the ones that are taking the initiative and risks in setting up a new conference, bearing the initial costs, negotiating TV deals and sponsorships, hiring attorneys and marketers, etc. They're also, hopefully, the keeper of the Big East (TM) brand that adds value to the league.
All of this should be recognized in at least the initial distribution of revenues. To what extent, I'm not sure, but suggesting that Butler ought to be treated as equals in this regard - when they're risking very little and have much to gain - seems, if anything, unfair to the C7.
It also seems to work under the (IMO) mistaken notion that Xavier, Butler, etc. would be doing the C7 a favor by joining up, when the reality is the C7 is doing them a favor by allowing them to migrate from a lesser (competitively, economically and exposure-wise) conference.

Lastly, I don't think these schools turn down an opportunity to improve their programs (competitively, economically and exposure-wise) based on some misguided principle that they ought to be equal partners from the onset of this enterprise.
Down the line? Absolutely. Right now? No.
I mean, would you turn down a 300 percent raise and corner office with a view to remain underpaid in your cubby because someone else in your company got an even better raise and larger office?

[tower912]

Imperfect analogy alert:   Let's pretend the Beatles were negotiating a record deal.   The record company makes an interesting offer, so they call up Hendrix and Jagger and  tell them that they are invited to join the Beatles, the record company will pay them all a lot more if they join,  but they will get paid less than Ringo.   

[chapman]

I mean, would you turn down a 300 percent raise and corner office with a view to remain underpaid in your cubby because someone else in your company got an even better raise and larger office?

This is what it's about to me as well.  Actually, they'd be turning down a base salary that dwarfs anything they'll get elsewhere.  With bonuses (tournament shares, ticket and merchandising increases, etc.), there's no reason X and Butler don't surpass Providence and Seton Hall in total program revenue since television is just one part of the package and they excel at the other parts.  It would be silly to pass on a job offer that gives you a salary more than 4x what you currently make, increases your bonus potential, and gives you a better title simply because the company's founders who have done most of the work to date and live in more desirable locations command a higher base salary than you do.

[brewcity77]

Imperfect analogy alert:   Let's pretend the Beatles were negotiating a record deal.   The record company makes an interesting offer, so they call up Hendrix and Jagger and  tell them that they are invited to join the Beatles, the record company will pay them all a lot more if they join,  but they will get paid less than Ringo.   

Except at the time, the Beatles, Ringo included, are all making about 5 times what Jagger and Hendrix make, and both Jagger and Hendrix would get a 400%+ raise to join the Beatles while Ringo would only get a 100% raise (albeit to his already more lucrative salary).

[Pakuni]

Imperfect analogy alert:   Let's pretend the Beatles were negotiating a record deal.   The record company makes an interesting offer, so they call up Hendrix and Jagger and  tell them that they are invited to join the Beatles, the record company will pay them all a lot more if they join,  but they will get paid less than Ringo.   

Key question .... How much will Hendrix and Jagger make if they don't join the Beatles?
My guess is that if joining the Beatles means 400 percent more income than if they don't, they won't care all that much about Ringo's salary.
And why does everyone pick on poor Ringo?

[Tums Festival]

Let's not be like Badger fans and pretend basketball started in 2000.

Thank you for one of the best comments I've ever read on this board.

[Spaniel with a Short Tail]

This is what it's about to me as well.  Actually, they'd be turning down a base salary that dwarfs anything they'll get elsewhere.  With bonuses (tournament shares, ticket and merchandising increases, etc.), there's no reason X and Butler don't surpass Providence and Seton Hall in total program revenue since television is just one part of the package and they excel at the other parts.  It would be silly to pass on a job offer that gives you a salary more than 4x what you currently make, increases your bonus potential, and gives you a better title simply because the company's founders who have done most of the work to date and live in more desirable locations command a higher base salary than you do.

And 3 years after you got your 300% raise, the gratefulness starts to ebb and you look at the guy who got the bigger raise and the bigger office and start thinking about how you're doing as much for the company as he is and that is when the resentment starts to build. That is why a sunset is a good idea. Need to think longer term. The C7 should be rewarded for their initiative, but not in perpetuity.

[GGGG]

And 3 years after you got your 300% raise, the gratefulness starts to ebb and you look at the guy who got the bigger raise and the bigger office and start thinking about how you're doing as much for the company as he is and that is when the resentment starts to build. That is why a sunset is a good idea. Need to think longer term. The C7 should be rewarded for their initiative, but not in perpetuity.

Yep.  That is why any revenue disparity can only be short-term...for the reasons that jsglow and others listed earlier in this thread.  In the long-term they should be equal partners.

[🏀]

While it has been an interesting discussion, I think everyone needs to relax when discussing the profit tiers.

1.) No one knows how long they will be set for.
2.) No one knows what the break downs will be.
3.) The ACC and B1G are also following this model which hasn't upset any of those schools.
4.) The C7 are not likely to be looking to piss off Butler, Xavier, whoever else. I would imagine if Butler and X are as concreted into this league as it has been reported, they are probably on board with a proposed tier system.
5.) Can everyone just enjoy that we are almost doubling our TV revenue? Especially when a lot of people said we wouldn't come close to our current payout?

[ChicosBailBonds]

spoken like a true MU grad

A great American!   

[The Process]

5.) Can everyone just enjoy that we are almost doubling our TV revenue? Especially when a lot of people said we wouldn't come close to our current payout?

http://www.youtube.com/v/sZHCVyllnck

[🏀]

http://www.youtube.com/v/sZHCVyllnck

+1, money talks.

[Pakuni]

5.) Can everyone just enjoy that we are almost doubling our TV revenue? Especially when a lot of people said we wouldn't come close to our current payout?

[Dr. Blackheart]

I'm starting a rumor that Dr. B is speaking from experience.   

I just bought a new a pipe and a bathrobe...

http://www.huffingtonpost.com/2013/01/03/hugh-hefner-crystal-harris-prenup-playboy-founder-new-bride-iron-clad-prenup_n_2403577.html

[Mr. Nielsen]

Yes, but so does Joe Buck.

EA is the studio host for cfb on fox. Buck just does mlb & nfl.

[Mr. Nielsen]

While it has been an interesting discussion, I think everyone needs to relax when discussing the profit tiers.

1.) No one knows how long they will be set for.
2.) No one knows what the break downs will be.
3.) The ACC and B1G are also following this model which hasn't upset any of those schools.
4.) The C7 are not likely to be looking to piss off Butler, Xavier, whoever else. I would imagine if Butler and X are as concreted into this league as it has been reported, they are probably on board with a proposed tier system.
5.) Can everyone just enjoy that we are almost doubling our TV revenue? Especially when a lot of people said we wouldn't come close to our current payout?

Pac-12 as well. Utah and Colorado are not getting the same amount of money.

In the Big 12, Texas, OU & OSU make more money than Iowa State & Kansas.

[ChicosBailBonds]

Pac-12 as well. Utah and Colorado are not getting the same amount of money.

In the Big 12, Texas, OU & OSU make more money than Iowa State & Kansas.

Actually, Colorado gets a full share, Utah is staggered until 2014-2015....that's what was reported in 2010.

In 2011, however, the LA Times reported all 12 schools have equal revenue splits.   http://articles.latimes.com/2011/may/04/sports/la-sp-pac-12-tv-20110505

[Tugg Speedman]

CBB:

What is your guess here ... Assuming the reporting on the fox deal is accurate, does NBC Sports counter and the number goes higher.  Or is this a lock-out bid and this is as good as it gets?

[MuMark]

We will know soon what is and what is not a "fair deal".....if Butler and X accept what is offered it is fair to all parties involved...if they decline then from their point of view it's not......

[Nukem2]

We will know soon what is and what is not a "fair deal".....if Butler and X accept what is offered it is fair to all parties involved...if they decline then from their point of view it's not......

Yep.  The C7 is not an established league  and is based on the premise that 3-5 schools will join for startup.  Smaller shares for "new" schools sounds far fetched to me.  Need to attract strong partners. 

[Sheriff]

EA is the studio host for cfb on fox. Buck just does mlb & nfl.

Right.  And if the Fox deal happens it will be Buck who stays away from CBB and not EA.