Update from C7 Meeting

[GGGG]

http://espn.go.com/mens-college-basketball/story/_/id/8831345/catholic-7-talk-tv-deal-commissioners-sources

--$500M Fox offer has been "reaffirmed."

--Expansion looks to be five candidates

--Commish names discussed but not available to report.

[🏀]

Reaffirmed you say?

[Benny B]

Yes sir... this is going to happen soon.  IMO -- that little table to the left of this frame that says "Big East Standings" is going to have nine fewer and five different names in about 6 months.

And it's quite possible that MU will be the de facto "defending Big East Champion" going into the 2013-14 campaign.

[Norm]

So $500 million over 12 years split between 12 teams comes out to $3.47 million per year, if split equally.

[GGGG]

But not to rehash the discussion from the other thread, but the C7 will likely get a greater share of that to cover the start up costs for the new conference.

[brewcity77]

So $500 million over 12 years split between 12 teams comes out to $3.47 million per year, if split equally.

Which it really shouldn't be. Eventually, yes, but not until after the C7 have recouped costs for exit fees and setting up the new conference.

[Chili]

The other major thing I took away from the article was that it looks like they are going to attempt to start this league for NEXT year - which would be fracking tits!!!!

Just rip the band-aid off - it will all be better after.

[JTBMU7]

The other major thing I took away from the article was that it looks like they are going to attempt to start this league for NEXT year - which would be fracking tits!!!!

Just rip the band-aid off - it will all be better after.

Agreed, the most promising thing in all this is the idea that it could happen by the fall. I have to think that's in everyone's best interests, including Aresco's bunch. I'd assume he will want to get their league in order and in position to negotiate a deal vs squabbling for NCAA units and exit fees. Plus, the earlier we leave, the more leverage they have to negotiate for said exit fees. Seems like everyone should want to get this done quickly since it's already in the works.

[Benny B]

Just rip the band-aid off - it will all be better after.

The most tried and true of Catholic doctrine: "It is better to beg for forgiveness than to ask for permission."

[real chili 83]

The most tried and true of Catholic doctrine: "It is better to beg for forgiveness than to ask for permission."

Also the most tried and true doctrine of married men.....in most situations.

[Chicos' Buzz Scandal Countdown]

[MUCam]

That's weird, sixstring03, but your picture got cut off half-way so I can't really tell what that silly duck is doing. Can you repost the whole thing?

[Chicos' Buzz Scandal Countdown]

That's weird, sixstring03, but your picture got cut off half-way so I can't really tell what that silly duck is doing. Can you repost the whole thing?

That's all, folks

He's watching intently as the C7 situation develops

[Benny B]

That's all, folks

He's watching intently as the C7 situation develops

It's even funnier watching it the second time... or maybe it's because it's on the screen twice, now.

[MerrittsMustache]

Excuse my ignorance but is conference commissioner a full-time job?

[T-Bone]

This is the thing that has me concerned about the shake-ups in conferences and where I could see Congress getting involved (as much as that is distasteful to me). 

At the meeting, Fox officials reaffirmed a $500 million rights fee offer that would be predicated on a 12-year deal with the Big East Catholic schools (DePaul, Georgetown, Marquette, Providence, Seton Hall, St. John's, Villanova) adding five additional teams to a newly formed league.

So, the deal is contingent on the league adding 5 teams.  Essentially you have a corporation dictating the terms of amateur/collegiate athletics. 

I think going to 12 is a no-brainer, but when it is placed out in front like this, it has me concerned that we may see intervention that I don't want. 

[The Equalizer]

This is the thing that has me concerned about the shake-ups in conferences and where I could see Congress getting involved (as much as that is distasteful to me). 

So, the deal is contingent on the league adding 5 teams.  Essentially you have a corporation dictating the terms of amateur/collegiate athletics. 

I think going to 12 is a no-brainer, but when it is placed out in front like this, it has me concerned that we may see intervention that I don't want. 

I'm not sure why Congress would get involved.  The corporation isn't "dictating terms"--they're making an offer, which the schools can either accept or reject.

[brewcity77]

I'm not sure why Congress would get involved.  The corporation isn't "dictating terms"--they're making an offer, which the schools can either accept or reject.

+1

They aren't dictating the number of teams. That's up to the C7. They are saying what they would offer for a prescribed amount of content. With 12 teams, you get 108 games. With 10, you get 90. Of course their offer will only be based on how much content they can get. Otherwise we could just go to 8 teams, play 14 game seasons, offer them 56 total games and everyone gets $5.2M for the duration of the deal.

[ChicosBailBonds]

http://aol.sportingnews.com/ncaa-basketball/story/2013-01-09/catholic-7-tv-contract-rpi-ratings-cj-mccollum-kentucky-john-calipari-mid-major


Mike is connected....extremely.  You can bet he's spoken to Xavier folks, etc.  Honestly, I mentioned the other day I don't like the revenue sharing tiered approach. It's hypocritical at best, and doesn't build stability or loyalty when that is what should be done day one for a league.  It will be interesting if some schools decide not to join as a result, or do they come anyway but have a bad taste in their mouth that may take many years to cleanse.



On the dollar front, had a few conversations about this the last two days with industry folks at our annual meetings.  Nothing new, everyone is hearing the same things that are out there.  FOX needs content so it's a seller's market big time.  As we all said at the meetings, if the C7 are getting this, can you imagine what the next round of fees are going to be for the football conferences...insanity.  So in the short term, it's good for us, more money coming, but it will be short term and the football schools revenue will exceed it by exponential sums.

[Abode4life]

I'm not sure why Congress would get involved.  The corporation isn't "dictating terms"--they're making an offer, which the schools can either accept or reject.

I agree.  And the money in the offer is going to be based on number of conference games, quality of schools, and location of those schools.  Most likely, representatives of the C7 have informed FOX on who they have either been in direct contact with or are targeting to join the league in order to try and get more money.  Fox isn't going to want to make a deal if there is a ton of unknowns in the equation.  

[Abode4life]

http://aol.sportingnews.com/ncaa-basketball/story/2013-01-09/catholic-7-tv-contract-rpi-ratings-cj-mccollum-kentucky-john-calipari-mid-major


Mike is connected....extremely.  You can bet he's spoken to Xavier folks, etc.  Honestly, I mentioned the other day I don't like the revenue sharing tiered approach. It's hypocritical at best, and does build stability or loyalty when that is what should be done day one for a league.  It will be interesting if some schools decide not to join as a result, or do they come anyway but have a bad taste in their mouth that may take many years to cleanse.

I agree 100%.  I can maybe see a tiered approach for the very short term (1-3 years), but after that it's only going to breed contempt.

[ChicosBailBonds]

This is the thing that has me concerned about the shake-ups in conferences and where I could see Congress getting involved (as much as that is distasteful to me). 

So, the deal is contingent on the league adding 5 teams.  Essentially you have a corporation dictating the terms of amateur/collegiate athletics. 

I think going to 12 is a no-brainer, but when it is placed out in front like this, it has me concerned that we may see intervention that I don't want. 

This happens every day in big business.  Fox is paying that kind of money, they expect to have sway in what they are buying.  I don't see anything wrong with it as it is part of the norm, in my view.  Even on a personal level, if I'm buying a house there are contingencies.  I may want the current homeowner to pay for new carpet, put money aside for landscaping, etc.  Now, that owner can say no, and wait for another buyer or may feel compelled to do those things to get the sale.  The C7 could say no, we're only doing 10 teams and FOX might say go find another partner, or the price just dropped to $200 million (or whatever).  I see zero issue here.

[brewcity77]

Honestly, I mentioned the other day I don't like the revenue sharing tiered approach. It's hypocritical at best, and does build stability or loyalty when that is what should be done day one for a league.  It will be interesting if some schools decide not to join as a result, or do they come anyway but have a bad taste in their mouth that may take many years to cleanse.

So are you saying the C7 should just eat the $100M or so in start-up costs for the new league? We should pay the exit fees, pay the lawyers, buy the naming and MSG rights, and then split profits after that with everyone evenly despite half of them not putting in anywhere near the investment we did?

That's kooky talk.

[ChicosBailBonds]

So are you saying the C7 should just eat the $100M or so in start-up costs for the new league? We should pay the exit fees, pay the lawyers, buy the naming and MSG rights, and then split profits after that with everyone evenly despite half of them not putting in anywhere near the investment we did?

That's kooky talk.

No, not saying that at all.   It's all about bucketing.  I would pull that (start up costs) out separately as an expense and have that covered separately from the various revenue streams as well as any "buy-ins" required to join the conference.  Not that hard, really.  Just make it part of the provision of jumping into the conference.  If the cost is $100 million to startup, then each school is on the hook for $8.33 million...get out your check books.  They're all going to be charter members...right?  Then the revenues are split evenly on the receivables side.  What you can't have is two tiered approach that breeds contempt from the start.  To me, this is pretty simple and can be addressed with a bucketing of dollars approach that shouldn't be all that hard to do.

Where are you getting $100 million in start up costs?  

[Silkk the Shaka]

So are you saying the C7 should just eat the $100M or so in start-up costs for the new league? We should pay the exit fees, pay the lawyers, buy the naming and MSG rights, and then split profits after that with everyone evenly despite half of them not putting in anywhere near the investment we did?

That's kooky talk.

Yeah after being initially skeptical about the uneven revenue deal, I've looked at what the C7 (hate that moniker) is giving up vs. what the new additions gain and have to agree that the best way to go about it is to be uneven to start as compensation for what was lost, then move to equal revenue split once all parties agree that any losses are recouped.  If it doesn't even out eventually, I agreee that it will lead to resentment and instability.