FOX close to Big Ten Contract

[The Lens]

There are not many valuable sports TV properties available right now, but the Big Ten is and it looks like FOX is going to lock up half of the available Big Ten rights.  ESPN (and others) could still make a play for the other available half.

http://www.landgrantholyland.com/2016/4/19/11463092/big-ten-fox-tv-first-tier-primary-rights

This is a pretty significant move for FOX.  Big East / Big Ten doubleheader would be wonderful programming.

[mu03eng]

Fox is making some big bets, we'll see if it pays out. If NBC gets the other half of the B1G rights get ready for an avalanche of E$PN stories about how the ACC is the best football/basketball conference ever and the Bigs (10,12, and East) are crap.

[bradley center bat]

Great news for FS1. With help the Big East get more eyeballs in wintertime.

[bradley center bat]

Sources: Fox, Big Ten Closing In On Media Rights Agreement

By John Ourand & Michael Smith
Published April 19, 2016

Fox is close to signing a deal that gives it half of the Big Ten's available media rights package, according to several sources. Deal terms still are flexible – both in terms of money and rights. However, the two sides have agreed on basic terms that will give Fox the rights to around 25 football games and 50 basketball games that it will carry on both the broadcast channel and FS1 starting in the fall of '17. The deal runs six years and could cost Fox as much as $250M per year, depending on the amount of rights the Big Ten conference puts in its second package.

The Fox deal essentially is half of the package of games that had been with ESPN (as part of a 10-year, $1B deal that expires next spring) and CBS (as part of a 6-year, $72M basketball-only deal that also expires next spring). The Big Ten will return to the market to solicit bids on the second half of the package. The conference has the flexibility to allow for another network or two to pick up that half. ESPN will be one of several TV networks engaged for the second half of the Big Ten's package, along with the usual suspects of CBS, NBC and Turner.

The second package also is expected to include around 25 football and 50 basketball games. The package also could include rights to the football championship games every other year, though sources caution that the rights in the second package are flexible and could include more – or less – games.


The conference also is holding back some digital rights that it will offer to digital media companies, sources said. The deal does not include Big Ten Network's package of rights, which runs to '31-32. Fox already has a relationship with the conference; it owns 51% of BTN.

Fox' deal is a blow to ESPN, which had held most of the conference's rights previously. Sources said that ESPN presented a non-competitive bid several weeks ago, as the company continues to look for areas to save costs. Big Ten Commissioner Jim Delany and Jon Barrett, the conference's longtime legal counsel, negotiated the deal for the Big Ten, which did not hire an outside media consultant. Fox Sports President Eric Shanks and Exec VP/Business Larry Jones negotiated on behalf of Fox

[bradley center bat]

This is a pretty significant move for FOX.  Big East / Big Ten doubleheader would be wonderful programming.

Don't forget FS1 has the rights to 22, Pac-12 basketball as well.

[GooooMarquette]

Good that Fox might be getting nice preview games to show before the main event.

[keefe]

Good that Fox might be getting nice preview games to show before the main event.

I have some B1G stink on me but I am still wondering how compelling those Nebraska-Rutgers games will be over time because from where I sit that adds nothing to what the Big Ten has meant to alums.

[TAMU, Knower of Ball]

I have some B1G stink on me but I am still wondering how compelling those Nebraska-Rutgers games will be over time because from where I sit that adds nothing to what the Big Ten has meant to alums.

Compelling? Never. Make a lot of TV $$$? Always.

[keefe]

Compelling? Never. Make a lot of TV $$$? Always.

I get that, Aggie. And I hate what it has done to college basketball.

[Herman Cain]

Overall a plus for the Big East and Marquette if this deal goes through. If for no other reason that it will increase the penetration of FS1 and bring eyeballs our way.

Big Ten as a whole is in good shape, notwithstanding the ugliness of Rutgers basketball.  Rutgers football historically is not a bad program and will eventually be a solidly middle class program in the Big Ten.  Michigan return to football prominence is a huge plus.

[TAMU, Knower of Ball]

I get that, Aggie. And I hate what it has done to college basketball.

Couldn't agree more. I'm hoping that in the future, strong rivalries drive eyeballs more than new markets

[Herman Cain]

Couldn't agree more. I'm hoping that in the future, strong rivalries drive eyeballs more than new markets

The reason I have been so bullish on the Big East is our double round robin format which promotes strong rivalries.   Once we get past the love our fellow conference foes stage we are in right now  we are going to have some fantastic rivalries.  The coaching stability at all the schools also helps . This years BET was very well attended and demonstrates we are solidly on track to where we need to be as a conference.

[ChicosBailBonds]

Overall a plus for the Big East and Marquette if this deal goes through. If for no other reason that it will increase the penetration of FS1 and bring eyeballs our way.

Big Ten as a whole is in good shape, notwithstanding the ugliness of Rutgers basketball.  Rutgers football historically is not a bad program and will eventually be a solidly middle class program in the Big Ten.  Michigan return to football prominence is a huge plus.

It is not an automatic that it increases penetration rate for FS1.  Cost is a major issue.

Plus, what it does is drives the cost up for FS1 to existing distributors, who are loathe to keep raising prices to customers to pay for this type of content when so many people don't care about sports.  It drives the non-sports fans to other options, like OTT products and services.

[T-Bone]

Would they change the Big10 network to increase premier programming, turn it into FS3?

[GoldenWarrior11]

I'm glad.  I can't stand ESPN coverage anymore, and the fact that they own most properties is frustrating.  With Fox becoming a legit competitor to them, it will only improve production of both channels and increase each company's respective commitment towards being the premier sports channel.  As customers, we win.  As Marquette and Big East fans, we win as well.  Win/win.

[Herman Cain]

It is not an automatic that it increases penetration rate for FS1.  Cost is a major issue.

Plus, what it does is drives the cost up for FS1 to existing distributors, who are loathe to keep raising prices to customers to pay for this type of content when so many people don't care about sports.  It drives the non-sports fans to other options, like OTT products and services.

Good point , although
They can always take a margin hit and increase market share in short run.

[Dr. Blackheart]

It is not an automatic that it increases penetration rate for FS1.  Cost is a major issue.

Plus, what it does is drives the cost up for FS1 to existing distributors, who are loathe to keep raising prices to customers to pay for this type of content when so many people don't care about sports.  It drives the non-sports fans to other options, like OTT products and services.

OTOH, how is your Disney stock looking with that penetration thing?

[ChicosBailBonds]

OTOH, how is your Disney stock looking with that penetration thing?

Pretty good, bought in the $90s (on top of all the stock I got in the $20's and $30s when I worked there), and it is selling I think at $102 or so.

[ChicosBailBonds]

Good point , although
They can always take a margin hit and increase market share in short run.

Keep in mind their biggest issue is package tiers, not overall distribution.  In other words, to get FS1, they want to be penetrated at the lowest package possible.  Those are also the cheapest packages, where most people go if they don't give a damn about sports.  They've been taking a bunch of margin hits on this channel....they're underwater right now.  I know they thought they would be profitable in 3 years....not yet.

[Herman Cain]

Keep in mind their biggest issue is package tiers, not overall distribution.  In other words, to get FS1, they want to be penetrated at the lowest package possible.  Those are also the cheapest packages, where most people go if they don't give a damn about sports.  They've been taking a bunch of margin hits on this channel....they're underwater right now.  I know they thought they would be profitable in 3 years....not yet.

They would be better of covering high school sports. MSG Varsity is one of the most expensive products out there.