quo vadis
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I Root For: USF/Georgetown
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RE: SEC Network is a disaster for the SEC
(05-06-2013 08:36 PM)Lurker Above Wrote: (05-06-2013 08:22 PM)quo vadis Wrote: (05-06-2013 05:05 PM)Lurker Above Wrote: (05-06-2013 08:29 AM)quo vadis Wrote: (05-05-2013 06:26 PM)Lurker Above Wrote: "As i noted, CBS has been in absolutely no hurry to give the SEC anything more than they paid them in 2008, despite this alleged worry about 10 freaking years from now."
You are wrong. CBS has just extended ten more years, gave up its exclusivity window, and has agreed to pay more, the exact amount has yet to be released.
I am wrong? Of course CBS will pay the SEC more for those 10 extra years. The issue is what CBS is paying for 2008-2023.
Quote:You do not know what an employee is. I am an attorney, I do. You are using "employee" and "salary" to slander the SEC in an attempt to bolster your argument. The SEC choose not to be a co-owner, in part, so they would not have to invest in startup costs, which held the BTN back a few years is still burdening the PTN. Moreover, the SEC will make more money in this arrangement because of the strength of ESPN in carriage rights negotiations.
Good Grief. Pal, obviously, I have been using the term "employee" as a figure of speech, since the SEC is not a literal "employee", as that term can technically apply only to a single individual, not an organization. I use the term to dramatize the difference between being in an equity position, like the PAC and B1G, which allows you to capture unlimited profits should they be earned, and being paid a salary, or fixed amount, as the SEC is by ESPN and CBS. And given the increasing value of college sports rights, this is a very important point.
As for "investing in startup costs", well, that's what entrepreneurs do, or don't, and those that do end up making a LOT more money, if the business is successful. As the BTN is obviously successful, their gamble in paying for startup costs has paid off, and they will make a lot more money than will the SEC.
Quote:"Your error is in vastly under-stating how much the 2008 deal will cost the SEC. SEC teams currently get about $15 million per year from that deal. If the SEC were to negotiate that deal today, as a free agent, and for just the same tier of rights they sold in 2008, it could easily command $25 million per year per school for starters in year one, with escalation clauses boosting that to say $35 million by the end of the 15 years."
You understand that most projections for the SEC with the SECN exceed your above numbers already? Do you really believe UF, UGA, AL and the rest gave up their tier 3 rights for the peanuts you describe? If that were true you would here these school complain in short order. You won't.
You're kidding, right? The standard projection being bandied about is that the deal will "eventually", which typically means near the end of the deal, in 2034, be worth $28.6 million per school. That is a top-out figure, and that is far less than what i mentioned ($35 million per school, and by 2023!). And in my scenario, the SEC would still own its tier 3 rights to boot.
Here are some quotes for you to consider:
"Bevilacqua said he believes the SEC missed a big opportunity several years ago by negotiating longterm deals with ESPN and CBS that everybody now knows were fairly under-market deals.
"At the time, they looked like they were fully-valued deals," he said. "But it's fair to say the market accelerated forward and has changed quite dramatically. As a result of those deals, the SEC has to deal with ESPN in a non-free agency matter. It's very difficult because ESPN has the leverage of 15 years worth of future rights to have the preferred structural outcome."
Your premise is that in these SECN negotiations, ESPN essentially gave the SEC a do-over and allowed them to recapture the value they lost in that awful 2008 deal. But, this media consultant correctly points out that negotiations are about leverage, and thanks to the signed 15-year deal, which today still has 10 more long years to run, ESPN had the great bulk of the leverage, and thus it is safe to assume they retained the great bulk of that value they captured in 2008.
Sorry, at this point I must call a troll a troll, LOL.
You were completely, absolutely, and totally wrong.
"ESPN owns 100% of the network, but the SEC owns 100% of the content. Today the Sports Business Journal reported that all profits will be split 50/50."
http://www.outkickthecoverage.com/sec-ne...letics.php
You must have missed the part about the SECN being a separate deal:
"The SEC has a new national media rights deal with ESPN, but terms of that contract — which runs through 2034 — were not available. That’s a separate contract that runs concurrently with the SEC Network contract. ESPN will own the SEC channel and will share profits 50-50 with the conference, industry sources said."
Wake me up when SBJ revises the industry estimate of a $28.6 million annual per-school payout. An eventual, back-end payout. That's far below what the SEC would get sans the 2008 catastrophe.
Of course the SECN has a separate contract, it's a new (different) network. As far as the old contract is concerned, did you read what you wrote? "The SEC has a new national media rights deal with ESPN". That does not sound like ESPN is being inflexible to me.
Just admit you were wrong and give it a rest.
WTF? Of course the national media rights deal is new, it has been extended for 10 more years!
There's absolutely no reason for ESPN to be "flexible" in the sense of giving back the enormous value it captured in that 2008 deal. Wake me up when SBJ reports that the money the SEC makes is going to be a LOT more than $28.6 million per school in the year 2034.
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