... at least if this report from Alabama.com is correct. They quote a CBS Sports report that says the Network will "eventually" be worth $28.6 million per school:
"CBSSports.com cited a television source today not directly affiliated with the deal as estimating the SEC's eventual television worth from ESPN and CBS at $400 million annually. That would be $28.6 million per school in TV revenue alone, not counting other payouts, including increased postseason football money."
Why is that a disaster for the SEC? Because that "eventually" clearly refers to some time in the future, near the end of the 20 year deal. But, the B1G is ALREADY getting $25 million per school from its media deals, and that figure is rising:
"The Big Ten, which started a conference TV network in 2007, paid out about $25 million to each member last year, according to published reports."
This raises the issue of why the SEC Network payout will be so paltry? The answer is the awful, perhaps ultimately fatal, decision by Mike Slive to sign those 2008 15-year deals with CBS and ESPN for peanuts:
" .... 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. Referring to those deals, a media consultant says:
".... 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."
That's the rub right there: No matter how the SEC tries to dress this pig up, it's still a pig, and one that ensures that the SEC will fall FAR behind the B1G in revenues, since the B1G smartly decided to control its own destiny with the BTN, a true "Big 10 network", as they own 50% of it. The SEC is stuck with the basic terms of the 2008 deals, terms that have proven to be immensely favorable to ESPN and CBS.
While the B1G collects all the profits of ownership, the SEC is stuck working as ESPN's employee for the next 20 years. Yes, ESPN and SEC executives can stand on a stage and pretend that they are "partners", but whereas FOX and the B1G truly are partners, the SEC is ESPN's vassal.
I'm guessing that by 2018, while the SEC schools might be getting $26 million per school, B1G schools will be clearing at least $35 million, maybe $40 million. That will make SEC schools vulnerable to poaching.
If i were the SEC, I'd sign a GoR, and quick.