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Recent TV Deals Show Terps Made Right Move
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Transic_nyc Offline
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Recent TV Deals Show Terps Made Right Move
https://www.pressboxdc.com/2016/08/15/re...right-move

Quote:In June, the Big Ten completed an agreement with ESPN, which, coupled with a deal with Fox that was announced in April and a basketball-only deal with CBS, will earn the conference an average of $440 million annually throughout the next six years. All told, the Big Ten will earn $2.64 billion from the deals.

The $440 million per year is nearly triple what the Big Ten is earning with its current agreements with ESPN and CBS.

No financial terms of the new ESPN-ACC deal were announced, but the 12-year rights deal they reached in 2010 was reported to be worth $1.86 billion, or $155 million per year. ESPN has held TV rights for ACC games since 1979.

According to an analysis of the TV contracts of the Power 5 conferences (Big Ten, ACC, Southeastern Conference, Pac-12 and Big 12) done by the San Jose Mercury News, starting in 2017, each Big Ten school will average about $41 million a year throughout the life of its TV contract. Each SEC school will average $34 million, each Big 12 school $23 million, each Pac-12 school $22.5 million and each ACC school $22 million.

The deal also keeps Notre Dame in the ACC for every sport except football, in which the Irish will remain an independent. But if Notre Dame ever decides to give up that status, the deal requires the Irish join the ACC.

The ACC-ESPN deal runs through 2036, which is similar to the SEC-ESPN deal, which runs through 2034. Bevilacqua said the length of the deals did not surprise him.

"ESPN, for better or worse, their company is built on owning valuable sports rights for the long term," he said. "ESPN is obviously bullish on the value of sports rights. It's not surprising to me that they went for 20 years because that's what ESPN wanted. It might be surprising if you're a seller -- 20 years is a long time."

If the value of TV contracts keeps growing exponentially (like they have been), then the Big Ten will be in a position to sign an even bigger deal when this one expires in 2023. And at that point, the ACC-ESPN deal will only be in its fourth year.

"The Big Ten designed it that way," Bevilacqua said. "They figured they'd get another bite out of the apple. They figured the marketplace would be more settled when its current deal is over, and that it's likely there will be an expanded set of buyers. In addition to ESPN and Fox, you might have Amazon, Netflix and Hulu fighting over rights, too."
08-23-2016 10:10 PM
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