ESPN lands second half of B1G package

[ichawk24]

This is excellent news.

http://www.sportsbusinessdaily.com/Journal/Issues/2016/06/20/Media/ESPN-Big-Ten.aspx

ESPN will buy the second half of the Big Ten’s media rights package, ending months of speculation that the two were about to sever their 50-year relationship.

ESPN will pay an average of $190 million per year over six years for essentially half the conference’s media rights package, according to several sources close to the talks. Two months ago, Fox Sports agreed to take the other half of the package for an average of $240 million per year. CBS Sports also has told the conference that it will renew its basketball-only package for $10 million per year.

The six-year, $2.64 billion media rights haul represents a big win for the Big Ten Conference, of course, which will see its average media rights payout nearly triple when it takes effect next fall.

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Like Fox Sports, ESPN will have around 25 football games and 50 basketball games each year — programming that will provide big ratings and an advertiser-friendly audience of diehard alumni in some of the country’s biggest media markets.

The difference between the two packages is that Fox Sports will carry the Big Ten football championship game every season, which is a strong draw each December. Fox also will have game selection advantages over ESPN, which almost certainly means that the coveted Michigan-Ohio State rivalry will move to Fox most years.

Before each season, the networks will pick the weeks where they get first choice of games. Fox will have the first pick every year; ESPN will have the second; Fox will have the third, and so on.

ESPN will carry Big Ten football games on ABC, ESPN and ESPN2. ESPNU will see far fewer Big Ten games than it has in the past.

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Separately, CBS agreed to its deal, keeping the Big Ten basketball tournament semis and championship game on CBS through 2023.

For Delany and the Big Ten, the deal is a clear win. Not only did the conference pick up a significant increase in a down market, but the relatively short length of the deal means the Big Ten will be the first major college conference to renegotiate a new deal in what it hopes will be a more robust marketplace.

 

[Gridiron24]

I've been waiting for the "live sports bubble" to burst when it comes to TV rights fees, but it clearly hasn't. Triple the rights fees is great for the conference.

 

[2Kinnick]

Nice move by Delaney. He has out distanced most of the other leagues and with a 6 year term will put even more distance between the Big 10 and others before their deals come back up for renewal.

 

[StormHawk42]

Another big win for the B1G. I know some really wanted to see NBC grab the second half and leave ESPN in the dust. It may come to that, but ESPN is still the "worldwide leader" and has the best coverage and announcers, SEC bias aside.

$30 million+ for each school over the next 6 years, just from TV. Awesome.

 

[2Kinnick]

Another big win for the B1G. I know some really wanted to see NBC grab the second half and leave ESPN in the dust. It may come to that, but ESPN is still the "worldwide leader" and has the best coverage and announcers, SEC bias aside.

$30 million+ for each school over the next 6 years, just from TV. Awesome.

I don't think the $30M plus includes the Big Ten Network so that will push it even further.

 

[StormHawk42]

I don't think the $30M plus includes the Big Ten Network so that will push it even further.

You are correct. $$$$$$

 

[Alum-Ni]

Big Ten schools are projected to receive the following revenue with the new television deals PER YEAR PER SCHOOL:

Tier 1/2 TV contracts (FOX, ESPN, CBS): $30.7 million
Big Ten Network: $12.5 million
CFB Playoff Revenue: $4.7 million
NCAA Tournament Distribution: $4.4 million
Big Ten MBB Revenue: $700,000

Total Annual Per School Distribution: $53 million

With these kinds of figures, Northwestern and Rutgers will likely pull in more revenue per year than mighty Texas.

 

[David1979]

This really hurts big 12 as I think Big 12 schools were hoping ESPN wouldn't reup with Big 10 and then ESPN would pick up more Big 12 games.

 

[ichawk24]

Great numbers, Alum-Ni. I would specify that NW/RU will receive more in conference distributions than Texas. Texas will remain the AD with the highest overall revenue.

These numbers could cause some major realignment in the ~2022 timeframe.

 

[2Kinnick]

Big Ten schools are projected to receive the following revenue with the new television deals PER YEAR PER SCHOOL:

Tier 1/2 TV contracts (FOX, ESPN, CBS): $30.7 million
Big Ten Network: $12.5 million
CFB Playoff Revenue: $4.7 million
NCAA Tournament Distribution: $4.4 million
Big Ten MBB Revenue: $700,000

Total Annual Per School Distribution: $53 million

With these kinds of figures, Northwestern and Rutgers will likely pull in more revenue per year than mighty Texas.

On top of that the Big 10 is up for renewal again before the Big12 so today's gap will become even bigger.

 

[anon_i8nzeu2gbf0ba]

ESPN had to ante up. The wobbly worldwide leader needs the Big Ten far more than the Big Ten needs ESPN. And FOX still has the upper hand in all this, so it could be the beginning of the slide to second or third fiddle for the boys in Connecticut.

 

[ozzyrulz]

Big Ten schools are projected to receive the following revenue with the new television deals PER YEAR PER SCHOOL:

Tier 1/2 TV contracts (FOX, ESPN, CBS): $30.7 million
Big Ten Network: $12.5 million
CFB Playoff Revenue: $4.7 million
NCAA Tournament Distribution: $4.4 million
Big Ten MBB Revenue: $700,000

Total Annual Per School Distribution: $53 million

With these kinds of figures, Northwestern and Rutgers will likely pull in more revenue per year than mighty Texas.

 

[ozzyrulz]

$53 million per each school. Are these numbers fact or fiction ? Go Hawks !!

 

[JEDN]

Don't forget Big 12 will only split 10 ways and Big10 14 ways.

 

[Hawk_4shur]

Total Annual Per School Distribution: $53 million

Very Rough ticket sales max: 70,000 * 7 games * $50 = $24.5 million.

Easy to figure out why TV controls game starting times isn't it?

 

[whatsup13579er]

Last year the B1G and SEC paid out around $31 million. Next year the B1G will pay out nearly $53 million. WOW! Just wow...

 

[ichawk24]

First year is looking more like $50M. Still a large jump.

 

[soybean]

This really hurts big 12 as I think Big 12 schools were hoping ESPN wouldn't reup with Big 10 and then ESPN would pick up more Big 12 games.

Why would they think that?

 

[paednoch23]

This is going to make someone in the little 12 want to jump ship. I'm thinking OK is gonna come begging.

 

[camickle]

This is going to make someone in the little 12 want to jump ship. I'm thinking OK is gonna come begging.

I agree, but I may be wrong, but I don't think it makes sense now as they would not help the conference with the packages until the next period and would only add to the number to be split between. Now they have to wait 5 years for the next B1G TV contract negotiations period.

 

[OILCHECKER]

Nice move by Delaney. He has out distanced most of the other leagues and with a 6 year term will put even more distance between the Big 10 and others before their deals come back up for renewal.

This news is going to make a certain Hawkeye fan upset. Delaney is a fool that is ruining the Big Ten.

 

[paednoch23]

Very Rough ticket sales max: 70,000 * 7 games * $50 = $24.5 million.

Easy to figure out why TV controls game starting times isn't it?

you are failing to factor in donor for seats which is 600 per seat per seaon between the 40s

 

[Hawk_4shur]

you are failing to factor in donor for seats which is 600 per seat per seaon between the 40s

You're right. And, $400 for a couple of sections and so on. So, let's add 40,000 * $400 (average) = $16,000,000 + $24,500,000 =$40,500,000.

 

[mikesright]

The Big Ten will be at the top of the revenue pile for years to come. A couple of interesting facts that got let out about the deal is that there will be more exposure on ESPN/ABC/ESPN2 and Fox/FS1 which are the top tier networks for exposure. Previously it would be easy to get stuck on ESPNU or ESPNNews if you stunk.

Also it sounds like the B1G network wasn't really revenue sharing until recently and now that's starting which should increase revenue further. The BTN was primarily paying a rights fee which increases over time prior to this year, but now the network is more profitable and able to pay a dividend. All in all Delany has been masterful. Don't forget that MD and Rutgers still have to buy in which will make Iowa a little richer than the projections...

 

[hawkcub]

Was a genius move. ESPN may be as annoying as can be with their SEC bias. Yeah that will continue but if they had no B1G games it would be unbearable. Now they have to give some coverage. At the end of the day ESPN is still ESPN so being on there is a good thing.

 

[naturalmwa]

I agree, but I may be wrong, but I don't think it makes sense now as they would not help the conference with the packages until the next period and would only add to the number to be split between. Now they have to wait 5 years for the next B1G TV contract negotiations period.

Doesn't that timeline dovetail with the big 12 GOR sunset?

 

[whatsup13579er]

The Big Ten will be at the top of the revenue pile for years to come. A couple of interesting facts that got let out about the deal is that there will be more exposure on ESPN/ABC/ESPN2 and Fox/FS1 which are the top tier networks for exposure. Previously it would be easy to get stuck on ESPNU or ESPNNews if you stunk.

This should not be ignored. B1G games typically pulled pretty decent ratings on ESPNU and ESPNEWS but not everyone gets those channels. Everyone gets ABC/ESPN/2 and Fox. FS1 still isn't quite on the basic packages yet. My buddy lives in Marion and doesn't get it (poor).

 

[And1Hawk]

Now it's critical for all league members to put a large percentage of the extra money into projects and improvements for their big money making sports. Making our overall product as good as it can be is huge before the contracts come due again in 6 years.

 

[ichawk24]

This February 2015 post has these household carriage estimates:

ESPN: 93M
ESPN2: 94M (higher??)
ESPNews: 71M
ESPNU: 73M
FS1: 85M
FS2: 45M

So, FS1 isn't too bad. Though most people probably don't know where it is on their dial, they'll figure it out soon enough. I wonder if B1G will have some basketball games on FS2, which would be a negative.

http://sportstvratings.com/how-many...han-fox-sports-1-and-nbc-sports-network/1515/

 

[Alum-Ni]

This February 2015 post has these household carriage estimates:

ESPN: 93M
ESPN2: 94M (higher??)
ESPNews: 71M
ESPNU: 73M
FS1: 85M
FS2: 45M

So, FS1 isn't too bad. Though most people probably don't know where it is on their dial, they'll figure it out soon enough. I wonder if B1G will have some basketball games on FS2, which would be a negative.

http://sportstvratings.com/how-many...han-fox-sports-1-and-nbc-sports-network/1515/

Some non-conference MBB games on FS2 wouldn't be bad. There are a lot of non-conference games now that are only streamed on BTN2GO or ESPN3.