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Fox Sports consults Big Ten in media rights negotiations

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HR Heisman
Sep 30, 2001
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A curious situation has been afoot during Big Ten media rights negotiations this year that has caused a lot of head scratching by TV network and digital executives.

Two senior Fox Sports executives — Mark Silverman and Larry Jones — are taking active roles during the conference’s media rights negotiations.

That means Silverman, Fox Sports president and COO, and Jones, Fox Sports executive vice president of business, have been in the room and listening intently as executives from rival companies — Amazon, Apple, CBS, ESPN, NBC and Turner — make their pitches for the conference’s rights packages.

Big Ten Commissioner Kevin Warren leads these meetings, of course. He has run the conference for three years and has final say on which company ends up with the rights. Kerry Kenny, the conference’s senior vice president of television, media, analytics and emerging platforms, also plays a big role during each of these meetings.

Executives say they’ve never encountered this type of situation before where they have had to make their pitch not only in front of a competitive network, but actually to its executives.

It’s all on the up-and-up, even if the situation is unusual. Sources say Fox Sports already has a deal in place to renew its Big Ten pact, so it’s not as though Silverman and Jones are gaining trade secrets as a way to enhance their own bid.


The presence of Silverman and Jones in these negotiations is part of a deal Fox Sports cut with the Big Ten when the previous rights agreements were signed in 2017.

The earlier deal gave Big Ten Network control of the media rights to the Big Ten conference for an undetermined period of time. Silverman, who ran Big Ten Network back in 2017, was part of the negotiations with ESPN as a BTN rep back then.

This year, Silverman and Jones are taking part in these talks as designated representatives of BTN, the channel in which Fox Sports is a majority owner and the entity that controls the Big Ten rights.


Essentially, the two Fox Sports executives are acting as both designated BTN representatives and media consultants, which is one reason why the Big Ten did not hire a media consultant to help it through these negotiations.

For months, one of the biggest mysteries surrounding the Big Ten’s negotiations has been about who Warren was using as a consultant. There hasn’t been a clear answer. The idea that it’s two well-established network executives certainly comes as a surprise.

The specifics of Fox’s new deal are not set — not even Big Ten or Fox executives know how many games that package will have as the conference still is trying to sell one, two or possibly three more packages to other suitors. The number of games going to Fox is dependent on how the conference structures these other packages. The conference expects to award these packages by Memorial Day.

Fox will have the main package and its deal will feature at least as many games as its current deal, probably more. Under its current agreement, Fox carries 27 Big Ten football games each season.

So far, traditional media companies CBS, ESPN and NBC have taken meetings with the Big Ten and Fox Sports.

CBS is looking for top-level football games to replace its Saturday afternoon SEC game, which is leaving for ESPN after the 2023 season.

NBC has pushed for a weekly Big Ten game that it can package with Notre Dame for a Saturday doubleheader. NBC has the rights to Notre Dame football through the 2025 season.

ESPN carries more of the top college football games than any other network and wants to keep a piece of the always highly rated Big Ten.

Turner Sports also has expressed interest, though its executives have waited on making a formal pitch until Discovery’s purchase of WarnerMedia passed through regulatory channels. That $43 billion deal became official April 8, and they are expected to meet with the Big Ten in the coming weeks.

On the digital front, Amazon and Apple also have had discussions with the Big Ten. Both digital companies increasingly have been using sports as a way to gain more subscribers for their streaming services. Amazon will carry the NFL’s “Thursday Night Football” exclusively this fall, and Apple just started carrying Friday night MLB games exclusively earlier this month.

The presence of so many bidders all but ensures that the conference will see a healthy increase over the six-year, $2.64 billion deal it signed with ESPN and Fox in 2017.

This situation presents an illustration of the college sports landscape where the top two college sports conferences essentially are aligned with rival networks.

ESPN holds all SEC rights through the 2033-34 school year and owns and operates the SEC Network. Fox Sports will be the Big Ten’s main rights holder and is the majority owner of the Big Ten Network.
 
I foresee this becoming very lucrative for the B1G, but very messy for the viewer. It appears on the surface that the B1G can make the most money by selling "sub-packages" to NBC (to parlay with ND); Apple (for Friday night games); Fox (for the Noon Show), etc... resulting in viewers like us needing to have access to BTN, Apple stream, Fox/Fox Sports, etc...

Hope I'm wrong but viewing every game during the season from home is soon going to cost a pretty penny. Might have to go to the local watering hole to catch a few of the odd games.
 
I foresee this becoming very lucrative for the B1G, but very messy for the viewer. It appears on the surface that the B1G can make the most money by selling "sub-packages" to NBC (to parlay with ND); Apple (for Friday night games); Fox (for the Noon Show), etc... resulting in viewers like us needing to have access to BTN, Apple stream, Fox/Fox Sports, etc...

Hope I'm wrong but viewing every game during the season from home is soon going to cost a pretty penny. Might have to go to the local watering hole to catch a few of the odd games.
It's all about the $$$ - the whole student part is a farce.
 
I foresee this becoming very lucrative for the B1G, but very messy for the viewer. It appears on the surface that the B1G can make the most money by selling "sub-packages" to NBC (to parlay with ND); Apple (for Friday night games); Fox (for the Noon Show), etc... resulting in viewers like us needing to have access to BTN, Apple stream, Fox/Fox Sports, etc...

Hope I'm wrong but viewing every game during the season from home is soon going to cost a pretty penny. Might have to go to the local watering hole to catch a few of the odd games.
That scenario is likely going forward as the conference maximizes media rights revenues. That arrangement will be more costly to the average Iowa/B10 fan but will also increase conference exposure while increasing revenues. I don't think it will cost the average fan as much as you expect though.
 
I foresee this becoming very lucrative for the B1G, but very messy for the viewer. It appears on the surface that the B1G can make the most money by selling "sub-packages" to NBC (to parlay with ND); Apple (for Friday night games); Fox (for the Noon Show), etc... resulting in viewers like us needing to have access to BTN, Apple stream, Fox/Fox Sports, etc...

Hope I'm wrong but viewing every game during the season from home is soon going to cost a pretty penny. Might have to go to the local watering hole to catch a few of the odd games.
To maximize revenue, I think you will see Fox get about the same size set of games focused in the 11 am kick, with NBC getting a game every week that Norte Dame is at home. Then CBS sports would get a night game package. ESPN can further go to an exclusive SEC network.
 
I foresee this becoming very lucrative for the B1G, but very messy for the viewer. It appears on the surface that the B1G can make the most money by selling "sub-packages" to NBC (to parlay with ND); Apple (for Friday night games); Fox (for the Noon Show), etc... resulting in viewers like us needing to have access to BTN, Apple stream, Fox/Fox Sports, etc...

Hope I'm wrong but viewing every game during the season from home is soon going to cost a pretty penny. Might have to go to the local watering hole to catch a few of the odd games.
Where do you think all of the money comes from to pay out these crazy contracts? They know you will sign up with Apple just to watch Iowa vs Minnesota and then put that subscription on auto-renew.
 

A curious situation has been afoot during Big Ten media rights negotiations this year that has caused a lot of head scratching by TV network and digital executives.

Two senior Fox Sports executives — Mark Silverman and Larry Jones — are taking active roles during the conference’s media rights negotiations.

That means Silverman, Fox Sports president and COO, and Jones, Fox Sports executive vice president of business, have been in the room and listening intently as executives from rival companies — Amazon, Apple, CBS, ESPN, NBC and Turner — make their pitches for the conference’s rights packages.

Big Ten Commissioner Kevin Warren leads these meetings, of course. He has run the conference for three years and has final say on which company ends up with the rights. Kerry Kenny, the conference’s senior vice president of television, media, analytics and emerging platforms, also plays a big role during each of these meetings.

Executives say they’ve never encountered this type of situation before where they have had to make their pitch not only in front of a competitive network, but actually to its executives.

It’s all on the up-and-up, even if the situation is unusual. Sources say Fox Sports already has a deal in place to renew its Big Ten pact, so it’s not as though Silverman and Jones are gaining trade secrets as a way to enhance their own bid.


The presence of Silverman and Jones in these negotiations is part of a deal Fox Sports cut with the Big Ten when the previous rights agreements were signed in 2017.

The earlier deal gave Big Ten Network control of the media rights to the Big Ten conference for an undetermined period of time. Silverman, who ran Big Ten Network back in 2017, was part of the negotiations with ESPN as a BTN rep back then.

This year, Silverman and Jones are taking part in these talks as designated representatives of BTN, the channel in which Fox Sports is a majority owner and the entity that controls the Big Ten rights.


Essentially, the two Fox Sports executives are acting as both designated BTN representatives and media consultants, which is one reason why the Big Ten did not hire a media consultant to help it through these negotiations.

For months, one of the biggest mysteries surrounding the Big Ten’s negotiations has been about who Warren was using as a consultant. There hasn’t been a clear answer. The idea that it’s two well-established network executives certainly comes as a surprise.

The specifics of Fox’s new deal are not set — not even Big Ten or Fox executives know how many games that package will have as the conference still is trying to sell one, two or possibly three more packages to other suitors. The number of games going to Fox is dependent on how the conference structures these other packages. The conference expects to award these packages by Memorial Day.

Fox will have the main package and its deal will feature at least as many games as its current deal, probably more. Under its current agreement, Fox carries 27 Big Ten football games each season.

So far, traditional media companies CBS, ESPN and NBC have taken meetings with the Big Ten and Fox Sports.

CBS is looking for top-level football games to replace its Saturday afternoon SEC game, which is leaving for ESPN after the 2023 season.

NBC has pushed for a weekly Big Ten game that it can package with Notre Dame for a Saturday doubleheader. NBC has the rights to Notre Dame football through the 2025 season.

ESPN carries more of the top college football games than any other network and wants to keep a piece of the always highly rated Big Ten.

Turner Sports also has expressed interest, though its executives have waited on making a formal pitch until Discovery’s purchase of WarnerMedia passed through regulatory channels. That $43 billion deal became official April 8, and they are expected to meet with the Big Ten in the coming weeks.

On the digital front, Amazon and Apple also have had discussions with the Big Ten. Both digital companies increasingly have been using sports as a way to gain more subscribers for their streaming services. Amazon will carry the NFL’s “Thursday Night Football” exclusively this fall, and Apple just started carrying Friday night MLB games exclusively earlier this month.

The presence of so many bidders all but ensures that the conference will see a healthy increase over the six-year, $2.64 billion deal it signed with ESPN and Fox in 2017.

This situation presents an illustration of the college sports landscape where the top two college sports conferences essentially are aligned with rival networks.

ESPN holds all SEC rights through the 2033-34 school year and owns and operates the SEC Network. Fox Sports will be the Big Ten’s main rights holder and is the majority owner of the Big Ten Network.
I had heard from a guy that was part of the Discovery/WB world that they were going to build a better Turner Sports, with bigger and better conflict. The question at that time was would they start before or after they cleaned up CNN and got it back to at least competitive with other news network-'cuz the costs of rebuilding CNN weren't known. Now that the plan is to basically fire everyone at CNN WB/Discovery must have a handle on the CNN budget. Apparently there were some other regulatory issues that he wasn't free to share.

I think WB/Discovery is serious about becoming a bigger player in college football. They have a ton, or even a tonne, of money. This could be a good deal for the Big Ten.
 
Where do you think all of the money comes from to pay out these crazy contracts? They know you will sign up with Apple just to watch Iowa vs Minnesota and then put that subscription on auto-renew.
I totally get the $ driver, but I'm not streaming Apple, Amazon, Netflix, or anyone else.
 
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This is going to be interesting.

So, the easiest number I could find was that Iowa athletic revenue was $151 million - probably for 2019.

What will happen if (when) that revenue becomes, say, $200 million? Will the football coach make $20 million? The RB coach will make $1 million? Maybe build a hotel for the families of players? Maybe buy a 737 for player travel?

And, yes, if the Hawks are playing on the newly to be formed Awesome Sports Network and the only way to watch them is to subscribe - I will hold my nose and do so.
 
This is going to be interesting.

So, the easiest number I could find was that Iowa athletic revenue was $151 million - probably for 2019.

What will happen if (when) that revenue becomes, say, $200 million? Will the football coach make $20 million? The RB coach will make $1 million? Maybe build a hotel for the families of players? Maybe buy a 737 for player travel?

And, yes, if the Hawks are playing on the newly to be formed Awesome Sports Network and the only way to watch them is to subscribe - I will hold my nose and do so.
If they really believed in their mission, Universities would take that money and lower tuition or create scholarships for needy kids.

Edit: just looked it up, total tuition revenue for the University of Iowa is $500M a year. We are now talking about $200M just from the football team.
 
If they really believed in their mission, Universities would take that money and lower tuition or create scholarships for needy kids.

Edit: just looked it up, total tuition revenue for the University of Iowa is $500M a year. We are now talking about $200M just from the football team.
I've been saying for a long time that there should be an "internal tax" on athletic revenue. X% of revenue over $X goes to the General Fund. And it should be a progressive tax.

Like -

$0 - $75 million 0%
$75 - $100 million 5%
$100 - $150 million 7.5%
$150+ 10%

$200 million in revenue would then mean $10 million for the General Fund.

Works for me.
 
If they really believed in their mission, Universities would take that money and lower tuition or create scholarships for needy kids.

Edit: just looked it up, total tuition revenue for the University of Iowa is $500M a year. We are now talking about $200M just from the football team.

Does that $500M revenue includes private grants and fully funded endowed non-athletic scholarships or other contributions?
 
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This is going to be interesting.

So, the easiest number I could find was that Iowa athletic revenue was $151 million - probably for 2019.

What will happen if (when) that revenue becomes, say, $200 million? Will the football coach make $20 million? The RB coach will make $1 million? Maybe build a hotel for the families of players? Maybe buy a 737 for player travel?

And, yes, if the Hawks are playing on the newly to be formed Awesome Sports Network and the only way to watch them is to subscribe - I will hold my nose and do so.
An educated guess based on media reports is that each school in the B1G will be making in excess of $100 million in conference distributions starting in '23 - which would indeed put Iowa in the $200 million revenue club for the first time if current trends with ticket sales/donations hold up.

I think that the smart schools will find ways to direct that money to players somehow. The B1G could direct media partners to deliver appearance fees to players, or schools could pull a high school move and have boosters operate the stadium on game days, directing the cash to an NIL entity, for example.

My expectation is that the Big Ten schools with their ossified leadership and Kevin Warren will find a way to somehow find a way to let this opportunity slip through their fingers while the SEC dominates and some of those second-tier conferences (ACC, Big 12, and Pac12) beat us head-to-head with recruits. You could pay a staff $100 million and you won't beat an SEC school who invests $20 million in staff/$30 million in NIL money.
 
I've been saying for a long time that there should be an "internal tax" on athletic revenue. X% of revenue over $X goes to the General Fund. And it should be a progressive tax.

Like -

$0 - $75 million 0%
$75 - $100 million 5%
$100 - $150 million 7.5%
$150+ 10%

$200 million in revenue would then mean $10 million for the General Fund.

Works for me.
This is a sure way to be noncompetitive in sports. Iowa football already supports the school by paying all the tuition (at full undiscounted price) of every single athlete that the school has along with paying every coach and administrative salary in non-revenue sports. This amounts to a tax of more than $50 million in operating expenses for a school that is middle-tier in the conference in revenue. For years Iowa athletics further paid a $2 million annual gift to the school along with paying a massive $6 million settlement for discrimination that the central office was at fault for. This tax suggestion was a bad idea prior to NIL, now its just suicidal.

Most major conference schools at least get tuition paid for by the state for all of their athletes, and many of those can collect major assistance with student fees and/or general fund support. Iowa's approach of being "self-sustaining" saps its competitiveness and is exploitative of football student athletes that should have a market for their services.
 
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That scenario is likely going forward as the conference maximizes media rights revenues. That arrangement will be more costly to the average Iowa/B10 fan but will also increase conference exposure while increasing revenues. I don't think it will cost the average fan as much as you expect though.
i disagree, the "average college fan" isn't going to pay more to apple or amazon to watch those game imo. Especially those fans that ONLY watch a few teams.

their numbers will take a hit
 
This is a sure way to be noncompetitive in sports. Iowa football already supports the school by paying all the tuition (at full undiscounted price) of every single athlete that the school has along with paying every coach and administrative salary in non-revenue sports. This amounts to a tax of more than $50 million in operating expenses for a school that is middle-tier in the conference in revenue. For years Iowa athletics further paid a $2 million annual gift to the school along with paying a massive $6 million settlement for discrimination that the central office was at fault for. This tax suggestion was a bad idea prior to NIL, now its just suicidal.

Most major conference schools at least get tuition paid for by the state for all of their athletes, and many of those can collect major assistance with student fees and/or general fund support. Iowa's approach of being "self-sustaining" saps its competitiveness and is exploitative of football student athletes that should have a market for their services.
Of course that is true, but eventually the sports will self destruct.

The main problem with college football is there is no singular governing body looking out for the sport as a whole. Instead we have the SEC doing what’s best for them, B1G doing what’s best for them, and the other conferences are falling behind. That is not long term good for the sport, in the same way it is not good for Alabama to be in the championship game every year.

However a governing body that could set rules that kept schools like KState or Washington or Virginia Tech or Iowa in the game would be healthy for the sport. Plus the money is obscene and given the mission of a University the money should be looked at differently.
 
This is a sure way to be noncompetitive in sports. Iowa football already supports the school by paying all the tuition (at full undiscounted price) of every single athlete that the school has along with paying every coach and administrative salary in non-revenue sports. This amounts to a tax of more than $50 million in operating expenses for a school that is middle-tier in the conference in revenue. For years Iowa athletics further paid a $2 million annual gift to the school along with paying a massive $6 million settlement for discrimination that the central office was at fault for. This tax suggestion was a bad idea prior to NIL, now its just suicidal.

Most major conference schools at least get tuition paid for by the state for all of their athletes, and many of those can collect major assistance with student fees and/or general fund support. Iowa's approach of being "self-sustaining" saps its competitiveness and is exploitative of football student athletes that should have a market for their services.
My suggestion would apply to everyone, not just the B1G.

I have no idea how to benefit actual students otherwise. The money is just too much for sports.
 
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This is a sure way to be noncompetitive in sports. Iowa football already supports the school by paying all the tuition (at full undiscounted price) of every single athlete that the school has along with paying every coach and administrative salary in non-revenue sports. This amounts to a tax of more than $50 million in operating expenses for a school that is middle-tier in the conference in revenue. For years Iowa athletics further paid a $2 million annual gift to the school along with paying a massive $6 million settlement for discrimination that the central office was at fault for. This tax suggestion was a bad idea prior to NIL, now its just suicidal.

Most major conference schools at least get tuition paid for by the state for all of their athletes, and many of those can collect major assistance with student fees and/or general fund support. Iowa's approach of being "self-sustaining" saps its competitiveness and is exploitative of football student athletes that should have a market for their services.
Iowa is the second smallest state in the Big Ten. Probably the second smallest per capita tax base. The legislature will not fund Iowa athletics.

Football pays for everything, doesn't it? I meant athletic and other competitive groups?
 
i disagree, the "average college fan" isn't going to pay more to apple or amazon to watch those game imo. Especially those fans that ONLY watch a few teams.

their numbers will take a hit
If you're an average Iowa fan and you have to spend a couple beers a couple times per season so that you can watch Iowa vs. Wisconsin or Iowa vs. Michigan, many/most will.

These companies are not there to lose money and none of their executives are at the table to engage in intense competition in order to win broadcast rights for a declining audience. All 7 of those executives understand that viewership is high and increasing; they want a piece of that pie.
 
If you're an average Iowa fan and you have to spend a couple beers a couple times per season so that you can watch Iowa vs. Wisconsin or Iowa vs. Michigan, many/most will.

These companies are not there to lose money and none of their executives are at the table to engage in intense competition in order to win broadcast rights for a declining audience. All 7 of those executives understand that viewership is high and increasing; they want a piece of that pie.
What makes you think either of those games would go to Amazon or Apple?
 
I foresee this becoming very lucrative for the B1G, but very messy for the viewer. It appears on the surface that the B1G can make the most money by selling "sub-packages" to NBC (to parlay with ND); Apple (for Friday night games); Fox (for the Noon Show), etc... resulting in viewers like us needing to have access to BTN, Apple stream, Fox/Fox Sports, etc...

Hope I'm wrong but viewing every game during the season from home is soon going to cost a pretty penny. Might have to go to the local watering hole to catch a few of the odd games.

Amazon wants to broadcast games so that we have to spend $120 or more a year for a Prime membership

What does Peacock cost per month?

Messy is right
 
Amazon wants to broadcast games so that we have to spend $120 or more a year for a Prime membership

What does Peacock cost per month?

Messy is right
Not sure if you're serious, but if so peacock is free....

Going to Amazon or apple would be so idiotic that it'll prolly happen ;)
 
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t's the way the world is going guys. Quit being 100 years old
We shall see. I bet the majority of Americans won't be paying extra money to watch college football, especially the direction the economy is gonna go.

We'll see Mr woke...
 
Not sure if you're serious, but if so peacock is free....

Going to Amazon or apple would be so idiotic that it'll prolly happen ;)
Actually, only a portion of Peacock is free. Much of their content, including sports, is either pay-for or requires "TV provider sign-in".

What it basically means is that, if you want your college football, you will have to pay vs. just using free or low-cost streaming packages.

Hopefully, it will also lead to ala carte streaming opportunities, something cable and satellite never did well, at least from a consumer perspective.
 
Actually, only a portion of Peacock is free. Much of their content, including sports, is either pay-for or requires "TV provider sign-in".

What it basically means is that, if you want your college football, you will have to pay vs. just using free or low-cost streaming packages.

Hopefully, it will also lead to ala carte streaming opportunities, something cable and satellite never did well, at least from a consumer perspective.
Horrible idea. I give my time time to watch football. No way I'll give my time and money to watch a single non Iowa football game!
 
We shall see. I bet the majority of Americans won't be paying extra money to watch college football, especially the direction the economy is gonna go.

We'll see Mr woke...

Actually the economy is pretty good right now. Probably too good as supply chain hasn't recovered to keep up causing inflation.
 
Sorry for not reading much of the posts, so if it hasnt been said, here is a big takeaway from the article: Fox will have the main(#1) package.

"Fox will have the main package and its deal will feature at least as many games as its current deal, probably more. Under its current agreement, Fox carries 27 Big Ten football games each season."
 
Of course that is true, but eventually the sports will self destruct.

The main problem with college football is there is no singular governing body looking out for the sport as a whole. Instead we have the SEC doing what’s best for them, B1G doing what’s best for them, and the other conferences are falling behind. That is not long term good for the sport, in the same way it is not good for Alabama to be in the championship game every year.

However a governing body that could set rules that kept schools like KState or Washington or Virginia Tech or Iowa in the game would be healthy for the sport. Plus the money is obscene and given the mission of a University the money should be looked at differently.
In some ways college FB not having a governing body lets it move and change more quickly than other sports. See the Big Ten creating BTN. I do see the rationale of what you are saying, however. But you are assuming that the conferences would ever agree to be ruled by one person or one body. They won't, I don't think.

I am not enthused about Kevin Warren making the decisions about the next Big 10 media rights deal. His handling of COVID was by far the worst of any major conference, save perhaps the Pac-12, which lives on another planet. Big Ten thought all the other conferences would just follow suit and cancel the entire 2020 season. SEC and Big 12 said go do whatever you want, we are playing.

It's good the Fox people are sitting in on the discussions. Silverman from Fox originally ran the BTN. yes, Fox will approach it from doing what's best for them, but at least they have some knowledge of the media rights landscape. I do not want a portion of the media rights going to Peacock, Amazon or Netflix. I just don't. The initial Apple+ broadcasts of MLB have been a joke. Worst announcers imaginable, can't pause, rewind or fast forward anything. They aren't taking the broadcasts seriously. They are saying it's "free initially" but we all know in about 2 months they will start requiring an Apple + sub to watch Friday night baseball. Where you will still get commercials during the game.

Separate issue, but with the increase in revenue Iowa had better figure out real quick how it is going to approach NIL. I know the department helps players navigate NIL deals, but the schools needs to get a collective and soon that will support football and basketball. Or else just come out and say we don't care about winning and we'll be fine with teams that play hard and guys that graduate. Personally, I'd like to win and have teams that play hard and graduate.
 
I foresee this becoming very lucrative for the B1G, but very messy for the viewer. It appears on the surface that the B1G can make the most money by selling "sub-packages" to NBC (to parlay with ND); Apple (for Friday night games); Fox (for the Noon Show), etc... resulting in viewers like us needing to have access to BTN, Apple stream, Fox/Fox Sports, etc...

Hope I'm wrong but viewing every game during the season from home is soon going to cost a pretty penny. Might have to go to the local watering hole to catch a few of the odd games.
AM radio is free.
 
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