We're in the money

A quick examination of what can be expected from Big East media contracts.

Current Contracts
December 12, 2011

"The Big East is currently in a television contract with CBS for basketball
for about 9 million dollars and a football and basketball contract with ESPN
for about 33 million dollars, which is roughly 3.5 million per year the all
sports schools make in the Big East currently. Both of these contracts will
expire after the 2012/2013 athletic seasons".

"There seems to be a distinct game plan by at least Fox and NBC to challenge
ESPN with offering a multiple channel lineup for college sports."

Contracts Rejected
August 2, 2011

"The league’s annual $37.5 million television haul could easily increase
to more than $200 million annually. The market has never been hotter
for live sports programming, which Big East Commissioner John Marinatto
called “DVR proof.” The Big East recently turned down a deal similar to
the $155 million that the Atlantic Coast Conference signed last year, a
move that looks shrewd in the wake of the Pac-12 deal that could average
as much as $250 million a year. The Pac-12 struck a deal with ESPN and
Fox for the most desirable games and still had enough remaining —
inventory in TV parlance — to create seven networks.

"The latest issue came this week when the Big East, with its contract for
football and men’s basketball with ESPN running out after the 2012-13 season,
turned down an offer from the network that insiders say would have paid Big East
schools in the neighborhood of $11 million each."

New Competition
A year ago, it was a very different marketplace,” he said. “Comcast and
NBC were not a part of the equation. I don’t think it’s any more complicated
than that, to be honest with you.”
"The Peacock is gunning for ESPN."
NBC "intends to actively pursue the rights to Big East Conference sports".

Consultants's Analysis

"SDSU has been working with media consultants who have advised them on what the
Aztecs could earn from a new TV deal in a newly constructed Big East. The lowest
estimate was $6.4 million annually." (Analysis is for a team playing football only)

"Carparelli said the new Big East has been well received by TV consultants. That's
important because the league is the only BCS conference with a television contract
up for renewal a year from now."

"It comes as no surprise that we engaged a number of TV consultants and presented
them with this expansion model to see what kind of value they put on it," said
Carparelli, and we've received a very, very positive reaction in terms of the value
that it could bring us."

Losses and Gains
Since August 2, 2011, the Big East is set to lose media markets in
Pittsburgh(23), Syracuse(83), and Charleston-Huntington(63); and gain those
in Dallas(5), Houston( 10), Orlando(19), San Diego(28), and Boise(113).
Notice, the markets being gained are in football "hot beds", while the ones
being lost are not.

None of the teams leaving the Big East were ranked at the end of 2010, but
UCF finished 25th in the BCS ranking. At the end of 2011 West Virginia is
ranked 23 while Boise is 8 and Houston is 20. Boise has finished in the
top 10 of the BCS standings for four straight seasons.

There is an increase of at least 2 football playing members than when the contracts
were rejected. The number of basketball playing schools may be more but will not
be less.

Big East teams could play 4 games on a Saturday without overlapping due to the
time zones. That is a valuable contributor to game inventory for TV.

Both Fox and NBC are now ready to compete with ESPN.


"In September 2012, the Big East will enter an exclusive 60-day negotiating period
with its current television partners before any new suitors can try to get the Big
East contract, Marinatto said."

During the exclusive 60-day negotiating period the media partners will know contracts
for about $11 million were rejected and the Big East can soon commence negotiations
with NBC and Fox. What will be offered? It is reasonable to believe ESPN and CBS will
try to preclude negotiations with others. If the offer is only slightly greater than
$11 million per school they would expect it to be rejected again. This means something
significantly greater will be offered. Let the bidding begin!

Big East ready for their billion dollar payday

This content was not created by OBNUG and therefore may not meet our standards. On the contrary, it probably exceeds them.

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