Conference Realignment
I think the deeper argument that’s being made by some others as well is that the product could suffer, re-brand or not. Kind of like when they tried changing the formula to Coca Cola.
ChiefGritty
- Chicago, IL
ESPN having an opt-out in 2027 for the ACC deal is a potentially big deal that I had missed.Oh boy. Article showing ESPN as a potential power broker between ACC and SEC teams since they have the media rights to both conferences. Even if the B1G doesn’t want Clemson and FSU, not sure I like ESPN holding the keys here…
Nebraska Football, Big Ten could be left out of next realignment dance
Nebraska Football's potential new rivals shift as ESPN is rumored to be the brokers of the next round of major conference moves.huskercorner.com
2 years ago you'd have said "that deal is way way undervalued so that's irrelevant, ESPN would never opt out".
But with the cable market collapsing the way it is, and Disney desperately shedding costs, maybe that isn't true anymore? And if ESPN is sincerely of a mind to walk away in 2027 (which I still *kinda* doubt, but it's one high stakes game of poker), the race is on, we are in the dealmaking space right now. Sounds like they're at least talking about it, trying to make the ACC think they'll walk in order to extract concessions.
Jim Phillips is in a real tricky spot too, because his membership have EXTREMELY differing views on whether they want the ACC to exist in 2028. What is even the voting rights situation in that conference on April 15, 2024? Who does Jim Phillips work for?
Epsilon
M tipping over
- Pdx
It’s odd. ESPN can cancel the deal unilaterally in 2025 (which would be effective 2027), but the grant of rights is enforceable through 2036 regardless of whether ESPN exercises the continuation of the deal. That’s a lot of faith that things will “work out.” Their deal is reportedly worth $240 million while the B1G and SEC have contracts worth 3-4x that. That’s a lot of incentive for the ACC schools to leave. The premise of the article I attached in my last post was that ESPN would be good with a school leaving the ACC for the SEC but I’m not sure they want that unless ESPN can get away with not increasing the SEC contract with any more school additions, as the SEC contract is way more expensive for them. It’s hard to imagine ESPN being able to squeeze more out of the ACC when their contract is so inferior. But they could speak out of both sides of their mouth to the ACC and say that if there are fewer schools then they don’t want to renew the contract, while also not giving more to the SEC for Clemson and FSU.
ACC’s Jim Phillips talks three years as commissioner and ongoing issues with FSU, NIL and media revenue
The ACC has undergone massive changes during Jim Phillips’ 36 months on the job. It moved from its historic home in Greensboro, N.C., to a more corporate-inclined location in Charlotte. The league is set to add Cal, SMU and Stanford to the fold this fall. Then, of course, there’s the recent...
www.sportsbusinessjournal.com
ChiefGritty
- Chicago, IL
Faith and/or poor and thoughtless legal drafting.
The idea is that it keeps FSU and Clemson on the ESPN side of the ESPN/Fox war. On the theory that given free choice they'd prefer the Big Ten.
But the question after the signing of the new CFP deal with just ESPN and a vague hand-wave toward future sublicensing is, is that war even still operative? Are any of these guys even thinking that far into the future.
In 2024 any company whose core business is media is bleeding money and hoping for some white knight to buy them. It's an extremely volatile and unpredictable situation, the only certainty for these purposes is that the various sports properties cannot sustain, let alone grow, the media rights fees that have been the cornerstone of the industry for three decades.
Epsilon
M tipping over
- Pdx
Where do you see that the media companies are bleeding money? Just curious.
I did look up Disney and Fox and one thing that stood out to me is their net income numbers relative to the B1G and SEC contracts, which are $1 billon and $700 million annually, respectively, if one of the articles I posted is to be trusted. Disney’s net profit was $2.4 billion while Fox earned $1.2 billion in 2023. Seems like there would be a huge incentive to try to negotiate those contracts downward at some point. They really do seem pretty bloated atm. The question I have is what does that mean for schools that have been doing gargantuan renovation or stadium rebuilds predicated on the assumption that that level of money would continue indefinitely…?
Disney Net Income 2010-2023 | DIS
Disney annual/quarterly net income history and growth rate from 2010 to 2023. Net income can be defined as company's net profit or loss after all revenues, income items, and expenses have been accounted for. <ul style='margin-top:10px;'> <li>Disney net income for the quarter...
www.macrotrends.net
Fox Net Income 2018-2023 | FOX
Fox annual/quarterly net income history and growth rate from 2018 to 2023. Net income can be defined as company's net profit or loss after all revenues, income items, and expenses have been accounted for. <ul style='margin-top:10px;'> <li>Fox net income for the quarter ending...
www.macrotrends.net
Epsilon
M tipping over
- Pdx
In case there was any doubt about how much money there is in college sports (football in particular), here is an article reporting on all the ongoing stadium renovations. Need all that conference share media revenue…
College Football Stadium News: Renovations For 2024 And Beyond
The latest news on college football stadium renovations and facilities projects. Updates to Georgia, Boise State, Kansas, Texas A&M, more.
roadtocfb.com
ChiefGritty
- Chicago, IL
Yeah Disney has a lot of other stuff in the tent that makes up for the Disney+ bloodbath. They are looking to sell ESPN though.Where do you see that the media companies are bleeding money? Just curious.
I did look up Disney and Fox and one thing that stood out to me is their net income numbers relative to the B1G and SEC contracts, which are $1 billon and $700 million annually, respectively, if one of the articles I posted is to be trusted. Disney’s net profit was $2.4 billion while Fox earned $1.2 billion in 2023. Seems like there would be a huge incentive to try to negotiate those contracts downward at some point. They really do seem pretty bloated atm. The question I have is what does that mean for schools that have been doing gargantuan renovation or stadium rebuilds predicated on the assumption that that level of money would continue indefinitely…?
Disney Net Income 2010-2023 | DIS
Disney annual/quarterly net income history and growth rate from 2010 to 2023. Net income can be defined as company's net profit or loss after all revenues, income items, and expenses have been accounted for. <ul style='margin-top:10px;'> <li>Disney net income for the quarter...
Fox Net Income 2018-2023 | FOX
Fox annual/quarterly net income history and growth rate from 2018 to 2023. Net income can be defined as company's net profit or loss after all revenues, income items, and expenses have been accounted for. <ul style='margin-top:10px;'> <li>Fox net income for the quarter ending...
It's bad at Fox, worse at Paramount (CBS) which is now being sold to a plutocrat failson, and worse still at Warner Brothers Discovery (TNT/TBS) which just failed to merge with Paramount.
All the regional sports networks are in their death throes.
The TV audience just isn't there like it used to be.
In terms of schools doing a lot of capital investment, a lot of it is donor funded, and the media revenue isn't going to go to zero, lots of people still love watching sports and are willing to pay to do so. The schools and teams and leagues will muddle through. But the age of endless growth on the backs of people who DON'T watch or care about sports is over.
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Mr. Tibbs
- southeast DuPage
what goes up , must come down
spinning wheel, got to go round
ChiefGritty
- Chicago, IL
Gonna be some blood sweat and tears needed to make a stable future for college sports.
ChiefGritty
- Chicago, IL
White Sox, Bulls, Blackhawks near deal to make Stadium their new TV home
The teams’ contract with rights holder NBC Sports Chicago expires in October, though there’s a possibility that the sides could agree to a six-month extension, in which case Stadium would take over when the Sox begin play next year.
chicago.suntimes.com
The Blackhawks really need to ask themselves what's in it for them being Jerry Reinsdorf's business partner. The plan here is to use Connor Bedard to keep the White Sox on Chicagoland TV screens and even then it's probably an uphill battle.
Marquee Network was a bad idea and is a weak entity, but it's a better home for the Hawks than that plan.
I know as much about realignment as George Kliavkoff, but I don't see the issue here. It just says Nebraksa's next "rivals" may join the SEC instead of big 10. That would leave SEC with 16 teams, no?, and the big 10 would still have, arguably, bigger names in the sport.Oh boy. Article showing ESPN as a potential power broker between ACC and SEC teams since they have the media rights to both conferences. Even if the B1G doesn’t want Clemson and FSU, not sure I like ESPN holding the keys here…
Nebraska Football, Big Ten could be left out of next realignment dance
Nebraska Football's potential new rivals shift as ESPN is rumored to be the brokers of the next round of major conference moves.
As an aside, kinda funny that that site uses old Giants/Illinois logo style.
Epsilon
M tipping over
- Pdx
The issue is how those realignments occur and that ESPN could flex its muscle as a power broker. They have no duty of care in this situation.
I get it. I just don't see the threat if they're counterbalanced by Fox. I guess we'll see.
ACC wanted to stay together & it is yet to be determined if it is a good or bad deal IMO...To much of the PAC12 folks it looks pretty good right now...Stanford & California were happy to jump across the country to take less, Washington State/Oregon State would take it in a heartbeat. If you are talking about the ESPN opt out part yeah maybe...but again a few PAC12 teams have or would jump at it.
The whole long term GOR deal the schools agreed to still seems like the worst bit of this for 1/2 the ACC that was panicking after losing MD & realizing they were vulnerable. Personally I blame NC most for this (rightly or wrongly, but I blame UNC for most of the world's problems), they seemed to have the position of power & were willing to pull everyone into the long tern deal/GOR to save the ACC & their position as kingpin
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Fighter of the Nightman
- Chicago, IL
So many great templates for the Horseshoe in there!In case there was any doubt about how much money there is in college sports (football in particular), here is an article reporting on all the ongoing stadium renovations. Need all that conference share media revenue…
College Football Stadium News: Renovations For 2024 And Beyond
The latest news on college football stadium renovations and facilities projects. Updates to Georgia, Boise State, Kansas, Texas A&M, more.roadtocfb.com
ChiefGritty
- Chicago, IL
We're on Day 3 of this song being in my head
Mr. Tibbs
- southeast DuPage
sung so well by Tom Jones
up until about 10 years ago , I really wasn’t a fan of his . Then a couple friends of ours asked us to go see him with them at House of Blues
WOW !!
what a show & what an entertainer !!
he’s on par with Elvis & Sinatra . he was awesome . sang hit after hit for 2 hours