SEC Network Struggles for Distribution

[J.B. TexasEx]

http://tv.msn.com/tv/article.aspx?news=869547&ocid=Outbrain=obinsite

Anybody out there, besides aggie, surprised by this development?  SEC Network is asking $1.30 per subscriber in their media footprint when the B1G gets, what, 25 cents? 10 cents per subscriber outside the B1G footprint? 

http://theadvocate.com/sports/930924...uestions-about

SEC sunshine-pumper, Kristi Dosh, projects $35.7M per SEC member "once it reaches full distribution". Right now, it's at approximately 20-25%.  Getting buy-in from DISH certainly helps put pressure on the cable operators, but don't expect every switch to flip in 2014.

http://businessofcollegesports.com/2014/05/30/sec-network-revenue-projections/

 

[Randolph Duke]

Time Warner is brutal in determining what content to pay for. In Houston, the Astros' home market, they commissioned a survey to see how many people watch Astros games on television. They found out an overwhelming percentage (I think it was 80% watch one game or less each season). Armed with that, they realized not paying what was demanded wasn't going to offend their subscriber base. With the SECN, a very vocal group of fans will make a lot of noise demanding the channel, but I expect cable companies will again conduct their research and find out that $1.30 per subscriber is a bit much to pay for a couple of niche Tier 3 football games and such off-season gems as Redneck Kitchen or the Kentucky-Mississippi State collegiate spelling bee.

As for Kristi, she does usually does good work, but even in the piece you linked she states someone looking at her the $35.7mil number "correctly pointed out that doesn’t include ESPN’s cut (which hasn’t been made public) or the fact that the SEC office splits revenue 15 ways to give itself a cut for operating expenses." So. If we assume ESPN will bear all the expenses and work for free, and the SEC offices will refuse their share of the revenue for setting up and administering the deal, we get to $35.7mil. More reasonably, we can assume a 50%/50% split of revenues, which takes that number down to just under $17.0/school. So, if they get 100% distribution and 100% of the requested fee both inside and outside the footprint, they are looking at around $17.0 mil/school. Coming out of the gate, they have schedule the Vanderbilt/Temple game, a matchup of two perennial powerhouses that I am sure will have phones ringing off the hook demanding SECN. After all, if we look at the demand for the Astros in sports crazy Houston we can also assume those same fans will be willing to pay even more to watch Vanderbilt play Temple.

If you want some really crazy numbers, look up what Clay Travis is projecting for SECN Tier 3 revenues. His calculations have each school getting $70 mil/year. Redneck math. You have to love it.

 

[texasdobbs]

Remember when Aggies were laughing about LHN distribution. ... well there you go

 

[J.B. TexasEx]

"Miss Sports Biz", Kristi Dosh, says B1G Network gets $1.10 per subscriber in their media footprint.

Well, this explains the Rutgers addition!  Word is, they'll leverage NYC's "Yes" network to gain households in the USA's largest media market.

 

[J.B. TexasEx]

If you want some really crazy numbers, look up what Clay Travis is projecting for SECN Tier 3 revenues. His calculations have each school getting $70 mil/year. Redneck math. You have to love it. 

I can't stand Clay Travis...what a f'n SEC lapdog hack!  I boycotted FS1's pre-game show because it featured that clown.  I'd rather listen to Herbstreit build up the B1G than his nonsense.

 

[texasdobbs]

"@McMurphyESPN: SEC announces $309.6M in revenue, $20.9M per school".... is that not less than the Big 12?

 

[J.B. TexasEx]

"@McMurphyESPN: SEC announces $309.6M in revenue, $20.9M per school".... is that not less than the Big 12?

It is indeed lower than the Big12. 

— Twitter API (@twitterapi) November 7, 2011

 

[DougNTexas]

Poor Faggies

 

[HornNdriftwood]

The year before aggy bolted the Big 12, the athletic dept. owed the academics $16MM. Then they had to pay the exit fee, ~$8MM. Now, they've lost money every year since they've been in the sec. Probably next year, too. Now, they're in debt up to their eyeballs for the $450MM renovation to Kyle. They may not have enough left to pay all their players.

Some of the pie-in-the-sky numbers for the sec network are just ridiculous. Once the network gets full distribution (could be a few years), I could see them getting $30-35MM per team (that's for Tiers 1, 2 & 3). Meanwhile, we've been banking that much for several years, already.

 

[Randolph Duke]

The year before aggy bolted the Big 12, the athletic dept. owed the academics $16MM. Then they had to pay the exit fee, ~$8MM. Now, they've lost money every year since they've been in the sec. Probably next year, too. Now, they're in debt up to their eyeballs for the $450MM renovation to Kyle. They may not have enough left to pay all their players.

Some of the pie-in-the-sky numbers for the sec network are just ridiculous. Once the network gets full distribution (could be a few years), I could see them getting $30-35MM per team (that's for Tiers 1, 2 & 3). Meanwhile, we've been banking that much for several years, already.

You forgot to mention that in order to balance their athletics budget in 2012 they had to borrow another $5.4 mil from the academic side.

Should we explain to them they are cashing a smaller paycheck that Kansas or Iowa State?

At the end of the day, the ags may or may not be better off without the Big 12, but there is no question the Big 12 is absolutely better off without the ags.

 

[J.B. TexasEx]

I love bashing aggie, but they did enjoy their largest alumni fundraising program in history. Pulled in $740M for the ag adjunct.

http://tamutimes.tamu.edu/2013/09/16/texas-am-university-posts-a-record-year-for-fundraising/#.U4j_c_ldW2E

Obviously, the athletic dept only gets a percentage of that but.....  

 

[Orangebred]

I love bashing aggie, but they did enjoy their largest alumni fundraising program in history. Pulled in $740M for the ag adjunct.

http://tamutimes.tamu.edu/2013/09/16/texas-am-university-posts-a-record-year-for-fundraising/#.U4j_c_ldW2E

Obviously, the athletic dept only gets a percentage of that but.....  

They really like to throw that out there but I read another article not long ago that said they were very concerned about how to pay for their stadium.  Lost in all the hoopla is the fact that a decent percentage of that money is in pledges, many of which are the some die when I die kind of pledge.  How many years have we been working on our current big fundraising effort?  I don't think it's been all THAT many and we're well over $2bil right now.  That money also is at least partially in pledges but you don't see us blowing ourselves and shouting from the rooftops about it.

 

[J.B. TexasEx]

They really like to throw that out there but I read another article not long ago that said they were very concerned about how to pay for their stadium.  Lost in all the hoopla is the fact that a decent percentage of that money is in pledges, many of which are the some die when I die kind of pledge.  How many years have we been working on our current big fundraising effort?  I don't think it's been all THAT many and we're well over $2bil right now.  That money also is at least partially in pledges but you don't see us blowing ourselves and shouting from the rooftops about it.

Ahhh.....more aggie delusion and wishful thinking.

Thanks for setting the record straight, Orangebred.  I hadn't read that anywhere. F'n aggies.....dipshits