Big Ten Could Announce Record Media Rights Deal in May

[BleedGopher]

per Front Office Sports:

The Big Ten’s media rights negotiation is reportedly nearing a conclusion.

Big Ten commissioner Kevin Warren told CBS Sports on Tuesday that a new contract should be set “around Memorial Day, or soon thereafter.”

In total, the package could be worth up to $1.1 billion annually, Front Office Sports previously reported. It could set an entirely new precedent in the college sports industry about the value of top-flight media rights.

• In February, FOS reported that NBC was expected to “make a major push” to get a piece of the valuable Big Ten pie.
• Fox Sports allegedly has an agreement with the league to keep its portion of media rights, Sports Business Journal reported in April — though Warren did not confirm this to CBS Sports.

The current agreement, which expires in 2023, consists of a six-year, $2.64 billion deal that pays out about $440 million each year.

Approval Process​

Warren told CBS that by the end of May, the conference hopes agree upon a “memorandum of understanding.” That’s a more informal document that often comes before a formal contract.

“This will be a very, very busy month,” he said.

Go Gophers!!

 

[GopherJack]

How will that affect our salary cap?

 

[Some guy]

That’s a little under 79 million per year.
To expand the conference you have to bring someone who adds that much more revenue per year with their 7 home games.

 

[Ope3]

That’s a little under 79 million per year.
To expand the conference you have to bring someone who adds that much more revenue per year with their 7 home games.

Is the 79 million football only or does it also include basketball?

 

[tjgopher]

That’s a little under 79 million per year.
To expand the conference you have to bring someone who adds that much more revenue per year with their 7 home games.

There are likely a select few schools who would do just that, if the fit is right. Certainly FOX Sports and the Big Ten are taking expansion into potential consideration and determining value. The new deal will be short term again, as if there is added value in adding a couple of teams, they will want to hit the market with a new media deal sooner than later.

 

[Some guy]

Is the 79 million football only or does it also include basketball?

Might include all sports which would make it a slightly easier task

 

[Some guy]

There are likely a select few schools who would do just that, if the fit is right.

I agree.

 

[tjgopher]

I agree.

Like there's nothing really new in that thought. The Big Ten will be selective and strategic in bringing any new member in, and there are legitimate expansion candidates who likely would bring in enough new revenue and cache to possibly make a run at it.

 

[hungan1]

How much are all of these going to impact the average fan's pocketbook?

 

[Pompous Elitist]

How much are all of these going to impact the average fan's pocketbook?

Let’s just say the media folks are snapping on their nitrile gloves and pulling out the KY

 

[hungan1]

Let’s just say the media folks are snapping on their nitrile gloves and pulling out the KY

Huh? Educate me.

 

[salzie]

That’s a little under 79 million per year.
To expand the conference you have to bring someone who adds that much more revenue per year with their 7 home games.

I'm sure NDSU will bring in 80 million

 

[highwayman]

That’s a little under 79 million per year.
To expand the conference you have to bring someone who adds that much more revenue per year with their 7 home games.

16 schools is a little over 68 million each. Are any two schools going to bring in $140 million additionally? That’s what the other 14 schools will be out communally. Doubtful.

The B1G has nothing to gain adding anyone.

 

[Gophers7NatTitlesBadgers0]

Huh? Educate me.

 

[Gophers_4life]

Is the 79 million football only or does it also include basketball?

We know each Big Ten school now gets 50 something million per year.

But $440M/14 = $31.42M per year.

So let's call "everything else outside the main media rights deal" a +$20M add-on per school.


So $1100M/14 = $78.57M per year + $20M per year = 98.57M per year.

 

[Gophers_4life]

But I mean, hell, even $80M a year is a fat stack of dough.

Seriously .... how much can you possibly spend?? If the U suddenly decided to triple Fleck's salary ..... would we start winning more games?

I feel like we're reaching the saturation point here ...

 

[Pompous Elitist]

But I mean, hell, even $80M a year is a fat stack of dough.

Seriously .... how much can you possibly spend?? If the U suddenly decided to triple Fleck's salary ..... would we start winning more games?

I feel like we're reaching the saturation point here ...

They can pay the players. Why not? Does the NCAA or the conference even care anymore.

 

[Ope3]

But I mean, hell, even $80M a year is a fat stack of dough.

Seriously .... how much can you possibly spend?? If the U suddenly decided to triple Fleck's salary ..... would we start winning more games?

I feel like we're reaching the saturation point here ...

Feels like there's enough incentive wether it's the conference as a whole or individual schools to figure out/navigate NIL and all the downstream impacts.

 

[short ornery norwegian]

Well, if there's anything that I know, it's this - as media rights fees go up, the fees for cable TV and streaming services will go up accordingly.

ESPN, Fox and NBC can only raise their advertising rates so high. The only other way to pay for those contracts is to get the money from cable and streaming subscribers.

Who knows - it might get to the point where it's cheaper to buy season tickets as opposed to paying for all the streaming services you will need to follow sports.

 

[tjgopher]

Well, if there's anything that I know, it's this - as media rights fees go up, the fees for cable TV and streaming services will go up accordingly.

ESPN, Fox and NBC can only raise their advertising rates so high. The only other way to pay for those contracts is to get the money from cable and streaming subscribers.

Who knows - it might get to the point where it's cheaper to buy season tickets as opposed to paying for all the streaming services you will need to follow sports.

While that is true, the only way to generate the advertising revenue and cable/streaming money needed to pay for the rights fee contracts is to have LOTS of people watching and subscribing. So, they likely can't raise the rates too high.

 

[Gophers_4life]

Well, if there's anything that I know, it's this - as media rights fees go up, the fees for cable TV and streaming services will go up accordingly.

ESPN, Fox and NBC can only raise their advertising rates so high. The only other way to pay for those contracts is to get the money from cable and streaming subscribers.

Who knows - it might get to the point where it's cheaper to buy season tickets as opposed to paying for all the streaming services you will need to follow sports.

Hear you .... but look how much is paid for the NFL media rights deal. It still dwarfs probably even the combination of what the new Big Ten and new SEC deals will be.

And they give that away (over the air) for free!**


** most people do not watch those channels via an antenna, even though you can. Those stations do charge a carriage fee to have them included in cable/sat/streaming channel bundles. Not as much as ESPN charges, but probably something like what BTN charges.

 

[Gophers_4life]

While that is true, the only way to generate the advertising revenue and cable/streaming money needed to pay for the rights fee contracts is to have LOTS of people watching and subscribing. So, they likely can't raise the rates too high.

Yeah ... on the other hand, I doubt there is a channel bundle on any system in this country that doesn't include ESPN.

That's one of those channels where it's like ".... this is the definition of cable TV".

 

[short ornery norwegian]

Hear you .... but look how much is paid for the NFL media rights deal. It still dwarfs probably even the combination of what the new Big Ten and new SEC deals will be.

And they give that away (over the air) for free!**


** most people do not watch those channels via an antenna, even though you can. Those stations do charge a carriage fee to have them included in cable/sat/streaming channel bundles. Not as much as ESPN charges, but probably something like what BTN charges.

on my local cable TV system, I know that one of the most expensive non-sports channels - in terms of the fee they have to pay - is KARE 11 from the Twin Cities. those 'over the air' channels have really cranked up the amount they are demanding in fees from cable operators.

 

[Ope3]

According to the Iowa AD, the record amounts were overstated. There will be a bump, but the nearly $100 million amount doesn't seem like it will happen.

Additionally, some inventory may wind up being streaming only.

Big Ten commissioner: No timetable on new media deal, streaming remains option

Big Ten commissioner Kevin Warren is keeping an open mind publicly about the scope of his conference’s media rights agreement.

theathletic.com

 

[Some guy]

According to the Iowa AD, the record amounts were overstated. There will be a bump, but the nearly $100 million amount doesn't seem like it will happen.

Additionally, some inventory may wind up being streaming only.

Big Ten commissioner: No timetable on new media deal, streaming remains option

Big Ten commissioner Kevin Warren is keeping an open mind publicly about the scope of his conference’s media rights agreement.

theathletic.com

Makes expansion more possible of the conference more possible