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SEC Now Has 2.5 Billion Reasons to Love ESPN

Posted by srr50 on August 25th, 2008 under Football

The four-letter network is going to pay the Southeastern Conference  $2.5 Billion over a 15 year period — about $150 million a year – for the Conference’s TV rights to any and all content not taken by CBS.

This ESPN deal matches up with the 15-year pact the SEC signed with CBS, both will run from 2010-2025.

The deal, aside from the obvious money spigot that it opens up for SEC members, will have repercussions felt throughout the BCS.

*CBS is paying $825 million for its part of the deal ($55 million a year). The fact that a cable outlet is paying almost 3 times what a broadcast network is paying for its share of the action tells you need to know about where the networks rank in long-term exposure.

*Vanderbilt (as will everybody else in the league) will get a check for a little over $15 million a year for its share of the TV revenue. Notre Dame is getting somewhere between $10-12 million from NBC for its network TV contract.

XXX
SEC Schools will divide up over $205 million a year in TV revenue for the next 15 years.

*The idea of an SEC network is dead for the near future. It looks like the Big 10 is out there all alone in trying to establish its own TV network, and is still fighting to get Time-Warner and Comcast, among others, to put their channel on the basic cable tier.

*Which brings up another advantage for the SEC with this contract. ESPN’s clout has already paid dividends in that Comcast will put ESPNU on its basic cable plan, which will dramatically encrease the SEC exposure to another 12-14 million viewers.

*ESPN will have over 5,000 SEC events to put on all their cable channels plus ESPN360 and ESPN Mobile as well as ESPN.com which also gets “extensive content rights.”

*Which brings up another point. Think Sportscenter might find room for more stories on SEC football & basketball in the near future?

* Think the Big 12 and other BCS conferences might be worried about what kind of deal (in terms of exposure and money) they will be able to make when their current TV contracts run out since ESPN is so heavily invested in the SEC?

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35 Responses

  1. Dave Lapham said:

    August 25th, 2008 at 3:19 pm

    Think the Big 12 and other BCS conferences might be worried about what kind of deal (in terms of exposure and money) they will be able to make when their current TV contracts run out since ESPN is so heavily invested in the SEC?

    Yep. Now that ESPN is tied up with the SEC, Fox Sports is the only option for the Big 12. So… you Longhorn fans need to prepare yourselves to be viciously ear-raped for the next fifteen years.

  2. Mockingbird said:

    August 25th, 2008 at 4:31 pm

    The BIG TEN Network is actually a pretty sweet product. As a midwest transplant, of sorts, I’m kind of jealous.
    Comcast will begin to carry the BTN this week, BTW.

    It is on most cable providers in the midwest and in most cases, on multiple channels.

  3. srr50 said:

    August 25th, 2008 at 4:38 pm

    Comcast will begin to carry the BTN this week, BTW.

    And after the next college basketball season ends, Comcast has the option to shift the network to its digital service in Big Ten states. Outside of the region, Comcast has the option to not offer the channel at all, or to put it on its premium sports and entertainment package or other tiers of service.

  4. Texas A&M said:

    August 25th, 2008 at 10:24 pm

    I told you guys joining the SEC was a good idea in 1995!

  5. TaylorTRoom said:

    August 26th, 2008 at 3:27 am

    I think the best conferences are those where the member institutions (the universities, not just the athletics departments) have aligned goals. The B12 can be such a conference. My question is- what can the B12 do to improve the value of its broadcast package? As SWC survivors, we know that being a “have not” conference is a dead end. Is there an upstart network willing to pay through the nose, with the understanding that we will try to schedule times to accommodate them?

  6. TaylorTRoom said:

    August 26th, 2008 at 3:54 am

    Been thinking about it. Really, there are only two ways for conferences to raise their broadcast package values-

    1. Conference expansion. Frankly, there are no good reasonable additions for the B12. It’s more likely that ND join the Big Televen, and the B12 splits up to various other conferences (Big 10, PAC-10, SEC) to augment their packages. There will probably be losers in such an event (Baylor, KSU, OSU, ISU).

    2. A Conference-managed playoff for football. Besides the big payoff at season’s end, there would be more interest in the regular season games, adding value.

  7. HenryJames said:

    August 26th, 2008 at 4:41 am

    Fifteen million a year is probably at least 1/5 of each school’s athletic budget. For the bottom dwellers it’s almost half.

  8. srr50 said:

    August 26th, 2008 at 5:27 am

    There will probably be losers in such an event (Baylor, KSU, OSU, ISU).

    Taylor: Yep, and the need to increase the TV revenue will be a major pressure point to lead to another downsizing in D-1 football, which will lead to your second point about a conference-driven playoff.

  9. TaylorTRoom said:

    August 26th, 2008 at 5:34 am

    I figure the combined CBS/ESPN (and what an interesting combination that is, given that ABC owns ESPN) contract has a Net present Value of about $180 million for each SEC school.

    What does the B12 broadcast contract (ABC/Fox/ESPN/TBS) pay per school?

  10. Bob in Houston said:

    August 26th, 2008 at 6:05 am

    I’m a bit surprised that ESPN threw in with the SEC. The ACC, which stretches across the Eastern Seaboard, would seem to be a better fit. But that’s just me.

  11. Ag_in_TX said:

    August 26th, 2008 at 7:15 am

    I have wanted A&M in the SEC since before the split and still want us there. Let’s see, what sounds better this weekend: A&M vs. ISU or A&M vs. Bama? Hmmmm, what sounds better: A&M vs. KSU or A&M vs. Florida? Hmmmm….

    I want it – I WANT IT!!!!!!!!!

  12. HenryJames said:

    August 26th, 2008 at 7:25 am

    2-0 sounds better than 0-2.

  13. Ag_in_TX said:

    August 26th, 2008 at 7:53 am

    Perhaps at first, but A&M in the SEC gives A&M a recruiting edge that no other Texas team would have. I’ve always felt that A&M in the SEC would make College station the sexy place to go play football (I know, I’m snickering even as I type it).

  14. Scipio Tex said:

    August 26th, 2008 at 9:10 am

    Bob:

    No one gives a crap about the ACC. This isn’t a basketball contract.

    I want some input on three questions:

    1. Is there still a sense that joining the SEC would reflect poorly on us in the administration? It’s not like the Big 12 would be confused with the Big 10 or Pac 10 academically.

    2. Baylor and Tech were able to latch onto Texas and A&M when the last conference shake out occurred. Why won’t that happen again?

    3. Are A&M and Texas necessarily a package deal?

    I see the Big 10 as our least likely egress. I see a Pac 10 superconference as the most likely.

  15. HenryJames said:

    August 26th, 2008 at 9:32 am

    2. Baylor and Tech were able to latch onto Texas and A&M when the last conference shake out occurred. Why won’t that happen again?

    Because Bob Bullock and Ann Richards are dead, and Pete Laney is retired.

  16. Ag_in_TX said:

    August 26th, 2008 at 9:39 am

    1. Is there still a sense that joining the SEC would reflect poorly on us in the administration? It’s not like the Big 12 would be confused with the Big 10 or Pac 10 academically. – I do not think the stench of the SEC is much worse than the stench of the Big XII, but A&M and Texas would not be able to push around the other members like we do in the Big XII.

    2. Baylor and Tech were able to latch onto Texas and A&M when the last conference shake out occurred. Why won’t that happen again? – The economic environment is completely different now. A&M and Texas will not be allowed to bring anyone else along.

    3. Are A&M and Texas necessarily a package deal? – Not at all – in fact, I kind of would prefer going seperate ways – I think it is the best chance for both programs to be “elite”.

  17. Scipio Tex said:

    August 26th, 2008 at 10:04 am

    Because Bob Bullock and Ann Richards are dead, and Pete Laney is retired.

    No doubt, but there are still dozens of state reps from those schools who could attempt mischief. I’d think the absence of Bullock is most key.

    Ag_in_Tx:

    Agreed. I see no real reason to share affiliation as long as we agree to keep the game.

  18. HenryJames said:

    August 26th, 2008 at 10:08 am

    Here’s CougCenter’s take on what it means for the Pac 10.

  19. TaylorTRoom said:

    August 26th, 2008 at 10:35 am

    If I were the head of the B12, ACC, or Big East, I would:

    1. Start trying to pull together a conference-managed playoff for football.

    2. Begin discussions with one of the other conferences to replace the patsy non-conference games with inter-league games (B12 vs. ACC for example) in order to increase the value of the broadcast contract. If a playoff structure exists, it won’t hurt your league champion to have an extra loss or two from tough non-conference games. BTW- is this why the SEC schedules league games almost from the beginning of the season? To improve their broadcast product value?

    As for Baylor and TT- I don’t see why they need any special shepherding. If Texas and TAMU bolted, they would still be in the Big 12, uh, 10, uh 8 (?)

  20. Scipio Tex said:

    August 26th, 2008 at 10:40 am

    BTW- is this why the SEC schedules league games almost from the beginning of the season? To improve their broadcast product value?

    The coaches insist on it as a break from the grind.

  21. srr50 said:

    August 26th, 2008 at 10:52 am

    Even Bob Bullock would understand that both Baylor and Tech are dead weight when it comes to the next reorganization. They may have alums in position of power in the State, but none of them have anywhere near the clout that Bullock did, and even they will understand that the bottom-line business that is college football today will not justify keeping bonds just for “Old School Ties.” That’s why those two schools should be in the “new” SWC, which may pop up in the future.

    I don’t see any way our administration would stomach moving to the SEC, and it is not just over academics – although the fact is we would have to relax our standards if we were to survive over there in terms of recruiting and not just who we let in, but how we keep them in. Those SEC teams are light years ahead of us in being able to get warm bodies in school and keep then eligible.

  22. Bob in Houston said:

    August 26th, 2008 at 11:56 am

    “(E)ven they will understand that the bottom-line business that is college football today will not justify keeping bonds just for “Old School Ties.” ”

    One of the first serious sports books I read as a kid was Jim Brosnan’s “The Long Season.” It’s a great book… I recommend it to everyone. But I digress…

    A line from it popped into my head in regard to Baylor and Tech being detached from Texas (and A&M) in the next round — Brosnan, on the sale of his contract from the Cardinals to the Reds: “The second time you’re sold, you don’t feel a thing.”

    When the SWC broke up, it was a huge deal. Eighty-five years of tradition (or however many years) down the drain. Long ties, hard feelings, and, of course, Texas politics (much more Bullock than Richards). Those who were left out were angry, and Baylor and Tech had enough pull to make the stagecoach.

    Next time, that won’t happen. Rice, SMU and TCU already have joined two conferences. As srr says, the new combinations will be based totally on money. And if Texas and A&M split up (not a great idea, but doable), it’ll be because both sides did the best for themselves.

    It’s good for Texas because it still is an 800-pound gorilla.

  23. Scipio Tex said:

    August 26th, 2008 at 12:41 pm

    Where does OU fall in all of this? Great tradition and a dedication to football and basketball, but they offer no TV sets and poor demographics. Nor do they possess a national following.

    Do they try to go SEC?

    Or do they align (and dominate) a new Big 8 with terrible TV revenues and a lack of national respect from the superconferences?

    Chime in Oklahoma types.

  24. TaylorTRoom said:

    August 26th, 2008 at 1:17 pm

    My opinion:

    Texas, TAMU: Have well rounded programs, lots of TV sets, lots of money, good academics. They will have choices if there is a shake out. They will have to be pro-active to land where they want.

    KU, NU, and OU: Have great national brand names (KU for basketball), and money. Their only weakness is a lack of big TV markets delivered. They can land in a power conference if the B12 collapses. If they try to ride it out in a weakened B12, they risk losing a significant amount of what they have worked so hard to build. They have to really like their old Big 6 brethren to stick around. Their ADs need to be actively communicating with the ADs at Texas and TAMU, as well as other conferences.

    TT, Mizzou, CU: Decent brand names, decent TV markets. They are like Arkansas when it bolted the SWC- if an opportunity arises to jump to a strong(er) conference early in a shakeout, they should probably take it. Their ADs need to be tuned in to what’s going on in the B10 and PAC-10.

    BU, KSU, OSU, ISU- They can network all they want; it won’t matter. They will be the last to know. They need to pressure the B12 office to be a first mover among conferences.

  25. Ojnab Bob said:

    August 26th, 2008 at 1:42 pm

    Reading this discussion as a Nebraska fan, I have some sympathy with how Czechoslovakia felt about the Munich discussions in 1938… so much for conference camaraderie, I guess. I do feel like we’d have more room to complain but for our post-2000 collapse.

    Still, perhaps a restored Big 8 would be the optimal end result. A&M can go to the SEC, you can go Pac-10, Tech and Baylor can drift back to the oblivion of the “new” SWC, and we can restore the partial qualifier rule to SEC-like proportions. We’ll even let one of you keep Dave Lapham.

  26. TaylorTRoom said:

    August 26th, 2008 at 1:50 pm

    That’s a nice sentiment, Bob. Remember, though- while you’re preparing to recommit to your old conference-mates, Mizzou is trying to join the Big 10, CU is trying to join the PAC-10, and the B10, ACC, and Big East are wooing Kansas.

  27. Black Scholes said:

    August 26th, 2008 at 3:09 pm

    In many ways, OU would be a cultural fit in the SEC.

    I am of two minds re aggy and the SEC; right now I lean towards A&M being little more than Mississippi State’s twin in all of the obvious ways – including success on the field. Obviously though, managed properly it could be the catalyst for big things. Maybe coupled with the naming of Sherman’s successor.

  28. ATXHorn said:

    August 26th, 2008 at 3:26 pm

    “In many ways, OU would be a cultural fit in the SEC.”

    That is so insulting to most of the SEC. Not to Arkansas.

  29. Ojnab Bob said:

    August 26th, 2008 at 5:40 pm

    Oh, I don’t disagree, TTRoom – we might well lose Mizzou and CU. (I don’t think the other conferences would really take Kansas due to geographic issues). I’m just not sure what our options are besides that; Nebraska simply does not add enough TV sets to be of value to the Big 10.

    If we can just keep OU and NU together, however, there might be just enough cache to (barely) keep us in the BCS level of conferences; we could combine with the Mountain West. We’d still be a premium basketball conference, for whatever that’s worth…

  30. Beergut said:

    August 26th, 2008 at 6:51 pm

    I’m not so sure the power wouldn’t reside in College Station and Austin if both schools joined the SEC. Who in the SEC can bring television sets on the scale of the State of Texas? Florida, maybe?

  31. srr50 said:

    August 26th, 2008 at 7:01 pm

    I’m not so sure the power wouldn’t reside in College Station and Austin if both schools joined the SEC. Who in the SEC can bring television sets on the scale of the State of Texas? Florida, maybe

    It isn’t always about potential viewers, it is about deliverables–and the SEC clearly outdelivers. The SEC main markets aren’t any smaller than the Big 12 primary markets, and they deliver their audience at massive rates.

    Their large secondary markets (Atlanta, Jacksonville, Tampa,) are not dominated by the pros the way Houston and Dallas are. The colleges are still a strong secondary pull in those markets, and yes Texas and A&M are good pulls in Dallas and Houston, but they are a far second to the pros in those towns — it isn’t even close.

  32. dick said:

    August 26th, 2008 at 8:21 pm

    Texas is not a far second to the Texans in Houston. You have the aggies and haters there but none of them choose the Texans over Texas because they really like the Texans

  33. steven said:

    August 27th, 2008 at 7:06 am

    eliminating some of the weaker b12 schools and having the remaining more marketable names play each other every year like the b10 may present a more attractive product to market.

  34. steven said:

    August 27th, 2008 at 7:16 am

    in addition, by eliminating the ksu, isu, and possibly baylors of the world would allow the rest of the schools to keep more of the revenue amongst themselves instead of being force to share with schools who really do very little to increase interest in the conference. i doubt if revenue would drop off if those conference were dropped. also adding a byu might be a good idea. increasing the attractiveness of the slate of games might be the best way for the b12 to keep up with the sec’s of the world.

  35. srr50 said:

    August 27th, 2008 at 7:51 am

    There is an added value to this contract for the SEC — recruiting.

    The games will be billed as “The SEC on ESPN” Every one of the games on the four-letter network. No other conference has that kind of brand identification.

    Also if an SEC school is recruiting out of its area, it just points out that every game will be available, through all the ESPN channel, or through their gameplan.

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  • James commented on the blog post Bracket Breakdown & Gambling Tips   14 hours, 4 minutes ago

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  • Scipio Tex commented on the blog post Bracket Breakdown & Gambling Tips   14 hours, 33 minutes ago

    CJD -

    Possibly. However, I’m telling you – the beauty of these intergame lines is that when you see that all-too-familiar big early game lead that you know will evaporate down the stretch as soon as the team starts regressing to their 3 point shooting mean, there’s some money to be made.

  • Scipio Tex commented on the blog post Bracket Breakdown & Gambling Tips   14 hours, 35 minutes ago

    uthookem-

    I’d say you have your priorities straight.

    colorado -

    Anytime. How far do you think the Aggies go? A lot of people think Utah State is the most dangerous pure shooting team in the tournament.

  • uthookem commented on the blog post Bracket Breakdown & Gambling Tips   14 hours, 46 minutes ago

    Last year in Vegas, Friday morning, stumble to the line at 8:30 to make my bets, put $20 on a four-team parlay on the four 9:00 am games, nailed it! Three of the four games’ spread was determined in the final 0:30. Walked away with $220.

    Yeah, so what if that is the only