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Longhorn Sports Network Closer to Reality

Posted by srr50 on November 9th, 2008 under Uncategorized

We have already talked here on BC about Texas seriously considering putting together its own sports channel 24/7.

Apparently, the most important step in the process is well underway. Business Week says UT and its corporate partner, IMG College, are looking for distributors for the Longhorn Sports Channel and it may be as soon as next school year.

This is the tricky part of putting the network together. UT is trying to do something no other program has done, which is go out on its own and create a sports channel for pay cable. Texas has to convince cable and satellite operators that the channel will have enough original programming to justify paying UT on a per subscriber basis. The Big 10 Network found rough going when they started up trying to get Time Warner and other cable operators to pay the fee. Supposedly the Big 10 wanted $1 per subscriber. They settled for less, but got the channel on basic cable in the Big 10 markets, and on the premium digital level out of markets.

Apparently Texas is looking to be put on the premium level. Of course the carriers want to know what, if any of the games in the most popular sports — football and basketball — would be available.

Texas might be willing to buy back the rights to some of the football and basketball games that are now on the Fox regional network. Perhaps Fox might take an equity share in the network. So instead of the Baylor and Kansas games being on Fox regional, they could be on the Longhorn Sports Network.

Obviously the rest of the Big 12 will be watching how this unfolds closely. Just as obvious will be that it will create tension between Texas and the other teams in the league because it will be increasing the Longhorns revenue stream while cutting into the inventory that the league can use to sell its own packages.

It’s another way that Texas is being proactive in protecting its brand, while also making it clear that sustaining the Big 12 in its present form will be harder in the future.

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10 Responses

  1. beowulf said:

    November 10th, 2008 at 3:41 am

    Sign me up.

  2. dasmithjones said:

    November 10th, 2008 at 6:06 am

    Ditto. On a side note: Kudos to ESPN’s Robert Smith on College Football Live for doggedly preaching Colt McCoy as his Heisman leader while the majority of the commentators are all Graham Harrell’ish.

  3. kevwun said:

    November 10th, 2008 at 7:10 am

    Thanks to the Big 12 we have a shitty tv contract, so I don’t have a problem with Texas trying to improve on it. The quality of the FSN broadcasts isn’t good.

  4. TG said:

    November 10th, 2008 at 7:31 am

    This is a money-grab. The idea of buying back games from FOX simply means less games available for a channel basic cable already carries.

  5. JP said:

    November 10th, 2008 at 8:37 am

    Innocent question: Would something like this open a window for Texas to become independent, a la Notre Dame (and possibly USC in the near future)?

    Would that benefit Texas? If so, how? Or is it so ridiculously stupid that I just made a complete jackass out of myself?

  6. srr50 said:

    November 10th, 2008 at 9:14 am

    Innocent question: Would something like this open a window for Texas to become independent, a la Notre Dame (and possibly USC in the near future)?

    That window is nailed shut. It would be financially impossible to run as successful an overall program as Texas has now as an Independent.

    First would be the bloodbath that would ensue from leaving a conference (Notre Dame didn’t have that problem). It would lead to so many scheduling problems as to be a nightmare.

    You would only have control of the media rights to your home events, and good luck in generating enough income to keep the program at its present pace.

  7. Scipio Tex said:

    November 10th, 2008 at 9:33 am

    Awesome post. I had no idea about this. I like that we’re protecting ourselves and not placing our eggs in a Big 12 basket that is full of holes.

    I hope that we continue to be relentlessly self-interested with respect to our marketing and fiscal strength.

  8. Vasherized said:

    November 10th, 2008 at 10:26 am

    It would be one hell of a coda for Deloss Dodds if he can pull this off.

    Longhorns, Inc. continues to reward its shareholders.

  9. Bob in Houston said:

    November 10th, 2008 at 10:58 am

    One more point on independence… even if Texas could work it for football, basketball and all other sports would be a nightmare.

    Texas, like ND, would have to find a conference partner for hoops and baseball. The Big East went for ND because it thinks (or hopes) that can bring football in down the line. Texas doesn’t have that kind of pull with any other league.

  10. Drunken Rooster said:

    November 10th, 2008 at 2:19 pm

    Would this put an end to 11 am games ?

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