Eight
Member
first paragraph says the $40 million is for the broadcast rights of 3 championship games and the tier 3 rights of 8 big 12 schools total.
Big 12 signs new TV contract
- Thread starter Klaw
- Start date
first paragraph says the $40 million is for the broadcast rights of 3 championship games and the tier 3 rights of 8 big 12 schools total.
Gary's Shirtless Revenge
Full Member
Avid readers of KF.C have known this was coming...
Happy to answer questions as I can, but suffice it to say:
- This is the best answer the Big 12 was ever going to find for "they need a network" and it's a good one.
- Given that there is no Oklahoma or Texas rights, the fees being paid for the Tier 2/3 content is actually pretty good. There is no value to Women's Basketball or Baseball regular season games on linear TV, sorry.
- There was only one bidder for the Big 12 Championship game, they tried to get Stadium involved and NBC but neither was in the ballpark of value needed. ESPN/ABC was the best partner available, glad they went there.
- The conference is looking at this as a way to "test" a commingle of their Tier 3 rights with a provider, via a digital network, to see how it goes. The deal with ESPN is partly performance-based, so we will see how much we contribute as a conference to ESPN+ signups and viewing hours.
Tentative game plan:
- Wait to see what Oklahoma does... Their deal with Fox Sports runs through June 2022. If the Big 12 can convince them to stay in the conference, I expect they will move their rights to ESPN+ and Texas will follow shortly after.
- If Oklahoma joins, the Big 12 will probably re-up all our rights with ESPN in 2021/2022 through 2035 or so.
- If Oklahoma decides to re-up with Fox through 2025, which is when their current GOR ends with Big 12 (along with the Big 12 deal), watch out... It'll get messy.
Overall, TCU was being paid $500-750k by Fox Sports for our Tier 3 rights depending on how you allocate the advertising revenue... This ups that to the low $1-2 million per year, and puts everything on ESPN+ which is a way better platform for fans from a customer experience perspective. All in all, a good deal for TCU in the short term.
Happy to answer questions as I can, but suffice it to say:
- This is the best answer the Big 12 was ever going to find for "they need a network" and it's a good one.
- Given that there is no Oklahoma or Texas rights, the fees being paid for the Tier 2/3 content is actually pretty good. There is no value to Women's Basketball or Baseball regular season games on linear TV, sorry.
- There was only one bidder for the Big 12 Championship game, they tried to get Stadium involved and NBC but neither was in the ballpark of value needed. ESPN/ABC was the best partner available, glad they went there.
- The conference is looking at this as a way to "test" a commingle of their Tier 3 rights with a provider, via a digital network, to see how it goes. The deal with ESPN is partly performance-based, so we will see how much we contribute as a conference to ESPN+ signups and viewing hours.
Tentative game plan:
- Wait to see what Oklahoma does... Their deal with Fox Sports runs through June 2022. If the Big 12 can convince them to stay in the conference, I expect they will move their rights to ESPN+ and Texas will follow shortly after.
- If Oklahoma joins, the Big 12 will probably re-up all our rights with ESPN in 2021/2022 through 2035 or so.
- If Oklahoma decides to re-up with Fox through 2025, which is when their current GOR ends with Big 12 (along with the Big 12 deal), watch out... It'll get messy.
Overall, TCU was being paid $500-750k by Fox Sports for our Tier 3 rights depending on how you allocate the advertising revenue... This ups that to the low $1-2 million per year, and puts everything on ESPN+ which is a way better platform for fans from a customer experience perspective. All in all, a good deal for TCU in the short term.
That seems like a ridiculously low number relative to what has been paid in the past. Almost can't be right.
You are for sure the go to man when it comes to sports rights and media. You always seem to know what is going on. Is the deal for a total of $40M or for $40M per season?
Makes sense I guess. I'm not that up to speed on Tier rights and what they all mean.....on the surface it seems like a very low number but I'm probably just not understanding it correctly.
Gary's Shirtless Revenge
Full Member
The math is not that clean, as part of the deal is performance based re: Tier 3.
Best way to think of it is the Big 12 added something in the range of $7-10mm more per year over the next six years to its existing contracted media rights haul. Divide that by 8 to get your imperfect math of how that works per school, although money won't be distributed that perfectly per-se.
Without Texas and OU in the Tier 3, the rights fees were going to be relatively low. If, and that's a big if, they can get OU and Texas to add in their rights in the near future, the Big 12 Tier 3 rights are probably worth about $35mm per YEAR, or $3.5mm per school, but the distributions would almost assuredly be tiered so that Texas and OU would get the largest share of that money.
The one thing CDC did a terrible job of was getting our Tier 3 rights and he will even admit it. We will make more with this deal, but unless you buy ESPN plus it will be harder to watch.
Gary's Shirtless Revenge
Full Member
It's an effort by the author to get to the total value of the added rights over 6 years, but it isn't accurate in all likelihood. Our Tier 3 rights are partially valued on a performance basis, so that number could be higher/lower depending on that. As I noted in a separate post, look at it as the Big 12 Conference adding $6-10mm more per year over the next six years to the conference revenue haul, as part of a test and wait to see what Oklahoma does.
Thanks! So how much of the money is being divided 8 ways and how much of it is for the CCG and being divided 10 ways? I guess I am just trying to understand how valuable to CCG is and how valuable the tier 3 content is? Thanks again!
Edit: Saw your second response as well. Thanks again for the help.
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Gary's Shirtless Revenge
Full Member
It was his biggest mistake and biggest regret, truly.
Everyone should get ESPN+, its a great product, works great on your Apple TV, Roku, or phone, and will be a great way to watch tons of TCU sports.
Eight
Member
doesn't this go back to having to have a market to sell something?
people can laugh about the longhorn network, but there is some demand for that content.
how much demand is there for tcu's tier 3 rights?
Gary's Shirtless Revenge
Full Member
I'll choose to not answer that for now, it'll come out in the tax return.
It's fairly balanced, per your question phrasing, and keep in mind the Big 12 essentially had ZERO bidders for those other three championship games.
TCUdirtbag
Active Member
Time is not predetermined.
I know but until I'll assume it will be at 11 until I see ESPN do otherwise.
BABYFACE
Full Member
We are all in the same boat on that. I know that the Tier 1 and 2 rights is where big money comes from.
dawg
Active Member
May be too soon for this question, but how will this affect the broadcast of football games? Will we need to get ESPN+, or will they all still be broadcast on the regular ESPN channels (ESPN, ESPN2, ESPNews) and Fox (Fox, FS1, FSSW)?
Agree with others that this is more money than the conference had before and was probably the best deal they could get without the OU and Texas.
Agree with others that this is more money than the conference had before and was probably the best deal they could get without the OU and Texas.
zfrawg
Active Member
how many people are members on the Killerfrogs.com?
It will more than likely stay in the early slot. I doubt ESPN will want to go head to head with the SEC championship game on CBS. I am pretty sure the ACC is contracted to be the night game (plus that goes head to head with B1G). I honestly think the early time slot is going to the standard Big 12 CCG time slot.
