🏈 ESPN: Raycom out, ESPN in...11:30 games...

[TerryP]

NO SEC NETWORK... ESPN BUYS THE REST OF SEC BROADCAST RIGHTS... $2.25B Reply
ESPN pays $2.25B for SEC rights
Print This Story By MICHAEL SMITH and JOHN OURAND
Staff writers

Published August 25, 2008 : Page 01
ESPN will pay the Southeastern Conference a staggering $2.25 billion over the next 15 years ? about $150 million a year ? for the conference’s TV rights, giving the network all of the SEC’s content that was not taken by CBS, industry sources confirm.

The deal effectively ends any conversation of a conference network, and it knocks Raycom Sports (formerly Lincoln Financial and Jefferson Pilot) out of the SEC’s distribution business for the first time since 1986, when JP Sports began distributing SEC basketball.

Combined with the 15-year, $55 million a year that the SEC will receive from CBS for the over-the-air package of games (SportsBusiness Journal, Aug. 18-24), the conference will bring in an average of $205 million annually in media rights beginning in 2009-10 and running through fiscal 2025.

That’s nearly three times what the SEC had been receiving in TV revenue as part of its current deal, which runs out next spring. That amounted to around $70 million per year.

SEC athletic directors met in Orlando last week to finalize the deal, which is expected to be announced later this week.

What won’t be announced next week, though, is a forthcoming agreement between ESPN and Comcast that will initially put ESPNU in about 7 million Comcast homes. That deal could be finalized in the coming weeks and could potentially give ESPNU full digital basic distribution of around 14 million homes on the country’s biggest cable operator. ESPNU, which is in 25 million homes, previously had failed to gain carriage on Comcast, but this deal eventually could push it to reach about 40 million homes, a critical threshold for advertising, industry sources say.

ESPN’s syndication arm, ESPN Regional Television, will handle syndication to local broadcasters throughout the Southeast. It also will make regional cable packages available to cable channels, such as Comcast/Charter Sports Southeast and Fox RSNs.


ESPN’s strategy is to secure high-quality
programming for its networks
and broadband platforms.“These extraordinary numbers reflect the continuing increase in value for major college sports,” said Neal Pilson, a TV consultant and former CBS Sports president. “We’re seeing significant increases in value at the conference level and we’re also going to see it for the BCS in the near future. As we’re seeing with the Olympics, sports have a built-in, not recession-proof, but recession-resistant quality. There’s a resiliency in terms of audience and ratings.”

ESPN’s aggressive bid is part of a strategy to secure high-quality programming for its networks and broadband platforms, while keeping the SEC from launching its own cable channel that eventually could compete with ESPN.

And Raycom, which had been in talks with the SEC to the end, likely lost out because it was not able to match the size of ESPN’s bid or the number of platforms it can use.

The SEC’s total payout to its schools in 2007-08 was $63.6 million after the conference’s cut. TV revenue is distributed among the 12 universities and the league; each school received about $5.3 million this past fiscal year. Under the new deal, that annual number could leap to as much as $15 million per school, which is just shy of the projected average revenue Big Ten schools get from their TV deals each year.

It is difficult to make an apples-to-apples comparison between the two conferences because of the incongruity of the length of the deals and their escalating values. But the Big Ten Network could annually pay its schools an average up to $10.2 million each over the 25-year term of its deal with the Big Ten. The deal started this past year with a payment of $6 million to each school and the number could escalate each year, depending on the network’s revenue.

The Big Ten Conference’s 10-year deals with CBS and ESPN will produce an average of $9.3 million for each school.

“By not going with a channel, the SEC gave more value to its broadcast and cable partners,” Pilson said. “You don’t have the dilution of audience. And 15 years out, it’s hard to know what the marketplace will look like, but the SEC will be taking another bite of the apple” at that time.

ESPN’s package of games will include the SEC basketball tournament finals, which previously were televised by CBS. ESPN also is expected to offer an expanded package of regular-season basketball games across its networks.

 

[TerryP]

You guys will want to become familiar with ESPN360.com

 

[alagator]

SEC & ESPN Reach Deal

The SEC and ESPN have reached a fifteen-year deal that will average around $150MM per year (or approximately $11.5MM per team per year - after the conference office takes a share).

It appears this deal also includes basketball, as well as football, rights.

http://www.sportsbusinessjournal.com/article/59824

And this effectively kills the SEC Network, which will be good news for the SEC in the long run. And here is why in my opinion.

As much as many, myself included, detest the ESPN persona and self-promotion, it is in fact the true national 'home for sports.' It is critical in today's environment that a sports organization (like the SEC) has a strong face on that network. The younger demographics look to ESPN first and foremost for coverage. Failing to make yourself present on that network will only cause you to be 'out of sight, out of mind' with that demographic.

Think I am wrong. Look no further to the ultra-conservative Augusta National Golf Club and their The Masters Tournament. This club resist change like Pat Dye resists closing hour at the local bar.

For many years ANGC was exclusive with CBS sports and finally ventured into Thursday and Friday rounds coverage on USA Network. The Golf Channel (primarily through GC co-founder and principal equity holder and ANGC member Arnold Palmer) made a substantial financial pitch to the club to get the coverage switched to the GC.

Some of the very media savvy members of AGNC presented the option of also exploring a new arrangement with ESPN instead. The thinking of these club members was 'if we are not on ESPN, many younger potential viewers will not consider us a real event and a real sport.' So the ultra-est conservative members running the ultra-est private club decided to go with the hip-hop, Stuart Scott-ish network to reach a broader and younger and hippier demographic.

Does anyone think ESPN will not turn head-over-heels in an effort to positively promote The Masters and defend ANGC at every opportunity? To do otherwise would damage their (ESPN's) product inventory - not to mention damage any lasting association between the network and the club.

Anyone think ESPN will not now give the SEC the benefit of the doubt and spend most of its mid-week and Gameday attention on its primary medial partner - the SEC, now? Anyone think ESPN would not reach more households in the South and beyond than any in-house network?

Great job by Commissioner Slive. And great job (UA Alum and the point man for SEC broadcasting contracts) Mark Womack. If this does not cement Womack as Commissioner-in-Waiting, then UA should gobble him up as Moore's replacement in short order.

 

[Guest]

Even though I hate Raycom's crew and picture quality, at least it give us games we usually wouldn't be able to watch. I hope this deal doesn't make it to where we don't get games like UA vs Vandy for free. :?

 

[TerryP]

Even though I hate Raycom's crew and picture quality, at least it give us games we usually wouldn't be able to watch. I hope this deal doesn't make it to where we don't get games like UA vs Vandy for free. :?

PPV rules will apply.

If you don't have it already, get a laptop that has HD capability...get a S-video cord and wireless in your house.

Seriously, the way I understand it instead of the games being available on TV they'll be on ESPN. If they aren't televised in our area, they'll be available on line...streaming video.

 

[alagator]

Even though I hate Raycom's crew and picture quality, at least it give us games we usually wouldn't be able to watch. I hope this deal doesn't make it to where we don't get games like UA vs Vandy for free. :?

I would think it means the over-the-air syndicated games will soon be a thing of the past, but that is not certain.

With the Big Eleven (can those guys not count past ten?) removing their early games from ESPN to their in-house network, ESPN is stuck with a bunch of Big East duds for the early slot. I would expect them to switch from those ratings dregs to SEC games.

About the only thing that makes me uncertain about that statement is if ESPN will sell rights to some games back to Raycom or use the inventory to make their down-the-line channels more compelling buys. I tend to lean more with what Terry was implying, in that the will keep everything in-house.

(No problem with whomever moved my thread into this one, Terry beat me by a few minutes posting the original information. Thought my post was more original and informative however. :wink: )

 

[TerryP]

Even though I hate Raycom's crew and picture quality, at least it give us games we usually wouldn't be able to watch. I hope this deal doesn't make it to where we don't get games like UA vs Vandy for free. :?

I would think it means the over-the-air syndicated games will soon be a thing of the past, but that is not certain.

With the Big Eleven (can those guys not count past ten?) removing their early games from ESPN to their in-house network, ESPN is stuck with a bunch of Big East duds for the early slot. I would expect them to switch from those ratings dregs to SEC games.

About the only thing that makes me uncertain about that statement is if ESPN will sell rights to some games back to Raycom or use the inventory to make their down-the-line channels more compelling buys. I tend to lean more with what Terry was implying, in that the will keep everything in-house.

(No problem with whomever moved my thread into this one, Terry beat me by a few minutes posting the original information. Thought my post was more original and informative however. :wink: )

We've already mailed your free cheese coupon as a sign of thanks! :lol:

 

[shipley00]

Sooooo this doesn't start until next season, right?

 

[TerryP]

'09-'15

 

[Guest]

WOW!!! ESPN GAMEPLAN next season is going to cost a ton of money :shock:

But its going to be sweet to have great coverage of games that we wouldnt be able to normally see!


Just imagine ESPN budget. I kinda want to see there bank account.

 

[alagator]

We've already mailed your free cheese coupon as a sign of thanks! :lol:

Cheese. Yummmmm.

Unless it is cheese you have already cut! :shock: Then I will politely pass on the offer.

The only downside I can see to the CBS and ESPN contracts is the tenure length of the contracts. It sure is risky tying yourself up for up to fifteen years. Am not being critical of the contracts at all, but there was a risk of leaving a lot of money off the table nine, ten, twelve years from now. And yes, there is a risk that CBS incurs for having possibly overpaid for the ratings they might experience in those same years.

The BEST thing though is that the SEC now has two prominent networks as its partners for a long, long time. The two will be invested in seeing that the conference only gets stronger over the life of the deals. It may not be obvious from the on-the-air talent, but behind the scenes much interference will be run in our favor - and to the detriment of our non-SEC rivals.

Might be interesting to see the internal tug-of-war between the ESPN side dependent on the SEC and the ESPN side dependent on The Big Eleven, Big Twelve, and the ACC. Maybe I overstated the role ESPN might play in our favor, but at the least it will neutralize their posturing for the other conferences as openly as they do now.

 

[Guest]

WOW!!! ESPN GAMEPLAN next season is going to cost a ton of money :shock:

But its going to be sweet to have great coverage of games that we wouldnt be able to normally see!


Just imagine ESPN budget. I kinda want to see there bank account.

Doesn't Disney own ABC and ESPN?

 

[Guest]

The biggest downside I see, at least for us fans, is that it looks like games we were able to watch for free on Raycom, will now possibly be pay-per-view.

 

[reger60]

The biggest downside I see, at least for us fans, is that it looks like games we were able to watch for free on Raycom, will now possibly be pay-per-view.

Like a lot of out-of-staters, I've been paying for Gameplan for years now anyway. I might start feeling like I'm finally getting my money's worth.

 

[Guest]

The biggest downside I see, at least for us fans, is that it looks like games we were able to watch for free on Raycom, will now possibly be pay-per-view.

Like a lot of out-of-staters, I've been paying for Gameplan for years now anyway. I might start feeling like I'm finally getting my money's worth.

Maybe, but I ain't worried about you out-of-staters! :twisted: :wink:

 

[alagator]

The biggest downside I see, at least for us fans, is that it looks like games we were able to watch for free on Raycom, will now possibly be pay-per-view.

Bo, I have not had the time to fully digest the following link, but it is full of information about the new pact.

Link...
http://secsports.com/index.php?s=&url_channel_id=3&url_article_id=11428&change_well_id=2


Under the discussion of football, the following comment leads me to conclude that there will still be free, over-the-air games made available...

ESPN Regional Television (ERT): The nation's largest syndicator of collegiate sports programming, becomes the official over-the-air syndication home for the SEC and will feature a game-of-the-week package (generally at 12:30 p.m. ET), with a minimum of 13 games each season throughout the SEC footprint and beyond. In addition, ERT will produce and distribute a studio show.

Who knows, maybe the "Three Dave's" will live on yet again! :?

 

[bamanaf]

I'll have to give up beer on gamedays now to afford the service


GS

 

[Guest]

One thing that is giving me a little inkling of hope here is that Troy plays on ESPN Regional TV Thursday night, and it is actually being broadcast on WRJM My67 (formerly the local UPN channel) locally here in Montgomery. So maybe it will carry the SEC games when they are on ESPN Regional.

 

[Guest]

What about ESPN and Thur night games? I hope Bama isnt suckered into having to play these :?

For sure not at home

 

[Guest]

I'm still a little confused as to what ESPN channels will be broadcasting what? So does this mean I'm gonna need Dish, Gameplan and all the other 20 ESPN channels?