AAC ESPN close to a tier 1 deal?


#141

They cannot smile like that for an offer of 4-6M. That was the original rumored figures that no one was happy with but better than before.

If it was 4-6M, they would say something like, "we are making progress ".


(DERRICK KATELY) #142

I agree…


#143

AAU membership is certainly important to some conferences, but I’m pretty sure it doesn’t affect the network payouts for sports programming. :slightly_smiling_face:


(Fred) #144

No, but it can affect whom the conferences invite, i.e., the B1G


#145

What are we getting now 2? What do we need to break even and not be in the red? If we get that figure and perhaps a little more, then add bowls, conference bowl splits, dance money, increased ticket sales revenue, concessions, etc., that is a good first step.

I think the time is coming where the smaller teams in the smaller conferences simply will not be able to sustain.


#146

And further, when you are negotiating with a partner, a lowball offer at some point becomes damaging to you. Better to pay a fair price, at which you can make a profit, and your partner can thrive as well.

Part of this is not just quality, but perception. ESPN can affect that perception by the very act of announcing the price they paid.


#147

Found this on the Temple board, but its just a summary of what Aresco said during media days last year.

The current ESPN contract runs through 2019-20. The parameters for negotiating a new deal are governed by the current contract. The negotiating period is essentially open to all networks and distributors in early 2019. But there is a window beginning in 2018 for ESPN and the AAC to extend their current deal, if they wish. In the meantime, Aresco is free to have informational meetings with anyone and everyone. But he can’t start formal negotiations with any networks or distributors until after the ESPN exclusivity period expires. To that end, Aresco has had meetings with Facebook, Twitter, Google, and other streaming services. He also talked about the possibility of syndicated TV deals. Specifically, Aresco said it’s quite possible that even if ESPN wants to keep the AAC, that they may not be interested in the full package. Right now, they option some football and basketball games to CBS Sports Network. But we see a lot of games on ESPNews. Aresco said the AAC’s next deal could very well be a two-tier or three-tier package involving multiple distribution channels. Regarding syndicated TV deals, Aresco said the soon-to-launch ACC Network will probably leave a big hole in that universe. Because the ACC currently offers a lot of syndicated content. And that will go bye-bye when they launch the network. And we already have the Big 10 Network and the SEC Network in place. So there’s a diminishing amount of high-level Division I content available to the Comcast regional channels and similar networks in the East and the South. And the AAC could fill that void.
Dollar figures? I have no clue. But those are the parameters that Aresco described about the negotiation process.

Perhaps Memphis is happy because we got 8-10 million per school just for Tier One and the Memphis pres knows there will still be a high demand for tier 2 and 3 because of ACC loss. Meaning higher dollars for those media rights as well.

And as we can see Aresco was shopping us around even in 2017 so thats comforting.


(Sam) #148

You’re right. That time is approaching, and even if we get an increase of 10 million we’re not going to eliminate the subsidy, which stands at 17-18 million. If the ESPN deal is really good as some think, maybe as high as 10-15 (hard for me to see that but what do I know?), and we get a few extra million in second- and third-tier programming, we could get into the black IF we keep selling out basketball and average 35-40 in football. Keep in mind that the revenue for one sold-out football game is probably a little more than we have been getting annually for media rights. NCAA Tournament units would also be very beneficial. It just seems that there has to be further division down the road. I don’t see how schools like Eastern Michigan and Old Dominion can continue playing at this level just as I don’t know how UH, UCF, BYU, SDSU and Cincinnati can be considered on the same level as those programs.


#149

I’m just curious how Boise and SDSU presidents are feeling now, a little regret?


(Alex Whitlock) #150

Maybe, but the MWC contract is ridiculously in their favor. Boise has been making boatloads more money than us and may continue to do so even if the MWC gets a considerably less generous contract.


#151

How much? I thought Boise was making like 3 million a year vs. a little over 1 million a year for the rest of the MWC teams.


#152

$10 million per school and a permanent NY6 bowl tie in. I could live with that.


(Alex Whitlock) #153

It varies from season to season as it’s based on TV appearances, which they get and others don’t. I remember reading one year that UNLV only got something like $230k. For Boise, I think it’s usually north of $3m and less than $5m.


(Chris) #154

Will that give the AAC and invite to the cfp? That remains to be seen. Aresco has been promoting the P6 mantra. Will it happen? Time will tell. An increase will help pay for our current coaching staff but make no mistakes about it. This is about supply and demand. Conferences get more money? Coaches will demand more. Our goal is to get into a P5 any P5.


#155

I think we are going to be in the AAC for awhile and that isn’t necessarily a bad thing as long as the TV money keeps increasing.

This next TV contract is critical.


#156

we aren’t expected to get 10mil…or even close…not sure how that became the standard here

from the memphis people there seems to be a low end prediction and a high end prediction from their people in the know

5mil is the low end, with some optimistically thinking 8mil…if you are expecting 10, prepare yourself to be disappointed


#157

I am expecting $10 million with Tier 1, Tier 2 and Tier 3.


(Patrick) #158

I am a bit worried that it’s Memphis leaking the info. Memphis didn’t make it to the 2nd round of the Big 12 farce, which was embarrassing for them. They know that the American is the best they can do right now so they’ll be happy with any additional money.


#159

Something to consider:

Who knows what the future brings. Houston is mentioned in a positive light.


(Ben B) #160

They only make more money when they go to a good bowl.