When we hit a recession before the next contracts, the Big money contracts are going to collapse.
The SEC, and Big 10 contracts are up first
, they both could be in for a shock.
The economy was a huge factor when the ACC signed a contract around 2010. The economy was bad, and espn made a low ball offer.
There really was no other competition back then and the ACC, desperate for cash, signed it. As they fell behind other conferences whose contracts expired at better times, the ACC kept extended their bad deal to get small increases that ensured they would get paid under market prices all the way to 2036.
I don’t know what the economy will look like when the next round of contracts is negotiated. Imho, regardless of the economy, the next round of contracts for college sports are going to be significantly less lucrative.
Cord cutting reduces income for espn and fox. For a long time, these companies were making a lot of money from people who had no interest in their content. Every day more people cut the cord and these companies lose more revenue.
Then there are the ‘me too’ movements for the athletes. Instatransfer and NIL will imho drive a significant number of fans from college sports. All the nonsensical realignment activity will also inevitably take its toll on viewership.
Espn is switching to a streaming model. That will be theor primary source of revenue by the time the next round of contracts comes up.
How many cord cutters will sign up for espn as a separate service? What will the impact be on espn’s bottom line? You know it will hurt or espn would have done this a long time ago.
How will cutting a significant number of current P5 schools and regions out from representation in espn affect the number of people who subscribe to espn?
I think it is inevitable that all these factors will drive down the offers conferences get tue next time around. Significantly. I think s lot of schools will be shocked by what they find.
As will the conferences.
Note that Oregon and Washington are getting half shares to join the B1G. Fox/NBC would not pay full price for these two very very good athletic programs lees that a year after the B1G announced their new contracts.
If TV revenue drops by 50%, does it still make sense for conferences like the B1G to send Olympic teams all over the country? Would this drive contraction? Another round of realignment to get conference ms better aligned georgraohically to lessen travel costs and travel time and impact on athletes?
A man can hope.