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Sports Business Daily: Fox- Big Ten close to 6 yr 1.5 billion deal for 1/2 Big Ten rights
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[QUOTE="sutomcat, post: 1747578, member: 27"] More analysis about how much the B1G contract will really bring B1G schools. [I]How much will the schools get? This is where the math and logic start to get really wonky! Recent reports indicate that Big Ten schools are projecting $44.5 million in annual revenue by the first year of the new TV contract (2017-18) for 12 of its 14 schools. Maryland and Rutgers aren’t fully vested until they’ve been in the conference six years. The majority of that revenue will come from the league’s media contracts. The Big Ten Network pays $8 million per school annually. [B]If the new deal eventually reaches $500 million per year[/B], as Commissioner Jim Delany has sought, that would average $35.7 million per school once all of the schools are able to take a full share. Combined with the BTN revenue, the Big Ten’s annual revenue would reach a whopping $44 million per school.OK, where to start? How about in the middle with "if the new deal eventually reaches $500 million per year". Based on what was stated above, how likely does that seem? If the Fox bid of "up to $250 million" includes the first picks every week AND the championship game, what are the chances that ESPN (or any other network) is willing to match that amount for what's left? Yeah, that would be zero. I'm estimating a total media deal more like $350 to $400 million per year - a big difference. Also, to get their $35.7 million per school number, they had to divide $500 million by 14... but it's already been well established that conferences also get a cut. The ACC gets a cut; so does the SEC, Big XII, and Pac-12. Jim Delaney doesn't work from free, I'm guessing. So the divisor should've been 15, not 14. That means so far a more reasonable average TV payout is $400M / 15 = $26.7 million per school per year - still a very good number, but also $9 million per year less than the outrageous number tossed out in the article. By the way, the ACC currently gets an average of around $21 million per school; if the reports of a $3 million/year bump is true (for not getting a cable network), that number grows to $24 million, or just $2.7 million behind the Big Ten - until you add in the BTN revenue, that is.[/I] [I]...[/I] [B][URL='http://accfootballrx.blogspot.com/2016/04/ridiculous-b1g-propaganda.html']Linkage[/URL][/B] [/QUOTE]
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Sports Business Daily: Fox- Big Ten close to 6 yr 1.5 billion deal for 1/2 Big Ten rights
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