Miller: B1G Money, Delany's Revenge

JonDMiller

JonDMiller

Publisher/Founder
ESPN pushed Jim Delany against the proverbial wall in 2004. Jim didn't blink. Now, with reports of the Big Ten inking a deal for just half of their Tier One TV rights for $250 million per year, Delany is dictating to ESPN...and might help build the perfect beast to take them on. I cover a lot of ground here in nearly 3,000 words, including my thoughts on more Big Ten expansion, as the table is set.

http://hawkeyenation.com/2016/b1g-money-big-ten
 
Good stuff, although the expansion talk is just that talk. Expansion has failed and with the era of cable cutters those lucrative deals are a thing of the past.
 
Jim has been the shrewdest commissioner in sports, in 2007 he kept the Big Ten at the top with launching a TV network, and watched as all the other conferences got greedy and impatient to close the gap. They unilaterally signed long term TV deals with big dollar figures that showed a comparable yearly number to the B1G, then the ACC and SEC expanded to keep up as the network outpaced their deals, then they signed even longer, worse, one-sided deals!

Meanwhile all Jim had to do is remain patient for a couple of years and wait until no media rights were left and ESPN had no leverage in the negotiation since there isn't any time left in the media rights deal. This is going to be a monster - think at least $1 billion per year including BTN revenue. That works out to be about $71 million per school starting in 2017. Then the conference will have another chance to "get some" in 2023. Sports rights have never gotten cheaper over time.
 
Time to really get on board and start to pay the players who make all of this happen. Sorry, the 1950's archaic argument of "room, board, fees" doesn't cut it anymore.
 
Chips28 said:
Good stuff, although the expansion talk is just that talk. Expansion has failed and with the era of cable cutters those lucrative deals are a thing of the past.
Click to expand...

It is a matter of if, not when expansion will happen. Having more schools in a conference is how you will battle cable cutters. When you "package" together 16, 18, or 20 teams people will pony up $5 a month to watch their favorite team.

Expansion is needed to battle against cord cutting, that is exactly why it will happen.
 
At this point what is being written and said is pure speculation. Immediately the speculation includes conference expansion. Jon did not include one other tidbit in his article, that the ACC network to be setup by ESPN/ABC has failed to materialize. There has to be some ACC colleges asking themselves if they are in the right place. I just do not see a westward expansion for the Big Ten. It would be my speculation that some ACC colleges would be folded into the Big Ten and some of the remaining ACC schools would be folded into the Big 12 or some Big 12 colleges would be folded into the remaining ACC. In any case Notre Dame would have to consider its position on remaining a football independent.
 
Great article, I can't help but think that it is only a matter of time before the B1G universities start tapping this pot of gold from the athletic departments. And maybe that isn't a bad thing.
 
eyekwah said:
At this point what is being written and said is pure speculation. Immediately the speculation includes conference expansion. Jon did not include one other tidbit in his article, that the ACC network to be setup by ESPN/ABC has failed to materialize. There has to be some ACC colleges asking themselves if they are in the right place. I just do not see a westward expansion for the Big Ten. It would be my speculation that some ACC colleges would be folded into the Big Ten and some of the remaining ACC schools would be folded into the Big 12 or some Big 12 colleges would be folded into the remaining ACC. In any case Notre Dame would have to consider its position on remaining a football independent.
Click to expand...
And there are multiple people out there talking that this could happen as early as this summer. Who knows, but with the BIG getting big tv money and the ACC floundering, it all seems to line up. If nothing else, it will be something to follow during the off season
 
Chips28 said:
Good stuff, although the expansion talk is just that talk. Expansion has failed and with the era of cable cutters those lucrative deals are a thing of the past.
Click to expand...

How has expansion failed? The B1G has a license to print money. I've said for a long time that with the addition of Maryland & Rutgers, the next media deal would be mind-boggling. The athletic directors are laughing all the way to the bank.
 
Seth53 said:
Time to really get on board and start to pay the players who make all of this happen. Sorry, the 1950's archaic argument of "room, board, fees" doesn't cut it anymore.
Click to expand...

They don't get a full ride education? (I know, you cleverly minimalized that under the word "fees" like it's something minor) It costs an out of state kid roughly $40,000 yr (total) to attend Iowa You don't think $160,000 is pretty generous? I do

Nothing wrong with a small stipend each semester, say $1000-$2000, under the premise that they can't get a part time job for spending money. Only problem there...is it can't come from the school or conference as every team has different resources...some simply can't afford it. It would have to be an NCAA thing.
 
Seth53 said:
Time to really get on board and start to pay the players who make all of this happen. Sorry, the 1950's archaic argument of "room, board, fees" doesn't cut it anymore.
Click to expand...

Good luck paying players any more than the current stipend. I know everyone thinks they are printing money (and they are for football), yet when you tell the athletic department that this money also has to fund 22 other non revenue creating programs, there is nothing left at the end. Heck Iowa actually lost money going to the Rose Bowl, and lost money in the athletic department last year.
 
Seth53 said:
Time to really get on board and start to pay the players who make all of this happen. Sorry, the 1950's archaic argument of "room, board, fees" doesn't cut it anymore.
Click to expand...

Oh please, NO! Amateur athletics will all have been gone. They cheat now. Give them another mile & there is no way to monitor and regulate the schools.
 
mikesright said:
Jim has been the shrewdest commissioner in sports, in 2007 he kept the Big Ten at the top with launching a TV network, and watched as all the other conferences got greedy and impatient to close the gap. They unilaterally signed long term TV deals with big dollar figures that showed a comparable yearly number to the B1G, then the ACC and SEC expanded to keep up as the network outpaced their deals, then they signed even longer, worse, one-sided deals!

Meanwhile all Jim had to do is remain patient for a couple of years and wait until no media rights were left and ESPN had no leverage in the negotiation since there isn't any time left in the media rights deal. This is going to be a monster - think at least $1 billion per year including BTN revenue. That works out to be about $71 million per school starting in 2017. Then the conference will have another chance to "get some" in 2023. Sports rights have never gotten cheaper over time.
Click to expand...


I remember when the BIG Network started & was quoted that each school would get approx $7 million in revenue each year. Wow.
 
JonDMiller said:
How has expansion failed, specifically and pursuant to what?
Click to expand...


No crap. The BIG or BIG network really doesn't care how well Rutgers or Maryland do if that is what the poster meant. It's all about eyeballs and $$. Yes, they would rather them do well of course, with the main reason to keep eyeballs on the network.
 
DJL said:
And there are multiple people out there talking that this could happen as early as this summer. Who knows, but with the BIG getting big tv money and the ACC floundering, it all seems to line up. If nothing else, it will be something to follow during the off season
Click to expand...


It kind of makes sense if more expansion could happen BEFORE TV deals are set. That would be in the BIG's favor if added a ND or Texas. More leveraging power.
 
deanvogs said:
Good luck paying players any more than the current stipend. I know everyone thinks they are printing money (and they are for football), yet when you tell the athletic department that this money also has to fund 22 other non revenue creating programs, there is nothing left at the end. Heck Iowa actually lost money going to the Rose Bowl, and lost money in the athletic department last year.
Click to expand...


Jay Bilas says hello....the free market would work itself out. I am with you everyone assumes that all these athletic departments are operating in the black with the vast majority are operating in the red. To quote Patrick Ewing: "We make a lot of money, but we spend a lot of money as well."
 
deanvogs said:
It is a matter of if, not when expansion will happen. Having more schools in a conference is how you will battle cable cutters. When you "package" together 16, 18, or 20 teams people will pony up $5 a month to watch their favorite team.

Expansion is needed to battle against cord cutting, that is exactly why it will happen.
Click to expand...

An answer to cable cutters is to raise prices on those you still pay? That only creates more cable cutters. The ceiling of these deals has been reached, it only goes down from here.
 
Sounds like B1G schools will be receiving about double $$ what they were before, around $60 Mill a year?
 
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