Strange stuff with Big Ten media rights negotiations

[YouSayPotato]

Two puzzing issues from the link below:

(1) Fox quietly acquired an additional 10% ownership in BTN from the conference schools over the last year. They now own 61%, conference owns 39%.

(2) The Big Ten has already agreed to grant all of their broadcast rights to BTN.

My hunch is that Fox is trying to transform Fox Sports into another ESPN and that the Big Ten is going to be the bell cow. Should be interesting to see how these media negotiations work out.

Big Ten Media Rights

 

[FirstDownB]

I hope Fox Sports doesn't turn into another Espn. They have become to sports what MTV is to music.

 

[Woodsa]

Maybe, just maybe, ESPN will become the next CNN+ and leave the broadcast sphere altogether taking Disney with it. None of their involvement is good for sports these days.

 

[KentuckyBoiler]

If there is an influx of money, maybe we can use more money to help with NILs that other schools seems to be beating us badly at, besides the Ross Ade renovations.

 

[BCfanatic2020]

If there is an influx of money, maybe we can use more money to help with NILs that other schools seems to be beating us badly at, besides the Ross Ade renovations.

Forward thinking is not what Purdue does best. Spend on NILs in whichever way you can make that work .. the facility money will come.

to win this chess game I’d prioritize it this way:

> current Stars

> incoming recruits and likely future impact players .. so if you’re Garrett Miller and you may blow up this year, let’s get out in front, offer you a deal that’s disproportionately high vs teammates of similar current impact.. then give you the understanding that we will mfing get out in front of things again next year

> transfers that we don’t normally get. After making sure aiden Oconnell and cam Allen and Garrett Miller are taken care of.. I wanna take a big chunk of money and say “Purdue can’t typically get a top RB because of the chicken before the egg thing.. okay fine, we can’t buy a whole team like Ohio state but let’s go out and spend disproportionately to get that RB then pair him with what brohm always brings.” If Joey Harris was transferring out of Illinois now I brake the bank to get him, a prime offensive lineman then a prime pash rusher if I can afford it. If Ohio state has enough to buy 85 players and I can afford to buy ten players from elsewhere I’m spending that money on THREE but it’s gonna be ryan Kerrigan, Kelly butler and Joey Harris. 7 figures each.

> good players who COULD depart but for whom Purdue doesn’t have a close replacement. So if Jalen Graham has a great fourth year and our replacement is nowhere near him as a player, I consider offering disproportionately high deals to him, cam allen, Milton Wright, Marvin grant and on and on. I walk in the room and present a deal that’s so good, it can only be beat by one of those guys thinking they are a sure fire first rounder.

everyone else on the team gets an amount so low that they are either being told to transfer or join one of those other groups. So 4 years ago 46 would get told her gets nada

 

[YouSayPotato]

I'm not a conspiracy theorist but these Big Ten media negotiations are flat-out weird. When Commish Warren sits down with NBC or ABC, Fox has two executives in the same room. Why? Are they doing the bargaining instead of Warren?

Big Ten Media Rights

 

[New Pal Boiler]

I'm not a conspiracy theorist but these Big Ten media negotiations are flat-out weird. When Commish Warren sits down with NBC or ABC, Fox has two executives in the same room. Why? Are they doing the bargaining instead of Warren?

Big Ten Media Rights

I think you answered your own question.

 

[BoilerBiker]

college football
- the Fox (B1G) conference
- the Disney (SEC) conference

 

[Wolegib]

I don’t believe you can translate revenue received from media networks into NIL funding. I thought the NIL funding came from outside the university, not from the university . Unless the NIL is going to be like the under the table money Nike and adidas used to give players to attend certain schools! And Fox is just going to pay players to go to certain schools!

 

[Tommaker]

I hope Fox Sports doesn't turn into another Espn. They have become to sports what MTV is to music.

This is a really good breakdown on what happened to MTV. Kinda off topic but kinda not; they got to a point (really, they were at that point through the last 40 years) where they couldn't make any money with the current format. The question is where is that point for collegiate sports, and more pointedly, college football? Fans don't grow on trees, and they are in decline here in the U.S.. So at what point does throwing a billion dollars at a conference become a loss leader?

 

[purduepat1969]

I don’t believe you can translate revenue received from media networks into NIL funding. I thought the NIL funding came from outside the university, not from the university . Unless the NIL is going to be like the under the table money Nike and adidas used to give players to attend certain schools! And Fox is just going to pay players to go to certain schools!

If every school has an NIL collective, money can be funneled to that...

 

[destewart]

Two puzzing issues from the link below:

(1) Fox quietly acquired an additional 10% ownership in BTN from the conference schools over the last year. They now own 61%, conference owns 39%.

(2) The Big Ten has already agreed to grant all of their broadcast rights to BTN.

My hunch is that Fox is trying to transform Fox Sports into another ESPN and that the Big Ten is going to be the bell cow. Should be interesting to see how these media negotiations work out.

Big Ten Media Rights

I think the cash was to help most Big Ten schools with Covid financial losses.

 

[nick614]

I think the cash was to help most Big Ten schools with Covid financial losses.

Yes and you can thank idiots like the president of Purdue for voting for that.

 

[destewart]

Yes and you can thank idiots like the president of Purdue for voting for that.

You mean for using money that was athletic department money to pay
off an amount conservatively estimated at $50M to $60M per school
that each of the fourteen athletic departments sustained because of the loss of operating revenues lost due to Covid? As a result rather than Big Ten athletic departments having to borrow a cumulative estimated $700M to $850M they reduced their equity in the BTN from 49% to $39%. The remaining portion representing approximately $2.8B to $3.36B.

As a result every Big Ten school is free of all Covid related debt, continues to own equity valued at $200M to $250M and if estimates are accurate will now receive annual revenue estimated at $100M a year, plus potential annual increases per school to start beginning in 2024-25.

The idiots you refer to negotiated the percentage of ownership with Fox Sports 12 years ago to start the BTN and TV revenue has increased from approximately $20M per school to the current levels in the dozen years.

Maybe you can present your proposal on how to attain superior financial standing, using your advice, than what they accomplished using their own resources.

i do not know where you live, but it must be Indiana where that idiot President served as Governor and began the unprecedented tradition of having a surplus in state revenue which has continued under his successors Governors Pence and Holcomb. The current surplus in Indiana is approaching $5B.

 

[FirstDownB]

You mean for using money that was athletic department money to pay
off an amount conservatively estimated at $50M to $60M per school
that each of the fourteen athletic departments sustained because of the loss of operating revenues lost due to Covid? As a result rather than Big Ten athletic departments having to borrow a cumulative estimated $700M to $850M they reduced their equity in the BTN from 49% to $39%. The remaining portion representing approximately $2.8B to $3.36B.

As a result every Big Ten school is free of all Covid related debt, continues to own equity valued at $200M to $250M and if estimates are accurate will now receive annual revenue estimated at $100M a year, plus potential annual increases per school to start beginning in 2024-25.

The idiots you refer to negotiated the percentage of ownership with Fox Sports 12 years ago to start the BTN and TV revenue has increased from approximately $20M per school to the current levels in the dozen years.

Maybe you can present your proposal on how to attain superior financial standing, using your advice, than what they accomplished using their own resources.

i do not know where you live, but it must be Indiana where that idiot President served as Governor and began the unprecedented tradition of having a surplus in state revenue which has continued under his successors Governors Pence and Holcomb. The current surplus in Indiana is approaching $5B.

Guessing he was probably referring to the vote to postpone the 2020 season.

 

[destewart]

We have no idea what the vote was, but one source told me that Daniels voted against the shutdown. They did not announce the vote was unanimous. Since his position was to operate normally with precautions the suggestion that he voted no seems reasonable. He receuved national plaudits for his leadership during the Pandemic.

 

[FiveWeight]

do not know where you live, but it must be Indiana where that idiot President served as Governor and began the unprecedented tradition of having a surplus in state revenue which has continued under his successors Governors Pence and Holcomb. The current surplus in Indiana is approaching $5B.

Destewart was making a strong point until this paragraph. I first read it as sarcasm, but don’t know. Just as with personal budgets, running a deficit kills your finances in the long term and slows growth while your dollar power services interest instead of gaining interest. Government (including universities) need non-political financial advisors to keep their spending within their means just like individuals. I have yet to walk into any financial advisor’s office and be told I’m not burning through enough of my income.

Fiscal responsibility in Indiana didn’t start with Daniels, but he is highly regarded. I am happy to live in a state where your average middle class family can take multiple vacations each year, have a big house, multiple cars, boats, motorcycles, or whatever they’re into, save for their kids education and their retirement. It blows my mind every time I talk to someone from California who has seen fewer national parks in their own state than I have, because they are so cash-strapped even while holding down a good job that they can’t afford to do anything but stay home. Seriously, I hear this story over and over and am sure many others have met similar people.

 

[destewart]

Destewart was making a strong point until this paragraph. I first read it as sarcasm, but don’t know. Just as with personal budgets, running a deficit kills your finances in the long term and slows growth while your dollar power services interest instead of gaining interest. Government (including universities) need non-political financial advisors to keep their spending within their means just like individuals. I have yet to walk into any financial advisor’s office and be told I’m not burning through enough of my income.

Fiscal responsibility in Indiana didn’t start with Daniels, but he is highly regarded. I am happy to live in a state where your average middle class family can take multiple vacations each year, have a big house, multiple cars, boats, motorcycles, or whatever they’re into, save for their kids education and their retirement. It blows my mind every time I talk to someone from California who has seen fewer national parks in their own state than I have, because they are so cash-strapped even while holding down a good job.

It was sarcasm directed at those who might not appreciate the fiscal sanity displayed by Indiana and jump started by Daniel’s decision to accelerate long overdue highway improvements by leasing the toll road system. Not only did he net several billion but he also eliminated the costs associated with operating and maintaining the toll road. The improvement in the BMV since it was privatized is amazing and employee morale seems much better with accompanying vast improvement in customer service.

 

[FiveWeight]

Rock on Destewart. That wouldn’t be the first time I’ve been accused of not catching sarcasm

 

[FirstDownB]

It was sarcasm directed at those who might not appreciate the fiscal sanity displayed by Indiana and jump started by Daniel’s decision to accelerate long overdue highway improvements by leasing the toll road system. Not only did he net several billion but he also eliminated the costs associated with operating and maintaining the toll road. The improvement in the BMV since it was privatized is amazing and employee morale seems much better with accompanying vast improvement in customer service.

Daniels has done a lot of good things, but as someone who travels the toll road frequently, it is a disaster with outdated technology compared to surrounding states.

 

[Tommaker]

Daniels has done a lot of good things, but as someone who travels the toll road frequently, it is a disaster with outdated technology compared to surrounding states.

Get used to it. Talking with a buddy who's a former INDOT and now sub contractor to the 69 project, when the gas tax goes away with electric vehicles the number 1 replacement for that cash flow will be toll roads.

 

[nick614]

Get used to it. Talking with a buddy who's a former INDOT and now sub contractor to the 69 project, when the gas tax goes away with electric vehicles the number 1 replacement for that cash flow will be toll roads.

Nope it will be higher registration fees like in Europe and China where in some places it costs $2000 a year to register your car.

 

[Tommaker]

Nope it will be higher registration fees like in Europe and China where in some places it costs $2000 a year to register your car.

Or both.

 

[SIBoiler2]

Destewart was making a strong point until this paragraph. I first read it as sarcasm, but don’t know. Just as with personal budgets, running a deficit kills your finances in the long term and slows growth while your dollar power services interest instead of gaining interest. Government (including universities) need non-political financial advisors to keep their spending within their means just like individuals. I have yet to walk into any financial advisor’s office and be told I’m not burning through enough of my income.

Fiscal responsibility in Indiana didn’t start with Daniels, but he is highly regarded. I am happy to live in a state where your average middle class family can take multiple vacations each year, have a big house, multiple cars, boats, motorcycles, or whatever they’re into, save for their kids education and their retirement. It blows my mind every time I talk to someone from California who has seen fewer national parks in their own state than I have, because they are so cash-strapped even while holding down a good job that they can’t afford to do anything but stay home. Seriously, I hear this story over and over and am sure many others have met similar people.

California Hell. Just venture west to the Commywealth of Illinois.