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Re: ESPN near deal for college football playoffs
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TMC
Nov 10, 2012, 7:32:06 PM11/10/12
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On Nov 9, 1:57 pm, David <dimla...@yahoo.com> wrote:
> http://www.deadline.com/2012/11/espn-near-deal-for-rights-to-college-...
>
> ESPN Near Deal For Rights To College Football Playoffs: SBJ
> By THE DEADLINE TEAM
>
> If ESPN did bid $500 million per season and win media rights to the
> entire new college football playoff system, that would bring the
> network’s total commitment to the sport to $7.3 billion over 12 years
> beginning in 2014, according to the Sports Business Journal. ESPN
> already has a $215 million deal to air the Rose, Orange and the newly
> minted Sugar bowls and would have the rights all to itself. The report
> stresses there are details still being worked out during ESPN’s
> exclusive negotiating window, which it secured via its $495 million
> BCS rights deal four years ago. The total output would put the value
> of the college football playoffs on par with the rights deal for
> college basketball’s playoff, March Madness. That deal between CBS and
> Turner pays an average of $771 million a year for 14 years.
>
> Under the new football playoff plan approved in June that will start
> after next season, the semifinals pitting the No. 1 vs. the No. 4 seed
> and the No. 2 vs. the No. 3 seed would take place December 31 and
> January 1, respectively. The winners will play in the title game the
> first Monday in January that is six days after the last semifinal
> contests. In 2014-2015, that puts the championship game on January 12,
> 2015. Sites of the semifinal games will rotate among the current major
> BCS bowls, with the title game rotating among winning bid cities, much
> like the Super Bowl or March Madness. The rest of the playoff
> structure is undecided and likely is part of the final discussions now
> taking place.
http://www.awfulannouncing.com/2012-articles/november/college-football-playoff-may-fetch-500-million-per-year-in-new-contract.html
One of the most intriguing questions in televised sports on the
horizon is which network will broadcast the inaugural college football
playoff in 2014. With sports rights fees increasing exponentially
across sports, the popularity of college football, and the
groundbreaking nature of a playoff, it's sure to fetch an enormous
amount of money for everyone involved in college football. Well,
except the student-athletes of course. But hey, everyone else will
get even more insanely rich! Hooray!
A CBSSports.com report from Dennis Dodd has the first real hard news
from potential playoff negotiations. An offer is already on the table
for the four team playoff and it's a mega offer from ESPN approaching
$500 million per year...
"ESPN has offered close to $500 million per year for the college
football playoff, CBSSports.com has learned.
While negotiations remain ongoing, multiple sources confirmed the
amount offered for a four-team playoff beginning after the 2014
season. Discussions are ongoing about the structure of the playoff.
While the figure is not considered a formal opening bid, it does put a
per-year value on a playoff. Using $500 million as a high -- sources
say the ESPN bid isn't quite that high -- a 12-year deal would be
worth between $5 billion and $6 billion through 2026.
If nothing else, we have an indication of the value of a playoff. The
commissioners went into their annual BCS meeting in April thinking the
valuation was at $350 million per year. After listening to
consultants, the value had shot through the roof. Now we have tangible
proof of the windfall awaiting college football.
Currently, Disney/ABC/ESPN pay $155 million annually for the 4 BCS
Bowl games and the Rose Bowl. The Rose Bowl has a $30 million per
year price tag and has a separate deal than the other BCS bowls. That
number is supposed to increase almost threefold to $80 million from
2015-2026 in a deal signed this summer.
http://www.awfulannouncing.com/2012-articles/july/espn-pays-80-million-for-rose-bowl-rights.html
A theoretical $500 million per year price tag would be more than a
threefold increase and pay an incredible $167 million dollars for each
of the three games in a four team playoff. That's more than the
entire fee for all the BCS bowls combined! Keep in mind that NBC just
paid roughly $83 million per year for an entire season of EPL games.
Then again, compared to ESPN's contract for Monday Night Football that
pays $1.9 billion per year at $111 million per game for 17 games, the
total money spent here is a drop in the bucket. After all, Disney
just reported a profit of $1.2 billion dollars in the last quarter
alone and carriage fees for ESPN are being touted as a major reason
why.
http://news.yahoo.com/disney-profit-meets-expectations-lifted-parks-espn-004501038--finance.html
http://www.awfulannouncing.com/2012-articles/october/nbc-wins-english-premier-league-rights-beginning-next-year.html
By the way, $4.88 Billion in revenues for media networks is a
Quarterly number. Have to believe yearly revenue for ESPN alone > $9
Billion. — James Andrew Miller (@ESPNBook) November 9, 2012
The $500 million dollar number was first reported by the Sporting News
during the summer at $5 billion over 10 years, but now it looks to be
coming to reality. It's one thing to have a BCS source speculate
about that number as a possibility, it's completely another for ESPN
to have an offer on the table that approaches that lofty amount.
http://aol.sportingnews.com/ncaa-football/story/2012-06-25/bcs-meetings-four-team-playoff-tv-contract-5-billion
ESPN has an exclusive 30 day negotiating window with the BCS to win
rights to the playoff, but the CBS report doesn't make note of whether
that window has actually opened. The major question will be whether
or not the BCS takes ESPN's great offer that is surely on the table or
wait to open up the market and drive up the price to an even more
astronomical number.
Financially, with sports rights still exploding, the BCS would be wise
to take the bounty of the first ever Division I-A playoff to the open
market. Who knows what the final number could be with rival networks
bidding. And let's be real, when has the BCS and big time college
football been about anything else but the money. However, that extra
cash may not be worth leaving the friendly confines of ESPN's
umbrella. We saw what happened when Fox got their hands on the BCS,
but there's no doubt they'd be a competitor once again. ESPN is the
unquestioned central hub of college football and on the whole covers
the sport well.
What's most likely to happen? ESPN has to be the odds on favorite
given their investment to college football and the BCS over the
years. They've been very disciplined in rights negotiations over the
last year, even losing a few contracts they long held, but there is no
way Bristol is going to miss out on this history making playoff. ESPN
lost the World Cup to Fox, it won't lose the college football playoff
as well. ESPN isn't just bidding for the present, they're bidding for
the future of an event that may wind up only being surpassed by the
Super Bowl in American sports. Whether they close a deal in the
exclusive negotiating window, or a rival bids them up in the end, ESPN
should be the home of the first college football playoff in 2014. And
they should write a blank check to do it.
[CBSSports.com]
http://www.cbssports.com/collegefootball/blog/dennis-dodd/20890401/espn-puts-an-early-value-on-a-playoff-close-to-500-per-year
> http://www.deadline.com/2012/11/espn-near-deal-for-rights-to-college-...
>
> ESPN Near Deal For Rights To College Football Playoffs: SBJ
> By THE DEADLINE TEAM
>
> If ESPN did bid $500 million per season and win media rights to the
> entire new college football playoff system, that would bring the
> network’s total commitment to the sport to $7.3 billion over 12 years
> beginning in 2014, according to the Sports Business Journal. ESPN
> already has a $215 million deal to air the Rose, Orange and the newly
> minted Sugar bowls and would have the rights all to itself. The report
> stresses there are details still being worked out during ESPN’s
> exclusive negotiating window, which it secured via its $495 million
> BCS rights deal four years ago. The total output would put the value
> of the college football playoffs on par with the rights deal for
> college basketball’s playoff, March Madness. That deal between CBS and
> Turner pays an average of $771 million a year for 14 years.
>
> Under the new football playoff plan approved in June that will start
> after next season, the semifinals pitting the No. 1 vs. the No. 4 seed
> and the No. 2 vs. the No. 3 seed would take place December 31 and
> January 1, respectively. The winners will play in the title game the
> first Monday in January that is six days after the last semifinal
> contests. In 2014-2015, that puts the championship game on January 12,
> 2015. Sites of the semifinal games will rotate among the current major
> BCS bowls, with the title game rotating among winning bid cities, much
> like the Super Bowl or March Madness. The rest of the playoff
> structure is undecided and likely is part of the final discussions now
> taking place.
http://www.awfulannouncing.com/2012-articles/november/college-football-playoff-may-fetch-500-million-per-year-in-new-contract.html
One of the most intriguing questions in televised sports on the
horizon is which network will broadcast the inaugural college football
playoff in 2014. With sports rights fees increasing exponentially
across sports, the popularity of college football, and the
groundbreaking nature of a playoff, it's sure to fetch an enormous
amount of money for everyone involved in college football. Well,
except the student-athletes of course. But hey, everyone else will
get even more insanely rich! Hooray!
A CBSSports.com report from Dennis Dodd has the first real hard news
from potential playoff negotiations. An offer is already on the table
for the four team playoff and it's a mega offer from ESPN approaching
$500 million per year...
"ESPN has offered close to $500 million per year for the college
football playoff, CBSSports.com has learned.
While negotiations remain ongoing, multiple sources confirmed the
amount offered for a four-team playoff beginning after the 2014
season. Discussions are ongoing about the structure of the playoff.
While the figure is not considered a formal opening bid, it does put a
per-year value on a playoff. Using $500 million as a high -- sources
say the ESPN bid isn't quite that high -- a 12-year deal would be
worth between $5 billion and $6 billion through 2026.
If nothing else, we have an indication of the value of a playoff. The
commissioners went into their annual BCS meeting in April thinking the
valuation was at $350 million per year. After listening to
consultants, the value had shot through the roof. Now we have tangible
proof of the windfall awaiting college football.
Currently, Disney/ABC/ESPN pay $155 million annually for the 4 BCS
Bowl games and the Rose Bowl. The Rose Bowl has a $30 million per
year price tag and has a separate deal than the other BCS bowls. That
number is supposed to increase almost threefold to $80 million from
2015-2026 in a deal signed this summer.
http://www.awfulannouncing.com/2012-articles/july/espn-pays-80-million-for-rose-bowl-rights.html
A theoretical $500 million per year price tag would be more than a
threefold increase and pay an incredible $167 million dollars for each
of the three games in a four team playoff. That's more than the
entire fee for all the BCS bowls combined! Keep in mind that NBC just
paid roughly $83 million per year for an entire season of EPL games.
Then again, compared to ESPN's contract for Monday Night Football that
pays $1.9 billion per year at $111 million per game for 17 games, the
total money spent here is a drop in the bucket. After all, Disney
just reported a profit of $1.2 billion dollars in the last quarter
alone and carriage fees for ESPN are being touted as a major reason
why.
http://news.yahoo.com/disney-profit-meets-expectations-lifted-parks-espn-004501038--finance.html
http://www.awfulannouncing.com/2012-articles/october/nbc-wins-english-premier-league-rights-beginning-next-year.html
By the way, $4.88 Billion in revenues for media networks is a
Quarterly number. Have to believe yearly revenue for ESPN alone > $9
Billion. — James Andrew Miller (@ESPNBook) November 9, 2012
The $500 million dollar number was first reported by the Sporting News
during the summer at $5 billion over 10 years, but now it looks to be
coming to reality. It's one thing to have a BCS source speculate
about that number as a possibility, it's completely another for ESPN
to have an offer on the table that approaches that lofty amount.
http://aol.sportingnews.com/ncaa-football/story/2012-06-25/bcs-meetings-four-team-playoff-tv-contract-5-billion
ESPN has an exclusive 30 day negotiating window with the BCS to win
rights to the playoff, but the CBS report doesn't make note of whether
that window has actually opened. The major question will be whether
or not the BCS takes ESPN's great offer that is surely on the table or
wait to open up the market and drive up the price to an even more
astronomical number.
Financially, with sports rights still exploding, the BCS would be wise
to take the bounty of the first ever Division I-A playoff to the open
market. Who knows what the final number could be with rival networks
bidding. And let's be real, when has the BCS and big time college
football been about anything else but the money. However, that extra
cash may not be worth leaving the friendly confines of ESPN's
umbrella. We saw what happened when Fox got their hands on the BCS,
but there's no doubt they'd be a competitor once again. ESPN is the
unquestioned central hub of college football and on the whole covers
the sport well.
What's most likely to happen? ESPN has to be the odds on favorite
given their investment to college football and the BCS over the
years. They've been very disciplined in rights negotiations over the
last year, even losing a few contracts they long held, but there is no
way Bristol is going to miss out on this history making playoff. ESPN
lost the World Cup to Fox, it won't lose the college football playoff
as well. ESPN isn't just bidding for the present, they're bidding for
the future of an event that may wind up only being surpassed by the
Super Bowl in American sports. Whether they close a deal in the
exclusive negotiating window, or a rival bids them up in the end, ESPN
should be the home of the first college football playoff in 2014. And
they should write a blank check to do it.
[CBSSports.com]
http://www.cbssports.com/collegefootball/blog/dennis-dodd/20890401/espn-puts-an-early-value-on-a-playoff-close-to-500-per-year
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