ESPN's 'lowball' offer triggered Big Ten expansion
TMC
Failed negotiation also led to Big Ten Network
July 01, 2011 | By Teddy Greenstein, Chicago Tribune reporter
The conventional Big Ten expansion timeline begins Dec. 15, 2009, when
the conference released a statement calling for a "thorough evaluation
of options."
But uncovering the true origin of Nebraska joining the Big Ten — which
becomes official Friday — requires a trip in the way-back machine and
involves champagne and bruised egos.
The date: April 30, 2004. That's when a posse of ESPN executives, led
by Mark Shapiro, John Wildhack, Loren Matthews and Chuck Gerber, met
with conference honchos at Big Ten headquarters in Park Ridge.
The Big Ten's long-term deal with the network had three years
remaining, but Commissioner Jim Delany wanted to dip his toe in the
pool. Turns out the water was ice cold. And shark-infested.
In his early 30s, Shapiro had risen to executive vice president of
programming and production after spearheading the "SportsCentury"
series and boosting ratings with shows such as "Pardon the
Interruption," "Around the Horn," "Dream Job," "Playmakers" and the
World Series of Poker.
Shapiro also was a cutthroat negotiator, as chronicled in the book
"Those Guys Have All the Fun: Inside the World of ESPN," and his style
rankled the likes of NHL Commissioner Gary Bettman and the NBA's David
Stern.
An amiable session in which the Big Ten and ESPN cleaned up
"housekeeping matters" — schedules and announcers — took a nasty turn
at the one-hour mark. That's when talk turned to a contract extension,
a negotiating session that went nowhere. Fast.
"The shortest one I ever had," Delany told the Tribune. "He lowballed
us and said: 'Take it or leave it. If you don't take our offer, you
are rolling the dice.' I said: 'Consider them rolled.' "
Delany had warned ESPN officials that without a significant rights-fee
increase, he would try to launch a new channel that would pose
competition both for TV viewers and the Big Ten's inventory of games:
the Big Ten Network.
"He threw his weight around," Shapiro said in a telephone interview,
"and said, 'I'm going to get my big (rights-fee) increase and start my
own network.' Had ESPN stepped up and paid BCS-type dollars, I think
we could have prevented the network. In retrospect, that might have
been the right thing to do. Jim is making a nice penny on that."
Said Delany: "If Mark had presented a fair offer, we would have signed
it. And there would not be a Big Ten Network."
The BTN, profitable in its second year, doled out about $7 million to
each Big Ten school in 2009-10. Without that chunk of a $22 million
per school TV revenue distribution pie, the conference might not have
had schools such as Nebraska thirsting for an invitation.
The network's formation also encouraged new thinking from the
universities' typically conservative presidents and chancellors. A
12th team would lead to two divisions and a conference championship
game in football and another giant payday. Fox purchased the rights to
the first six title games for between $20 million and $25 million per
season.
Said Delany: "The Big Ten Network was a factor, but I think we still
would have expanded. You can take a different tack."
Shapiro, an Iowa and Glenbrook South alumnus, called adding Nebraska a
"genius" move: "You're taking one of the most storied institutions in
the history of college football and plunking it into one of the best
conferences. Iowa-Nebraska will become a rivalry overnight, and
Michigan and Ohio State will play every year. It's a dream showcase."
Shapiro left ESPN in October 2005 for a $10 million signing bonus from
Redskins owner Dan Snyder to run the Six Flags amusement parks. He's
now the CEO of Dick Clark Productions and consults for the NFL Network
and sits on the board of the Tribune Company.
In 2006, Delany went back to the negotiating table with Wildhack and
executives George Bodenheimer and John Skipper. They hammered out a 10-
year, $1 billion deal for roughly 40 football and 60 men's basketball
games. Another 35 to 36 football games and more than 100 men's
basketball games went to the BTN, which launched Aug. 30, 2007.
Feeling emboldened, Delany sent a package to Shapiro that included
champagne and a note. Shapiro said the note read: "See, I did it."
"My reaction was: Who does that?" Shapiro said. "It was so juvenile. I
sent the note to Bodenheimer and poured the champagne down the drain."
Delany said Shapiro's recollection of the note isn't accurate: "That's
not how I would express myself. What I wrote was tongue-in-cheek. I
believe it was: 'Enjoy the champagne while enjoying the network.'
"It wasn't juvenile at all. We did toast to Mark, and I was thanking
him. If it hadn't been for him, we never would have pushed ourselves
to do (the Big Ten Network). It was a continuation of the
conversation. He left (ESPN), so I didn't get to tell him that in
person."
Said Shapiro: "In every negotiation with Jim, there is a potential for
fireworks. He's incapable of ordering a la carte. And in terms of this
deal with ESPN and bringing Nebraska in and launching the network, he
got the buffet. To his credit, he got it all."
He didn't even have to spring for the champagne.
"It was a pre-existing bottle in a cooler," Delany said. "It was a re-
gift."
Twitter @TeddyGreenstein
xyzzy
> http://articles.chicagotribune.com/2011-07-01/sports/ct-spt-0701-big-...
>
> Twitter @TeddyGreenstein
Interesting article, thanks.
Willie Mays Hayes
A couple of huge egos involved.
steve jaros
> n 7/4/2011 2:52 AM, TMC wrote:
> http://articles.chicagotribune.com/2011-07-01/sports/ct-spt-0701-big-ten-nebraska--20110701_1_commissioner-jim-delany-john-wildhack-espn-officials
>
> Failed negotiation also led to Big Ten Network
>
> July 01, 2011 | By Teddy Greenstein, Chicago Tribune reporter
>
> The conventional Big Ten expansion timeline begins Dec. 15, 2009, when
> the conference released a statement calling for a "thorough evaluation
> of options."
>
> But uncovering the true origin of Nebraska joining the Big Ten � which
> becomes official Friday � requires a trip in the way-back machine and
> involves champagne and bruised egos.
>
> The date: April 30, 2004. That's when a posse of ESPN executives, led
> by Mark Shapiro, John Wildhack, Loren Matthews and Chuck Gerber, met
> with conference honchos at Big Ten headquarters in Park Ridge.
>
> The Big Ten's long-term deal with the network had three years
> remaining, but Commissioner Jim Delany wanted to dip his toe in the
> pool. Turns out the water was ice cold. And shark-infested.
>
> In his early 30s, Shapiro had risen to executive vice president of
> programming and production after spearheading the "SportsCentury"
> series and boosting ratings with shows such as "Pardon the
> Interruption," "Around the Horn," "Dream Job," "Playmakers" and the
> World Series of Poker.
>
> Shapiro also was a cutthroat negotiator, as chronicled in the book
> "Those Guys Have All the Fun: Inside the World of ESPN," and his style
> rankled the likes of NHL Commissioner Gary Bettman and the NBA's David
> Stern.
>
> An amiable session in which the Big Ten and ESPN cleaned up
> "housekeeping matters" � schedules and announcers � took a nasty turn
Tonawanda Kardex
Indeed.
J.C. Watts Enslin
Yeah, but while Delany is still running the B10, Shapiro is running
Dick Clarke Productions.
Jon
TimV
> On Jul 4, 9:53 am, Willie Mays Hayes<jimbrown...@yahoo.com> wrote:
>> On Jul 4, 9:40 am, xyzzy<xyzzy.d...@gmail.com> wrote:
>>
>>
>>
>>
>>
>>> On Jul 4, 3:52 am, TMC<tmc1...@gmail.com> wrote:
>>
>>>> http://articles.chicagotribune.com/2011-07-01/sports/ct-spt-0701-big-...
>>
>>>> Failed negotiation also led to Big Ten Network
>>
>>>> July 01, 2011 | By Teddy Greenstein, Chicago Tribune reporter
>>
>>>> The conventional Big Ten expansion timeline begins Dec. 15, 2009, when
>>>> the conference released a statement calling for a "thorough evaluation
>>>> of options."
>>
>>>> involves champagne and bruised egos.
>>
>>>> The date: April 30, 2004. That's when a posse of ESPN executives, led
>>>> by Mark Shapiro, John Wildhack, Loren Matthews and Chuck Gerber, met
>>>> with conference honchos at Big Ten headquarters in Park Ridge.
>>
>>>> The Big Ten's long-term deal with the network had three years
>>>> remaining, but Commissioner Jim Delany wanted to dip his toe in the
>>>> pool. Turns out the water was ice cold. And shark-infested.
>>
>>>> In his early 30s, Shapiro had risen to executive vice president of
>>>> programming and production after spearheading the "SportsCentury"
>>>> series and boosting ratings with shows such as "Pardon the
>>>> Interruption," "Around the Horn," "Dream Job," "Playmakers" and the
>>>> World Series of Poker.
>>
>>>> Shapiro also was a cutthroat negotiator, as chronicled in the book
>>>> "Those Guys Have All the Fun: Inside the World of ESPN," and his style
>>>> rankled the likes of NHL Commissioner Gary Bettman and the NBA's David
>>>> Stern.
>>
>>>> An amiable session in which the Big Ten and ESPN cleaned up
It wasn't like he was pushed out. He took a lot more money to run DCP
and Six Flags. If Dan Snyder offers you stupid money, go for it.
T
Willie Mays Hayes
> On 7/4/11 11:24 AM, J.C. Watts Enslin wrote:
>
>
>
>
>
> > On Jul 4, 9:53 am, Willie Mays Hayes<jimbrown...@yahoo.com> wrote:
> >> On Jul 4, 9:40 am, xyzzy<xyzzy.d...@gmail.com> wrote:
>
> >>> On Jul 4, 3:52 am, TMC<tmc1...@gmail.com> wrote:
>
> >>>>http://articles.chicagotribune.com/2011-07-01/sports/ct-spt-0701-big-...
>
> >>>> Failed negotiation also led to Big Ten Network
>
> >>>> July 01, 2011 | By Teddy Greenstein, Chicago Tribune reporter
>
> >>>> The conventional Big Ten expansion timeline begins Dec. 15, 2009, when
> >>>> the conference released a statement calling for a "thorough evaluation
> >>>> of options."
>
> >>>> becomes official Friday — requires a trip in the way-back machine and
> >>>> involves champagne and bruised egos.
>
> >>>> The date: April 30, 2004. That's when a posse of ESPN executives, led
> >>>> by Mark Shapiro, John Wildhack, Loren Matthews and Chuck Gerber, met
> >>>> with conference honchos at Big Ten headquarters in Park Ridge.
>
> >>>> The Big Ten's long-term deal with the network had three years
> >>>> remaining, but Commissioner Jim Delany wanted to dip his toe in the
> >>>> pool. Turns out the water was ice cold. And shark-infested.
>
> >>>> In his early 30s, Shapiro had risen to executive vice president of
> >>>> programming and production after spearheading the "SportsCentury"
> >>>> series and boosting ratings with shows such as "Pardon the
> >>>> Interruption," "Around the Horn," "Dream Job," "Playmakers" and the
> >>>> World Series of Poker.
>
> >>>> Shapiro also was a cutthroat negotiator, as chronicled in the book
> >>>> "Those Guys Have All the Fun: Inside the World of ESPN," and his style
> >>>> rankled the likes of NHL Commissioner Gary Bettman and the NBA's David
> >>>> Stern.
>
> >>>> An amiable session in which the Big Ten and ESPN cleaned up
I wondered about that.
J.C. Watts Enslin
>
>
>
>
>
> > On Jul 4, 9:53 am, Willie Mays Hayes<jimbrown...@yahoo.com> wrote:
> >> On Jul 4, 9:40 am, xyzzy<xyzzy.d...@gmail.com> wrote:
>
> >>> On Jul 4, 3:52 am, TMC<tmc1...@gmail.com> wrote:
>
> >>>>http://articles.chicagotribune.com/2011-07-01/sports/ct-spt-0701-big-...
>
> >>>> Failed negotiation also led to Big Ten Network
>
> >>>> July 01, 2011 | By Teddy Greenstein, Chicago Tribune reporter
>
> >>>> The conventional Big Ten expansion timeline begins Dec. 15, 2009, when
> >>>> the conference released a statement calling for a "thorough evaluation
> >>>> of options."
>
> >>>> becomes official Friday — requires a trip in the way-back machine and
> >>>> involves champagne and bruised egos.
>
> >>>> The date: April 30, 2004. That's when a posse of ESPN executives, led
> >>>> by Mark Shapiro, John Wildhack, Loren Matthews and Chuck Gerber, met
> >>>> with conference honchos at Big Ten headquarters in Park Ridge.
>
> >>>> The Big Ten's long-term deal with the network had three years
> >>>> remaining, but Commissioner Jim Delany wanted to dip his toe in the
> >>>> pool. Turns out the water was ice cold. And shark-infested.
>
> >>>> In his early 30s, Shapiro had risen to executive vice president of
> >>>> programming and production after spearheading the "SportsCentury"
> >>>> series and boosting ratings with shows such as "Pardon the
> >>>> Interruption," "Around the Horn," "Dream Job," "Playmakers" and the
> >>>> World Series of Poker.
>
> >>>> Shapiro also was a cutthroat negotiator, as chronicled in the book
> >>>> "Those Guys Have All the Fun: Inside the World of ESPN," and his style
> >>>> rankled the likes of NHL Commissioner Gary Bettman and the NBA's David
> >>>> Stern.
>
> >>>> An amiable session in which the Big Ten and ESPN cleaned up
On the one level I understand that. But I also understand that seven
years later, the B10 got what they wanted.
TimV
> On Jul 4, 1:05 pm, TimV<nos...@nospam.com> wrote:
>> On 7/4/11 11:24 AM, J.C. Watts Enslin wrote:
>>
>>
>>
>>
>>
>>> On Jul 4, 9:53 am, Willie Mays Hayes<jimbrown...@yahoo.com> wrote:
>>>> On Jul 4, 9:40 am, xyzzy<xyzzy.d...@gmail.com> wrote:
>>
>>>>> On Jul 4, 3:52 am, TMC<tmc1...@gmail.com> wrote:
>>
>>>>>> http://articles.chicagotribune.com/2011-07-01/sports/ct-spt-0701-big-...
>>
>>>>>> Failed negotiation also led to Big Ten Network
>>
>>>>>> July 01, 2011 | By Teddy Greenstein, Chicago Tribune reporter
>>
>>>>>> The conventional Big Ten expansion timeline begins Dec. 15, 2009, when
>>>>>> the conference released a statement calling for a "thorough evaluation
>>>>>> of options."
>>
>>>>>> involves champagne and bruised egos.
>>
>>>>>> The date: April 30, 2004. That's when a posse of ESPN executives, led
>>>>>> by Mark Shapiro, John Wildhack, Loren Matthews and Chuck Gerber, met
>>>>>> with conference honchos at Big Ten headquarters in Park Ridge.
>>
>>>>>> The Big Ten's long-term deal with the network had three years
>>>>>> remaining, but Commissioner Jim Delany wanted to dip his toe in the
>>>>>> pool. Turns out the water was ice cold. And shark-infested.
>>
>>>>>> In his early 30s, Shapiro had risen to executive vice president of
>>>>>> programming and production after spearheading the "SportsCentury"
>>>>>> series and boosting ratings with shows such as "Pardon the
>>>>>> Interruption," "Around the Horn," "Dream Job," "Playmakers" and the
>>>>>> World Series of Poker.
>>
>>>>>> Shapiro also was a cutthroat negotiator, as chronicled in the book
>>>>>> "Those Guys Have All the Fun: Inside the World of ESPN," and his style
>>>>>> rankled the likes of NHL Commissioner Gary Bettman and the NBA's David
>>>>>> Stern.
>>
>>>>>> An amiable session in which the Big Ten and ESPN cleaned up
In the end though, it turns out to be a win-win. ESPN still gets the
best games at a reduced rate. BigMath gets its network and lots of
rights fees. I think I've tuned into BTN once for something actually
compelling, but I also don't live in the BTN footprint.
T
Goro
>On 7/4/11 3:23 PM, J.C. Watts Enslin wrote:
>> On Jul 4, 1:05 pm, TimV<nos...@nospam.com> wrote:
>>> On 7/4/11 11:24 AM, J.C. Watts Enslin wrote:
>>>
>>>
>>>
>>>
>>>
>>>> On Jul 4, 9:53 am, Willie Mays Hayes<jimbrown...@yahoo.com> wrote:
>>>>> On Jul 4, 9:40 am, xyzzy<xyzzy.d...@gmail.com> wrote:
>>>
>>>>>> On Jul 4, 3:52 am, TMC<tmc1...@gmail.com> wrote:
>>>
>>>>>>> http://articles.chicagotribune.com/2011-07-01/sports/ct-spt-0701-big-...
>>>
>>>>>>> Failed negotiation also led to Big Ten Network
>>>
>>>>>>> July 01, 2011 | By Teddy Greenstein, Chicago Tribune reporter
>>>
>>>>>>> The conventional Big Ten expansion timeline begins Dec. 15, 2009, when
>>>>>>> the conference released a statement calling for a "thorough evaluation
>>>>>>> of options."
>>>
>>> It wasn't like he was pushed out. He took a lot more money to run DCP
>>> and Six Flags. If Dan Snyder offers you stupid money, go for it.
>>
>>
>> On the one level I understand that. But I also understand that seven
>> years later, the B10 got what they wanted.
>
>In the end though, it turns out to be a win-win. ESPN still gets the
>best games at a reduced rate. BigMath gets its network and lots of
>rights fees. I think I've tuned into BTN once for something actually
>compelling, but I also don't live in the BTN footprint.
>
>T
We might not know the full-range of the ramifications for a few years
yet. What will the landscape be like at the end of this current
contract? It might be in a place where BTN may have enough
coverage/leverage to not renew with ESPN. If other conferences follow
suit, ESPN might end up hurting. Yeah, it's down the road, but
sow/reap and all...
-goro-
J.C. Watts Enslin
Fox runs BTN. Fox is broadcasting the B10 championship game. Look
for them to make a big offer when the ESPN contract is up.
TimV
It would seem illogical for B10 to leave a national audience for what
amounts to a barely national RSN. For the BTN to get truly big, they
would have to expand beyond their own conference, but what conference
would be willing to go along with that? So that leaves going to
Fox/NBC/CBS as the only alternative. Whoever buys the rights will still
want the premier games. ESPN is only really afraid of the likes of these
characters.
I'd liken the whole thing to outlet stores. A Macys or Dillards would be
perfectly fine with a company selling their seconds and remainders as
long as they receive exclusivity with the supplier. ESPN decided they
didn't want to pay for all the B10's crap, but still got a nice deal for
the best of the wares. BTN can feel free to subject us to
Indiana-Illinois and Purdue-Northwestern all they want.
Now that I've channeled Mia for an analogy, I think I might go chop down
a tree or something.
T
Damon Hynes, Cyclone Ranger
> and Six Flags. If Dan Snyder offers you stupid money, go for it.
>
> T
Exactly--a fool and his money are both friends of mine...
Remysun
upset loss to Appalachian State. ON Football Saturdays, it becomes a
Sunday Ticket event, depending on digital cable capacities to make
sure everyone gets the game they want. The rest of time, it is a
regional brand of ESPN U.
It looks like the Pac-10 will follow suit with a network. If the other
major conferences follow and BTN has to expand, the geographical fit
would be the MAC conference, unless the smaller conferences start to
get some love due to the big boys headingg out on their own.