Zero surprise: Fox is going to pay the Big Ten
http://www.sportsbusinessdaily.com/Daily/Closing-Bell/2016/04/19/Big-Ten.aspxFox is close to signing a deal that gives it half of the Big Ten’s available media rights package, according to several sources. Deal terms still are flexible – both in terms of money and rights. However, the two sides have agreed on basic terms that will give Fox the rights to around 25 football games and 50 basketball games that it will carry on both the broadcast channel and FS1 starting in the fall of '17. The deal runs six years and could cost Fox as much as $250M per year, depending on the amount of rights the Big Ten conference puts in its second package.
In a way, that could be good for us because it will elevate the Fox broadcasts and FS1 broadcasts. Bad news is that more games will probably get pushed to FSN or FS2. The other thing is that ESPN may have anticipated this because our allotment of games on ESPN is set to go up in 2016. I think by 6-8 games spread out over the year. That could go up with the rights swapping that ESPN and Fox have.
The other half of those games will go to market for ESPN, CBS, etc. However, I'm guessing that Fox gets first pass, so the other games won't get as much on the open market.
The other big thing to take from this is that ESPN put an underwhelming offer out there because of cost cutting efforts that Disney has forced upon them. We knew that was happening, but it's always interesting to see how this plays out.
For those that are anti-expansion, this is probably a good thing because ESPN certainly isn't going to give us more money, and Fox may be tapped out after this deal.