live chat right now on KC Star with D'armond(SP):
Mike DeArmond:
Was doing some research on that recently. Anticipated new payments from the Big 12 after new TV contracts could be upwards of $20 million per year per school. Today there is reporting out there that the SEC payout per team for simple first and second tier payouts with new TV contracts could be at least $25 million and that an SEC Network designed like the Big Ten Network could bring in an additional $170 million split 14 ways. The SEC, as you know, officially has 13 teams. So take those denials with the skepticism you seem to have
Are these anticipated payments after we negotiate our deal in 2015?
If it's really 20 million per school, yeah, that's really, really disappointing.
what's the current contract per big 12 school? dearmond is pushing to SEC so i'm not sure i'd trust his math.
I honestly don't know where DeArmond is getting those numbers. This is something michigancat posted a while back, and it does a good job of breaking down annual payouts.
http://businessofcollegesports.com/2011/05/05/televison-contract-breakdown/The SEC's current contracts go until the 2023-2024 seasons, and their annual payout is $205 million. Divide that by 12, currently, and the annual school payout is $17 million. Now, there may be some number there that aren't for public consumption, but where they're currently hiding $96 million in total revenue contracts (which equals the eight million dollar gap per school in DeArmond's numbers) is beyond me.
Right now, with the new contracts, we're only two million per year, per school (in the ten team model) behind the SEC
before Tier 1 negotiations based on all public contracts.
Now, if the SEC were to create it's own network, and we weren't, that's one thing, but what would they do that with? Tier 3 rights? ESPN and CBS have them locked for another twelve years. How are they going to net that much money with Volleyball? Practically all of their games are already on the Tier 1 and Tier 2 platform. The only way they do this is if they're allowed to massively restructure their deal with ESPN for Tier 2 rights.
For us to get $20 million per school, annually (assuming ten teams), that means our Tier 1 deal would move from $60 million annually to $110 million, which is only an 83% percent increase, which is roughly 267% less of an increase we saw from Fox. I mean, just assuming we'd double the payout, which seems conservative in this environment, we're looking at a $21 million payout per school.
I mean, sure, my numbers could be way off, but I have no clue where DeArmond is getting this stuff.
