How much will the network cost me to get?
According to Sports Business Journal, carriers in the 11-state SEC footprint are expected to pay $1.30 per month per subscription. In non-SEC states, the license fee would be only 25 cents, according to SBJ.
How much is the network going to be worth to each school?
It’s hard to count that high.
Based on the rate within SEC states alone, if you multiply $1.30 times 12 months times the estimated 30 million subscribers in that footprint, you get $468 million. That would be $33.4 million per school — per year. And that’s without counting advertising revenue or subscribers from non-SEC states. Factor that in, and the SEC Network could easily be worth $500 million per year or $35.7 million per school once full distribution is achieved.
Easily. And what’s that going to mean for the fan? Ask Joe Alleva.
Currently, each SEC school gets about $20 million per year in TV revenue, so it’s easy to see what a huge impact the network will have on SEC bottom lines. LSU Athletic Director Joe Alleva has said he hopes revenue from the SEC Network will reduce or at least postpone the need for raising ticket prices.
Well, we can always hope. But I think that’s about as likely as a hope that beer sales will reduce or at least postpone the need for raising ticket prices.
At least they’ll be able to afford to fund that tenth football coaching position now. So there’s that.