Today, in money

There appears to be a growing revenue gap that threatens to widen the divide — not between the haves and have nots, but between the haves and haves.  Jon Wilner lays it out:

Fiscal year 2015 school distributions (all figures confirmed):

SEC: $32.7 million
Big Ten: $32.4 million
Pac-12: $25.1 million

Fiscal year 2016 school distributions

SEC: $40 million (confirmed)
Big Ten: $35 million (approximate)
Pac-12: $27 million (approximate)

That looks bad … that is bad … but it’s about to get much worse for the Pac-12.

Remember: The Big Ten’s new Tier 1 deal begins in 2017-18, and it’s also a whopper, averaging $440 million per year.

Which brings us to …

Fiscal year 2017-18 school distributions …

Big Ten: $45 million (estimate)
SEC: $43 million (estimate)
Pac-12: $31 million (estimate)

Yeah, I can see how that would be perceived as a problem.  And the problem isn’t exclusive to the Pac-12; it extends similarly to the ACC and Big 12.

All of which has led to some understandable back patting.

Props to Jim Delany for riding the television spending tidal wave like a Los Angeles weed dealer with a surfing hobby. The B1G is in prime position to loot the jewels from the Big 12’s vault whenever that ponzi scheme collapses.

However, it might be worth considering the possibility of more than one ponzi scheme out there.

Walt Disney Co.’s struggles with ESPN took center stage again Tuesday as the entertainment giant blamed falling viewership and advertising for lower sales and profit.

Revenue at the Burbank, California-based company shrank 3 percent to $14.8 billion in the first quarter ended Dec. 31, Disney said Tuesday in a statement. That missed the $15.3 billion average of analysts’ estimates compiled by Bloomberg.

A decline in profit at ESPN, which had fewer college bowl games and lower viewership, dragged down results in cable TV — which is by far Disney’s largest business. With the highest subscriber rates in pay TV, Disney’s sports network is especially at risk of losing revenue as cable audiences cancel subscriptions for online services or sign up for so-called skinny bundles that don’t play up sports programming.

Disney also blamed higher programming costs at ESPN…

Oh, I’m sure it’ll work out.  Delany and Sankey aren’t considered geniuses for nothing, right?

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14 Comments

Filed under College Football, ESPN Is The Devil, It's Just Bidness

14 responses to “Today, in money

  1. Aladawg

    ADGM has this under control with his new fund raising hire. The BIG whatever won’t out do his reserve fund.

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  2. W Cobb Dawg

    “A decline in profit at ESPN, which had fewer college bowl games and lower viewership, dragged down results in cable TV”

    You mean that Monday night championship and those 11:00 am bowl games aren’t drawing mass audiences? What’s wrong with fans these days!?

    Like

  3. Cousin Eddie

    OK, I have a question on this.. How much would you be willing to pay for a Pay Per View of each UGA game (Football) if it was broadcast that way? Would it make a difference if you could get the UGA broadcast (radio team) call on the game and not the ESPN talking heads?

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    • Otto

      The trick is the data cap on going internet only. Yes I have tried to get the radio team in place of the Verne or Musburger, I think I might be able to stream it over the computer and connect to the stereo using HDMI then use the auto delay to synch everything.

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    • Macallanlover

      In answer to your question, a lot I suppose. It saves me a ton to not have to go for the viewing experience and put up with all the headaches. I definitely think the $20-50 per game cost, similar to other Pay Per View changes I have seen is very reasonable. If you look at the old cost level for a fight, this is in the same range. I would go higher if necessary, if it got crazy might share with another UGA fan, or go to a very good sports bar.

      The cost might need to varied from $20 to see a ULL/TN Martin to a $100 for an Auburn or LSU type game. I want to see the ULL type game but waiting a few hours until it is available on SECN wouldn’t bother me, probably listen to UGA on the radio while I watch another big CFB game. I wouldn’t pay extra for the UGA broadcast although they would be better with video to let you know the result earlier than 10 seconds after the play was over. They don’t seem to get that for those who cannot “get the picture”.

      I would be willing to pay a high monthly rate for September-December for ESPN and then turn it off if that is an option. Let’s say all ESPN options were $100 a month for four months, that would be a great buy for me. That is a lot of entertainment for someone that watches CFB for over 12 hours every single Saturday, not to mention the Thursday and Friday night games.

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  4. Sanford222view

    ESPN has by far the highest programming rates to providers as well. It has a rate 49% higher than the next most expensive channel which is also sports programming but a regional sports network. ESPN is 174% higher in cost than the most expensive non-sports network, TNT.

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  5. 69Dawg

    Good Ole Comcast started to charge every customer in my area $5.00 per month to help with the cost of regional sports. SEC Network, Fox Fl and Fox Sport South are the only regionals I get. Cord cutting and Sling TV for the win.

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    • Sanford222view

      Actually Disney/ESPN forced carriage of SECN to all providers. It just had different channel placement requirements for those providers outside the SEC footprint. Fox Sports 1 isn’t regional either. That $5 fee would only cover Fox Sports South if that is the only regional sports network they offer in your area. You didn’t have Fox Sports Southeast in addition to FSS?

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  6. Mayor

    I guess the AD and Prez at Maryland and Rutgers aren’t that stupid after all.

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