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More Pac-12 Media Deals

Discussion in 'Colorado Football Message Board' started by Buffnik, Nov 7, 2011.

  1. Buffnik

    Buffnik Real name isn't Nik Club Member Junta Member

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    From the Ted Miller ESPN Pac-12 blog:

    The new Pac-12 Enterprises has reached an agreement that will give it control of third-tier TV rights -- games that are not picked up by the Pac-12’s primary media partners, Fox and ESPN -- as well as digital and sponsorship rights in the wireless and multiplatform video distributor categories.

    Or as the release from the conference says: "[The conference will ] aggregate and control specific school rights, including all local audio-visual and website rights, and key sponsorship categories, putting the conference in position to create an integrated multi-media marketing platform and the first-ever collegiate website portal, it was announced today."

    It's a big deal. Obviously the Pac-12 believes it can generate significant revenue by controlling as much content as possible in as many platforms as possible.

    In fact, the Pac-12 will pay IMG College and Learfield sports around $15 million a year for the rights, according to the Sports Business Daily.
    The new arrangement positions the conference to put all TV, digital and sponsorship rights owned by the conference under the Pac-12 Enterprises banner, making it the first league to control and bundle all of those rights. Pac-12 Enterprises President Gary Stevenson will oversee the integration of those rights.​
    Here's the official release from the conference.

    With unprecedented collaboration, the Pac-12 has reached an agreement with Learfield Sports and IMG College to aggregate andcontrol specific school rights, including all local audio-visual and website rights, and key sponsorship categories, putting the Conference in position to create an integrated multi-media marketing platform and the first-ever collegiate website portal, it was announced today.

    “IMG College and Learfield Sports are long-standing and important partners of our schools and being able to work together with a shared vision for the future will elevate the value and long term strength of the Pac-12 Conference,” Pac-12 Commissioner Larry Scott said. “It’s a win-win for everyone involved.”

    As part of the agreement, IMG College and Learfield Sports retain all local, national and satellite radio rights, publishing, hospitality, in-stadium, arena and other sponsorship assets dictated by each member institution. Learfield Sports manages Colorado, Oregon State and Stanford. IMG College partners with six Pac-12 schools, including Arizona, Arizona State,California, Oregon, UCLA and Washington State. In addition, IMG College represents Washington in certain sponsorship sales areas. The Conference had already secured these specific rights from USC, Utah and Washington.

    "We've been privileged to work with seven outstanding member institutions in the Pac-12 for a number of years and enjoy excellent relationships with each," said Ben Sutton, President of IMG College. "These fine universities are an extraordinarily important part of the national platform we are building at IMG College, and we look forward to working together with Larry Scott and the athletic directors on those campuses to build an even stronger national brand and profile for the Pac-12."

    "We're excited to collaborate with the conference on this creative initiative. This is an important step for us and the conference as we work to create substantial value for the schools and our partnerships. Larry's leadership on this effort was critical and facilitated the highest value outcome for the conference and its members," said Learfield's President and Chief Executive Officer Greg Brown. "This marks a significant cooperative effort by all parties involved."

    By introducing a conference controlled website portal, where Pac-12 Enterprises will host, manage and market all members’ official athletic websites, the Pac-12 will provide a common digital platform that all member universities will be able to leverage as soon as their current deals expire. This groundbreaking approach will let the Conference foster innovation across a common technology platform, with an aggregated audience, while member schools can focus on developing engaging digital content chronicling the accomplishments of their talented student-athletes. In addition, IMG College and Learfield Sports will continue to sell certain advertising inventory on school websites in collaboration with the Pac-12 Conference.

    This marks the second significant aggregation of media rights by the Pac-12. In October 2010, Scott announced the pooling offirst and second tier media rights, which led to the landmark media rights agreement with ESPN and Fox, as well as the creation of the Pac-12 Networks, a collection of one national and six regional networks.
     
  2. btbuff

    btbuff It's an inside joke Club Member

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    Interesting 15m to keep rights. Sometimes I wonder if Larry Scott is ahead of his time. Certainly ahead of the slow minded imbecile who run CU.
     
  3. sackman

    sackman Club Member Club Member

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    I tend to be very provincial in my thinking. Who can tell me how this impacts CU?
     
  4. buff4bcs1985

    buff4bcs1985 Hail to the King

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    or allbuffs.com... do we lose our video?
     
  5. Lt.Col.FrankSlade

    Lt.Col.FrankSlade Well-Known Member

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    If it gets cubuffs.com out of the hands of CU - it is a good thing. That website is terrible.
     
  6. CUFan

    CUFan Welcome back Club Member

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    Agreed. It would be best if it took all marketing out of CU's hands. It would better than what little they do now.
     
  7. Buffnik

    Buffnik Real name isn't Nik Club Member Junta Member

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    It pulls together 3rd tier rights under the Pac-12 marketing umbrella. Rather than all 12 of us going our own way to get what we can, it packages them and divides evenly.

    I think this is good for the product as a whole from a branding perspective, which benefits CU.

    I also trust the Pac-12 to do a better job of marketing than CU would, so I think our share of a large pie will be much larger than controlling 100% of the CU pie.
     
  8. boulder77

    boulder77 Certified Organic Club Member

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    If Larry Scott thinks it is a good idea, then I'm pretty much for it.
     
  9. CanadianDuck

    CanadianDuck Well-Known Member

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    ^What this guy said. Larry Scott seems to know what he is doing and I have no reason to doubt anything he does.
     
  10. Cal84

    Cal84 Member

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    Think of it this way. It was expected that LHN would cost $26 mm per year to operate (this before they realized they had to start buying more games to broadcast). of that $26 mm, $11 mm was royalty payments to Texass. So figure $15mm per year to turn on the lights, hire talent, operate trucks, etc. A P12 Regional network would presumably have similar costs. Tack on the $15 mm in rights payments, and you get a P12 Regional network that costs about $30 mm per year to operate. In order to payout say, $10 mm per P12 school, P12 Regional would need to have revenue of $150 mm per year. Is that feasible? Well....

    probably not in the first couple of years, but unlike LHN, P12 Regional will not have to pay Tier 1/2 rights holders to let games fall to Tier 3 status so it can broadcast them. P12 Regional expects to broadcast 33 football games a year. That's pretty similar to what B1G does. B1G is expected to payout about $8mm per school this year. B1G has already stated it expects that figure to rise by around 15% a year for the next few years. Which means that within about 3 years, B1G per school payouts will exceed what Texass is receiving from LHN/ESPN (it gets $10.98mm per year increasing at 3% per year). That's the sort of results that P12 Regional is aiming for.
     
  11. Darth Snow

    Darth Snow Hawaiian Buffalo Club Member Junta Member

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    pretty sure your cost estimate of just doubling the cost of the original studio won't be accurate. I highly doubt the pac 12 regional networks will each have separate studios etc. More likely they will have different programming, and maybe some different intros/visuals. Otherwise, don't see how those costs work out.
     
  12. Cal84

    Cal84 Member

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    I didn't double the fixed costs of the Longhorn Network. Reread the post. I kept those the same at $15mm per year, because I too doubt there will be separate studios. The total operating costs for P12 only get to $30mm per year because the T3 rights cost $15mm per year. Which gets the P12 network 33 football games. Compare that to LHN which paid $9mm for the Missouri game alone.
     
  13. pabuff

    pabuff Member

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    Bufnik and Cal84, thanks for the rundown. Every time something like this comes up, it looks like CU's move to the Pac-12 is better and better. And, wouldn't you say that a deal like this makes it even less likely that there will ever be a Pac-16 trying to integrate Texas and their network into the fold?
     
  14. Buffnik

    Buffnik Real name isn't Nik Club Member Junta Member

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    No way on Texas. I think if the Pac-12 ever becomes the Pac-16 it's going to be another route for adding 4. Hopefully it takes over a decade. In that time, we could be looking at schools in the west having grown and improved academics enough to be in position. It may not seem realistic in 2011, but in 2031 as population has continued to migrate west it may make complete sense to go with Boise State, UNLV, New Mexico and Texas Tech. Hell, 20 years ago Oregon was a 3-8 team that finished 9th in the Pac-10 and hadn't finished a season in the Top 25 since 1957. You never know.
     
  15. dio

    dio Admin Club Member Junta Member

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    I know TTU is working hard to improve their academics.

    I look forward to CU getting rich
     
  16. HotRack

    HotRack Rez BubbleHead Club Member

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    Erase Boise State from EVER being in the Pac-12 - they do not offer graduate programs. That's an automatic show stopper.

    Great deal negotiaied by LS and the Pac-12 brain trust. If only our administration had any brains at all.:huh:
     
  17. Burrito Palazzo

    Burrito Palazzo huff my smug Club Member

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    Are you serious? Boise has no grad program?
     
  18. Darth Snow

    Darth Snow Hawaiian Buffalo Club Member Junta Member

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    They were a Juco like 20 years ago.
     
  19. Burrito Palazzo

    Burrito Palazzo huff my smug Club Member

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    That's an absolute abomination. Seriously? Why has anyone ever given them any respect?
     
  20. GoonieBuff

    GoonieBuff Not really Club Member

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    They only have one way to go. The DUMBEST college student I ever met was a tt student. I think it will take meeting a handful of Rhodes scholars coming out of that school before I can replace the moron tag that student placed on ttu students. I know that's not fair to let the impression made by one person represent the whole university, but until I meet others to change my mind...

    I hope cu does something useful for athletics when spending part of the windfall.
     
  21. HotRack

    HotRack Rez BubbleHead Club Member

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    Dead serious. Even U of I has them beat in actually having a grad program of any sort. Idaho's lack of serious secondary education opportunity is one big strike against the NB96 famiy settling there after the first "retirement."
     
  22. Buffnik

    Buffnik Real name isn't Nik Club Member Junta Member

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    Good thing Larry Scott never met tini.
     
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  23. Timbuff10

    Timbuff10 Member

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    I would like to think Hawaii has a good chance of getting into the PAC eventually. Not quite that bad of a flight from the west coast. I think its about 5 hours from the west coast which isn't a deal breaker at all. San Diego State is another that I would favor eventually with maybe UNLV being another possibility. Anything East of I25 just doesn't make sense to me and ruins the culture of the Conference.
     
  24. sackman

    sackman Club Member Club Member

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    I would like to think that, too. But I don't.
     
  25. Darth Snow

    Darth Snow Hawaiian Buffalo Club Member Junta Member

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    :nod: no chance, sadly.
     
  26. 14ers4me

    14ers4me Member

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    This is not true. My daughter just completed her Masters degree at Boise last June. She was an athletic trainer there for two years after getting her undergraduate at UNC. Don't get me wrong, the academics at Boise are not great and my daughter even said there would have been no way she'd have gone to undergraduate school there, but they do have at least one graduate program.
     
  27. Timbuff10

    Timbuff10 Member

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    Why so? I have always thought Hawaii had a pretty good academic standing. Is it more the size of the student body not being large enough? What holds them back?
     
  28. btbuff

    btbuff It's an inside joke Club Member

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    No one wants to travel to Hawaii and back on a consistent basis. This is even more true during the heart of an academic school year.
     
  29. Cal84

    Cal84 Member

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    Boise has a lot of graduate degree programs. You can see them here: http://www.boisestate.edu/gradcoll/0003.html

    Quality rather than quantity however? Well that's another thing entirely....

    As a practical matter however there is zero chance that Boise would ever be admitted to the P14/16. Why? Because they bring no meaningful TV market. Which means they would dilute the per school TV payout and there isn't a single P12 chancellor who will willingly vote to decrease his/her schools take.
     
  30. HotRack

    HotRack Rez BubbleHead Club Member

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    Well, that's a fairly recent development since we lived there...

    Must've thrown them together real quick so they could be looked at by BCS conferences. My apologies on my previous statement - need to stop relying on past history/experience.
     

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