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The Longhorn Network

Discussion in 'Colorado Football Message Board' started by PhillyBuff, Sep 22, 2011.

  1. PhillyBuff

    PhillyBuff Club Member Club Member

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    I do not understand this very well. I did go to ShaggyBevo and read some threads over there (saw Snow get lit up quite a bit).

    I do not understand some things about this network.

    They claim that they won't share any revenues because it is their branded network. Ok... I get it... if they were going to show practices, campus stuff.. anything that is UT ONLY.

    However, as soon as they show another school, like Kansas, then they ARE using another school's brand on their network. I would think that they have to pay for that..... Thus, the team that is being shown has the right to collect money for that. This is why a single school network does not make sense unless thay pay all of the schools that play on their network.

    The NFL has it correct. All of the teams own the footage collectively under the NFL and it is inventoried in NFL Films. If anyone, ESPN, major networks etc, want to show ANYTHING NFL, they have to pay for it.

    I know that ESPN, ABC, FOX, CBS, & NBC pay an annual fee for the use of NFL footage. That is how it works.

    If I were Kansas, I would not allow UT to show my brand on their network without paying for it. They can not show ANYTHING.... even replays or highlights unless it is paid for.

    I have not seen this discussed anywhere....

    Can you see Texas showing highlights with the players from the other team eliminated?

    Snow: feel free to use this argument over at Shag bevo...:nod:
     
  2. Buffnik

    Buffnik Real name isn't Nik Club Member Junta Member

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    Pretty sure that the other team gets money for playing a game on LHN.
     
  3. PhillyBuff

    PhillyBuff Club Member Club Member

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    I would think so... but there is a lot of misinfomation out there on Texas boards. Maybe they just... misremember?
     
  4. BuffNut99

    BuffNut99 Club Member Club Member

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    Whorns appear to be giggly over the prospect of ESPN insisting/requiring that LHN be included in basic cable with ESPN - in other words, every home that has ESPN is also paying for LHN. This seems like a tough sell outside of that large, forsaken state, especially since everyone hates Texas except Texas.
     
  5. PhillyBuff

    PhillyBuff Club Member Club Member

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    This is a problem.... make someone pay for this channel to support a school that might be a direct rival.

    That **** is **** ed up!
     
  6. Buffnik

    Buffnik Real name isn't Nik Club Member Junta Member

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    Good luck with that. ESPN has a lot of leverage, but it's not like ESPN Classic was successful despite all their strong arm tactics.
     
  7. The Guest

    The Guest Guest

    This has been my point from the beginning.

    Dislike of other teams is a force that drives college football. We want to support our team not others.

    So the whole model of perpetuating those rivalries and games to exploit dollars from it, but then tapping into it and expecting those teams to financially support those teams they don't like is fundamentally flawed.

    As a fanbase, we would rather not watch ESPN ever again, rather than pay for it knowing it would somehow support nebraska. That's how fans roll, and that's where ESPN ****ed up, in my opinion.
     
  8. buffedup

    buffedup Cooler than a Popsicle Stand. Club Member

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    I have a good feeling that a lot of executives at major cable operators are alumni from other schools and would not be ok with this type of setup.
     
  9. Lt.Col.FrankSlade

    Lt.Col.FrankSlade Well-Known Member

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    I am pretty sure that the HOME TEAM owns all the rights to television, advertising, etc. The team who visits does get paid by UT (or by the Big 12 conference for a conference game) and I think that payment is what they get in exchange for all their rights.
     
  10. MtnBuff

    MtnBuff Not allowed in Barzil 2 Club Member

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    This is bound to be highly popular with those fans of the Aggies, Red Raiders, and even more with those fans of the Texas schools who are out of the AQ conferences thanks to Texas destruction of the SWC including Rice, SMU, etc.

    Texas is very popular in that state but not as much as they think they are.
     
  11. PhillyBuff

    PhillyBuff Club Member Club Member

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    Under that rule... as a home team hosting Texas, I would not allow them to show my team on their network unless I was paid for that.

    I am really arguing a slippery slope that a one school network does not make sense showing conference games... unless the revenue is shared.

    The fundamental flaw in Texas arguing... "it is our network" is that they need another team to play them to have a game.
     
  12. Darth Snow

    Darth Snow Hawaiian Buffalo Club Member Junta Member

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    Yes, I misquoted some BCS stats (forgot it was bowl alliance in the mid 90's), and they jumped all over me while ignoring the actual point because that would hurt their vision of themselves. I don't need any help dissing the longhorn network, about half of them hate it themselves :lol:
     
  13. Lt.Col.FrankSlade

    Lt.Col.FrankSlade Well-Known Member

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    Well, that's the thing. I think the only games Texas owns the rights to are those games played in Austin.

    Of course, UT might be paying the other conference members something to have their games, too. They've certainly got the money for it.


    Also -- keep in mind that the network is actually owned by ESPN. So probably anything that ESPN owns the right to (which would include all ABC games, etc.) the LHN can probably broadcast.
     
  14. Cal84

    Cal84 Member

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    So here's what's going on. Any revenue (at this point ad revenue) from games shown on LHN goes to LHN only. At this point since LHN is losing money, more games on LHN just means it loses less money. That means no increase in money to Texass right now from the Kansas game. It does mean a lower burn rate which directly helps ESPN. Of course Texass still wants more games on LHN because the more high rating programming it can carry, the more pressure there is on cable/sat co.'s to carry LHN. Which eventually would result in subscriber revenue to LHN and then at some point LHN might cross breakeven and Texass would share in the profits.

    What does Kansas get? Well B12 regs say that in order for a conference game to get onto LHN, the other school must approve of it and of course the game must not be selected as Tier 1 or Tier 2 content by Fox/ESPN. In order to make that happen, ESPN paid Fox $4mm to not pick that game to broadcast. ESPN also paid KU a sum, I think it was in the multi-million dollar range as well, for their approval. So it was all voluntary. But look at the consequences for KU's fan base. Because LHN is not carried in Kansas, their fans don't get to watch the game unless they can pick up a scratchy over the air broadcast which will come from some undetermined local broadcaster. The overall treatment of the KU fanbase here is no different from when Georgia plays an FCS team like Coastal Carolina and pays them $1mm to show up. Except this time it's being done with your own conference teams. What would Buff fans think if they found out that their game with USC wouldn't be available on cable/sat and they'd need to get rabbit ears to catch the game (if even possible)? And you already know what the excuse/rationale from KU/UT is. KU: we needed the money. UT: suck it down biatches!
     
  15. Darth Snow

    Darth Snow Hawaiian Buffalo Club Member Junta Member

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    I love that UT may never see a dime from the network that they love so much to screw themselves over by holding it so dear.
     
  16. Lt.Col.FrankSlade

    Lt.Col.FrankSlade Well-Known Member

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    I think this information is incorrect. Texas gets paid, regardless of how profitable the LHN is. Texas agreed to a 15 year, $300 million contract with ESPN. Any loss in the distribution of the LHN is on ESPN, not Texas. Whether the LHN has 100,000,000 subscribers or 100 subscribers, I think Texas still gets their money.
     
  17. absinthe

    absinthe Ambitious but rubbish. Club Member Junta Member

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    They had to pay Kansas $4,000,000 to get that game on the LHN.
     
  18. Alfred91

    Alfred91 Club Member Club Member

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    Just reading this says it all about the root cause of all of this **** - ESPN.

    All the schools and conferences are doing what they should - looking out for themselves.

    All things being equal, with 120+ schools in D-1A (or whateverthe****) and multiple conferences, including 6 BCS conferences, competition should, for the most part, equal everything out.

    But, when an external force comes in, throwing weight and money around, trying to make certain schools and conferences 'more equal than others', everything gets unbalanced, conferences and traditional rivalries get destroyed, and you end up with the mess the college football landscape has been in for the 12+ months.

    I know, CBS, Fox, NBC, etc are all involved too, but they're all playing catchup to the real problem - ESPN.

    JMO
     
  19. Lt.Col.FrankSlade

    Lt.Col.FrankSlade Well-Known Member

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    Unfortunately, UT doesn't need to see a dime from the network. They had more money than they knew how to spend BEFORE the LHN came into existence.
     
  20. Darth Snow

    Darth Snow Hawaiian Buffalo Club Member Junta Member

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    Oh, fair enough. but the damage to their rep will be wonderful to behold.
     
  21. SuperiorBuff

    SuperiorBuff Well-Known Member

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    The biggest reason the LHN is a problem is the tremendous face time it could provide uTerus in potential recruits homes. Like Slade says, uTerus already has more money than they can spend. This is a recruiting tool and a network is the impetus to pushing favor towards 1 team.
     
  22. Cal84

    Cal84 Member

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    Well just remember that they are getting $300mm over 20 years (backloaded, but still...) from ESPN to contribute their rights to LHN. So Texass is kind of like the .com inventor who got a deep pocket investor to buy half of his company, even though the company had no employees, no sales, etc. Like the .com inventor Texass still wants the business to take off to monetize his stake in the company. The problem for ESPN and Texass is that it isn't taking off and absent getting some real programming on the channel it won't.
     
  23. Cal84

    Cal84 Member

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    Frank, see my response to SnowBuff (above).
     
  24. Del

    Del Member

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    You can bet its going to be hard as hell for them to get it on AT&T Uverse because the CEO is a Boomer Sooner!!

    http://en.wikipedia.org/wiki/Randall_L._Stephenson
     
  25. ximianKernel

    ximianKernel Member

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    Games that ESPN / ABC own the rights to could possibly be considered Tier1 or Tier2. Especially if the other team is a conference-mate of Texas.
     
  26. BuffsNYC

    BuffsNYC Uptown Club Member

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    Cable television is a dirty business. In most markets, the cable provider has a monopoly (only recently dented by satellite and phone line providers.) That's why they can charge whatever the market will bear. Since most cable has been long since installed, the biggest cost of doing business is paying the networks for the programming. There's been a war in this area for years. Even now the networks are trying to get the cable companies to pay them for local stations whose broadcasts can be received over the air. Cable hasn't traditionally paid for those stations, but ABC, Fox, NBC, and CBS have been trying to change this.

    For a content provider (like ESPN or the LHN), the sweet spot is to get onto a cable company's basic lineup, since the providers are paid per subscriber and there are millions of subscribers to basic cable. So ESPN gets its fee for every basic cable subscriber, which is a ****load of cash. But if ESPNU is only available on a higher tier, then ESPN gets a lot fewer dollars for ESPNU because of the fewer subscribers.

    There is no ****ing way the LHN gets on a basic tier anywhere but Texas. Even in Texas, the cable companies will fight tooth and nail to keep it on an upper tier. Check out the Big Ten network on your cable system--unless you're in the Midwest it's on a sports tier. ESPN can try to throw their weight around to get the LHN on cable, but ESPN's weight is counteracted by the significant weight of the cable companies (who have had a license to print money for decades.)
     
  27. MtnBuff

    MtnBuff Not allowed in Barzil 2 Club Member

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    Even in Texas this is going to be an uphill battle for LHN. Cable subscriber rates are declining, more people are disconnecting and going to over air programing and streaming content. The cable and satelite companies are finding that subscribers are very price sensitive to the basic tier price prefering to choose what programing they pay extra for. Whichever provider picks up this channel is going to have a lot of people who are not interested in the pass on cost, even if the base cost to the provider is only 40 cents.

    The cable companies are the ones losing the biggest number of subscribers, the satelite companies are not seeing growth but are retaining subscribers at a higher rate than landlined providers, mainly based on cost of service. The satelite companies have already shown that they are willing to push back against increasing rates.

    ESPN may have bitten off a bigger piece than they can chew on this one.
     
  28. BlackNGold

    BlackNGold Club Member Club Member

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    This is not correct for teams in a conference. The Home Team's conference owns the rights to Television, advertising, etc. This even covers the OOC games. The conference negotiates the TV contracts. This is actually the crux of the LHN issue, it goes outside of the Conference TV contract and only benefits one team. I am sure the Big 12 gets paid something for the conference game on the LHN but it would not be a lot.
     
  29. Buffnik

    Buffnik Real name isn't Nik Club Member Junta Member

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    The Big 12 does not own the 3rd Tier rights to games. That's the major sticking point for Texas and the Pac-12. In the Pac-12, they're owned by the conference and Texas refused to roll their rights in.
     
  30. Denver_sc

    Denver_sc Club Member Club Member

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    See: Creepy, Racist statue garden.
     

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