New AAC TV deal

UCF, Cincinnati, UConn, ECU, Houston, Memphis, South Florida, SMU, Temple, Tulsa
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tpstulane
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Thu Jul 26, 2018 12:48 am

Currently $1.9 million per school. Looking for triple that on new deal.
https://sports.yahoo.com/aac-tv-deal-im ... 01284.html


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Thu Jul 26, 2018 9:18 am

From that article:
"These days, the schools in the AAC are getting somewhere around $2 million a year in television revenue, which means that schools like Clemson and LSU are paying their defensive coordinators more than UCF and Houston are receiving each year in TV revenue."
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Thu Jul 26, 2018 10:28 am

I think the AAC would be doing a great disservice to it's constituents if it signed with ESPN without checking the waters of other networks AND less traditional delivery methods. ESPN is not only bleeding customers (though a significant percentage that cut the cable buy the ESPN streaming services) but it's also suffering from over=paying the P5 schools in the last round of TV negotiations. In other words, the AAC is likely to get less than it's fair share from the next ESPN offer due to ESPN's bad contracts with their P5's.

Amazon? Facebook? Yahoo Sports? There's many more potential buyers out there. Don't go with the one that would need to undervalue AAC Sports due to overpaying the P5 conferences.

Jonathan would have a field day on this topic, if he were to break his silence! Speaking of which, he doesn't post here, but does anyone know if he's ok?
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tpstulane
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Thu Jul 26, 2018 11:26 am

ajcalhoun wrote:
Thu Jul 26, 2018 9:18 am
From that article:
"These days, the schools in the AAC are getting somewhere around $2 million a year in television revenue, which means that schools like Clemson and LSU are paying their defensive coordinators more than UCF and Houston are receiving each year in TV revenue."
Incredible “have/have not” comparison.
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Thu Jul 26, 2018 11:37 am

tpstulane wrote:
Thu Jul 26, 2018 12:48 am
Currently $1.9 million per school. Looking for triple that on new deal.
https://sports.yahoo.com/aac-tv-deal-im ... 01284.html
Not sure how you're arriving at $19 million per school. $126 million contract over seven years divided among how many football schools?
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tpstulane
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Thu Jul 26, 2018 12:35 pm

cajunfanatico wrote:
Thu Jul 26, 2018 11:37 am
tpstulane wrote:
Thu Jul 26, 2018 12:48 am
Currently $1.9 million per school. Looking for triple that on new deal.
https://sports.yahoo.com/aac-tv-deal-im ... 01284.html
Not sure how you're arriving at $19 million per school. $126 million contract over seven years divided among how many football schools?
Look again. There’s a decimal there.
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Thu Jul 26, 2018 3:43 pm

It really all comes down to how many bidders are seriously interested, as it doesn't how much it is worth economically if there are only two organizations at the table bidding on it.
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Thu Jul 26, 2018 5:17 pm

Just for fun speculation: What is the minimum yearly revenue per team we would like to see from our next TV deal ?

I think the question boils down to what is the next goal ? Separate from rest of G5 further ? Enough revenue to entice BYU/Boise/SDSU to join ? Enough $$ to protect our teams from having their HC’s poached?

Obviously close the gap with P5 & have pay equality is the ultimate goal but what’s realistic and what would we be happy with ? $6m ? 10m ? 15m ?

I was in Newport and had conversations with Troy & WF, but was mostly focused on being appalled by the LSU’s hubris. They were extremely transparanet. I wish I had asked how much money will be required to keep our current Athletic department spending where it is and furthermore how big does the deal need to be to keep our conference solvent ? It sure as shit isn’t $1.9m per team with the Big East pay outs coming to an end.

I look forward to hearing everyone’s insights
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Thu Jul 26, 2018 5:27 pm

Bicoastalwave wrote:
Thu Jul 26, 2018 5:17 pm
Just for fun speculation: What is the minimum yearly revenue per team we would like to see from our next TV deal ?

I think the question boils down to what is the next goal ? Separate from rest of G5 further ? Enough revenue to entice BYU/Boise/SDSU to join ? Enough $$ to protect our teams from having their HC’s poached?

Obviously close the gap with P5 & have pay equality is the ultimate goal but what’s realistic and what would we be happy with ? $6m ? 10m ? 15m ?
Discuss
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Thu Jul 26, 2018 6:19 pm

I think we get more exposure with ESPN then other outlets
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Thu Jul 26, 2018 6:21 pm

Bicoastalwave wrote:
Thu Jul 26, 2018 5:17 pm
Just for fun speculation: What is the minimum yearly revenue per team we would like to see from our next TV deal ?

I think the question boils down to what is the next goal ? Separate from rest of G5 further ? Enough revenue to entice BYU/Boise/SDSU to join ? Enough $$ to protect our teams from having their HC’s poached?

Obviously close the gap with P5 & have pay equality is the ultimate goal but what’s realistic and what would we be happy with ? $6m ? 10m ? 15m ?

I was in Newport and had conversations with Troy & WF, but was mostly focused on being appalled by the LSU’s hubris. They were extremely transparanet. I wish I had asked how much money will be required to keep our current Athletic department spending where it is and furthermore how big does the deal need to be to keep our conference solvent ? It sure as sh*t isn’t $1.9m per team with the Big East pay outs coming to an end.

I look forward to hearing everyone’s insights
To hell with exposure, we need the money. And if the CBSSN's, Facebook, Amazon's of the world want to pony up more than ESPN, CYA in a hurry. If they pony up the money, they'll back their investment with marketing. And the cable cutters continue to grow.

$6 million/year would be a triple. I really and honestly don't know many bidders there will be. But if we got a deal that included traditional AND non traditional outlets, I would hope for $10 million/year/school. We're not getting P5 money, and it will be interesting to see if P5 money increases or decreases in the mid 2020's. Let's face it, NOBODY knows how this is going to play out, and I'm speculating because I'm very far from an industry expert. I kind of hope it's a short term deal and we're back in the market at the middle of the 2020's when the P5's are done. Hopefully by then we'll be the P6, but that's a long shot.
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Thu Jul 26, 2018 9:30 pm

DfromCT wrote:
Thu Jul 26, 2018 6:21 pm
Bicoastalwave wrote:
Thu Jul 26, 2018 5:17 pm
Just for fun speculation: What is the minimum yearly revenue per team we would like to see from our next TV deal ?

I think the question boils down to what is the next goal ? Separate from rest of G5 further ? Enough revenue to entice BYU/Boise/SDSU to join ? Enough $$ to protect our teams from having their HC’s poached?

Obviously close the gap with P5 & have pay equality is the ultimate goal but what’s realistic and what would we be happy with ? $6m ? 10m ? 15m ?

I was in Newport and had conversations with Troy & WF, but was mostly focused on being appalled by the LSU’s hubris. They were extremely transparanet. I wish I had asked how much money will be required to keep our current Athletic department spending where it is and furthermore how big does the deal need to be to keep our conference solvent ? It sure as sh*t isn’t $1.9m per team with the Big East pay outs coming to an end.

I look forward to hearing everyone’s insights
To hell with exposure, we need the money. And if the CBSSN's, Facebook, Amazon's of the world want to pony up more than ESPN, CYA in a hurry. If they pony up the money, they'll back their investment with marketing. And the cable cutters continue to grow.

$6 million/year would be a triple. I really and honestly don't know many bidders there will be. But if we got a deal that included traditional AND non traditional outlets, I would hope for $10 million/year/school. We're not getting P5 money, and it will be interesting to see if P5 money increases or decreases in the mid 2020's. Let's face it, NOBODY knows how this is going to play out, and I'm speculating because I'm very far from an industry expert. I kind of hope it's a short term deal and we're back in the market at the middle of the 2020's when the P5's are done. Hopefully by then we'll be the P6, but that's a long shot.
The bidders is key, as it's unclear if the primarily streaming companies and/or subsidiaries (Netflix, Twitter, Hulu, Amazon, Sling, etc.) would be interested in paying significant amounts (even at $6M a school) for content that may not dramatically increase their subscriber base. Further, the Disney acquisition of flagship FOX and the 22 Regional Sports Networks owned by Fox does not help either, as that removed FOX from being a truly separate bidder from ESPN - although, that being said, Fox Sports, FS1 and FS2 will remain with FOX and will not transfer to Disney.
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tpstulane
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Fri Jul 27, 2018 6:47 am

TV money across the board probably going to shrink.
https://www.sbnation.com/college-footba ... tributions
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Fri Jul 27, 2018 12:18 pm

No doubt the total pie that is tv revenue for college football will shrink. But our 1.9m per year will not, because that is an undervalued contract negotiated when the conference was in a precarious situation.
Now the question is would twitch/YouTube/sling etc get involved for our primary or our second tier rights ?does that get us to $4m, $6m or $10m a year ?

In that article posted above about tv rev shrinking, the big ten commissioner when asked about how these massive windfalls have helped the fans spouted a bunch of BS that really shows the waste of these major programs and that the fans really aren’t a priority. We don’t need $50m annually to compete and close the gap, we can operate more efficiently and leanly. We can also simply subsidize fewer additional Olympic sports then they do.

We operate our athletic department at a deficit, how much of a deficit I am unaware. Is $6m annually enough for us to close gap and guarantee solvency to the league and athletic department.
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Fri Jul 27, 2018 1:14 pm

Bicoastalwave wrote:
Fri Jul 27, 2018 12:18 pm
No doubt the total pie that is tv revenue for college football will shrink. But our 1.9m per year will not, because that is an undervalued contract negotiated when the conference was in a precarious situation.
Now the question is would twitch/YouTube/sling etc get involved for our primary or our second tier rights ?does that get us to $4m, $6m or $10m a year ?

In that article posted above about tv rev shrinking, the big ten commissioner when asked about how these massive windfalls have helped the fans spouted a bunch of BS that really shows the waste of these major programs and that the fans really aren’t a priority. We don’t need $50m annually to compete and close the gap, we can operate more efficiently and leanly. We can also simply subsidize fewer additional Olympic sports then they do.

We operate our athletic department at a deficit, how much of a deficit I am unaware. Is $6m annually enough for us to close gap and guarantee solvency to the league and athletic department.
Well, fewer than 15 athletic departments do not run a deficit according to the research by USA Today, so it would be unreasonable to expect Tulane to join that group even with a new TV deal.
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Fri Jul 27, 2018 10:40 pm

DfromCT wrote:
Thu Jul 26, 2018 10:28 am
Jonathan would have a field day on this topic, if he were to break his silence! Speaking of which, he doesn't post here, but does anyone know if he's ok?
I see him post on Twitter sometimes, so he must be ok.
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Mon Dec 10, 2018 4:11 pm

https://www.sbnation.com/college-footba ... xgTDAPBDJY

This is a very good read. Some of the highlights:
  • Current AAC deal expires in 2020 and has a value of $126mil. The new deal with a 'grant-of-rights' could multiply this by 3 or 4 times.
  • Schools signing the 'grant-of-rights deal would lose their ability to leave for another league (what if the Big 12 expands?)
  • Signing the deal would increase Tulane's revenue from $2mil annually to $6-$8mil. That's not chicken feed.
  • Discussion is underway to pay larger schools (UCF and Cincy) more money to entice them to sign the new deal
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Mon Dec 10, 2018 4:20 pm

GreenLantern wrote:
Mon Dec 10, 2018 4:11 pm
https://www.sbnation.com/college-footba ... xgTDAPBDJY

This is a very good read. Some of the highlights:
  • Current AAC deal expires in 2020 and has a value of $126mil. The new deal with a 'grant-of-rights' could multiply this by 3 or 4 times.
  • Schools signing the 'grant-of-rights deal would lose their ability to leave for another league (what if the Big 12 expands?)
  • Signing the deal would increase Tulane's revenue from $2mil annually to $6-$8mil. That's not chicken feed.
  • Discussion is underway to pay larger schools (UCF and Cincy) more money to entice them to sign the new deal
Cincy is, if I am not mistaken, 32-30 in their AAc History...I think UH 45 -15...whose is the bigger "catch"
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Mon Dec 10, 2018 4:48 pm

https://www.sportsbusinessdaily.com/Jou ... s/AAC.aspx

This is another good story that the sbnation article is based on. Others have said the next AAC deal would be closer to the $9-12m range with a GOR.

Is there anyway we would look at giving Tulsa the boot ?
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Mon Dec 10, 2018 4:49 pm

And just 3 seasons ago UCF was 0-12. Fortunes change. Look at ECU after years of going to bowls. Look at the UH of Herman to where they are now. How can you sign that based on where teams are today?
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Mon Dec 10, 2018 4:52 pm

Regardless of the grant of rights deal, I would think you'd be able to negotiate a settlement if the Big 12 or another P5 came calling.
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Mon Dec 10, 2018 4:55 pm

GreenLantern wrote:
Mon Dec 10, 2018 4:11 pm

[*]Signing the deal would increase Tulane's revenue from $2mil annually to $6-$8mil. That's not chicken feed.
Yes, it is.
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Mon Dec 10, 2018 5:24 pm

Bicoastalwave wrote:
Mon Dec 10, 2018 4:48 pm
https://www.sportsbusinessdaily.com/Jou ... s/AAC.aspx

This is another good story that the sbnation article is based on. Others have said the next AAC deal would be closer to the $9-12m range with a GOR.

Is there anyway we would look at giving Tulsa the boot ?
Yeah, but if we gave Tulsa the boot, do we expect the same? As recently as week 8 of this season, many on this board feared we were in danger of getting the boot.

I would doubt any deal that didn't give each University at least $10 million a year, AND didn't let them take advantage of an opportunity to get out would not be accepted.
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Mon Dec 10, 2018 5:43 pm

Bicoastalwave wrote:
Mon Dec 10, 2018 4:48 pm
https://www.sportsbusinessdaily.com/Jou ... s/AAC.aspx

This is another good story that the sbnation article is based on. Others have said the next AAC deal would be closer to the $9-12m range with a GOR.

Is there anyway we would look at giving Tulsa the boot ?
Tulsa football in the American is 14-26.
Tulane football in the American is 12-28.

Tulsa's worst finish in basketball in the American is 7th place.
Tulane's best finish in basketball in the American is 7th place.

IF anyone is getting kicked out its Tulane.
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Mon Dec 10, 2018 5:52 pm

ajcalhoun wrote:
Mon Dec 10, 2018 4:55 pm
GreenLantern wrote:
Mon Dec 10, 2018 4:11 pm

[*]Signing the deal would increase Tulane's revenue from $2mil annually to $6-$8mil. That's not chicken feed.
Yes, it is.
What worse is they're not talking about ALL schools signing a Grant of Rights, and although they don't come out and say it, it's talked around that Tulane would NOT be signing that Grant of Rights, which would mean we'd get less than those schools that do sign such a deal.

The issue isn't about Geography, Academics, or really even winning or losing (directly). It's about viewership and our ratings suck. Without a fan base are we entitled to as much as those that draw not only fans in the stands, but TV ratings as well? This comes back to the years of mis-management of Tulane Athletics, and driving generations of fans away.

Yes, I'm biased towards UCF because I write checks for tuition there (for too long, but that's another story!) But when they sellout their 50,000 seat stadium regularly, and draw viewers to TV (even Network TV) they have a right to claim a bigger piece of the pie. It's all about the almighty dollar, and nobody wants to pay a University big money just because they're in a conference that has a team or two that is attracting viewers when said University is not doing so.

On the one hand, maybe we end up as one of the few attractive P5 expansion candidates (ONLY if we win regularly for the next six years!) but on the other hand, it could end up costing us millions of dollars in the next contract. This is a turn for the TV deal that could possibly hurt Tulane more than it helps the "big" schools in the contract. It would be hard to compete in a conference where the "big" schools get 2 or 3x the TV money.

PS: Where is Jonathan Joseph when we need him! He knows a whole lot more about this topic than I do from reading a couple of articles.
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