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20 years @ $300MM, the Longhorn network is go.

19,873 Views | 208 Replies | Last: 15 yr ago by McNasty
Bluecat_Aggie94
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quote:
Is the B12 so lacking in balls that thye would actually give the sips the broadcast rights to CONFERENCE games?


Interesting question. I suppose your right, the Big 12 could tell them they can't broadcast conference games, or that we require some of that money to agree to it?

If that's accurate, then that seems like it should be our next move... tell the conference office that the Big 12 will require a pretty good chunk of the TV money if they want to broadcast our games, or we are gone.

This could lead to some interesting legal battles. The more I think about it, the more I think that the tu-->independent move is inevitable.

Another question... once the Big 12 pays us the $20 million, are we legally obligated to stick around or pay it back? I don't want the money if it turns into a retainer.

[This message has been edited by Bluecat_Aggie94 (edited 1/19/2011 9:42a).]
blumby
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shinerbalk
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haustin6
you are so dumb, gtfo. go back to your crappy site you dumb sip.

This will not create a bigger fan base for aggies. why do you care so much.

We are leaving the conference now. We are not gonna be in a conference where the horns get their own network and get the biggest part of the pie from the b12. Rich get richer.
Johnny Z
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Whatever, it makes everyone else hate them even more. They have managed to burn almost all of their bridges with their peer universities in the Big 12. A&M and OWho are the only schools that really have a sentimental connection that they feel necessary to preserve, and those connections are slowly being dismantled by tu's jackassery.

[This message has been edited by CarrolltonAg01 (edited 1/19/2011 9:50a).]
CoolAggie
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Damn, $15 mil per year is a lot of dough.
Johnny Z
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Question...how much money are they currently making (if any) on TV revenue that will no longer exist after this network is up and running? (so crap that airs on Versus or Big 12 TV, etc...).

In other words, are they currently making $5M collectively, and this deal really nets them $10M?

Or is this $15M a 100% increase in revenue for them?
ATL Aggie
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We must leave the conference.
Joe_the_Plumber
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Yeah that is a lot of puddin! And they will need some puddinheads to play the part of the Washington Generals on their great TV network. Someone call our illustrious President Puddinhead and see if he can work a deal for some pocket change from TeasipTV.
TexasAggiesWin
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Again... If we sit around on our thumbs, we will get left in the dust.

They (the sips) are slowly, but surely, navigating towards an independent school. Again, I believe we lost out on a HUGE opportunity last summer to now be tu's b*tch until they become independents.
DRE06
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quote:
if $Bill and the other AD's aren't burning up the Fox sports phone lines this morning they should be drawn and quartered


Can't get ESPN....got to Fox Sports

Can't get Nike $....go Adidas

Coke won't pay....go Pepsi

Jeez....do we go 2nd rate on everything?
McInnis 03
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$15MM per year is JUST for the rights. That does NOT include the TV and marketing money they'll get apparently. This could work up to $40-$50MM per year if that SBJ article is right
JTaylor
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quote:
Question...how much money are they currently making (if any) on TV revenue that will no longer exist after this network is up and running? (so crap that airs on Versus or Big 12 TV, etc...).

In other words, are they currently making $5M collectively, and this deal really nets them $10M?

Or is this $15M a 100% increase in revenue for them?


It is $15 million on top of all other contracts (merchandising, Big XII TV deal, etc.).
Hellraiser97
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http://www.statesman.com/blogs/content/shared-gen/blogs/austin/highereducation/entries/2011/01/19/ut_espn_reach_20year_300_milli.html

More details:

quote:
Officials said ESPN has guaranteed the $300 million, with 82.5 percent, or $247.5 million, earmarked for the university. IMG is assured 17.5 percent, or $52.5 mlllion.

Although UT’s share works out to $12.4 million a year on average, payments will fluctuate somewhat. Powers said UT is assured about $10 million a year for the first five years or so. Depending on the network’s profits, UT and IMG could realize additional income.

The agreement is not a surprise. The UT System Board of Regents gave Powers permission on Nov. 11 to negotiate a contract with a broadcast partner, and ESPN was considered the front-runner. An ESPN executive told the American-Statesman on Jan. 9 that his company and UT were “very close” to concluding negotiations.

The agreement does not replace existing contracts involving ESPN-ABC and Fox for sports content of the Big 12 Conference, of which UT is a member. Powers said he anticipates that the new network would carry one or two football games, a larger but unspecified number of men’s basketball games and a variety of other men’s and women’s sports, including volleyball and swimming.

Non-athletic fare is likely to run for about three hours a day and include musical performances, plays, and documentaries by faculty members and students, Powers said. Details are yet to be worked out.

“This will be high-level, entertaining cultural, music, scientific, Discovery Channel, History Channel kind of stuff,” Powers said. “And we have a team put together working on it, and that will be done in collaboration with ESPN.”

UT stands to receive a $14 million to $15 million share of Big 12 Conference broadcast revenue during the current academic year. With the departure of the University of Nebraska and the University of Colorado from the Big 12, Powers has estimated that his school’s slice of the Big 12 pie would rise to about $20 million.

If the new network, which is scheduled to begin rolling in the fall, brings in just the guaranteed $10 million or so in the first year or so of the contract, the university’s total annual broadcast revenue would rise into the $30 million range.

Powers said half, or about $5 million a year, of the first five years’ guaranteed income from the new deal is earmarked for academic initiatives. The other half will go to athletics.

After five years, academics could receive a larger or smaller share, depending on the revenues, the economic climate and the judgments of the university leaders in place at that time, he said.

In the near term, academic uses of the revenue will include creation of two faculty chairs, each with a $1 million endowment - one in physics and one in philosophy. The UT president said he would work with faculty members and deans on other uses for faculty support, “and not just have it pay the light bills.”





Hook 'Em Horns

Hellraiser97

--

"Ya'll can go to Hell, I'm-a-goin' to TEXAS" -- Davy Crockett
Hellraiser97
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Basically, we expect to get $20MM from the confrence. We already get $10MM from IMG. IMG gets a kick back of 17.5% of the $300MM, so we expect to get about $12.375MM out of this deal.

So we should be getting in the neighborhood of $42.375MM per year from all our media rights per year.

Hook 'Em Horns

Hellraiser97

--

"Ya'll can go to Hell, I'm-a-goin' to TEXAS" -- Davy Crockett
Gone
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quote:
If that's accurate, then that seems like it should be our next move... tell the conference office that the Big 12 will require a pretty good chunk of the TV money if they want to broadcast our games, or we are gone.



To tell the truth, I would leave ASAP. Time to head to the SEC.

I don't see how this is going to make ESPN any money. A 24/7 network? I just don't see all those t-shirters as being loyal enough to watch anything besides football.
Hellraiser97
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Men's basketball, Women's basketball and baseball all have pretty good followings. Not sure if it will be enough to make it profitable, but the fans of those sports will watch.


quote:
Is the B12 so lacking in balls that thye would actually give the sips the broadcast rights to CONFERENCE games?


My understanding is that the only games available for the Longhorn Network are those that aren't picked up by any of the existing contracts with the league. So essentially they are treated the same way PPV games are froma rights and compensation perspective. I have no idea, but if you are the visiting team, do you get paid anything on a PPV game?

Hook 'Em Horns

Hellraiser97

--

"Ya'll can go to Hell, I'm-a-goin' to TEXAS" -- Davy Crockett

[This message has been edited by Hellraiser97 (edited 1/19/2011 10:20a).]
thisone
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They want to put it on basic cable in TX, OK, and parts of LA. So we all will be paying for it with our cable bill.

Though really, there has to be more to this about them going indy because this network will only broadcast 1 or 2 football games a year due to the Big 12 contract.
Gone
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quote:
Men's basketball, Women's basketball and baseball all have pretty good followings. Not sure if it will be enough to make it profitable, but the fans of those sports will watch.


They might watch when tu (mens) plays UNC or UCONN. But they aren't going to watch when tu plays Centenary and those types of games which are the majority of basketball games.

And women's basketball does not have a good following. No one will watch women's basketball.

The only way ESPN makes money off of this is if they strike a deal with DirecTV, Comcast and Dish Network. I just don't see tu as having a legitimate following that warrants a 24/7 network.
pb488
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hellraiser, davy crockett never said that, and if he did, he would say y'all, not ya'll.

paraphrase ftl
lp01
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I think it's crazy that when we flirt with the SEC, they threaten to end our rivalry. Yet they have, for months, secretly work to jump conferences AND set up a private deal for themselves like this. We should've left them behind last summer. Good riddance.
Greg09Ag
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None of these articles say how this is going to influence the other schools in the Big 12. We are to expect a certain amount of profit off the A&M vs. tu game but how much? Is this all we would be receiving?
Hellraiser97
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quote:
They might watch when tu (mens) plays UNC or UCONN. But they aren't going to watch when tu plays Centenary and those types of games which are the majority of basketball games.


And that is where you would be wrong. Not saying we are going to have millions of viewers, but our basketball following is good enough that it will draw better than most of the filler crap you see on ESPN2, ESPNC and ESPNU through out the year. I organize game watching parties for our local alumni chapter, and while we don't draw football numbers for basketball, even the games we don't advertise have pretty good attendence at our location.

quote:
And women's basketball does not have a good following. No one will watch women's basketball.


UT has one of the few profitable women's programs. Again, not going to be football numbers, but the fans we have for that sport are a pretty dedicated bunch.

quote:
The only way ESPN makes money off of this is if they strike a deal with DirecTV, Comcast and Dish Network. I just don't see tu as having a legitimate following that warrants a 24/7 network


I really hope they get one of the satellite providers (or both), so I can get it out of state. That certainly would go a long way towards making the venture profitable.

Hook 'Em Horns

Hellraiser97

--

"Ya'll can go to Hell, I'm-a-goin' to TEXAS" -- Davy Crockett
haustin6
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The herns almost seem to be treating college sports as a business rather than a community where we all work together and share the rewards equally...

[This message has been edited by haustin6 (edited 1/19/2011 10:41a).]
Hellraiser97
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quote:
None of these articles say how this is going to influence the other schools in the Big 12. We are to expect a certain amount of profit off the A&M vs. tu game but how much? Is this all we would be receiving?



UT-A&M would never be on the network (not football or basketball at least).

As I said before, I would expect any appearances on the network to be handled in the same fashion that PPV payouts are handled now.


Hook 'Em Horns

Hellraiser97

--

"Ya'll can go to Hell, I'm-a-goin' to TEXAS" -- Davy Crockett
txag70
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quote:
Non-athletic fare is likely to run for about three hours a day and include musical performances, plays, and documentaries by faculty members and students, Powers said. Details are yet to be worked out.

"This will be high-level, entertaining cultural, music, scientific, Discovery Channel, History Channel kind of stuff," Powers said.


Yeah. Right.

"The secret of success is sincerity. Once you can fake that you've got it made." Jean Giraudoux.
FincAg
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It's not like tu/TV will be able to pick the prime games. Take for example tonight's match up. All existing TV contracts I believe are still in place. ABC/FSSW or whoever will pick up the games that matter. What they are going to be end up showing are midsummer baseball games, volleyball, swimming, golf, track, concerts, theatre and replays of football. Considering that all of their football games this year were picked up by the big boys except for the Wyoming game, that's the only game they would really be able to broadcast live.

It's not the Big Ten TV deal, it's not BYU TV. It's their own private secondary provider who gets to pick up where the big boys won't broadcast.

Or that's what I've been able to figure from this whole situation.
Greg09Ag
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I see. Well that sucks. Props to tu for doing what's best for them. Survival. I just wish A&M BOR and Byrne would nut up and do the same for A&M.
95_Aggie
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Props to tu for being on the cutting edge while we can't even get decent nacho cheese at Kyle Field.
Hellraiser97
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That is correct FincAg, it's the leftovers.

quote:
Considering that all of their football games this year were picked up by the big boys except for the Wyoming game, that's the only game they would really be able to broadcast live.


Florida Atlantic was PPV as well. At most I would see two games a year on the network.

Hook 'Em Horns

Hellraiser97

--

"Ya'll can go to Hell, I'm-a-goin' to TEXAS" -- Davy Crockett

[This message has been edited by Hellraiser97 (edited 1/19/2011 10:43a).]
outlawjw
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Well I have to hand it to the $ip$ they know how to negotiate. Not sure it will work but who knows, for those saying we need our own network. Unfortunately, we just don't pull ratings like the $ip$ so I'm not sure there will be networks lining up to throw us a deal like this.

[This message has been edited by outlawjw (edited 1/19/2011 10:48a).]
Hellraiser97
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I would imagine that if it is successful, you'll see more and more of these deals over the next few years. Especially if the mixed content plan works out.

I'm just excited to be able to watch baseball regularly.

Hook 'Em Horns

Hellraiser97

--

"Ya'll can go to Hell, I'm-a-goin' to TEXAS" -- Davy Crockett
Gigem74
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$bill......get your buns moving and sign the SEC paperwork......its now time to move and get out from under the tu umbrella.
BoyNamedSue
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boom...
BoyNamedSue
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Is that option still on the table? Wouldn't assume it was time sensitive or contingent?
gotohellou
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maybe texas is concerned with all the a&m threats to leave for the sec so they are protecting themselves in case big brother abandons them and goes east.
 
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