Texas A&M Football
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20 years @ $300MM, the Longhorn network is go.

19,555 Views | 208 Replies | Last: 14 yr ago by McNasty
livershot93
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Call me crazy but I just don't see the programming (1 non-conference football game, a few cupcake men's basketball games, golf, swimming, volleyball, women's basketball, etc) being compelling enough to support an entire "network".

They're going to have to come up with A LOT of really interesting shows to fill all the time and draw in the eyeballs.
jagvocate
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I don't care about tu's "programming" ...

They can have 23 hours of parking lot footage from Austin ... they are getting an extra $10MM a year, guaranteed over us
Saint Arnold
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I honestly don't see much interest outside the state of TX. Just can't grasp the thought of, say, Seattle or Minneapolis or Chicago, generating enough interest for the cable companies to pay any fees to broadcast the channel.

I probably just don't know how the whole thing works, but what kind of ratings could Longhorn water polo or a some philosophy lecture from Texas generate in Cleveland?

Certainly this is a precurser to t.u. going indy once the current B12 contract is up, via the ND-NBC model (only with 24-7 will be taken to another level).
haustin6
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Again, the important thing is for the Ags to think how they can increase their own revenue -- not do a lot of hand wringing about what others are doing or how much others are making.
Maroon Dawn
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Its not just this. Its all just a piece of the sip master plan to control this conference and run it like their private plantation.

They want a group of local schools that are utterly dependent on them financially and have no hope of ever getting away or being athletically competitive with them in the long run. They have their group of indentured servants in every school in this conference not named OU and A&M.

The two of us have the pleasure of being their house servants. We get treated a little better than the field hands because we are a little more valuable, but really it comes down to keeping us the closest to make us the easiest to watch in case we start thinking of freedom.







[This message has been edited by Maroon Dawn (edited 1/19/2011 11:12a).]
twk
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quote:
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.
The Statesman doesn't agree with your math. They say $30 million per year ($20 from the Big XII, $10 million from the new deal). Since, as I've been saying all along, the new deal includes rights sublicensed from IMG, why would IMG continue paying UT for those rights, too? That makes no sense. This looks more and more like a 3 card monte game.
McInnisAg08
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Shouldn't $Bill Weekly Wednesdays start back up today?

Think he will address any of the tutv today?


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lakeside aggie
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A&M must go to the SEC. tu will get too much money out of this deal for us to remain competitive.
agent-maroon
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Can't believe that no one has posted a SECede sig on this thread:




Aggie_Journalist
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The only way I could see this being good for the greater state of Texas is that I remember reading speculation that Texas high school football would be shown on the network since UIL is a part of tu.

IF UIL competition is a significant amount of what's broadcast and IF the university sends a chunk of their income down to Texas high schools accordingly, that would be a good thing for the rest of Texas.

Other than that small possibility, this deal stinks to high heaven.

It could even be argued that the rest of the Big 12 is directly being cost money in this because the Horns won't be as hard pressed to maximize conference revenue when negotiations come around, seeing as they've got this in their pocket already, in fact this might almost come off as a bribe of "15 million to the golden goat each year so we can shave 30 million off what we'd otherwise have to pay the whole conference every year" since tu will try to bully everyone to stay together regardless of what they do or don't make.
haustin6
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Thumbs up to Texas High School football on ESPN!
LukeSkyWoker
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If the whorns are planning on going indy look for negotiations with the BCS to be included like Notre Dame is where they have an automatic berth ranked 8th. Haven't seen that yet, we need a plan for when it does. Also, what conference do the other sports play in C-USA, Sun Belt, WAC, Southland, Big East?
Goofy
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Once this network is up and running, tu will have much greater leverage over the Big XII to get a bigger piece of the pie. They will be sitting pretty to go independent at any time.

Really, it wouldn't make sense for them to continue to be a part of the Big XII unless they get as much money from the Big XII as they would get from going independent and showing all of their games on their very own network.

We and OU are in OK position to demand equal revenue (equal to what tu is getting), but other members are not. Will they sit back and watch this happen? Surely they are looking to leave and join a different conference. I believe their other options are limited, but the Big XII continues to get worse for them.
Old Main
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Let's SECede now! What are we waiting for? Do we want to stick around the Longhorn 10 and pick up crumbs from the horns or move forward and improve our own situation in the SEC?

http://twitter.com/aTmSECede





Hellraiser97
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quote:
The Statesman doesn't agree with your math. They say $30 million per year ($20 from the Big XII, $10 million from the new deal). Since, as I've been saying all along, the new deal includes rights sublicensed from IMG, why would IMG continue paying UT for those rights, too? That makes no sense. This looks more and more like a 3 card monte game.




The statesman article is only reflecting Television Broadcast rights. The IMG contract involves all media rights ( essentially advertising, radio broadcasts, etc.). Obviously we would not be doing this for just another couple million a year.

quote:
It could even be argued that the rest of the Big 12 is directly being cost money in this because the Horns won't be as hard pressed to maximize conference revenue when negotiations come around, seeing as they've got this in their pocket already, in fact this might almost come off as a bribe of "15 million to the golden goat each year so we can shave 30 million off what we'd otherwise have to pay the whole conference every year" since tu will try to bully everyone to stay together regardless of what they do or don't make.



I think the chance of this happening is about zero. If history has taught us anything, it's that we would sell our our mother for an extra dollar of income.

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 11:25a).]
haustin6
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quote:
I believe their other options are limited, but the Big XII continues to get worse for them.


I would have to think the other Big 12 schools are thrilled at this deal. More exposure for their lesser programs and more money for being shown on TV! Win-win!

aggieangst
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Congratulations A&M you have been a** raped again.

A&M had those ambulance chasers by the nuts and let them go when we agreed to stay in the conference.

A&M again proves that they are second tier to Texas.
Goofy
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quote:
I would have to think the other Big 12 schools are thrilled at this deal. More exposure for their lesser programs and more money for being shown on TV! Win-win!

That is a good point, but I think it is only valid for the short term. In the long term I think this greater exposure/money for their lesser programs comes at the expense of the revenue they are currently getting from the Big XII.
AAM02
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Texas High School football on ESPN = awesome.

UIL falling under any single state public university = conflict of interest.
AlexNguyen
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quote:
I can't wait to find out what that content will be.


Academic enrichment non-credit courses are likely. Think art history and the like. UT has a lot of multimedia production experience - I'm sure they've got lots of ideas in the pipeline.

Heck, I'd be OK with them doing some University of Phoenix type credit courses for the freshman requirements too. That could be a big money maker for the school. Pay your tuition, watch the class on the Longhorn network, test at your local community college, get UT credit.
Kentucky Mustangs
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hate to say I told you guys so, but I have been on here for over 6 months saying look out for IMG! With their purchase of ISP, they now dwarf Learfield, and will always be able to offer tu more than Learfield can offer A&M. I said early on that A&M should be exploring a "new" conference, so they could separate themselves from tu over the long haul. I can see with great ease a "new" 12 member conference with Notre Dame anchoring the East (and getting the lions share), and tu anchoring the West (and getting the lions share).

Whatever 10 teams make up the rest of the conference, it will not be equal revenue sharing like the days of the the Pac 10 and Big 12. It is what I have had reservations about for the whole time if the 16 team model was not accepted, and the 12 team model stayed in place. The fact that BYU went independent was an indication, that in fact a "new" 4th power conference was in the future. This is why I have suggested a backup plan all along if the SEC jump does not become a reality.

For the pro SEC crowd, consider the following:

a) the 12 team model becomes the standard
b) the Pac 12 and B1G hold at 12
c) the SEC not adding a 13th (they would have no need)
d) tu and ND form a "new" conference, where they become the "jupiters" of said conference
e) the "brands" are consolidated;

B1G = 40% = tOSU, UM, PSU, UNL
NEW = 30% = ND, tu, OU
SEC = 20% = Bama, +1
PAC = 10% = U$C

f) the additive value of a 13th team is not enough to warrant the wealth dilution. This means that additive dollars do not exist.


I still think many do not understand that in realignment 1+1 = 3, and not 1+1=2 (as we normally think), and look at what has happened in the last round of realignment, by the major conferences, and how the deals made sense.

Big 10 (got 2 $$$$ values, and intangibles as well)
1) got UNL, a true top 10 "brand"
2) got CCG, and 2 MILLION + per school, per year in "new" money

Pac 10 (got 1 $$$$ value, and intangibles as well)
1) got CCG, and 2 MILLION + per school, per year in "new" money
picked up new markets in Utah and Colorado
finally got equal revenue, to compete with U$C.

SEC (got nothing)
As they already had a CCG, they already accrue the revenue stream to each member school.

What most of the jump to the SEC crowd never see long term, is that the SEC has no need to go past 12, BECAUSE they already have the CCG, and that low hanging fruit has already been plucked. It is not like the SEC can grab this fruit again, as wether they go to 13, 14, 15, or 16 - they get no added boost for doing so.

The IU (B10) and the UK (SEC) types do not get any added value, so are less likely to vote yes, if it means splitting the pie as they do now, or having to give up some of that pie! If Auburn wins the MNC, the other 11 teams in the conference get a slice of that pie. As you add teams that slice gets smaller and smaller as it spread the wealth out across more teams.

My question to the posters on here is if the 12 team model stays in place (and this is now very probable), how do you see A&M getting an SEC invite, and if there is no invite, what is the backup plan for A&M?
Spider Rico
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quote:
I honestly don't see much interest outside the state of TX. Just can't grasp the thought of, say, Seattle or Minneapolis or Chicago, generating enough interest for the cable companies to pay any fees to broadcast the channel.

I probably just don't know how the whole thing works, but what kind of ratings could Longhorn water polo or a some philosophy lecture from Texas generate in Cleveland?

Certainly this is a precurser to t.u. going indy once the current B12 contract is up, via the ND-NBC model (only with 24-7 will be taken to another level).


I don't think ESPN is too concerned that they generate the full $15 million/year they'll be paying Texas. I have a bad feeling they are planning on more than offsetting any loss on this deal by being able to lower the price they'll pay for the larger Big XII-2 TV deal.

This summer's dealings showed that the nine other chumps will fall in line to stay with Texas. And even us and OU probably have no offers to move anywhere at this point anyway now that the Superconference idea has faded away. ESPN obviously doesn't want SEC expansion, and the SEC was only looking to expand beyond 12 to match the Pac-10 and Big 10.

The $20 million for us (and probably OU too) that Beebe talked about is certainly a pipe dream now. We showed ESPN that all they have to do is keep Texas happy and they've just done that in a big way. What difference does it make to Texas if they now only get $15 million as part of the larger deal? They're still ahead $10 million+/year. It wouldn't surprise me at all if ESPN and Texas were negotiating a lower overall conference TV deal price as part of the Longhorn Network negotiations.

I was pretty sure until this deal that Texas would try and go independent. But this looks so good for them now, what would be their incentive? They basically have total control of the TV rights for the entire conference and they get to play a respectable yearly schedule.
BMach
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$300MM deal, just imagine what they could have negotiated with a 6 win season!
95_Aggie
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quote:
Academic enrichment non-credit courses are likely

LOL ... it's gonna be football, football reruns, glorious victories of the 1960's, heisman winners, bevo droppings, more football reruns, the biography of Darrell Royal: Seasons 1-7 ... all hosted by Brent Musberger

[This message has been edited by AGnCS (edited 1/19/2011 11:53a).]
AlexNguyen
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^
|

That too. But you're mistaken if you don't think the eggheads on the 40 Acres aren't salivating at the thought of airing some of their life's work to the millions of Texans out there.
Hellraiser97
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quote:
The $20 million for us (and probably OU too) that Beebe talked about is certainly a pipe dream now. We showed ESPN that all they have to do is keep Texas happy and they've just done that in a big way. What difference does it make to Texas if they now only get $15 million as part of the larger deal? They're still ahead $10 million+/year. It wouldn't surprise me at all if ESPN and Texas were negotiating a lower overall conference TV deal price as part of the Longhorn Network negotiations.


The day Texas actively seeks a dollar less than it can otherwise get, regardless of what anyone else is getting paid, will be the first.

Remove the tinfoil hat please.

Hook 'Em Horns

Hellraiser97

--

"Ya'll can go to Hell, I'm-a-goin' to TEXAS" -- Davy Crockett
W
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my only comment...

the A&M administration better charge some kind of fee for any A&M team that will appear on the longhorn TV network.

For example if the A&M tennis team is playing a match in Austin and it's going to be televised on the longhorn network...pay up

the AD better not buy the line of "it's good exposure for your program too."
Spider Rico
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quote:
It could even be argued that the rest of the Big 12 is directly being cost money in this because the Horns won't be as hard pressed to maximize conference revenue when negotiations come around, seeing as they've got this in their pocket already, in fact this might almost come off as a bribe of "15 million to the golden goat each year so we can shave 30 million off what we'd otherwise have to pay the whole conference every year" since tu will try to bully everyone to stay together regardless of what they do or don't make.


I missed this from AggieJournalist, and I think is says it better than I did. I think Texas just negotiated the Big XII-2 deal for the nine little sisters. But we showed this summer that very little bullying is required for us. And the other eight are way past us into the advanced stages of battered wife syndrome.


[This message has been edited by Spider Rico (edited 1/19/2011 12:00p).]
haustin6
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Let the herns and their fancy lawyers and CEO whiz kids spin their deals and make their millions... At the end of the day, the Ags will still be working on their farms, repairing their equipment and come Fall will sit down to watch the good guys battle it out on the football field.

Everything else is just pomp and cirumstance.
Hellraiser97
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quote:
my only comment...

the A&M administration better charge some kind of fee for any A&M team that will appear on the longhorn TV network.

For example if the A&M tennis team is playing a match in Austin and it's going to be televised on the longhorn network...pay up

the AD better not buy the line of "it's good exposure for your program too."



Given that the home team owns the media rights, I don't see that happening.

Hook 'Em Horns

Hellraiser97

--

"Ya'll can go to Hell, I'm-a-goin' to TEXAS" -- Davy Crockett
haustin6
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So the Horns are going to be making money on every home game? Well, the exposure is nice.
W
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but this new network changes the game, and the remaining Big 12-2 schools should fight that

streaming a home game over the internet is one thing...making it a part of your own $300 million TV/advertising package is quite another
haustin6
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Maybe there is a chance for the other Big 12 schools to stream all home games when the Horns are visiting and make money that way...
Hellraiser97
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quote:
but this new network changes the game, and the remaining Big 12-2 schools should fight that

streaming a home game over the internet is one thing...making it a part of your own $300 million TV/advertising package is quite another



I don't disagree, but this would represent a fundamental change to the conference charter. Plus, if the Big12 does launch it's own network (sans Texas), I'm sure the other 9 aren't going to want to pay us back anything either.

If the Big12 just tries to muscle some of the money out of us, that may spell the end of the conference. A&M and OU may vote for this change, but you can bet the other 7 know they are better off not demanding anything than potentially finding themselves in CUSA or MWC.

Hook 'Em Horns

Hellraiser97

--

"Ya'll can go to Hell, I'm-a-goin' to TEXAS" -- Davy Crockett
lahorn
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Boycott all cable satellite providers that pick up the channel!
 
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