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Bad eyes and I keep getting a malware alert when I try to read the shag, for some reason*. Could you cut and paste Randy's quote, please and thank you?

*Some threats of doing that to lurkers were made by the owner of that site before. Targeting IP addresses. Maybe I made the "hit parade"? Weird.

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For you, sure. (FYI if you click the image it should expand)

"Since you are pulling numbers out of your ass, why not claim IMG gets 125% of the LHN license fee?

IMG is the entity that manages ad sales for all UT athletics. They sell ads for LHN as well as digital properties and radio broadcasts. They also manage corporate sponsorships and licensing agreements. In exchange for their efforts, they receive 17% of gross revenue.

It amazes me how people think IMG just sits back and collects checks for doing nothing.

Here are the LHN numbers. Supposedly, through the 2015 operating year, LHN has generated losses of $48 million, which means it has generated $150 million, or an average of $30 million a year. 2016 is supposed to be the first profitable year, which means LHN is now generating more than $44 million in annual revenue. With revenue growth like that, ESPN is unquestionably keeping LHN going. Disney's gross revenues are $52B. Its market cap is $160B. At $44 million in gross revenue, LHN contributes $132 million in market cap to Disney. They aren't dropping LHN."

This little prediction is from March.

Ol Randy is not good at the maths.

Thank you, dear. Appreciate it.

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They broke up an entire conference so they could have a network dedicated to snake-handling, taco-tasting and women's transgender discus.

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Let's be honest:

If we are going to wave the SEC flag and talk about how great life in the SEC is and what a great move we made, and we did in fact make a great move, we can't really throw stones at tu for breaking up the b12, if that's what you believe they did.

Even if they had been as amicable as they could have been, pushed for equal distribution, a big 12 network had come to fruition, etc, we'd still be better off in the SEC.

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Ol Randy is not good at the maths.

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I was going to say the same thing. His $44M number for gross revenue doesn't make sense. To be profitable based on historical data, the break even number is closer to $40M even.

AAS: "ESPN cancels nightly LHN news show 'Longhorn Extra'"

By Brian Davis and Ryan Autullo, American-Statesman Staff

Story highlights

• Network will start focusing primarily on live events [url=https://twitter.com/intent/tweet?url=http%3A%2F%2Fwww.hookem.com%2Fstory%2Fespn-cancels-nightly-lhn-news-show-longhorn-extra%2F&text=Network+will+start+focusing+primarily+on+live+events&via=bevobeat&related=statesman%3Astatesmanu][/url]
• Longhorn Network will still air "Texas GameDay" [url=https://twitter.com/intent/tweet?url=http%3A%2F%2Fwww.hookem.com%2Fstory%2Fespn-cancels-nightly-lhn-news-show-longhorn-extra%2F&text=Longhorn+Network+will+still+air+%22Texas+GameDay%22&via=bevobeat&related=statesman%3Astatesmanu][/url]
• Longhorn Extra was a terrific platform for UT's Olympic sports [url=https://twitter.com/intent/tweet?url=http%3A%2F%2Fwww.hookem.com%2Fstory%2Fespn-cancels-nightly-lhn-news-show-longhorn-extra%2F&text=Longhorn+Extra+was+a+terrific+platform+for+UT%E2%80%99s+Olympic+sports&via=bevobeat&related=statesman%3Astatesmanu][/url]

ESPN officials have cancelled the nightly "Longhorn Extra" news and information studio show on Longhorn Network and will start focusing primarily on live events, according to an ESPN spokeswoman.

Two in-house directors are likely to be reassigned, and the network will allow its contract with the Austin-based Earl Miller Productions to lapse this summer. However, it's unclear how this move affects LHN's on-air talent.

"We remain committed to providing quality content for Texas fans through 175 sporting events annually, weekly studio shows and academic programming on Longhorn Network," ESPN spokeswoman Gracie Blackburn said.

This move comes after the network earlier canceled "Texas All Access," which was a Hard Knocks-style show that gave viewers a behind-the-scenes look at UT football. The All Access idea will remain integrated with other LHN-related programming, simply no longer be a stand-alone show, Blackburn said.

Longhorn Network will still air "Texas GameDay" and sport-specific shows featuring UT coaches. The Sept. 10 football game against UTEP and the Oct. 15 matchup against Iowa State are both scheduled to air on LHN this fall. The full Texas volleyball TV schedule has not been released, however the network usually airs a majority of home matches.

National media outlets have chronicled ESPN's battle against the cord-cutting, as television viewing habits are changing. It's unclear whether LHN's moves are being made due to economics or sagging ratings.

Longhorn Network is not a Nielsen-rated station. ESPN does receive internal metrics to give network officials an idea how programming is doing. "Longhorn Extra" has long been a low-rated program, if it scored any ratings at all. However, the nightly 30-minute show was a terrific platform for UT's Olympic sports, coaches and athletes who may not get attention otherwise. LHN still plans on airing a weekly magazine-styled show to feature those sports.

Pre- and post-game shows and live events have traditionally done well, ratings wise.

"We have a 20-year contract with Texas that we plan on honoring," Blackburn said. "We have a long-term rights agreement with them. We're fully committed to Longhorn Network for that 20-year relationship."

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"Since you are pulling numbers out of your ass, why not claim IMG gets 125% of the LHN license fee?

IMG is the entity that manages ad sales for all UT athletics. They sell ads for LHN as well as digital properties and radio broadcasts. They also manage corporate sponsorships and licensing agreements. In exchange for their efforts, they receive 17% of gross revenue.

It amazes me how people think IMG just sits back and collects checks for doing nothing.

Here are the LHN numbers. Supposedly, through the 2015 operating year, LHN has generated losses of $48 million, which means it has generated $150 million, or an average of $30 million a year. 2016 is supposed to be the first profitable year, which means LHN is now generating more than $44 million in annual revenue. With revenue growth like that, ESPN is unquestionably keeping LHN going. Disney's gross revenues are $52B. Its market cap is $160B. At $44 million in gross revenue, LHN contributes $132 million in market cap to Disney. They aren't dropping LHN."

This little prediction is from March.

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Translation:

- LHN has lost $48 MM over 5 years = ~ $10 MM per year
- LHN is supposed to make money in 2016, so rate of profit growth this year must be ~ $10 MM
- At an annual profit growth rate of ~ $10 MM per year, LHN is a valuable property. Hell, in 10 years the profit will be ~ $100 MM per year!

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If ESiPN pays them $125 mil to not have a network that's a huge win for the sips.

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If they do settle for that much, it'll be over the rest of the life of the LHN contract (14 years left now?). It won't be a lump sum settlement. IMG will still likely get a cut of that money along with academics getting a share.

You're looking at ESPN maybe paying the sip athletics department around $5 million a year and ESPN probably keeping one or two sip home football games as part of the deal.

UT isn't holding all of the cards here. ESPN could decide to can the whole thing and blackout these same events while paying UT the minimum for the next 14 years which would be detrimental to nearly every sport. You would essentially have Longhorn sports radio silence for over a decade except for 10 football games a year, a handful of basketball games and even smaller handful of baseball games.

That isn't worth the 30-40% cut UT athletics gets after IMG and the academic side get their cut of the "15 million/year"

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UT has ALL of the leverage. They're getting paid regardless of what ESPN says. The financial terms of this arrangement were absolutely genius for Texas, as they made sure the contract was iron clad. Even if ESPN pays them 15M per year, they can still double dip and get another part of the third tier rights contract that would come through a big 12 network or whatever new conference network. It's like being cut from a team in the NBA with 6 years left on your contract. You still getting paid a settlement, and you can go find new work that would compliment that income

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If ESiPN pays them $125 mil to not have a network that's a huge win for the sips.

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If they do settle for that much, it'll be over the rest of the life of the LHN contract (14 years left now?). It won't be a lump sum settlement. IMG will still likely get a cut of that money along with academics getting a share.

You're looking at ESPN maybe paying the sip athletics department around $5 million a year and ESPN probably keeping one or two sip home football games as part of the deal.

UT isn't holding all of the cards here. ESPN could decide to can the whole thing and blackout these same events while paying UT the minimum for the next 14 years which would be detrimental to nearly every sport. You would essentially have Longhorn sports radio silence for over a decade except for 10 football games a year, a handful of basketball games and even smaller handful of baseball games.

That isn't worth the 30-40% cut UT athletics gets after IMG and the academic side get their cut of the "15 million/year"

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UT has ALL of the leverage. They're getting paid regardless of what ESPN says. The financial terms of this arrangement were absolutely genius for Texas, as they made sure the contract was iron clad. Even if ESPN pays them 15M per year, they can still double dip and get another part of the third tier rights contract that would come through a big 12 network or whatever new conference network. It's like being cut from a team in the NBA with 6 years left on your contract. You still getting paid a settlement, and you can go find new work that would compliment that income

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There were parts of the agreement that aren't public knowledge because they were redacted. So it's likely that it doesn't operate like this.

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Bad eyes and I keep getting a malware alert when I try to read the shag, for some reason*. Could you cut and paste Randy's quote, please and thank you?

*Some threats of doing that to lurkers were made by the owner of that site before. Targeting IP addresses. Maybe I made the "hit parade"? Weird.

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If you click on the image it is expanded.

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"We have a 20-year contract with Texas that we plan on honoring," Blackburn said. "We have a long-term rights agreement with them. We're fully committed to Longhorn Network for that 20-year relationship."

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In some circles, that's the kiss of death.

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Yep! It's like the AD saying they support the coach 100%.


ESPN lawyers have to be looking for an out.

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If ESiPN pays them $125 mil to not have a network that's a huge win for the sips.

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If they do settle for that much, it'll be over the rest of the life of the LHN contract (14 years left now?). It won't be a lump sum settlement. IMG will still likely get a cut of that money along with academics getting a share.

You're looking at ESPN maybe paying the sip athletics department around $5 million a year and ESPN probably keeping one or two sip home football games as part of the deal.

UT isn't holding all of the cards here. ESPN could decide to can the whole thing and blackout these same events while paying UT the minimum for the next 14 years which would be detrimental to nearly every sport. You would essentially have Longhorn sports radio silence for over a decade except for 10 football games a year, a handful of basketball games and even smaller handful of baseball games.

That isn't worth the 30-40% cut UT athletics gets after IMG and the academic side get their cut of the "15 million/year"

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UT has ALL of the leverage. They're getting paid regardless of what ESPN says. The financial terms of this arrangement were absolutely genius for Texas, as they made sure the contract was iron clad. Even if ESPN pays them 15M per year, they can still double dip and get another part of the third tier rights contract that would come through a big 12 network or whatever new conference network. It's like being cut from a team in the NBA with 6 years left on your contract. You still getting paid a settlement, and you can go find new work that would compliment that income

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So you think ESPN signed a $300MM contract that didn't have an out clause in it at all?

I'm sure the guy that sold/leased you your Prius had a great break room story after you walked out of the dealership.

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I love how you didn't even pretend to understand what I said so you could throw some dumbass insult. I guess it's hard when you're trying to police six message boards from momma's basement

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It can't be a secret that the University of Texas is dissatisfied with the LHN. All public pronouncements aside, it limits their exposure - causes a lot of headaches for their coaches - pisses off their alums - and handcuffs the schools ability to control it's own destiny - and all for a network no one watches.

Sure, there's money - but even the most gilded cage is a cage.

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And it was an undervalued deal. Kansas gets 15 million just for their basketball content ( although it is arguable that they have much else anyone watches.)

The moment the NCAA nixed the high school content and the Big XII nixed the ability to show most Big XII sip home games on the LHN, it was doomed. Decimated what otherwise might have been a higher demand for the channel.

In that respect, the content that ESPN signed up for, they didn't get and never did. But they gave it five years and the old college try anyway.

But most people know how these things work. There is a contract. There are terms in that contract. There are arguments both ways as to substantial compliance with the terms of that contract. The horns haven't exactly been the partners ESPN expected, either. Outright hostility from some coaches (Hi, Mack!) and the Patterson as AD debacle. (He managed to piss off Nike during a renegotiation, just because he could. Doubt he was little mary sunshine with the ESPN staff.)

I still say ESPN pulls the plug and it is lights out on the LHN by this time next year.

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In other words, sips are delusional, again, part 3,852.

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Thanks for the count. I had lost track. It seems a little low, but we can just add to it from now on.

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The same thing will happen unless there is a settlement. And since there is a 90% chance that ESPN will have to pay for the future home of the sips, meaning if they move to the B1G or ACC or wherever, there is zero incentive for ESPN to settle. Why would they pay twice?

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It would have to be way more than twice, wouldn't it? If the end dollars to the sips was 15 million for Tier III in a 14 or 16 team league??

Or am I missing something?

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The sipfans still have that quintessential character trait....hubris. To borrow one of my favorite Reagan quotes, "It isn't that tsips aren't ignorant, it is that they know so much that isn't so."

If ESPN decides to pay out the life of the contract, which they won't, but lets just assume it to be so for fu[ks sake, then ESPN will still own the licensing rights to the tier 3 content. And any deal that Texas makes to sell those tier 3 rights, the money will go to ESPN to offset the cost. It is the same exact thing that happens to a fired coach. When you fire him, but decide to just pay out his contract, if that coach takes another job, his paycheck at the new job just offsets the old payment.

When you fire Charlie Strong, you will pay him $5.4 Million in 2017 and $5.5 Million in 2018, if you don't reach a settlement. When he takes the University of Miami DC job, and gets paid $900,000 to do so, the sips will have to pay him $4.5 Million in 2017 and $4.6 Million in 2018. Net effect to Charlie Strong does not change.

The same thing will happen unless there is a settlement. And since there is a 90% chance that ESPN will have to pay for the future home of the sips, meaning if they move to the B1G or ACC or wherever, there is zero incentive for ESPN to settle. Why would they pay twice?

In other words, sips are delusional, again, part 3,852.

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This an interesting thought, would a settlement include "brokering" the sip's third tier rights to a conference of ESPN's choosing so they in effect retain those rights and increase the value of other properties to which they have broadcast rights.Classic "bolt-on" M&A approach.

Sorry I was confusing. ESPN won't settle if they are going to have to turn around and pay them the next year as part of one of their leagues, like the ACC. ESPN will just offset what they owe the ACC in future revenue with the sips portion.

Example:

ESPN settles for $50 Million (never happen, but example)
Texas joins ACC gets paid $20 Million from conference for tiers 1,2, and 3.
ESPN is out $70 Million to the sips. Why would they do that when they can do the following...

ESPN doesn't settle and decides to offset
ESPN pays Texas $15 Million, or whatever it is, for tier 3 contract.
Texas joins ACC and gets paid $15 Million for tier 1, and 2 rights. Tier 3 rights money is withheld to offset against existing contract.
ESPN is out $30 Million to the sips.

Down the line, the 2nd option doesn't make financial sense for ESPN as currently constituted, but it might if and when the ACC and ESPN consummate the paid tier 3 rights agreement and forms the ACC - ESPN network with Notre Dame and Texas Olympic sports, which would work.

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This an interesting thought, would a settlement include "brokering" the sip's third tier rights to a conference of ESPN's choosing so they in effect retain those rights and increase the value of other properties to which they have broadcast rights.Classic "bolt-on" M&A approach.

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Any and all ways to offset the cost would be discussed, negotiated, brokered, etc. Especially if ESPN owns the tier 3 rights of wherever they land. An even more hilarious discussion is if the sips try to go B1G, and ESPN retains the tier 3 rights, whereas the B1G would want them for their network portfolio.....which is 51% owned by Fox Sports.

Get em booze

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ESPN does receive internal metrics to give network officials an idea how programming is doing. "Longhorn Extra" has long been a low-rated program, if it scored any ratings at all. However, the nightly 30-minute show was a terrific platform for UT's Olympic sports, coaches and athletes who may not get attention otherwise. LHN still plans on airing a weekly magazine-styled show to feature those sports.

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Someone reconcile these two statements for me, please.

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haha, I actually know this chick. went to same hs in little east texas town.

I know the likelihood of LHN seeing its 20th anniversary are slim.

But how perfect has this already been for us? For the entire duration so far, texas has sucked at football. It's very conceivable that they continue to suck until its put of its misery. The LHN will be a case study in ineptitude on all accounts. Honestly, I consider a much longer and expensive version of our Sidelines series. Just bad.

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Any and all ways to offset the cost would be discussed, negotiated, brokered, etc. Especially if ESPN owns the tier 3 rights of wherever they land. An even more hilarious discussion is if the sips try to go B1G, and ESPN retains the tier 3 rights, whereas the B1G would want them for their network portfolio.....which is 51% owned by Fox Sports.

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Has to be the PAC or ACC (less likely).

And thanks for the other explanation. Got it.

The sips will go independent. It follows with their current line of thinking as it is the most irrational option they could take based a a burnt orange worldview not backed by any facts. Thus it is the most likely path they will take. Don't let a crappy program or a dying network get in the way of hubris. Ever.

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The sips will go independent. It follows with their current line of thinking as it is the most irrational option they could take based a a burnt orange worldview not backed by any facts. Thus it is the most likely path they will take. Don't let a crappy program or a dying network get in the way of hubris. Ever.

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Who is going to play them? In all sports? Besides Baylor, tech, TCU, UofH, Rice, UTEP, UTSA and OU in football?

They may still think they can go independent but ESPN will rapidly disabuse them of that notion, in the current environment. Way different that 2010 when the LHN deal was being negotiated. ND was still indy, then. BYU is struggling with the indy thing, but have the Mormon Church to fall back on.

There is another option, of course - independence. ESPN can try to force the sips to go independent. They have tier I, II and III rights of that happens. LHN has all sip home games.

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There is another option, of course - independence. ESPN can try to force the sips to go independent. They have tier I, II and III rights of that happens. LHN has all sip home games.

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And no one will play them because of the LHN.