New SECNetwork financials...

[engie]

http://www.foxsports.com/college-football/outkick-the-coverage/sec-network-poised-to-be-fifth-most-lucrative-sports-network-in-country-072214
http://www.sportsbusinessdaily.com/Daily/Issues/2014/07/18/Media/SEC-Network.aspx

The top 10 sports channel in terms of revenue according to Travis' reporting
1. ESPN: 97 million households $7 billion
2. NFL Network: 72 million households $1.05 billion
3. ESPN2: 97 million households $861.4 million
4. FS1: 88 million households $718.8 million
5. SEC Network: 75 million households $611 million
6. NBC Sports Network: 80 million households $259.2 million
7. Pac 12 Network: 26 million households $249.6 million
8. Big Ten Network: 52 million households $237.1 million
9. ESPN News: 75 million households $207 million
10. NBATV: 60 million households $194.4 million

Yes -- it is likely worth over double the Pac12 and B1G networks combined.

$800mil/yr after advertisement revenue comes in. That's worth almost $27mil/team on day 1 -- and the price is going to go up ~ 10% every single year, built into these initial contracts.

We're looking at $50mil in overall SEC tv and bowl revenue in year 1. We're a going to be a $100mil athletics dept now.

[War Machine Dawg]

Is this pre-DirecTV projections or does this number include DTV? Either way, that's still a ridiculous amount of money coming into the coffers. I'm not old, but even I didn't fathom a day when we'd be a $100M athletic department.

[Martianlander]

Astounding. I wish I had the contract to sell briefcases to tsun.

[engie]

Is this pre-DirecTV projections or does this number include DTV? Either way, that's still a ridiculous amount of money coming into the coffers. I'm not old, but even I didn't fathom a day when we'd be a $100M athletic department.

Number includes DTV and Time Warner, both of which are basically done and guaranteeing they'll have it in year 1. Basically, these numbers represent a clean sweep of the big boys...with another 22mil subscriptions or so possible in all of the smaller providers...

[messageboardsuperhero]

And to think we were around $30-35 million just six or seven years ago...

I think who this is really going kill are schools like USM. They used to be able to pull some good local talent in South Mississippi- now, us and UM are going to basically be able to cherry pick the state.

[engie]

And to think we were around $30-35 million just six or seven years ago...

I think who this is really going kill are schools like USM. They used to be able to pull some good local talent in South Mississippi- now, us and UM are going to basically be able to cherry pick the state.

I think we're fairly close to being able to cherrypick the country if the SEC can stay on top for another 5-10 years...

Yeah, USM is basically in a different division going forward...

[Esmerelda Villalobos]

I believe this is the beginning of the end of college football....as we once knew it. Not sure if good or bad.

[engie]

I believe this is the beginning of the end of college football....as we once knew it. Not sure if good or bad.

Good for us -- not sure about overall.

We're about to be by far the closest we've ever been to being a "have" financially...

[Dawg61]

http://media0.giphy.com/media/GCLlQnV7wzKLu/giphy.gif

[dawgs]

I believe this is the beginning of the end of college football....as we once knew it. Not sure if good or bad.

I'm just glad we are in a big 5 conference. It would suck to be a fan of a program that you know will soon be relegated to FCS (or whatever it gets called).

The positioning of the better mid major programs to try to squeeze into a big 5 conference before being left behind will be interesting the next few years.

[Esmerelda Villalobos]

I dont necessarily think it is good for there to be a 1% and then poor. Where is the healthy middle? This goes for sports, economy, etc,

My biggest fear is the nascar effect. Those that follow nascar the past 15 years know what happened. Greed. Now look at it.

We are already seeing it with declining attendance. Wait 15 years where 30% of seating is a party terrace, 50% premium and the rest shit seats. Those shit seats by joe blow fans built colleges atmosphere. It will slowly go away I fear. It is already happening.

But yeah, we will have a lot of money I guess....

[HSVDawg]

I believe this is the beginning of the end of college football....as we once knew it. Not sure if good or bad.

It won't only be football that reaps the benefits although that what will receive the largest share. But suddenly, I think any concerns about where the money is coming from for the new baseball stadium have now been laid to rest.

[dawgs]

I dont necessarily think it is good for there to be a 1% and then poor. Where is the healthy middle? This goes for sports, economy, etc,

My biggest fear is the nascar effect. Those that follow nascar the past 15 years know what happened. Greed. Now look at it.

We are already seeing it with declining attendance. Wait 15 years where 30% of seating is a party terrace, 50% premium and the rest shit seats. Those shit seats by joe blow fans built colleges atmosphere. It will slowly go away I fear. It is already happening.

But yeah, we will have a lot of money I guess....

If only Bama, Texas, USC, ND, and ohio st came together to negotiate a monster tv contract and the rest of the CFB world was left behind, I'd agree about the 1% argument, but we are talking about 65-70 programs that are going to be plenty wealthy out of the 120 or so current FBS programs. Within those 65-70 programs, there will be an upper class, a middle class, and a lower class. I don't think it's really a big crisis in the way you are painting it.

As for pricing out the average fan, for better or worse, that's been happening for years.

[Political Hack]

everyone is saying "we'll get more money" but no one is considering that the gap between us and the LSU's, Florida's, and Bamers is going to widen. We still pay diddly winks marketing to put our brand in dozens of stores across the golden triangle area while Bama has it's logo in every strip mall east of the Mississippi. I hope they're preparing to take full advantage of this exposure but knowing our history gives me reservations about having some grand expectations. We've got a huge chance to capitalize on this and I hope they do it correctly and have really thought through how we will prevent the bigger schools from leaving us in the dust even further. $50 million is cool, but it ain't crap compared to a billion... and that's where we're headed soon.

[engie]

everyone is saying "we'll get more money" but no one is considering that the gap between us and the LSU's, Florida's, and Bamers is going to widen. We still pay diddly winks marketing to put our brand in dozens of stores across the golden triangle area while Bama has it's logo in every strip mall east of the Mississippi. I hope they're preparing to take full advantage of this exposure but knowing our history gives me reservations about having some grand expectations. We've got a huge chance to capitalize on this and I hope they do it correctly and have really thought through how we will prevent the bigger schools from leaving us in the dust even further. $50 million is cool, but it ain't crap compared to a billion... and that's where we're headed soon.

To me, you just made a case for the gap getting narrower -- not wider.

Like you said, those "brands" are already in every strip mall in the country. They have to already be pretty near their saturation point. Alot closer than we are anyway. Everyone in the country can tell you everything there is to know about those schools. They grew up with them.

Meanwhile, we've got a ton of built-in growth potential that others don't have. They don't know about Mississippi State yet -- but the network will help them get a much deeper understanding in areas that have always been exposed to the others -- us, not so much.

[PassInterference]

I dont necessarily think it is good for there to be a 1% and then poor. Where is the healthy middle? This goes for sports, economy, etc,

My biggest fear is the nascar effect. Those that follow nascar the past 15 years know what happened. Greed. Now look at it.

We are already seeing it with declining attendance. Wait 15 years where 30% of seating is a party terrace, 50% premium and the rest shit seats. Those shit seats by joe blow fans built colleges atmosphere. It will slowly go away I fear. It is already happening.

But yeah, we will have a lot of money I guess....

I've had this concern for years. I watched it happen to professional sports.

Pro stadiums used to be passionate and a place where any family could enjoy watching the sport live. Today, most pro sports venues are clinical shmoozing tools for corporates and the wealthy. It is ONE (not the only, maybe not even the biggest) reason that college sports have been so much better than pro sports.

I hate to see college sports go that way.

[Dawg496]

Engie, I asked this in another thread too and I can't recall whether you answered but are you getting the $27 million/team from $800 million being split into halves first (50% ESPN and 50% SEC) and then the SEC share being divided into 15 with one for each team and one for the conference?

Are you assuming that all operating costs will be paid by ESPN from their 50% cut? I would imagine that the SEC's 50% (and our 1/15th of that) would be calculated from income rather than gross revenue.

Thanks