Wilner had a nice little guesstimate about new pac12 vs. mt. west media payouts

940 Views | 3 Replies | Last: 9 days ago by BearSD
Bobodeluxe
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Investment vultures want your money

"A conservative estimate suggests the Pac-12 should command at least three times the Mountain West's average annual value, thus creating a target figure in the $9 million-to-$10 million range.

Depending on the number of bidders and the manner in which the Pac-12 packages its inventory, the total could climb a tick above $10 million per school. Maybe it dips slightly below $9 million."

'Bout what comes in now after traveling expenses.
calumnus
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Bobodeluxe said:

Investment vultures want your money

"A conservative estimate suggests the Pac-12 should command at least three times the Mountain West's average annual value, thus creating a target figure in the $9 million-to-$10 million range.

Depending on the number of bidders and the manner in which the Pac-12 packages its inventory, the total could climb a tick above $10 million per school. Maybe it dips slightly below $9 million."

'Bout what comes in now after traveling expenses.


Equal now, but our payment ramps up to a full ACC share (($40 million) if we survive long enough).
sycasey
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calumnus said:

Bobodeluxe said:

Investment vultures want your money

"A conservative estimate suggests the Pac-12 should command at least three times the Mountain West's average annual value, thus creating a target figure in the $9 million-to-$10 million range.

Depending on the number of bidders and the manner in which the Pac-12 packages its inventory, the total could climb a tick above $10 million per school. Maybe it dips slightly below $9 million."

'Bout what comes in now after traveling expenses.


Equal now, but our payment ramps up to a full ACC share (($40 million) if we survive long enough).

And not counting what the ACC pays out in bowl revenue, NCAA Tournament units, etc.
BearSD
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Wilner's guesstimate is based on very poor reasoning.

Even if the breakaway league members have 3x the TV value of the remaining members (and we're not agreeing or disagreeing that they do, just playing along), Wilner's calculation is based on assuming that the remaining MWC members will have the same collective TV value they do now, even after teams including TV's mid-major darling Boise have left, and then Wilner just multiplies that number by 3.

What is more likely -- if TV believes that losing Boise and SDSU substantially decreases the MWC's TV value -- is that the MWC would get a paycut, i.e., would get significantly less than $3 million per year per member for their next TV deal. For example, if TV deemed the "new" MWC to be worth $1.5 million per year per team, and deemed the breakaway Pac-ish to be worth 3x as much, then WSU/OSU/Boise et al get $4.5 million per year per team, not $9 or 10 million.

What the TV guys probably do is estimate the TV value of each team in a "new" conference and add that up for a starting figure. Just as an example, if TV thinks Boise is worth $10 million a year, maybe WSU and OSU also that much, Fresno and SDSU $6 million each, CSU and USU $3 million each, and the fill-in 8th team (maybe Texas State) $1 million, that's $49 million total, and dividing that 8 ways is about $6 million per year for each member. Yes, they might ultimately get more, but to do so they have to convince the TV guys that their teams are worth significantly more than the numbers above.
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