Big East Network Estimated Payouts

[Guest]

$15.2 million / football school * 8 football schools = $121.6 million

$7.5 million / basketball school * 8 basketball schools = $60 million

So there must be a typo somewhere.... ("Navigate Marketing officials tell me that the Big East Network could generate $80 million a year in revenue.") Um.... that would have to be $180 million.

For comparison, the Big Ten Network pays out around $242 million to the 11 teams.

So can the Big East - which would have a lot of basketball properties to offer - get 75% of the Big Ten money with some of the nations largest cable markets? Heck, for basketball even Boston would be part of the mix.  Boston, New York, Philly, Pittsburgh, DC-Baltimore, Tampa, Louisville, Cincinnati, Chicago, Milwaukee ??

The Big East would have a far larger footprint... and Big East Basketball could drive that far better than Big Ten basketball.

$15 million seems to be about right.

[2000bull]

$15.2 million / football school * 8 football schools = $121.6 million

$7.5 million / basketball school * 8 basketball schools = $60 million

So there must be a typo somewhere.... ("Navigate Marketing officials tell me that the Big East Network could generate $80 million a year in revenue.") Um.... that would have to be $180 million.

For comparison, the Big Ten Network pays out around $242 million to the 11 teams.

So can the Big East - which would have a lot of basketball properties to offer - get 75% of the Big Ten money with some of the nations largest cable markets? Heck, for basketball even Boston would be part of the mix.  Boston, New York, Philly, Pittsburgh, DC-Baltimore, Tampa, Louisville, Cincinnati, Chicago, Milwaukee ??

The Big East would have a far larger footprint... and Big East Basketball could drive that far better than Big Ten basketball.

$15 million seems to be about right.

I was kind of thinking the same thing, because it was the same company saying $80 million and then $15mil for each FB program and $7.5mil for BBall.

[Dogma]

If true...

:jawdropper

[Joe]

94.

Its kinda what I do for a living. If the Big East could get $10 mil per school right now they'd be all over it.

The problem is, they can't which is why the network really hasn't come to fruition.

[Bull94]

94.

Its kinda what I do for a living. If the Big East could get $10 mil per school right now they'd be all over it.

The problem is, they can't which is why the network really hasn't come to fruition.

how old is the big ten network? why didn't they start it 10 or 20 years ago?

why doesn't the pac ten have a network? or big 12?  (yet)

The SEC doesn't have a dedicated channel but they're able to sell their distribution rights because of the demand for advertising. The fact is they don't have the population base in their geographic footprint to generate the kinds of revenue that the BE can through basic subscriber fees.

This is a whole new model where advertising dollars don't matter. Why do you think the "free" networks are scrambling to get subscriber fees now?

Hell the NFL channel just launched a few seasons ago. Why wasn't that up and running 10 years ago?

This is in it's infancy and the big ten has shown all the other leagues how much money they can make.

How long have you been in the cable programming business anyway?

long enough to see the explosion in choices for cable channels just in the last 10 years? I believe ESPN has another channel starting soon. Similar to the red zone channel but for college.

The fact is that it's now commercially viable for channels to launch with little or no overhead and with subscriber fees they can make lots of money just by being included on basic tier services.

If and when they go to  a la carte pricing, where you pay for the channels you want, then the SEC will reign supreme. They have the most fans. Unfortunately for them they aren't located in the biggest population centers and tiered pricing will favor those in larger metro areas..

Joe I will defer to you on plenty of college football topics but you are wrong concerning these networks and the kind of revenue they can drive. Especially in the BE where they are located in the most populated markets.

[Joe]

You're mistaking a few things.

1) populated markets. Just because a team is there doesn't mean it's all that popular. The biggest myth. Rutgers and New York. In Cincy Ohio State is easily 2-1 on Cincy, and they are a Big Ten Network draw.

2) The idea is to get the channel on the regular lineup at a high price. Basketball demands zero dollars compared to football. The Big East would be banking on football money to back it. There is no star power there.

3) The Big 12 owns markets like Dallas and Houston and has two of the biggest names in football, but can't get more than 12 mil a year (for that reason they're moving to a sliding revenue scale where Texas will make 20 mil and Iowa State 10.

The idea is right, but football in the Big East is not strong enough. Markets in name or not.

[Bull94]

You're mistaking a few things.

1) populated markets. Just because a team is there doesn't mean it's all that popular. The biggest myth. Rutgers and New York. In Cincy Ohio State is easily 2-1 on Cincy, and they are a Big Ten Network draw.

2) The idea is to get the channel on the regular lineup at a high price. Basketball demands zero dollars compared to football. The Big East would be banking on football money to back it. There is no star power there.

3) The Big 12 owns markets like Dallas and Houston and has two of the biggest names in football, but can't get more than 12 mil a year (for that reason they're moving to a sliding revenue scale where Texas will make 20 mil and Iowa State 10.

The idea is right, but football in the Big East is not strong enough. Markets in name or not.

1. Like I said the team doesn't need to be all that popular. It's not the advertising dollars driving this. Granny down the street will be paying for the BE channel even if she never watches it. There will be enough demand with all the northeast teams especially in basketball to lock up most of theNY, NJ, Philly, Washington DC, etc markets.

2. There is a huge demand for BE basketball. the tournament is played in the center of the largest metro TV market in the country. Of course basketball doesn't command the advertising dollars the way football does but again that doesn't matter. It's not about how many people watch it. It's about how many people will pay for the channel.

3. The big 12 markets don't even come close to the BE markets in size. Stillwater? Norman? Ames? Texas gets paid more because they bring in the dallas/houston markets. Nobody else in that conference brings in squat. If Iowa state can bring in 10M then BE teams in huge markets like Tampa, Washington DC, North NJ, NY, Connecticut,etc can bring in just as much if not more.

we can agree to disagree and in the end we will see who is correct.

[Joe]

Thank you bry.

That's exactly the flaw in  the Big East Network.

[Bull94]

You're mistaking a few things.

1) populated markets. Just because a team is there doesn't mean it's all that popular. The biggest myth. Rutgers and New York. In Cincy Ohio State is easily 2-1 on Cincy, and they are a Big Ten Network draw.

2) The idea is to get the channel on the regular lineup at a high price. Basketball demands zero dollars compared to football. The Big East would be banking on football money to back it. There is no star power there.

3) The Big 12 owns markets like Dallas and Houston and has two of the biggest names in football, but can't get more than 12 mil a year (for that reason they're moving to a sliding revenue scale where Texas will make 20 mil and Iowa State 10.

The idea is right, but football in the Big East is not strong enough. Markets in name or not.

That's the flaw with the idea of a Big East network - there will not be enough demand in any of these markets for the cable companies to force this into their cable package. The average citizen isn't going to want to pay more on their cable bill - regardless of the amount - to have access to programing they would never watch. There is already too much of that going on right now.

Will people in Morgantown want it - probably, but New York City? Look at the local TV ratings when these teams are on and that will tell you what kind of market there might be.

do you want to pay for Mtv 3? You do. Do you want to pay for ID? you do. There is no demand for those channels and yet they are on basic cable. We don't have a la carte pricing. You pay for a lot of channels you don't watch.

I'm sure they won't get the .80c per subscriber the big ten gets in their geographic area but they will get a decent price in NYC, Philly, Washington DC, Tampa, Pittsburgh. I pay for the big ten network and I've never watched it. You think there is demand for it in Tampa? Hell if the BE network can get .20c per subscriber, they will cash in with the huge markets they are in.

I'm amazed that Iowa State can make $10M in Ames iowa but you don't think the BE can generate revenue in their markets which are the largest in the country.

Why do you guys think they hired Taglibue? Wasn't he the one that helped get the NFL network started. Think about how many BE graduates live in NYC. UConn grads. Syracuse grads. Rutgers grads. Seton Hall grads. St john's grads.

You think ND might want a cut of the basketball revenue? Maybe they guarantee 2 BE network football telecasts a year. Basketball as well as all their other olympic sports will on the BE network. You don't think their fans might want that channel.

[Joe]

94,

Basketball makes very little money, thus the reason the ACC put so much focus on football. The Big East TV contract banks on football.