Just for SEC Network alone

http://theadvocate.com/sports/9309244-128/rabalais-frequently-asked-questions-about

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How much is the network going to be worth to each school?
It’s hard to count that high.

Based on the rate within SEC states alone, if you multiply $1.30 times 12 months times the estimated 30 million subscribers in that footprint, you get $468 million. That would be $33.4 million per school — per year. And that’s without counting advertising revenue or subscribers from non-SEC states. Factor that in, and the SEC Network could easily be worth $500 million per year or $35.7 million per school once full distribution is achieved.

Currently, each SEC school gets about $20 million per year in TV revenue, so it’s easy to see what a huge impact the network will have on SEC bottom lines. LSU Athletic Director Joe Alleva has said he hopes revenue from the SEC Network will reduce or at least postpone the need for raising ticket prices.

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Will the network have $0 in operating costs??

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We sat down at this week’s SEC Spring Meeting with Justin Connolly, ESPN senior vice president for college networks (ESPN is producing the SEC channel) to try to answer some of them.

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This is the per school estimate FROM ESPN. So they would know.

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Good question. All of these projections make it sound like the network is just going to be an ATM machine, but there are bound to be substantial costs associated with production.

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This is the per school estimate FROM ESPN. So they would know.

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So ESPN is just doing the SEC a favor then?
The real question is what that $1.30 figure is. Is that the base cost of the subscription, or is that the SEC's cut after ESPN has taken their share?

[This message has been edited by MassAggie97 (edited 5/30/2014 8:27a).]

Right after we joined the SEC, some we're calculating 38MM per school. They were close!

The the cost per subscriber.

Add on other revenue for the network before you take out expenses. $20mm per team would not be a surprise.

If ESPN was not accounting for revenue-costs, etc. the share for each school would still be extremely significant. Even half would be a big number.

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The the cost per subscriber.

Add on other revenue for the network before you take out expenses. $20mm per team would not be a surprise.

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The conference also gets a share so divide the total by 15 instead of 14 as well.

I think that's correct actually.

I'm starting to think ESPN gave a gross number and the writer just split it 14 ways. That's still a big number though, and it can easily be much more than that.

I thought each school had it's own production facilities and would send content to the sec network for airing. So some of cost will be born by the schools.

Money

Paid

Brewer, I believe you misread the question. The question was on the Big 10 network, not the money distribution. The SEC network (and conference) succeeds because the members look out for themselves and their conference mates (this was Nash's contribution to economic theory). If we look west to Austin, we find a different model.

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http://7on7football.blogspot.com/

I think the calculation is off because it takes $500M and divides by 14. IIRC, when the annual TV revenues are calculated, the pot (sans partial bowl awards) gets divided by 15, one share going to the conference office.

Why is Nebraska excluded from that Big 10 deal? I am too lazy to look up the details...

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http://7on7football.blogspot.com/

Indiana - I couldn't quite tell but that article made it seem like that was total payout from all contracts. That total payout is about 10-15% more than just the SEC Network.
Mind you those figures were just in the current SEC footprint. When you add the rest of the country, most states will have it, then the payout has the potential to be bigger. Everyone out west seems to hate the SEC but they sure do watch the games.

Gettin' shaded under money trees

But this is all moot because the estimation is only $500M.

If by subscriber alone it is worth ~$450M, and you consider even "50" cent per viewer for programming ad revenue, you get a lot more money. Say 4 million people watch USC/TAMU. Do you think if you add up all the revenues from ad contracts for an event with 4M viewers would only equate to $2M? That is $2M+ for 3 hours of programming. There are 8,757 other hours a year to have their own ads; sure it wont have the same volume of viewers as a premiere event but that isnt the only program the SECN will have.

One of the biggest complains the network fixes is baseball. The SEC is fairly dominant in baseball and its got thousands of die hard fans that miss road games or 3rd party watchers who want to see certain teams lose, etc...Networks dont cover college baseball until damnnear after the NBA playoffs are wrapping up. With the SECN, they will end up filling their content from the second week of April till the end of the CWS (June) with SEC Baseball (and some lesser sports and recruitment programming).


The same gets applied to basketball. During conference play on any given saturday there are 7 games played staggered throughout the day. But you would be luckily to catch even 2-3 of them being televised because networks follow the the highest bball drawing games and those reside in the ACC/B10. So SEC fans are SOL. With the SECN instead of only getting 3 games on the major sports networks, you might get a noon, 3pm and 7pm game as well. So 5-6 games total would be televised for the 10-12 fanbases involved. (Midweek conference games, Tuesday/Wednesday, are even more exclusive because they are only played in the evenings; so there are even fewer slots on the major networks.)


[This message has been edited by BillOnCapitolHill (edited 5/30/2014 10:24a).]