Realignment Megathread (All The Moves)

The primary issue with MLB is the extreme disparity of revenues from local TV deals and the recent bankruptcy/collapse of the local TV providers. This is going to be the primary sticking point for some type of salary cap and a revenue sharing mechanism in the ongoing negotiations for a new MLB CBA.
Years ago ESPN was struggling with ratings, and MLB tossed around the idea of purchasing the network and using it as the main hub for cable TV. Not doing it was a huge mistake, they could have renamed it the MLB network and use it as a hub to broadcast all the games. Over time all the teams broadcasts would fall under their umbrella. Heck they are broadcasting about 8 or 10 teams now since Bally Sports went belly up.
 
JP couldnt. . That came through the U of I and University of Iowa Hospitals and Clinics and came at the expense of the kids that Iowa Hawkeyes pretend to love at the end of the first quarter. Pretty despicable isn’t it?
It didn't come from Iowa Healthcare, that's a completely separate enterprise. In fact, Iowa Healthcare isn't even mentioned in the article below.

It came from general university funds. JP should have lined up for the exact same thing. He'd have gotten the same terms. 15 year repayment that they'll end up 'forgiving'.

 
CFB is the only sport where networks dictate conference/division alignment and destroy/relegate athletic programs in the process. DeLoss Dodds even admits that is the case:


Every other major sport conducts their business with the networks in an opposite manner to their overall financial benefit and don’t leave millions/billions of dollars on the table in doing so.
Here is the Dodds' excerpt from the linked Athletic article:

What do you think about the current state of conference alignment in college sports?

Dodds: "It is what it is because we didn’t try to do the right thing a long time ago. When the NCAA lost the television rights and the (College Football Association) took it – which was probably a pretty good system – but then the SEC dropped out of that and it became a conference thing. And then the conference commissioners got into competition about who could generate the biggest TV package and that’s the direction we’ve gone. It’s left a lot of people in the rearview mirror and it’s put TV executives in charge of college athletics.

That’s pretty much where we are.

When (the Supreme Court) gave each institution the rights to their own TV rights, that’s what changed the world. But on the other side of that, instead of the college people dictating what would happen in TV, the TV people started dictating what was going to happen to the colleges."


And he is absolutely correct and that is why Cruz-Cantwell needs to get passed to help reverse the existing dynamic for the extreme benefit of ISU
 
LOL, the B10/SEC media consultants aren't telling them to go it alone, ESPN and Fox are.

Full FBS pooling (including two playoffs) with 10% going to G5, 65% shared equally amongst P4/P7 and 25% shared unequally based on TV ratings would result in every FBS school at least doubling their revenues and B10/SEC continuing to maintain significant revenue advantages. Only losers are ESPN and Fox.

Without full FBS pooling, there is no effin way the B10 and SEC will double their revenues if both maintain their 100% ties to Fox and ESPN and CFP rights will continue to be the most undervalued sports property on earth.

Unfortunately, the primary obstacle to near-term full FBS pooling is the disjointed timing of the media contracts which is why Cruz-Cantwell has optional pooling language. And that is even more reason why B12/SEC opposition to Cruz-Cantwell is absolutely absurd and only serving the interests of ESPN and Fox.
You are so tunnel visioned on ESPN & FOX. They are just two players that have been willing to pay the most over the last 20 years for live sports. ESPN for the obvious reason, "Worldwide Leader in Sports". If ESPN doesn't step up they're televising pickleball or dog shows!!

Why doesn't CBS still televise SEC 2:30 games? Because they got outbid by ESPN. Happens in an open market bid process.

Big10 100% ties to FOX? I think CBS & NBC would take exception to that- $350M ways.

The Big 10 Commissioner (Delaney), it's lawyers, it's media consultants, it's AD's and it's Presidents agreed to the FOX/BTN JV. Not sure you understand business negotiations if you think FOX just steamrolled the deal.

Lastly, I would be VERY surprised if we don't see new players in the upcoming Media Rights negotiations for Big 10, Big 12 then SEC TV rights. ESPN, FOX, NBC & CBS will have to fight off players like: Amazon, Apple, Netflix. Plus with all the acquisitions that Paramount/Skydance has done over last few years, I doubt they will be satisfied with 1 game.

So I am 90% certain the Big 10 will get 2-3x it's existing deal. It's not like that means in 2030 Big10 schools will each make $100M and in 2031 each school will make $250M (2.5x). It means average payments over the contact term. So doubling or tripling means comparing value midpoint vs. midpoint (aka 2027 vs. 2033 amounts).
 
But equal footing isn’t what drives the nfl’s revenue advantage.

We can talk about how it leads to parity, but it’s not the primary driver of the revenue disparity between the leagues

College football has never had parity, yet it is popular. To improve ratings and revenue, they’ll need to make the sport less regional and consolidate viewership like the NFL does. That’s what they’re doing.
Playing only once a week is a huge advantage, because it makes each game an event, and we cannot discount the effects of gambling on football, again it's a perfect sport to gamble on. Look at fantasy leagues, much easier to plan for one game a week and keep up on the stats, then trying to do it with sports that play multiple games a week.

Equal media revenues sets the floor, the draft in reverse order gives the team at the bottom an opportunity and then unequal scheduling helps teams at the bottom a better chance to make the playoffs the next season, even its only 3 or 4 games against the weaker teams.
 
It didn't come from Iowa Healthcare, that's a completely separate enterprise. In fact, Iowa Healthcare isn't even mentioned in the article below.

It came from general university funds. JP should have lined up for the exact same thing. He'd have gotten the same terms. 15 year repayment that they'll end up 'forgiving'.

Read their financial statements. Nearly all of the net operating income the university claims comes from the U of I hospitals and clinics. A lot of the u of I hospitals and clinics $400 million operating income is spread thoughout the university. The rest goes back to the hospital. Nearly all of any surplus the university has in its general fund comes from the hospitals, according to the information available to the public. So yes, the athletic department took from the kids they claim to support. And yes, that is very despicable.
 
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You are so tunnel visioned on ESPN & FOX. They are just two players that have been willing to pay the most over the last 20 years for live sports. ESPN for the obvious reason, "Worldwide Leader in Sports". If ESPN doesn't step up they're televising pickleball or dog shows!!

Why doesn't CBS still televise SEC 2:30 games? Because they got outbid by ESPN. Happens in an open market bid process.

Big10 100% ties to FOX? I think CBS & NBC would take exception to that- $350M ways.

The Big 10 Commissioner (Delaney), it's lawyers, it's media consultants, it's AD's and it's Presidents agreed to the FOX/BTN JV. Not sure you understand business negotiations if you think FOX just steamrolled the deal.

Lastly, I would be VERY surprised if we don't see new players in the upcoming Media Rights negotiations for Big 10, Big 12 then SEC TV rights. ESPN, FOX, NBC & CBS will have to fight off players like: Amazon, Apple, Netflix. Plus with all the acquisitions that Paramount/Skydance has done over last few years, I doubt they will be satisfied with 1 game.

So I am 90% certain the Big 10 will get 2-3x it's existing deal. It's not like that means in 2030 Big10 schools will each make $100M and in 2031 each school will make $250M (2.5x). It means average payments over the contact term. So doubling or tripling means comparing value midpoint vs. midpoint (aka 2027 vs. 2033 amounts).
Tripling I would be supposed by but could work out in combination with the playoff new deals
 
Playing only once a week is a huge advantage, because it makes each game an event, and we cannot discount the effects of gambling on football, again it's a perfect sport to gamble on. Look at fantasy leagues, much easier to plan for one game a week and keep up on the stats, then trying to do it with sports that play multiple games a week.

Equal media revenues sets the floor, the draft in reverse order gives the team at the bottom an opportunity and then unequal scheduling helps teams at the bottom a better chance to make the playoffs the next season, even its only 3 or 4 games against the weaker teams.
Right, football will be popular regardless of how poor they make non-P2
 
You are so tunnel visioned on ESPN & FOX. They are just two players that have been willing to pay the most over the last 20 years for live sports. ESPN for the obvious reason, "Worldwide Leader in Sports". If ESPN doesn't step up they're televising pickleball or dog shows!!

Why doesn't CBS still televise SEC 2:30 games? Because they got outbid by ESPN. Happens in an open market bid process.

Big10 100% ties to FOX? I think CBS & NBC would take exception to that- $350M ways.

The Big 10 Commissioner (Delaney), it's lawyers, it's media consultants, it's AD's and it's Presidents agreed to the FOX/BTN JV. Not sure you understand business negotiations if you think FOX just steamrolled the deal.

Lastly, I would be VERY surprised if we don't see new players in the upcoming Media Rights negotiations for Big 10, Big 12 then SEC TV rights. ESPN, FOX, NBC & CBS will have to fight off players like: Amazon, Apple, Netflix. Plus with all the acquisitions that Paramount/Skydance has done over last few years, I doubt they will be satisfied with 1 game.

So I am 90% certain the Big 10 will get 2-3x it's existing deal. It's not like that means in 2030 Big10 schools will each make $100M and in 2031 each school will make $250M (2.5x). It means average payments over the contact term. So doubling or tripling means comparing value midpoint vs. midpoint (aka 2027 vs. 2033 amounts).

He’s right though, given Fox sat in on the BIGs deal. They arranged the USC move.
The BIG and Fox’s interests align, but Fox is the one that controls the revenue mechanism. It’s their balance sheet that determines things. They are the bank.

Regardless, there isn’t room for 3rd peer conference at anything close to current rate, even if new entrant. There are only so many premium windows to monetize at high rate. Going past two concurrent elite (premium rate) games in those windows represents cannibalism of viewership.

Streaming subscriptions can help offset, but the subscription revenue doesn’t support the premium rate yet, and may never be without bundling all of CFB. It is capable of allowing the P2 of expansion though