Report: OU & Texas reach out to join SEC

flycy

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Uh, because they're P5 football programs in Texas? ( I doubt they are as hung up on Baylor as people on this board are. )

I don't think it will happen, but it's possible.

Yeah the hate obsession on this board for Baylor is weird. They are dislikable and some ugly things have happened there, but similar things have happened elsewhere too.
 

jbhtexas

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Never happen. Texas is already locked down for the SEC with UT and A&M. Those other four schools add nothing to the SEC other than diluting everyone else's revenue payments.
The SEC adding those four teams isn't about increasing everyone's payout, its about the SEC keeping themselves out of an ugly lawsuit a few years down the road.
 

Gonzo

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Never happen. Texas is already locked down for the SEC with UT and A&M. Those other four schools add nothing to the SEC other than diluting everyone else's revenue payments.

That's what I was thinking. They wouldn't get a full cut to start anyways but why dole out anything to schools who don't bring in anywhere close to what they'd be getting. I have a hard time seeing the rest of the schools being ok with taking a smaller piece of the pie.
 

cyIclSoneU

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The SEC adding those four teams isn't about increasing everyone's payout, its about the SEC keeping themselves out of an ugly lawsuit a few years down the road.

Seems shortsighted if that's the reason.

SEC with OU and UT expected to get $70MM/year per school for TV money = $1.12B total value. Assume (charitably, considering TCU/Baylor fan base size) that those four schools are worth $20MM/year. Pie grows to $1.2B but gets split 20 ways now. That's suddenly $60MM/year per school.

So that's basically a $160MM hit, every year, in perpetuity, in order to avoid a lawsuit from 8 schools that have a collective expectation of about $300MM/year in TV money for only four more years - and will still get half of that with OU and UT gone anyway.

If the SEC really thinks that a Big 12 suit is worth more than $160MM/year for decades, then we probably would all already be in the SEC by now.
 
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qwerty

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So some math on that.
At about 15 games per year, this breaks out to a total season audience of 225m, or about $4.45 per set of eyeballs, though we can use $4.5 to keep the math easy.

If you take all the home games from last year and add up the eyeballs, you get the following:

View attachment 88188

Some thoughts:

1) I always felt "half the value" was a bit steep, but this shows a 32% reduction. I didn't take out games played against OU/TX, but that would increase it slightly. One thing not really factored in is that teams ranked higher playing games against other ranked teams rate higher than those who aren't.

2) As you can see there is a standard stratification in the conference, with TX/OU being in a tier by themselves, OkSt/ISU being in a second tier, WVU/KState/Tech being in the third, the privates showing up in a fourth, and Kansas stinking up the joint.

3) Taking the Prime number of $4.5 per eyeball (CFB eyeballs are worth the same amount as NFL eyeballs, maybe more since CFB audiences tend to be higher net worth.

4) This is the problem pegging the remaining 8 at the moment. Viewership ebbs and flows with success. Oklahoma State is in the best place because they've had far more success in the past 10-15 years than the rest. Iowa State is kind of showing their top end viewership right now, but no one is sure if they'll be able to sustain it. All together the Remaining 8 is worth about $225M based on last years numbers and 40% of that is embedded in ISU/OkSt's numbers. (sound familiar?) $225M per year from Amazon for 72 games works out to be about $3.1m per game or a yearly split of $28M per school, which could definitely ease the pain.

Best thing to do at this point, if you're OkSt/ISU/WVU is stay in the Top 25 conversation and generate a lot of interest over the next 2-3 years. Definitely not a time for a slump.
I appreciate your work on this and agree your numbers are probably in the ballpark. I am surprised Texas Tech isn't higher viewership. They are larger enrollment (and thus alumni) than ISU. Their primary problem must be no large metros close by and outside of Lubbock, most casual fans are probably OU or UT.

Also, it will be interesting IF Prime gets into college football, the kickoff times they instill. I think the existing "glory" kickoff times are probably still prime (pun intended) but with viewership being more on a dedicated effort to login and find your team vs. casual browsing and stopping to watch, would kickoff times matter as much as they seem to now? IDK, maybe people will browse Prime for football games same as they do cable channels.
 

jbhtexas

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Seems shortsighted if that's the reason.

SEC with OU and UT expected to get $70MM/year per school for TV money = $1.12B total value. Assume (charitably, considering TCU/Baylor fan base size) that those four schools are worth $20MM/year. Pie grows to $1.2B but gets split 20 ways now. That's suddenly $60MM/year per school.

So that's basically a $160MM hit, every year, in perpetuity, in order to avoid a lawsuit from 8 schools that have a collective expectation of about $300MM/year in TV money for only four more years - and will still get half of that with OU and UT gone anyway.

If the SEC really thinks that a Big 12 suit is worth more than $160MM/year for decades, then we probably would all already be in the SEC by now.

There is a future loss claim of $20 million (at least) per year lost revenue * a 10 year (at least) media deal * however many R8 schools don't find a good-paying home because OU/UT/ESPN/SEC broke the Big 12 bylaws and colluded against the Remaining 8 members and prevented them from getting a new P5-level contract. Plus, there could be punitive damages levied above the future loss damages. And no school wants their AD and president on the stand spilling all the dirt.

Nobody knows how juries and judges roll...maybe they award a pittance, or maybe they go medieval on the defendant.
 
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Cyclones1969

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Totally misunderstood my earlier point, but it actually fits the topic: plenty of posters on here, who have never so much as read the contract, are 100% convinced that the Big 12 would beat ESPN in court and ESPN would have no arguments to make at all.

So then explain to everyone instead of doing what you did last Thursday.

Make a bunch of statements like they’re fact and then try to pretend you’re above it all. If you read the contract, you should make your case.
 

cyIclSoneU

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Also, it will be interesting IF Prime gets into college football, the kickoff times they instill. I think the existing "glory" kickoff times are probably still prime (pun intended) but with viewership being more on a dedicated effort to login and find your team vs. casual browsing and stopping to watch, would kickoff times matter as much as they seem to now? IDK, maybe people will browse Prime for football games same as they do cable channels.

That is one of the interesting differences about streaming. They have essentially unlimited bandwidth. A "channel" can only show one game at once. Prime Video could determine the time of day that most Iowa State and West Virginia fans would watch a game, and then schedule it for that time - even if that's the same time as Oklahoma State and TCU or whatever. There will be very smart people working to put together schedules to maximize viewership, and they will have an advantage that ESPN doesn't that they can overlap games as much as they wish without worrying about "channels."

Another difference was already mentioned, which is that a viewer could choose to listen to the ISU play by play or the WVU one (or a neutral one, maybe, if Amazon brought their own crew to the stadium).
 

SolarGarlic

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You soccer guys need to give it up with the promotion/relegation concept. It is a terrible idea for college football.

Building a team of experienced players that is good enough to get promoted, only to have them graduate and then get relegated, seems like a dumb deal. And for most teams out of the typical top 15, this is how life would be.

The worst posts on this board are those and similar ones where posters draw up any number of ridiculous divisions or pods or new playoff setups.

Guys, nobody really cares what you think *should* happen. I want to discuss what *will* happen. I get it's a message board and all discussion is relevant. Just my perspective. It's like telling someone about a dream you had last night. They don't care.
 
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Cloneon

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That is one of the interesting differences about streaming. They have essentially unlimited bandwidth. A "channel" can only show one game at once. Prime Video could determine the time of day that most Iowa State and West Virginia fans would watch a game, and then schedule it for that time - even if that's the same time as Oklahoma State and TCU or whatever. There will be very smart people working to put together schedules to maximize viewership, and they will have an advantage that ESPN doesn't that they can overlap games as much as they wish without worrying about "channels."

Another difference was already mentioned, which is that a viewer could choose to listen to the ISU play by play or the WVU one (or a neutral one, maybe, if Amazon brought their own crew to the stadium).
Agree and might add that the times can skew specifically to each viewers preference.
 

qwerty

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Guys, nobody really cares what you think *should* happen. I want to discuss what *will* happen. I get it's a message board and all discussion is relevant. Just my perspective. It's like telling someone about a dream you had last night. They don't care.
I care. Tell me your dreams, especially Hawk trolls, so the ISU football team can crush them.
 
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StPaulCyclone

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Interesting. It would be cool to see how that compares across conferences.

The Athletic did an interesting piece on 4 million+ viewers games across conferences. The Big 12 was essentially 3rd if you take ND away from the ACC. But with out OU/Texas, the Big 12 had just two games that hit those numbers. That’s why none of the remaining 8 are in high demand.

Same would be true for most other conferences top 2-3 teams, so what? I add a third because other conferences have more teams.
 

jdoggivjc

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Uh, because they're P5 football programs in Texas? ( I doubt they are as hung up on Baylor as people on this board are. )

I don't think it will happen, but it's possible.

Do you honestly think the SEC gives two ***** about "football programs in Texas" when they've already got Texas and A&M, the two biggest schools in the state? Adding Baylor, TCU, hell, even TT serves them absolutely no purpose other than getting the Big 12 shut down quicker. Do you really think they're desperate enough to take schools they have zero interest in just to get the conference shut down a few more years earlier? If the rumor were TT, OSU, KU, and ISU, I'd be much closer to believing it than any idea that the SEC has any kind of interest in Baylor or TCU.
 

qwerty

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That is one of the interesting differences about streaming. They have essentially unlimited bandwidth. A "channel" can only show one game at once. Prime Video could determine the time of day that most Iowa State and West Virginia fans would watch a game, and then schedule it for that time - even if that's the same time as Oklahoma State and TCU or whatever. There will be very smart people working to put together schedules to maximize viewership, and they will have an advantage that ESPN doesn't that they can overlap games as much as they wish without worrying about "channels."

Another difference was already mentioned, which is that a viewer could choose to listen to the ISU play by play or the WVU one (or a neutral one, maybe, if Amazon brought their own crew to the stadium).
I have no idea how this works. Would Amazon have to pay a lump sum to the conference and then crapshoot the games or could a base amount be set and then teams get $x per streaming eyeballs per game? Thus the more popular teams still get more $ (sorry KU).
 

StPaulCyclone

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So some math on that. TNF games average around 15m viewers on all formats. Moving to all streaming will likely decrease it some because a significant chunk of the US population still relies on the primary channels to get their games. This is part of the premium baked into the deal.

At about 15 games per year, this breaks out to a total season audience of 225m, or about $4.45 per set of eyeballs, though we can use $4.5 to keep the math easy.

If you take all the home games from last year and add up the eyeballs, you get the following:

View attachment 88188

To help the one year average, so I didn't have to pull and sort through tons of years, these numbers are duplicated, e.g. they are total audience viewing this team whether they were home or away. So the RRS counts for both Oklahoma and Texas in these numbers. Some thoughts:

1) I always felt "half the value" was a bit steep, but this shows a 32% reduction. I didn't take out games played against OU/TX, but that would increase it slightly. One thing not really factored in is that teams ranked higher playing games against other ranked teams rate higher than those who aren't. There would be more ranked teams with less losses against OU after they left, so you'll get a slight bump. And.... if Texas was good it would be more currently so it all pans out. While likely more accurate to remove, on a one year glance, the tiering shows up without it, so its kind of moot.

2) As you can see there is a standard stratification in the conference, with TX/OU being in a tier by themselves, OkSt/ISU being in a second tier, WVU/KState/Tech being in the third, the privates showing up in a forth, and Kansas stinking up the joint. Its probably not a shock to state everyone's least viewed game of the year was against the Jayhawks.

3) Taking the Prime number of $4.5 per eyeball (CFB eyeballs are worth the same amount as NFL eyeballs, maybe more since CFB audiences tend to be higher net worth. I also feel good about this number since its about what the B12 currently is paid) and dividing it by two shows the relative value of each property for last year.

4) This is the problem pegging the remaining 8 at the moment. Viewership ebbs and flows with success. Oklahoma State is in the best place because they've had far more success in the past 10-15 years than the rest. Iowa State is kind of showing their top end viewership right now, but no one is sure if they'll be able to sustain it. All together the Remaining 8 is worth about $225M based on last years numbers and 40% of that is embedded in ISU/OkSt's numbers. (sound familiar?) $225M per year from Amazon for 72 games works out to be about $3.1m per game or a yearly split of $28M per school, which could definitely ease the pain.

However, with the AAC being paid $10m per school, with the audience to back it up, it may get very difficult for the Remaining 8 to stick together if someone tosses a lifeline to OkSt, ISU, or WVU. The Big Ten thought they could grow the audiences of Rutgers and Maryland by taking them and, while they paid for them by carriage, each schools averages are closer to Kansas's.

Best thing to do at this point, if you're OkSt/ISU/WVU is stay in the Top 25 conversation and generate a lot of interest over the next 2-3 years. Definitely not a time for a slump.

Oh, and don't tie yourself to Kansas. Yikes.
Good stuff as always! I assume this analysis doesn’t take into account the network and time differences. ISU and OSU do pretty damn well and then add the network/time and promotion that OUUT get and Tier 2 closes some on Tier 1.
 
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cyIclSoneU

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I have no idea how this works. Would Amazon have to pay a lump sum to the conference and then crapshoot the games or could a base amount be set and then teams get $x per streaming eyeballs per game? Thus the more popular teams still get more $ (sorry KU).

They sure could, and they would have instant, 100% accurate viewership figures as well. It would depend on what the conference negotiated and preferred.
 

Number Monkey

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Good stuff as always! I assume this analysis doesn’t take into account the network and time differences. ISU and OSU do pretty damn well and then add the network/time and promotion that OUUT get and Tier 2 closes some on Tier 1.

This one did not, it was just a rough average to ballpark quick numbers. On your points:

Time Slots - They really don't matter too much, as long as the East Coast has people tuning it. That's where the vast majority of the population resides, so its not to much of a surprise. Last year the average noon eastern, afternoon (2-5pm est), and Primetime, slots were within 10% of each other. The late night games, however, drew a quarter of the other slots.

Channels - Tier 1 channels, e.g ABC/NBC/CBS/FOX, all draw the highest amount. This shouldn't be too shocking as even people without cable get these stations, so they're in more households, and they get marketed better so people know what to watch. Even people who aren't fans will watch these to see what happens.

1629259230757.png

Tier 2 channels (ESPNU/2, FS1, etc) draw next to nothing. ESPN is the only cable channel that will pull down respectable numbers, that USA blip was one game. Conference channels draw around the same as FS2, the BTN number there is the average of 4 games total that have been rated because they drew enough of an audience. Seriously, 4, its like 10% of the total amount of games shown ... some watched only by the people filming it.

This one matters far more. For instance Iowa State had 3 games on T2 channels, where none of the teams above it in the total audiences had any. Iowa State's average audience for T1 games (which includes ESPN here) was 2.16m and their average audience on T2 channels was 487k. That's a big deal. Put those on ESPN and you're drawing about 3-4m more people in total.

Fox has grown over the past few years, especially as they started getting the Big Noon Kickoff going. Its in its infancy, but is producing results. It will be interesting to see what CBS does once the SEC leaves in a few years. They don't want to pay the big numbers, but they basically built the SEC with their single game marketing. Whoever takes a haircut to grab those 15 time slots at 3:30 eastern will get a sizable boost of exposure.
 

Number Monkey

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I appreciate your work on this and agree your numbers are probably in the ballpark. I am surprised Texas Tech isn't higher viewership. They are larger enrollment (and thus alumni) than ISU. Their primary problem must be no large metros close by and outside of Lubbock, most casual fans are probably OU or UT.

Also, it will be interesting IF Prime gets into college football, the kickoff times they instill. I think the existing "glory" kickoff times are probably still prime (pun intended) but with viewership being more on a dedicated effort to login and find your team vs. casual browsing and stopping to watch, would kickoff times matter as much as they seem to now? IDK, maybe people will browse Prime for football games same as they do cable channels.

Tech has respectable numbers, but didn't have a great season. Two things that kept it down were its max potential. When Iowa State and Oklahoma played during the regular season they drew 3.8m people. The highest Tech had this year was 2.8m against Texas. Additionally, they had more games on T2.

If they had 10 wins and were playing for a championship I'd expect their numbers to be the same as OkSt/ISU. To the winners go the spoils.

As for Prime, they could have them on whenever you wanted. Streaming services don't have the issue the channels due, which is they can only broadcast one national game at a time (though ABC likes to do splits where they put two or three games on at the same time across the country, NFL style, to maximize total audience).
 

HouClone

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Good stuff as always! I assume this analysis doesn’t take into account the network and time differences. ISU and OSU do pretty damn well and then add the network/time and promotion that OUUT get and Tier 2 closes some on Tier 1.
Yep. You have your Tier 2 channels (FS1, FS2, ESPN2, ESPNU, or ESPN+) and then your Tier 1 channels (ABC, Fox, ESPN) for the Big 12 games. Here's how many last year's games went on the Tier 2 channels: Baylor - 5 games, KSU - 4, ISU - 3, Tech - 6, Kansas - 6, WVU - 3, TCU - 6, OSU - 1. Texas and OU - 0 games.
 
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