Mizzou better think again if they believe there is $12 million/yr more in the SEC than Big 12. After the Big 12 renegotiates the Tier 1 deal, its entirely possible the Big 12 will make more than the SEC.
The value of the SEC has yet to be determined Tiger Extra - Mizzou Sports | ColumbiaTribune.com
Neal Pilson, the former president of CBS Sports, is a consultant who helped negotiate recent multibillion dollar deals for NASCAR and the Olympics. He said the fact that the SEC is just two years into a 15-year contract with its TV partners means it has little leverage.
“I think the networks will want to have a very narrow discussion of how much incremental value is brought to the TV package from Texas A&M and Missouri, and I think that’s all they’re going to want to talk about,†Pilson said in a phone interview. “I think CBS and ESPN feel they made a fair deal with the SEC and that adding two schools might modestly change the value, but I don’t think they would be looking to completely renegotiate the deal.
“I’m not about to put a dollar figure against it, but that would be how I think the networks would approach it. Obviously, I don’t know how the SEC would approach it.â€
The SEC could argue that the value of TV contracts has skyrocketed, even in the two years since its current deal was signed. Last spring, the Pac-12 signed a 12-year deal worth about $250 million annually — quadrupling its previous contract.
“If the conference is looking to reopen the negotiation based on the success of the†Pac-12, “then the parties could be in for a long and difficult discussion,†Pilson said.
At the request of the Tribune, A.J. Maestas, the president of Navigate, a Chicago-based firm that analyzes sponsorships and multimedia rights in sports and entertainment, had his company estimate the value of the TV contract for a 14-school SEC including Texas A&M and Missouri.
Navigate’s projection was $21 million to $23 million per school annually.
That would a healthy increase from SEC’s current per-school payout of about $18 million but well below the upper end of MU’s estimation.
“With the SEC, it’s a little like trying to put the genie back in the bottle — it’s not easy to do,†the consultant said. “They’ve sold CBS and ESPN on a 15-year structure. It would be awfully difficult to now say, ‘Oh, we want to do our own network.’ I think that’s going to be a tough putt. Not impossible, but it’s a lot harder to do it that way than to construct it up front. So I suspect that’s something they would like, but that doesn’t necessarily line up in the best interest of CBS and ESPN.
“They’ll never be able to do what the Pac-12 did, which is retain 100 percent control over it. If it were to happen, it would look more like the Longhorn Network, which is 100 percent owned by ESPN. It would have to be something that is owned and very likely operated by one of those media partners. ESPN and CBS are certainly not going to pay these guys $200 million dollars a year and let them take back rights and go start a network to compete against them. That’s not going to happen.â€
“Because they signed a pretty comprehensive deal and decided not to launch their own network last time, they didn’t leave themselves the kind of inventory you need to really do a network successfully,†Maestas said.