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CommonerThe new contract will tell us a great deal about the model the networks will adopt in the future.
This is the first contract since ESPN and FOX announced staff layouts and other cutbacks (going to remote broadcasting, for one) in order to offset the loss of subscribers
(6 million+) and increased contracted payouts (NBA went from $485M/yr to $1.47B/yr).
Disney mandated cuts of $100M in ESPN's 2016 operating expenses and a further $150M for 2017.
The current contract paid the them $1B over ten years. The contract ends at the end of the 2016-17 season.
Two years ago, it was expected that the BIG would surpass the PAC-12's 12-year, $3B deal. The new contract will be a great deal more than $1B but how lucrative that will be, no ones knows.
The article mentions that FOX and ESPN will likely split the contract. FOX, in return, may demand a larger stake in the BIG Networks (it currently owns 51%).
The other major conference have contracts that extend for another decade and won't be impacted by the BIG contract. The landscape will undoubtedly change by then and there will exist new sets of parameters by which a conference's inventory is assessed. It will, have an impact of those outside the power conferences.
If the networks tighten their belts, those outside the Club of 65 can expect similar treatment. If the contract meets or exceeds expectations from two years ago, than everyone will get more.
http://awfulannouncing.com/2016/big-ten-conference-is-now-taking-bids-from-the-networks-for-its-rights.html " onclick="window.open(this.href);return false;
This is the first contract since ESPN and FOX announced staff layouts and other cutbacks (going to remote broadcasting, for one) in order to offset the loss of subscribers
(6 million+) and increased contracted payouts (NBA went from $485M/yr to $1.47B/yr).
Disney mandated cuts of $100M in ESPN's 2016 operating expenses and a further $150M for 2017.
The current contract paid the them $1B over ten years. The contract ends at the end of the 2016-17 season.
Two years ago, it was expected that the BIG would surpass the PAC-12's 12-year, $3B deal. The new contract will be a great deal more than $1B but how lucrative that will be, no ones knows.
The article mentions that FOX and ESPN will likely split the contract. FOX, in return, may demand a larger stake in the BIG Networks (it currently owns 51%).
The other major conference have contracts that extend for another decade and won't be impacted by the BIG contract. The landscape will undoubtedly change by then and there will exist new sets of parameters by which a conference's inventory is assessed. It will, have an impact of those outside the power conferences.
If the networks tighten their belts, those outside the Club of 65 can expect similar treatment. If the contract meets or exceeds expectations from two years ago, than everyone will get more.