Y
Y 4 EverAre college football tv contracts the next big "bubble" that will sink corporations and even entire industries?
I can't help but wonder that as I see the ridiculous $$$ being thrown at these conferences. I mean, seriously, $2.7BILLION over 12 years for the rights to show SOME of the Pac-12 games? And that is just ONE conference!
I haven't done the math, but will all of the different deals that ESPN has with Pac, ACC, SEC, Big Ten, etc, I'm pretty sure they are paying out well over $1 BILLION annually to show college football games.
Of course, they are banking on much more than $1BILLION in annual advertising revenues during these events (you know...the basic tv model). But there is evidence that TV advertising as we know (and hate) it is dying, thanks to the invention of the DVR and the general publics gradual desensitization to marketing. Some high-profile marketers have gone so far as to say that any $ spent on television advertising is a $ thrown in the toilet (paraphrasing).
Anyway, just a thought. But I will say this - if 4 16-team superconferences really do form, and BYU is left to wither and die on the outside, then I hope that these mammoth TV contracts end up bankrupting ESPN, FOX, etc, and that perpetrating universities end up mired in endless lawsuits, congressional investigations, and eventually lose their "tax exempt" status - and that a select few of them go BK too (unrealistic, I know).
I can't help but wonder that as I see the ridiculous $$$ being thrown at these conferences. I mean, seriously, $2.7BILLION over 12 years for the rights to show SOME of the Pac-12 games? And that is just ONE conference!
I haven't done the math, but will all of the different deals that ESPN has with Pac, ACC, SEC, Big Ten, etc, I'm pretty sure they are paying out well over $1 BILLION annually to show college football games.
Of course, they are banking on much more than $1BILLION in annual advertising revenues during these events (you know...the basic tv model). But there is evidence that TV advertising as we know (and hate) it is dying, thanks to the invention of the DVR and the general publics gradual desensitization to marketing. Some high-profile marketers have gone so far as to say that any $ spent on television advertising is a $ thrown in the toilet (paraphrasing).
Anyway, just a thought. But I will say this - if 4 16-team superconferences really do form, and BYU is left to wither and die on the outside, then I hope that these mammoth TV contracts end up bankrupting ESPN, FOX, etc, and that perpetrating universities end up mired in endless lawsuits, congressional investigations, and eventually lose their "tax exempt" status - and that a select few of them go BK too (unrealistic, I know).