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<blockquote data-quote="cpf2001" data-source="post: 1008348" data-attributes="member: 6459"><p>I don’t think it’s about profitability as much as relative profitability/ROI. Fake numbers for laziness, but let’s say ESPN gets 100M a year in ad money and carriage fees that it attributes to ACC content. They pay 80M of that to the schools.</p><p></p><p>If they think half of that values is coming from 1/3 of the schools, they’d could be better off bringing in 50M and pay out 27M to schools - 23M in profit instead of 20, and lower fixed costs.</p><p></p><p>Thats oversimplified and doesn’t account for “FSU would draw more eyeballs in the SEC” or “the SEC already brings in a ton of viewers anyway” or various other hypotheticals, but I’m just trying to explain why I think that in a time of financial uncertainty ESPN might be very interested in lowering its obligations and consolidating its offerings even if the ACC package as a whole is profitable today. They might need extra net income to cover other holes and probably don’t think a lot of the schools in the ACC will ever deliver it.</p></blockquote><p></p>
[QUOTE="cpf2001, post: 1008348, member: 6459"] I don’t think it’s about profitability as much as relative profitability/ROI. Fake numbers for laziness, but let’s say ESPN gets 100M a year in ad money and carriage fees that it attributes to ACC content. They pay 80M of that to the schools. If they think half of that values is coming from 1/3 of the schools, they’d could be better off bringing in 50M and pay out 27M to schools - 23M in profit instead of 20, and lower fixed costs. Thats oversimplified and doesn’t account for “FSU would draw more eyeballs in the SEC” or “the SEC already brings in a ton of viewers anyway” or various other hypotheticals, but I’m just trying to explain why I think that in a time of financial uncertainty ESPN might be very interested in lowering its obligations and consolidating its offerings even if the ACC package as a whole is profitable today. They might need extra net income to cover other holes and probably don’t think a lot of the schools in the ACC will ever deliver it. [/QUOTE]
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