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Expansion Talk 2021
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<blockquote data-quote="RonJohn" data-source="post: 814757" data-attributes="member: 2426"><p>Zero bearing is probably too harsh. But ad revenue is only 15-20% or ESPN's revenue. The big prime-time matchups are probably 10-20% of the ad revenue. If that is the case, adding 30% to the prime-time audience could add about 1% to the overall revenue (1.3*.2*.2 - 1*.2*.2). So if ESPN believes that the marquee matchups from your conference will add 30% to the audience, it is only worth low single digit percentages to the contract's worth.</p></blockquote><p></p>
[QUOTE="RonJohn, post: 814757, member: 2426"] Zero bearing is probably too harsh. But ad revenue is only 15-20% or ESPN's revenue. The big prime-time matchups are probably 10-20% of the ad revenue. If that is the case, adding 30% to the prime-time audience could add about 1% to the overall revenue (1.3*.2*.2 - 1*.2*.2). So if ESPN believes that the marquee matchups from your conference will add 30% to the audience, it is only worth low single digit percentages to the contract's worth. [/QUOTE]
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