Maybe our media deal to 2036 isn't that bad...

GTrob21

Helluva Engineer
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1,474

I know people have been saying this for a long time, but it looks like the sports media value bubble is starting to show cracks. How long till it affects college football, I'm not sure, but I will be watching with interest in the next round of CFB media deals.
 

SunBum

Georgia Tech Fan
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Sure it's an over-priced, irrational bubble situation. But typical mis-management or just the ACC jinx that we start a media deal before the bubble starts and have it expire after the bubble bursts...
 

stinger78

Helluva Engineer
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I know people have been saying this for a long time, but it looks like the sports media value bubble is starting to show cracks. How long till it affects college football, I'm not sure, but I will be watching with interest in the next round of CFB media deals.
The NCAA has already taken action to shorten games while increasing advertising during games. This to keep the total time allocation consistent. To me, that’s a sign of the beginning of a struggle to generate the ad $$$ to cover the contracts. I’m marking time from last season to when the contracts begin to level off and shrink.
 

ThatGuy

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Sure it's an over-priced, irrational bubble situation. But typical mis-management or just the ACC jinx that we start a media deal before the bubble starts and have it expire after the bubble bursts...
I dunno. In hindsight, it can appear to be mismanagement - hindsight is always 20/20. But as I was discussing with someone on Reddit yesterday, when it was launched, the ACC deal was seen as a big win. It put us second in revenue per team, only behind the Big 10 (who had just expanded into multiple larger markets - NY and Washington DC), and the Pac-12 (and we saw how that one turned out).

My personal thought is that the way the deal was structured was a bet that cord cutting was going to continue to rise and ESPN revenues were going to start contracting. We launched a deal that allowed us to get the most out of dwindling cable then (as we saw it), and to add stability to the league with the Grant of Rights (which ESPN required us to do, anyway, but it was seen as a win for the conference - and I still think it is). Even if the bubble bursts, our contract with ESPN might protect our revenues (as long as ESPN doesn't go belly up). I think it still could work out in our favor, if the Grant of Rights holds and if the other conferences all see this sort of Premier League contraction when they renegotiate their contracts close to 2030.

So yeah - I'd say if it turns out the way you mentioned, it would be more the "ACC jinx". The strategy was (mostly) a good one, just based on some predictions that proved inaccurate.

Then again, John Swofford was involved, so the chances of complete and utter ineptitude playing a key role do go through the roof. ¯\_(ツ)_/¯
 

Techster

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18,235

I know people have been saying this for a long time, but it looks like the sports media value bubble is starting to show cracks. How long till it affects college football, I'm not sure, but I will be watching with interest in the next round of CFB media deals.

I wrote about it in another thread...what's going to happen is ESPN and FOX are going to start pulling back money from conferences not named B1G and SEC. The collapse of the PAC12 is a very bad sign for the ACC. Don't fool yourself. ESPN and FOX are pulling the strings behind the conference curtains and moving pieces (schools) into conferences to consolidate the regions and schools to optimize their portfolios. Once they've accomplished that, the water spigot to conferences outside the B1G and SEC will start dwindling or get turned off. Those networks won't have to pay multiple conferences or schools that don't add value to their content, they will need to employ less on air talent, less money spent on travel for their game day crews, and so on in regards to eliminating expenses.

If you look at schools that left the PAC 12, all of them ended up making pretty much the same amount or more than they would have if they would have stayed in the PAC12. Funny how the networks were willing to pay other conferences for them to move, but not give the PAC12 that money altogether.

If you look at the recent news that the NFL is purchasing a large share in ESPN, there's not much guessing on what's coming down the pipe. The SEC will, for all intents, be NFL light and SEC will get a LOT of support from ESPN and the NFL. It will be to their benefit to see the SEC thrive...even more than they are now.

It's also why I think GT will eventually end up in the B1G. Atlanta is too valuable a market for FOX/B1G to pass up, and FOX has a large presence in Atlanta. I said it years ago, these mega conferences and the networks are planning something we haven't even thought of yet. Consolidating college brands and big markets is Phase 1. I think Phase 2 is slowly coming out with the NFL and ESPN deal on the horizon.
 

Northeast Stinger

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I wrote about it in another thread...what's going to happen is ESPN and FOX are going to start pulling back money from conferences not named B1G and SEC. The collapse of the PAC12 is a very bad sign for the ACC. Don't fool yourself. ESPN and FOX are pulling the strings behind the conference curtains and moving pieces (schools) into conferences to consolidate the regions and schools to optimize their portfolios. Once they've accomplished that, the water spigot to conferences outside the B1G and SEC will start dwindling or get turned off. Those networks won't have to pay multiple conferences or schools that don't add value to their content, they will need to employ less on air talent, less money spent on travel for their game day crews, and so on in regards to eliminating expenses.

If you look at schools that left the PAC 12, all of them ended up making pretty much the same amount or more than they would have if they would have stayed in the PAC12. Funny how the networks were willing to pay other conferences for them to move, but not give the PAC12 that money altogether.

If you look at the recent news that the NFL is purchasing a large share in ESPN, there's not much guessing on what's coming down the pipe. The SEC will, for all intents, be NFL light and SEC will get a LOT of support from ESPN and the NFL. It will be to their benefit to see the SEC thrive...even more than they are now.

It's also why I think GT will eventually end up in the B1G. Atlanta is too valuable a market for FOX/B1G to pass up, and FOX has a large presence in Atlanta. I said it years ago, these mega conferences and the networks are planning something we haven't even thought of yet. Consolidating college brands and big markets is Phase 1. I think Phase 2 is slowly coming out with the NFL and ESPN deal on the horizon.
Easy to imagine what the ads will look like that celebrate “double headers” of NFL and college games.
 

forensicbuzz

21st Century Throwback Dad
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Easy to imagine what the ads will look like that celebrate “double headers” of NFL and college games.
Not sure we wouldn't have anti-trust issues there. If that started happening, I could see B1G/Fox filing suit or pressing Justice to look hard at that. With members of Congress coming from many non-SEC states, I could see political pressure against that too. I think the NFL is more savvy than that.
 

ThatGuy

Ramblin' Wreck
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Location
Evergreen, CO
I wrote about it in another thread...what's going to happen is ESPN and FOX are going to start pulling back money from conferences not named B1G and SEC. The collapse of the PAC12 is a very bad sign for the ACC. Don't fool yourself. ESPN and FOX are pulling the strings behind the conference curtains and moving pieces (schools) into conferences to consolidate the regions and schools to optimize their portfolios. Once they've accomplished that, the water spigot to conferences outside the B1G and SEC will start dwindling or get turned off. Those networks won't have to pay multiple conferences or schools that don't add value to their content, they will need to employ less on air talent, less money spent on travel for their game day crews, and so on in regards to eliminating expenses.

If you look at schools that left the PAC 12, all of them ended up making pretty much the same amount or more than they would have if they would have stayed in the PAC12. Funny how the networks were willing to pay other conferences for them to move, but not give the PAC12 that money altogether.

If you look at the recent news that the NFL is purchasing a large share in ESPN, there's not much guessing on what's coming down the pipe. The SEC will, for all intents, be NFL light and SEC will get a LOT of support from ESPN and the NFL. It will be to their benefit to see the SEC thrive...even more than they are now.

It's also why I think GT will eventually end up in the B1G. Atlanta is too valuable a market for FOX/B1G to pass up, and FOX has a large presence in Atlanta. I said it years ago, these mega conferences and the networks are planning something we haven't even thought of yet. Consolidating college brands and big markets is Phase 1. I think Phase 2 is slowly coming out with the NFL and ESPN deal on the horizon.
It is indeed interesting. Agreed with a lot of your points.

I've often said that I think Georgia Tech ends up in the B1G - but lately, I'm less sure.

While the Atlanta market is big (top 7 nationally, I think?), with the decline of cable and the rise of national conferences, it seems a foregone conclusion that carriage fees will be significantly less valuable in the future. When someone subscribes to Youtube TV from Alaska, they get the B1G and SEC and ACC networks. And by extension, they get the streaming version which includes all the conference games that aren't on the main networks (ABC, NBC, CBS, ESPN, FOX, FOX Sports). With more people going to streaming, the importance of media market size is lessening.

Now, there might be some smaller value to RSNs and third tier rights - but it seems like those will also continue to decline, as the national audience has more access to them than ever before.

So I keep coming back to thinking the time for GT to move to the B1G was in 2012 - something that most of us think, sure. But we're moving (or have moved) from the era of the importance of media markets to the importance of brands. Which is why it ticks me off that FSU is pulling their crap now - because they may just get away with it, due to the timing being right.

Previously, we could argue that WE were the gravy train for other ACC programs, because Atlanta generated the most substantial carriage fees revenue for the ACC (hence the reason they begged us to stay in 2012). But now it may be that FSU's self-aggrandizing argument is starting to make sense. 5 years ago it was a lot different, and no conference in their right mind would take them if they got out of their obligations, because none would want to bring them on for the relatively small Tallahassee market; especially when they couldn't trust that FSU would honor any contracts they signed. Now, another conference may go for it, because the markets don't matter as much. Hell, the SEC took Texas after all their shenanigans in the Big 12.

I wonder if, as you say, these mega conferences and networks are planning something we haven't even thought of yet. I hope they are, and that (if the ACC folds) there's a place there for us.
 

jacketup

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What Texas shenanigans are you referring to? Texas has the biggest fan base in the SEC--that's right--the SEC--by far. The disparity in the Big 12 was even greater. If not for Texas and OU, no one would have paid any attention to the Big 12 in years past, especially after NU and CU left. If you are talking about the Longhorn Network, what was Texas supposed to do--ignore an asset so that it could slide to mediocrity like the rest of the conference? It wasn't shenanigans, it was jealousy by other schools.

The rest of your post is correct. It's not about media markets. It's about eyeballs. The schools that are moving to the SEC and B1G have them. Unfortunately, we don't. I'm not sure FSU does either. And why would Auburn, UF and others want the recruiting competition in their backyard with another SEC school? A reason Tech isn't in the SEC is because Dooley wanted the GA recruiting advantage as the only SEC school in the state.

We have three things going for us re: the B1G. 1) We are an AAU school (FSU isn't); 2) We open Georgia and the SE to B1G recruiting and 3) lots of B1G alums in ATL. I still don't believe we are all that attractive at the moment, unfortunately.
 
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