Problem with B1G Football Deal

[The Miami Ute]

Has anyone heard about this? Evidently, the reason that NBC paid so much money for the B1G football package is because Kevin Warren committed the conference to playing primetime regular season games. What’s the problem? Well, as far as I can tell, number one is that the B1G has a long-standing rule that it doesn’t play nighttime games in the second half of the football season. Number two is that Warren signed off on the television deal without consulting and getting the buy-in from the schools. Number three is that while the television contracts are an agreement in theory, they haven’t been signed by the schools, so they aren’t valid. Lastly, Number four is that Warren committed to giving NBC the B1G CCG in 2026, something he didn’t have the authority to do because the B1G doesn’t really own its own football inventory (FOX owns all of the B1G football inventory). So, bottom line, we’ve heard for what, a year or so, what a great deal the B1G had made with their football inventory while the reality is that nothing has been signed yet. This video does a good of explaining the issues: https://www.youtube.com/watch?v=-qpWd4aH9zw

[chinngiskhaan]

What are the potential consequences of this?

[The Miami Ute]

Obviously, to me, the biggest one is that whatever deal is eventually brokered will be for less money than what was bandied about, somewhere in the neighborhood of $70M per program. Here’s the thing, the most lucrative slot for any sporting event is prime time. If you’re telling a network that you’re not playing in prime time then they’ll be sure to reduce whatever they’re paying you to account for that loss of revenue. The really interesting part is going to be how this lowering of annual revenue impacts USC and UCLA. If the real amount that a B1G team gets per annum is, say $50M instead of $70M, does their move to the B1G still make financial sense, given the increase in athletics-related expenses they’re going to incur?

[PhiladelphiaUte]

The easy solution would be for the BigTen to invite UWA, Oregon, Utah, and Colorado to join the SoCal schools, and let the West coast teams play the contracted prime time games.  We’re already used to it, and the rest of that conference can keep doing what they’ve always done.

[EagleMountainUte]

@Utah

 

Hilarious. This might explain the P12 delay as well. 
Great find Miami. 

[The Miami Ute]

Thanks Eagle! Evidently in sports, as in life, if something sounds too good to be true it probably isn’t legal or factual. One added wrinkle, my understanding is that the B1G now has to cough up $45M to reimburse FOX for the loss of revenue that signing away the 2026 CCG to NBC incurs. How’s that for a B1G welcome to USC and UCLA? LOL, welcome to the B1G guys, now please give us $3.25M each so that we can pay off FOX.

[EagleMountainUte]

I don’t really like any of these broadcast companies. I would actually pay extra to have an entirely muted broadcast with just sounds from the camera angles. I usually try to sync 700 in my ear and then chat with y’all. 

[Utah]

Ha ha. It looks like the old B1G commissioner wanted to get as big as possible and was thinking that he could just add USC/UCLA and they would play all the late night games and everyone would be happy. lol. He tried to pull a quick one and it’s blown up in their faces. 

I don’t think this changes anything for now, but I do think that USC/UCLA won’t be happy about this, the B1G teams don’t want those two anyways, and once this deal wears off in 2030 USC/UCLA will be out of the B1G. 

[EagleMountainUte]

I am curious to see if the Presidents are just looking for a bridge until then. Negotiating the most money combined with allowing the So Cal schools to come back. Or if this is just the bridge to the 16 team conferences. I think Utah is in with thr 16. It won’t have the best destinations every season but it will be big boy football. 

[DataUte]

So, NBC might be looking for some Prime time slots if B1G doesn’t change their rules? Hmm

[Central Coast Ute]

Hence the PAC 12 delay