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Another billion dollar Pac-12 deal in the works?

Buffnik

Buffnik

Real name isn't Nik
Club Member
Junta Member
Larry Scott thinks so. And $1 billion may be the low number to stack on top of the $3 billion deal he already did.

WALNUT CREEK, Calif. -- The Pac-12's financial momentum isn't about to slow.

Commissioner Larry Scott said Tuesday that the league's media arm could earn the conference an additional $1 billion over a seven-to-10 period. The previously announced Pac-12 Media Enterprises is a kind of holding company, according to Scott, that would bundle the league's new network, the digital rights and the conference's sponsorship and licensing (Pac-12 Properties).

The expanded conference is just beginning to realize its total worth as it seeks to start its own network. The $1 billion would be separate from the 12-year, $3 billion rights fees deal the Pac -12 finalized with ESPN and Fox earlier this month.

"I can tell you this, based on offers people have made to us we've got at least a billion-dollar business we're sitting on," Scott told CBSSports.com. "That's just Pac-12 Media Enterprises."

He later added: "That is a broad figure that has been thrown out to us by media investors. That's a potential minimum value over a seven-to-10 year period."

Dividing $1 billion among 12 schools could mean an additional $83 million is gross revenue total per school. Depending the on length of the deal, that means Pac-12 Media Enterprises alone could produce an additional $8.3 million-$11.9 million per year for each school. The schools already are guaranteed an average of $21 million per school in the ESPN-Fox deal.

Read more...

We really missed the boat by not joining the Mountain West. :wink2:
 
[video=youtube;nC-wMcWv2_w]http://www.youtube.com/watch?v=nC-wMcWv2_w&NR=1[/video]
 
That is bad-ass Mr. Scott. We love you already, but full-blown Man-Crushing is going on now in Pac-12 country!
 
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only thing that concerns me is:

Scott called Pac-12 Media Enterprises a "for-profit subsidiary of the conference."
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With the Feds sniffing around the BCS, and these big money deals sure to rankle the smaller conferences, let's hope this doesn't tip the dominoes towards For-Profit Athletic Departments as well.
 
Sounds like we've gotten good offers on teh Pac 12 network distribution. :woot:
 
I'll take Boardwalk and Park Place, and all the railroads ...

Sorry, just thinking about playing with all of these millions. It's like the Buffs will be playing with Monopoly money ... :dance4::dance::perfect10::dance5:
 
This is just what we need to get CU athletics back on track. I look forward to seeing what the school is like in a decade.
 
I'm just glad CU is along for the ride. There are going to be a lot of schools left off this bus. CSU is one of them.
 
Again, every other school in the Pac-12 will be getting the same distribution as us, so I'm not over the moon about this. That said, Scott is obviously a very saavy business man.
 
azbuff said:
Again, every other school in the Pac-12 will be getting the same distribution as us, so I'm not over the moon about this. That said, Scott is obviously a very saavy business man.
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Yes, but I'd rather be in the conference where every team makes $30 million than in any other conference where they don't.
 
azbuff said:
Again, every other school in the Pac-12 will be getting the same distribution as us, so I'm not over the moon about this. That said, Scott is obviously a very saavy business man.
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Our AD budget will go from $45-50 million/year to at least $70 million/year with these moves.

Yes, we will still be middle of the road in the Pac; behind USC, Washington, UCLA, Cal, Oregon, and Stanford in the Pac-12 budget rankings (right with Arizona State, Oregon State, and Arizona). But we will now be Top 20-25 in the nation, whereas in the Big 12 we were in the 50-60 range.

The competition within the Pac is still the same hierarchy, but with the other 108 programs in D-I we just took a gigantic leap.
 
I don't disagree that the money is good, but let's be honest, the two sports we really care about are football and (arguably) basketball. Conference records are all that really matter in those sports, so the extra money doesn't give us much of a competitive advantage when every other school in the conference is getting the same dough.

Is it great for CU? Absolutely. Does it correlate to athletic success? Doubt it.
 
azbuff said:
I don't disagree that the money is good, but let's be honest, the two sports we really care about are football and (arguably) basketball. Conference records are all that really matter in those sports, so the extra money doesn't give us much of a competitive advantage when every other school in the conference is getting the same dough.

Is it great for CU? Absolutely. Does it correlate to athletic success? Doubt it.
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Don't be a nancy pants. Be happy. It could definitely help CU because it may gain more support within boulder and within the university outside of the athletic department. Getting our facilities up to par is pretty much essential. Throw in the fact that olympic athletes prefer to train at altitude and then get football/basketball players on board with that competitive advantage and that will further support the cause. We already know the city is world class (the expansion of google and microsoft in boulder will further put Boulder on the map,) so the combination is going to make an athlete (football, basketball, or whatever) seriously question going anywhere else.

If we play our cards right over the next few year I think that the overall effect will trump other PAC-12 teams.
 
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TimmyDUBs said:
Don't be a nancy pants. Be happy. It could definitely help CU because it may gain more support within boulder and within the university outside of the athletic department. Getting our facilities up to par is pretty much essential. Throw in the fact that olympic athletes prefer to train at altitude and then get football/basketball players on board with that competitive advantage and that will further support the cause. We already know the city is world class (the expansion of google and microsoft in boulder will further put Boulder on the map,) so the combination is going to make an athlete (football, basketball, or whatever) seriously question going anywhere else.

If we play our cards right over the next few year I think that the overall effect will trump other PAC-12 teams.
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Like I said, it's great for CU. I just don't think it provides any competitive advantage in the sports we care about.
 
azbuff said:
Like I said, it's great for CU. I just don't think it provides any competitive advantage in the sports we care about.
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Okay, thinking outside of the conference, I think CU is set up better than the other PAC 12 schools to recruit from Texas and the midwest. Thus, if people are considering us or a Big 12/Big 10 team we are going to look that much better than we did otherwise. And just two or three more solid players can make a huge difference.

My main argument is just that Boulder as a city and Colorado's altitude provide something that I think other schools don't. So if we can make our facilities equal to the rest of the conference and can support our coaches financially up to par with them, we will end up with a competitive advantage both nationally as well as within the conference. I see your point, and I think you are correct if you are talking about WSU, OSU, and the Arizonas. They will be able to continue building up their facilities and department, but I don't think they have any of the extra perks that will draw more outsiders or wild cards. When looking at the upper echelon like USC, UCLA and Oregon, I don't think they'll actually benefit as much because their success has been driven more by the division of wealth. With a more even playing field, they actually become equalized somewhat.

The way I see it CU, Stanford, Utah and Cal have the most to gain out of the whole conference gaining significantly higher financial support.
 
TimmyDUBs said:
Okay, thinking outside of the conference, I think CU is set up better than the other PAC 12 schools to recruit from Texas and the midwest. Thus, if people are considering us or a Big 12/Big 10 team we are going to look that much better than we did otherwise. And just two or three more solid players can make a huge difference.

My main argument is just that Boulder as a city and Colorado's altitude provide something that I think other schools don't. So if we can make our facilities equal to the rest of the conference and can support our coaches financially up to par with them, we will end up with a competitive advantage both nationally as well as within the conference. I see your point, and I think you are correct if you are talking about WSU, OSU, and the Arizonas. They will be able to continue building up their facilities and department, but I don't think they have any of the extra perks that will draw more outsiders or wild cards. When looking at the upper echelon like USC, UCLA and Oregon, I don't think they'll actually benefit as much because their success has been driven more by the division of wealth. With a more even playing field, they actually become equalized somewhat.

The way I see it CU, Stanford, Utah and Cal have the most to gain out of the whole conference gaining significantly higher financial support.
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The only thing I disagree with is the altitude take. I could be wrong, but my guess is football and basketball players don't give a ****.
 
Consider this -- CU has fewer sports, so the distribution of funds won't be as thinned out as it is at other conference schools. I tend to think that the Buffs primary sports stand to gain, when all is said and done.
 
A shout out to Mike Bohn as well. A couple years ago I wanted him gone, but now I truly believe that he is the right man for the job.
 
We might not have a competitive advantage in football and basketball over the other schools in the league with the new revenue BUT in a few years, we will effectively eliminate the competitive DISADVANTAGE we have right now regarding facilities and be on at least an equal playing field with the rest of the members and that is worth getting really excited about. We might not have a $26,000 dollar individually air conditioned football locker room like Oregon, but with the money we will be getting we will be able to have nice facilities that can at least compete with the majority of the conference and the differences will be minimal. The days of no basketball practice facility, and having to show a kid a practice bubble are numbered. Fears of coaches leaving for a higher paying gig are lessoned and the glaring facilitiy deficiencies will be take care within the next 5 - 10 years which is great.
 
Coaches salaries are about to go through the roof. It won't be long before coaching at a college will pay as much as the NFL.
 
azbuff said:
Like I said, it's great for CU. I just don't think it provides any competitive advantage in the sports we care about.
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It does give us a competitive advantage within the conference. Unlike many of the other programs, we were running a balanced budget. Therefore, we weren't relying on state aid to close the gap on what we spend to pay for our annual deficit. All the money we get is additive. With others, they were losing money and the states are cutting funding so a good chunk of the new money just replaces state money.

Further, we had higher overhead than a number of schools due to paying back loans. This money allows us to pay back out loans and that will reduce our annual expenses by a lot as we move forward.

Plus, we have the minimum number of varsity sports. Our revenue pie gets split fewer ways, so we can focus a lot more of our budget on football and basketball. We can be very strategic about adding any new sports. And we have an AD that is used to being fiscally responsible while doing more with less.

In short, CU is positioned to do more with this money than a lot of our Pac-12 competition.
 
azbuff said:
The only thing I disagree with is the altitude take. I could be wrong, but my guess is football and basketball players don't give a ****.
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I know for a fact that the football coaches have used it on the recruiting trail. It's part of their big pitch about being NFL guys who will get a recruit ready for the NFL. They stress how at CU they train at the elevations that Olympic athletes use and that this gives the players an advantage for getting to the next level.
 
Plus this should guarantee we will never be forced to decide whether or not to keep a sh**ty coach because of financial considerations. I have every confidence in Embree and his staff, but the fact that CU will now have the ability to be less patient and can afford a coaching staff much more expensive than his will ratchet up the pressure considerably in years 2-3.
 
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