Pac-12 hires MGM's George Kliavkoff to replace Larry Scott as commissioner

[hokiehead]

I don’t think you understand how “value” works. True, the P12 Network is underperforming, but it still generates over $100MM per year in revenues. You don’t just throw that away. You figure out how to make it generate $200MM.

I'm assuming you don't consider any of the schools to be "assets"

 

[Not Sure]

I'm assuming you don't consider any of the schools to be "assets"

Why would I? The schools aren’t owned by the conference. I mean “asset” in the actual real definition of the word. Which is a something owned by the conference.

 

[hokiehead]

Why would I? The schools aren’t owned by the conference. I mean “asset” in the actual real definition of the word. Which is a something owned by the conference.

while I don't normally consider 'ownership' to be integral to definition of asset, you did make that explicit qualification. I agree, the schools are absolutely not owned by the Pac 12.

 

[PAC MAN]

I don’t think you understand how “value” works. True, the P12 Network is underperforming, but it still generates over $100MM per year in revenues. You don’t just throw that away. You figure out how to make it generate $200MM.

Then tell me why a school like USC is just getting a couple of million dollars compared to $15 for Texas from the LHN. With $100M, schools should be getting at least twice the money that they have been getting. If you divided the pot by 14 (2 to the conference office), each school would be getting at least $7M per year.

With P12 ADs running deep in the red due to the coronavirus, an equity sale in the P12N is most likely since state tax collections aren't as good as they would normally be and state legislatures will not allow state money to be used to bail out the ADs. If the bids come up short of expectations, the conference will move on from the P12N and let the schools get control over their third tier media rights. Lord knows how much money USC left on the table after the Dodgers & Lakers scored some big dollars for their media rights. USC is probably going to demand they have their third tier rights back for the next GoR or they will walk to independence or the Big 12. Both AZ schools have been linked to the Big 12 and I'm guessing they aren't getting as much money from the P12N as they did with Fox Sports Arizona or something like that. Then there are the costs associated with breaking the lease at P12 HQ and moving the P12 HQ somewhere else.

I think it's safe to expect that CU and the 11 other schools will regain control of their third tier rights starting this July 1st and then a decision to re-pool those rights can be made before the next GoR & media rights deal is signed.

And let's talk about that NIL money...

 

[Not Sure]

Then tell me why a school like USC is just getting a couple of million dollars compared to $15 for Texas from the LHN. With $100M, schools should be getting at least twice the money that they have been getting. If you divided the pot by 14 (2 to the conference office), each school would be getting at least $7M per year.

With P12 ADs running deep in the red due to the coronavirus, an equity sale in the P12N is most likely since state tax collections aren't as good as they would normally be and state legislatures will not allow state money to be used to bail out the ADs. If the bids come up short of expectations, the conference will move on from the P12N and let the schools get control over their third tier media rights. Lord knows how much money USC left on the table after the Dodgers & Lakers scored some big dollars for their media rights. USC is probably going to demand they have their third tier rights back for the next GoR or they will walk to independence or the Big 12. Both AZ schools have been linked to the Big 12 and I'm guessing they aren't getting as much money from the P12N as they did with Fox Sports Arizona or something like that. Then there are the costs associated with breaking the lease at P12 HQ and moving the P12 HQ somewhere else.

I think it's safe to expect that CU and the 11 other schools will regain control of their third tier rights starting this July 1st and then a decision to re-pool those rights can be made before the next GoR & media rights deal is signed.

And let's talk about that NIL money...

I’m not going to get into the difference between revenue and net distributions. We can agree that the P12 network is underperforming. Where we disagree is whether it has value. It’s truly the only thing the conference actually owns. You don’t just throw that away.

 

[Duff Man]

I'm not going to pretend to know much about who's a better candidate. But I like Gene Smith, is there any reason he's not seen as close to an equal of Luck?

Luck's experience is much more diverse whereas Smith has been in mostly the same role for decades.

 

[CUAviator]

The biggest decision is what to do with the P12N. When I think of the P12N, I think disaster is the appropriate word.

It has not been good for people who want to be able to choose which provider such as Youtube TV, etc. I don't think the P12N was good for recruiting at all because if you can't watch the games, why bother going to a school in that conference?

If I was named commissioner, I'd shut the P12N down on day one and let schools score their own third tier deals. I don't think we'd have a choice in this case if we want to keep USC and UCLA in the conference. I'm guessing this means CU will be on ESPN+ and that would be a better deal than being on the P12N. If ESPN, Fox Sports, CBS Sports, etc wants to show a CU game for a price, go for it.

CBS?

 

[PAC MAN]

CBS?

I hope so too.

 

[MiamiBuffs]

Nah, everyone here was rubbing his knob 10 years ago.

10 years ago we had the largest contract in college football. The conference was splitting a paltry $60-70 million 10 ways before that. We were the 2nd conf to launch a TV network.

A year or so later the B1G and SEC both expanded and redid their rights, ESPN started the SEC network. And just like that we fell behind. The only way we possibly could have got that too is by adding UT and OU mid stride. TV doesnt give a **** about any of the other schools mentioned here or in our foot print.

Larry ultimately hung himself with the P12N structure. That likely has to be sold or put into a partnership in the next deal so as to get bundled with an ESPN CBS NBC or FOX to get us in the bigger rights pool. Its useless and a huge financial drag otherwise to keep the current P12N.

I dont see Amazon, Apple, or Netflix buying in because they know little about advertising. And wed all would probably be unhappy with the lack of quality.

Lump in a deal that was too long, the poorly attended CCG being in San Fran, and the mis management just kept piling up for Larry


If the Presidents refuse on this point (selling the P12N) were going to get someone equal to or less than Larry Scott. No one of quality will want to wear his noose. I think the Presidents see these problems too.

Im also slightly worried that the next deal might not be as big as SEC or B1Gs because of lack luster ratings, marginal recruiting, and a time zone that most people where football matters dont watch or care about. The SEC has grown into the gorilla now and is unparalled in a long programming day, number of quality teams and per capita talent per team. And they gobble up a lot of eye balls with these compelling story lines. Im hoping CBS or NBC is interested to create some national competition. If not, and we get ESPN we could be playing a lot of night games with 8pm kick offs.

 

[Not Sure]

The potential for a CBS affiliation should be a high priority for the next commissioner. Pure speculation on my part, but it seems more than purely coincidental that the conference is parting ways with Scott at the same time CBS is looking for a new conference affiliation.

 

[MiamiBuffs]

But Sankey won't have Alabama, Florida, Georgia, Auburn and LSU to leverage ESPN for billions in TV contracts, which was kind of my point earlier. I'm sure Sankey has done good things himself, but he has the easiest product in sports, outside of the NFL, to market and leverage the networks.

This

 

[MiamiBuffs]

I don’t think you understand how “value” works. True, the P12 Network is underperforming, but it still generates over $100MM per year in revenues. You don’t just throw that away. You figure out how to make it generate $200MM.

This is another possible potential issue. When Larry negotiated the first deals there were no real numbers to negotiate off of. Just estimates and guesses. So that $100m could be undervalued relative to viewership. Or it could be Dish & Co decide they are over paying and they want to drop us. Shrinking carriage kills what you can sell advertising slots for.

We need to piggyback with a bigger fish to protect this revenue stream.

 

[DBT]

Shouldn’t they hire someone who has “pictures” of the AT&T CEO?

 

[patebuff]

The potential for a CBS affiliation should be a high priority for the next commissioner. Pure speculation on my part, but it seems more than purely coincidental that the conference is parting ways with Scott at the same time CBS is looking for a new conference affiliation.

If the Pac 12 could get a similar deal the SEC had previously, that would be a very good start.

 

[NewEra 2014]

If the Pac 12 could get a similar deal the SEC had previously, that would be a very good start.

The SEC-CBS deal provided great exposure to the SEC, but CBS paid hardly anything for their SEC game of the week. The SEC bailed in order to get market value for their content. I expect that a PAC 12-CBS deal would be far superior to what the PAC 12 is currently getting, but it may still be quite a bit less lucrative than the current TV deals that the SEC and Big Ten have.

 

[onealcd]

CBS would also replace either fox or espn since there isn’t any inventory left. Espn might be the one to look at replacing since they just took on more sec games and already have contracts with the other 4 conferences.

 

[Mango]

Need to hire someone who understands division one football first and foremost and therefore I nominate Daniel Hawkins

 

[jumped ship]

Breaking News: Tennessee moving AD office to downtown San Fransisco

I laugh whenever I'm driving north on I-25 near Park Meadows mall, randomly see the WAC headquarters, and then think about the Pac-12 network paying tech unicorn rent prices in SF while taking a dial-up internet approach to business strategy decisions

 

[CarolinaBuff]

I thought Wilner had the right idea

 

[hokiehead]

I thought Wilner had the right idea

I like the priority but men's basketball should be a big revenue generator for the conference with Colorado, UCLA and Arizona.

 

[Jens1893]

Oliver Luck was fresh off the plane in a country he barely knew with a language he didn't speak and started with an office with two desks and nothing else and his job was to get a sports team off the ground in a sport the people did not even know. At the end of their first season they had a home game with a 50k in the stands and regularly averaged between 30-35k.

Given Luck's resume and life experience, I don't think it'd be a problem for him to work out West. His resume is absolutely fascinating and he's had about every job you can possibly have in sports administration. Pro team GM? Check. Pro team Swiss army knife? Check. Pro league commish? Check. College AD? Check? High ranking college admin? Check.

 

[ahoelsken]

I'd like to hope that Dan Garber is sick of soccer, but I think he already makes 5MM.

Meh.

 

[ZandiBuff]

All of you vying for Texass to join seem to have quickly forgotten how badly they ****ed up the last conference they were in with us.

No. ****ing. Thank. You.

 

[CarolinaBuff]

 

[The Alabaster Yak]

Anyone listen to it and care to share if anything else was said outside of the headline?

 

[Jens1893]

Fair enough if it was a 12-0 vote to remove Scott, but why did it take this long?

 

[BuffsNYC]

Anyone listen to it and care to share if anything else was said outside of the headline?

Between the lines: Scott wasn't doing well, fans and ADs weren't happy with him, we wanted someone new with enough lead time before the next rights deals are negotiated. Worried about competitiveness in football and basketball. Pac 12 network needs to be fixed--better distribution and mo' money. New commissioner will make call on moving headquarters, but sounds likely. No likely candidates yet, but will likely be AD types and media types.

 

[El Gringo]

Next commissioner really needs to focus on international broadcasts, particularly Lat Am. ESPN Deportes for one. Por favor.

 

[Mb2658]

 

[Buffnik]

Please just hire someone who can convince P12 Presidents that this is a regional sports alliance and it's all about football driving revenue.