What follows is material I’ve gather today from a phone conversation with Larry Scott (following his press conference and teleconference), discussions with multiple sources and interviews with Cal AD Sandy Barbour and Stanford AD Bob Bowlsby.
* First up: Some clarification on the money.
Yes, $3 billion divided by 12 years is $250 million … and $250 million divided by 12 schools is $20.8 million.
But that’s the per-school average over the life of the contract, which, as these things always do, has an escalator clause:
The league’s Year One payout from ESPN and Fox is approx $180 million, and that ramps up to well over $250 million in the final years.
So every school is not going to get a check for $20.8 million at the end of Year One.
* Also in regard to the $20.8 million figure: keep expenses (both school expenses and league expenses) in mind.
For instance, some schools will have to spend money to buy back the multimedia rights they had previously sold to partners such as IMG.
So from a net-revenue standpoint, it’s not wholly accurate to say the 10 current members are instantly quadrupling what they had been receiving.
After costs/overhead, Bowlsby said, Stanford currently receives about $5 million in TV revenue from the league. In the early years of the new deal, it will receive about $15 million.
But at the back end, the per-school distribution could be close to $25 million. Net.
* The conference has not determined where the Pac-12 Network will be located or who will manage it (same goes for management of Pac-12 Media Enterprises).
Both matters are contingent upon the production/distribution partners.
* Scott said the league has several options for the network.
One is to start from scratch (the cost would be about $100 million).
Another is to take over, and rebrand, an existing network — Fox College Sports, for example.
(My guess is Scott will go down this path, although not necessarily with a Fox-owned channel.)
* Scott said the league will have a major announcement in about 60 days but didn’t get specific.
Has to be the details of the Pac-12 Network.
* Scott also said the league will control where it stages the basketball tournament. He plans to “reach out to different cities” to gauge their interest.
* The Pac-12 Network will have “first pick” in the selection of football games twice during the season.
Having quality content on the network is enormously important for leverage in potential carriage fights with distributors.
* How was the Pac-12 able to finalize its media deal now, in early May, when most projections — including mine — thought it would be weeks from now?
According to an industry source, the NHL’s decision to partner with Comcast, and not ESPN, forced ESPN to get serious with the Pac-12.
http://blogs.mercurynews.com/colleg...ils-on-the-money-the-pac-12-network-and-more/