Pac-12 Networks confident, even without DirecTV

Discussion in 'DIRECTV Programming' started by Athlon646464, Jun 29, 2013.

  1. slice1900

    slice1900 Well-Known Member

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    Wait, so they say "no chance" to selling equity in P12N to a broadcaster like Fox or ESPN, but they say maybe they could/should sell equity in a holding company that owns media rights?

    Having 100% ownership of P12N but not having 100% ownership of your media rights amounts to pretty much the same thing - except with the latter strategy you are selling equity in ALL your media rights, rather than just your third tier rights as is the case with a conference network. I could see Larry Scott doing this, because it is definitely the stupidest of the various possibilities they list!

    The Big Ten only owns 49% of BTN, with Fox owning the remaining 51%. But the Big Ten owns 100% of their media rights, and just licenses them out to ABC/ESPN, Fox/FS1 and BTN during the period of the contract. The only way Fox's equity stake in BTN affects them is that they get only 49% of the profits (AFTER being paid for their rights) generated by BTN. Which amounted to somewhere between $1 and $2 million per team last year, out of a total of nearly $10 million per team from BTN overall. I'm not sure how the SEC's deal is structured, but I'm pretty positive they own all their media rights and the only difference is that ESPN keeps 100% of the profits from SECN after the media rights are paid for (which may be worth it considering how quickly they got carriage thanks to ESPN exercising their influence, versus BTN having to build it up over a few years)
     
  2. APB101

    APB101 Icon

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    I will go with the words any time soon.
     
  3. inkahauts

    inkahauts Well-Known Member

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    USC is the only private school, it does what it wants without worry. True Oregon has a lot of money too... so go ahead and call it 2nof the 10 that are ok. Doesn’t help all the other schools. USC just has more money than others. I question if Oregon could get what usc can though. Oregon may not be able to afford top people at every position.

    It’s funny, usc has never spent on their basketball program like they should either imho. But I know they could afford it if they wanted.
     
  4. inkahauts

    inkahauts Well-Known Member

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    Pac12 probably realizes they could have the same amount of money coming in and having the channel available to everyone, but they are to stupid to understand there is no path to add subscribers and gain more money for the new subscribers.
     
  5. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Gold Club DBSTalk Club

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    We don't have the numbers needed to do the math. We would need to know how much Pac-12 is being paid now per subscriber, how much DIRECTV is offering to pay and how much they would lose (per subscriber) on the current contracts if they offer DIRECTV a better price. Plus subscriber counts with and without DIRECTV.

    The further DIRECTV is away from the price the other providers are paying the more impact accepting their lower price will have on the total revenue.
     
  6. slice1900

    slice1900 Well-Known Member

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    Whatever Directv is willing to pay now it is going to be lower than what they would have been willing to pay if P12N was launching today. The large majority of customers who really care about getting it have left for a provider that has it, so getting it at this late date would bring in few new subscribers nor help keep any existing subscribers who would have otherwise left.

    It would probably be a net loss for them, as they'd either have to eat the cost, or pass it along to customers (some of whom would hit their breaking point price-wise and leave)
     
  7. trainman

    trainman Hall Of Fame

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    Stanford waves from up north. (Not sure what their financial situation is like, though.)
     
  8. inkahauts

    inkahauts Well-Known Member

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    I don’t believe their donors fill up the sports coffers like usc though, I think they push the research side a lot more.

    But true, forgot they are not public either.
     
  9. slice1900

    slice1900 Well-Known Member

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    Another Pac 12 article, regarding the plan Scott has floated to sell 10% of their media rights for $500 million. It suggests they're going to need an in depth audit to prove they're really worth that much, and all those high salaries and chartered jet travel Scott enjoys would be the first thing to go in exchange for any such deal.

    It also contains this quote that may explain the Pac 12's entire predicament:


    Canzano: Pac-12 Conference invites questions, but offers few answers
     
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  10. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Gold Club DBSTalk Club

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    I guess that answers the question of why Pac-12 didn't partner with an existing distributor. Although their offer to a potential partner may be the reason they were not wanted.
     
  11. inkahauts

    inkahauts Well-Known Member

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    I bet they where not wanted because of what Scott was actually offering. Think it’s pretty clear he doesn’t live in reality for how all this works...
     
  12. davidatl14

    davidatl14 Icon

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    Becomes increasingly clear with each passing day.Both Scott and the Pac 12 Network are in serious trouble.Scott has been in over his head since Day One of his tenure. The "money sports "Pigskin & Hoops become worse as on field product also.
    The numbers being bandied about by Scott and his band of sycophants for the possible future are wildly overblown.

    None of this gets better until Scott is shown the door.
     
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  13. Mar 4, 2019 #3213 of 3218
    APB101

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    I can’t weight in on this as much as a number of other people.

    It doesn’t hurt to ask a question.

    Is there anything positive to say about Larry Scott?
     
  14. slice1900

    slice1900 Well-Known Member

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    Directv has already announced it will be carrying ACC Network. Think of all the years of additional revenue from Directv and others the Pac 12 would have enjoyed if Larry Scott hadn't so short sighted and greedy, and had partnered with someone like every other conference network.

    I'm guessing like SECN, ACCN will end up on my cable provider's sports package, while P12N will remain impossible to get even if I wanted it.
     
  15. rainydave

    rainydave AllStar

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  16. slice1900

    slice1900 Well-Known Member

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    Sounds like they might be trying to push him out. Better late than never I guess!
     
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  17. BigJ52

    BigJ52 Godfather

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  18. slice1900

    slice1900 Well-Known Member

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    No surprise that they turned down that offer. So long as Scott is in charge he can never make a deal to sell out Pac 12 Networks. That would be admitting his entire T3 rights strategy was a failure, and he'd have to take a hefty pay cut since he'd no longer be in charge of the network.
     
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