If this is true then you have to just scratch your head in disbelief.

[Rootmaster]

story here

If the Presidents let ESPN out of pro rata for a small chunk of change they are truly out of touch. Will be interesting to follow this story as it develops.

In the meantime, stay the course Mountaineers!

 

[topdecktiger]

What does it say? There isn't anything linked or posted.

 

[palencia]

View embedded media

If the Presidents let ESPN out of pro rata for a small chunk of change they are truly out of touch. Will be interesting to follow this story as it develops.

In the meantime, stay the course Mountaineers!

I may be wrong, but I thought buyout was $1 million per
team each year for 10 years.

 

[topdecktiger]

I may be wrong, but I thought buyout was $1 million per
team each year for 10 years.

The report was that it was 8 years, since that's the end of the contract. Bowlsby claims this isn't the case.

 

[WVex-pat in GA]

The report was that it was a lump sum of $10 mil over 8 years. $125,000 per team per year. Chump change.

 

[WVex-pat in GA]

ESPN paid the league an extra $10 million over the remaining eight years of its contract. In exchange for the payment, the Big 12 reportedly removed language in its contract with ESPN that would mandate the network pay the conference more if it expands to 12 or more teams.

http://sports.yahoo.com/news/report...after-conference-doesnt-expand-144449541.html

 

[coalcountry52]

ESPN paid the league an extra $10 million over the remaining eight years of its contract. In exchange for the payment, the Big 12 reportedly removed language in its contract with ESPN that would mandate the network pay the conference more if it expands to 12 or more teams.

http://sports.yahoo.com/news/report...after-conference-doesnt-expand-144449541.html

That's just for ESPN, and they're our Tier 2 rightsholders. Fox would still be on the line.

Not that it matters because there's no one worthy in the G5 that would make that move worthwhile.

 

[WVex-pat in GA]

That's just for ESPN, and they're our Tier 2 rightsholders. Fox would still be on the line.

FOX and ESPN jointly share all football rights per the 2012 Big XII press release concerning the new contract. FOX did not seek a buyout nor did they offer any adjustments or enhancements to the existing agreement.

As part of the agreement both companies will jointly share the Conference's football over-the-air and cable rights. ESPN continues as the primary rights holder of Big 12 men's basketball, including the Phillips 66 Big 12 Men's Basketball Championship.

http://www.big12sports.com/ViewArticle.dbml?ATCLID=205680799

 

[Rootmaster]

If by expanding the league would have received 25 mil per add...say two teams for total of $50 with only a portion of that going to new schools for a number of years....why settle for pocket change? Must be a bunch of folks afraid of the future...as in negotiations. This effectively caps revenue...giving another excuse to the dynamic duo Tx and Ok.

 

[topdecktiger]

If by expanding the league would have received 25 mil per add...say two teams for total of $50 with only a portion of that going to new schools for a number of years....why settle for pocket change? Must be a bunch of folks afraid of the future...as in negotiations. This effectively caps revenue...giving another excuse to the dynamic duo Tx and Ok.

You just answered your own question. The only way the current schools would get any of that $25/50 million would be to withhold some of it from the new schools.

 

[Rootmaster]

Top...that is my point. Adding teams with WVU type deal, or even more restrictive, would have paid the others as much money for several years as this deal will do now....and put the conference in a stronger position. Rule one of negotiating: never give up your leverage.

 

[torontoeers]

FOX and ESPN jointly share all football rights per the 2012 Big XII press release concerning the new contract. FOX did not seek a buyout nor did they offer any adjustments or enhancements to the existing agreement.

As part of the agreement both companies will jointly share the Conference's football over-the-air and cable rights. ESPN continues as the primary rights holder of Big 12 men's basketball, including the Phillips 66 Big 12 Men's Basketball Championship.

http://www.big12sports.com/ViewArticle.dbml?ATCLID=205680799

What pains me the most is that I have the full NCAA meal deal up here...any game I want at any time...except any that are broadcast on FS1, as apparently there is no international agreement with them. So any Mountaineer games I can't make in person if it's ESPN I get em, FS1? NOPE! I chewed the cable companies damned ear off 2 weeks ago for TT....response was.. no can do! ....guess what's gonna happen on this Sat at noon...arrrggghhh!!!!!

 

[VaultHunter]

Basically what happened was ESPN paid the Big12 not to expand and now gets to blast the Big12 for not expanding.

Good for ESPN?

 

[topdecktiger]

Top...that is my point. Adding teams with WVU type deal, or even more restrictive, would have paid the others as much money for several years as this deal will do now....and put the conference in a stronger position. Rule one of negotiating: never give up your leverage.

They didn't have the leverage you think. The pro rata clause only ran for the length of the contract. Fox and ESPN obviously were not happy with the choices available. The networks could, and very likely would, have gotten even when the new contract is signed 8-9 years from now. In the meantime, the Big 12 had two options. The could either give the new teams a reduced share for the life of the contract, and thus make the new teams fight it out in a P5 conference with one arm tied behind their backs, or give the new schools a chance at competing, but at the rest of the conference not getting any more money.

The reality is, the pro rata scheme was nothing but a gimmick. It didn't help the long term stability of the conference, which is why it was abandoned.

 

[WVex-pat in GA]

story here

If the Presidents let ESPN out of pro rata for a small chunk of change they are truly out of touch. Will be interesting to follow this story as it develops.

In the meantime, stay the course Mountaineers!

If this new story proves to be accurate and the Sports Business News report is incorrect, then the problem is that one of the presidents didn't adhere to the "talking points" memo they received. I vote Boren.

 

[Rootmaster]

The pro rata clause was not a "gimmick" for Pete's sake! lol. It was a part of a contract...which like all contracts in media had a start date and end date. No matter how you spin this...giving up the leverage was shortsighted and just plain...dumb.

 

[topdecktiger]

The pro rata clause was not a "gimmick" for Pete's sake! lol. It was a part of a contract...which like all contracts in media had a start date and end date. No matter how you spin this...giving up the leverage was shortsighted and just plain...dumb.

Yes, it was a gimmick. I realize that the pro rata clause was in the contract. That's not the gimmick. The "gimmick" was paying the new schools partial shares, in an attempt to get extra money for the current schools. That plan is a gimmick because it doesn't last long term. The extra money runs out when, a) the new schools get full shares, or b) the contract runs out.

There is no leverage. The only leverage the Big 12 had it to do what they did: threaten to unlock the pro rata clause. Once the Big 12 expanded and added new schools, then there is no more leverage. The pro rata clause has kicked in, the conference gets that money, and that's it. They can't leverage the networks after the pro rata clause has been unlocked.

If you are trying to claim the "leverage" was to have more schools when the contract expires, that isn't going to be leverage. When the current contract runs out, the pro rata and everything else is off the table. ESPN and Fox can then just make whatever offer they want. They don't have to keep the pro rata clause in the new contract. It's a clean slate. ESPN and Fox clearly aren't/weren't happy with the schools the Big 12 was considering. Having Houston or Cincinnati wasn't going to entice ESPN and Fox to offer a bigger contract in 2025.

 

[WVex-pat in GA]

Chill Son.....

 

[Rootmaster]

top...

no one has said that the pro rata clause was going to be in, or out, of any future contract. however, it was in this one...thus the dumb move to let it be bought out. and yes, it was leverage in favor of the conference...and if this report is correct...the leverage is gone. espn and fox sports will completely dictate terms for the next contract...ok and tx will leave...and folks like you will wish the leverage had been still been there when new negotiations do take place. lol

 

[topdecktiger]

top...

no one has said that the pro rata clause was going to be in, or out, of any future contract. however, it was in this one...thus the dumb move to let it be bought out. and yes, it was leverage in favor of the conference...and if this report is correct...the leverage is gone. espn and fox sports will completely dictate terms for the next contract...ok and tx will leave...and folks like you will wish the leverage had been still been there when new negotiations do take place. lol

The pro rata clause is not leverage once it is used. The only way the pro rata clause can be used for leverage is by the threat of using it. Once you actually use the pro rata, it's already done. The pro rata pays a set amount, so you can't get the pro rata to increase any more.

ESPN and Fox will completely dictate the terms of the next contract either way. You can't use the pro rata clause as leverage for the next contract, because by that point the pro rata will no longer exist. There is nothing about the pro rata clause that was going to give the Big 12 leverage during negotiations for the next contract.

 

[Rootmaster]

leverage is by the threat of using it

lol. that is the working definition of...."leverage." The "threat" of using it is now gone...thus goodbye leverage.

 

[topdecktiger]

lol. that is the working definition of...."leverage." The "threat" of using it is now gone...thus goodbye leverage.

You're missing the point. The ONLY way the pro rata clause can be used as leverage is exactly the way the Big 12 used it: pay them NOT to expand.

Let's just say the Big 12 had expanded, with say, Houston and BYU. Well, once the Big 12 expands, you can't use the pro rata clause as leverage anymore, because it has already been triggered.

 

[Rootmaster]

lol. Are you just arguing to hear yourself argue? Expansion and the money that would have come from it was the point...and the leverage. Good grief! lolx2

 

[topdecktiger]

lol. Are you just arguing to hear yourself argue? Expansion and the money that would have come from it was the point...and the leverage. Good grief! lolx2

The only money that would have come from expansion was the pro rata clause. You seem to have this idea that there was additional money from expansion than just the pro rata clause. There wasn't. You don't have any leverage there. Once you expand, you have no more leverage.

 

[WVex-pat in GA]

See below.