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Jon Wilner Articles: Media Rights--Timeline, Revenue, Expansion; Mailbag of Same Topics

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Usually I have found these articles from Wilner to be behind a paywall, however today they were not.

Both of his articles today pertain heavily to discussions on OBDF so I am posting them together as they both touch on the same topics.

 

Business of Sports – Pac-12 media rights: Timeline, revenue expectations come into focus

 

SPORTS360AZ.COM

<p>We gained a few crumbs of clarity this week on the state of Pac-12 media rights negotiations. Here’s a recap, in five parts …...

 

 

 

Hotline mailbag: Pros, cons of partnering with Apple, expansion odds, and more

 

WWW.KSL.COM

The Pac-12's new production facility could handle games for Apple.

 

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Thank you P Duck for posting these 2 articles from Wilner. Really appreaciate you and all others who dig out these articles.

 

These articles were refreshing because Wilner listed no "unnamed sources" So called expert sources who grasp onto anything to present the WOW FACTOR to get clicks. If you can't name the source then its just media speak on the BS barometer.

 

Wilner, got on the record comments from 2 PAC Presidents. We learned nothing new, except that the sky isn't falling and the final details are close.

 

The 2nd article was a Q&A with fans and Wilner answered them with what knowledge he had. The rest was Wilners opinion.

 

Once the media rights and distribution rights are completed then GK will take it to the Presidents for a vote. Then we will see if any of the rumors by the unamed sources and the chicken .... writers is true.

 

Fun times. Go Ducks in the upcoming BB conference tournaments.......

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Thanks, Happy. John Canzano has a good update on possibilities for possible Pac-10 expansion on his website that is up today.

 

Both John and Jon have done a great job of not chasing after every media deal rumor and the rumored demise of the conference. 

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On 2/26/2023 at 1:03 PM, Jon Joseph said:

Thanks, Happy. John Canzano has a good update on possibilities for possible Pac-10 expansion on his website that is up today.

 

Both John and Jon have done a great job of not chasing after every media deal rumor and the rumored demise of the conference. 

Hi Jon. I went to the Canzano site, but he has that article for paid subscribers only. Can you tell us who his possibilities are for expansion? Thanks.

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On 2/26/2023 at 2:32 PM, Pennsylvania Duck said:

Hi Jon. I went to the Canzano site, but he has that article for paid subscribers only. Can you tell us who his possibilities are for expansion? Thanks.

Of course. San Diego State and SMU for sure. Possibly UNLV. Not so much Fresno. Houston, if available, to pair with SMU. The B12 Commissioner says all B12 schools have signed on to the new media deal but no official statement has been issued.

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Thanks JJ.......

 

SMU and SDSU need travel partners and immediate, end of season rivalry games. It bodes well for their financial health and great regional media broadcasts......

 

Fresno State and UNLV may very well be added to the BIG12, if the PAC passes on them. Would hate to see the BIG 12 get a foothold in the Pacific Time Zone.

 

I wonder if any of the BIG 12 schools would head to the PAC if the money was right? Houston would be a smart pic, however it may not be in their best interest.

 

Go GK....

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The discussion on expanding to "stabilize" misses the point that it dilutes revenue under a larger group of schools.  Probably not something Oregon is good with as the flag bearer. SMU and SDSU are the sweet spot for PAC12 growth via SoCal and Dallas I think. 

 

The $31Mil number is possible but it would likely come with some serious baggage.  What I mean is to get that number from a combination of media networks we're probably talking about liquidating the PAC12 networks assets into one of the streamers (Apple most likely) and signing for 7+ years. 

 

It's not a terrible outcome and it keeps the PAC alive.

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Whats wrong with fair market value compensation? The higher the market value the more compensation. SMU/SDSU could come in under a reduce compensation package. Their value should rise once they start playing Pac 10 schools as you would think the viewership would increase.

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On 2/26/2023 at 4:57 PM, GODUCKS15 said:

Whats wrong with fair market value compensation?

Nothing is inherently wrong with the idea, that's how ML Baseball pretty much works.  If Oregon pushes the PAC to fair market compensation then certainly the ACC will follow and then everyone else.  I'm personally not a fan of going down that road because in general it has the effect of locking in the winners and losers.  Not absolutely of course, but the Yankees do seem to win a lot of games.  Would you be okay with Oregon taking on corporate sponsors (besides Nike) to build up enough revenue to make a run at the natty?  

 

To be fair there's a solid argument that Oregon started this arms race for resources in the first place so we shouldn't be shocked that CFB is heading towards a $$ dominated endeavor.  CFB was built on the old model that resources didn't determine W-L records beyond a basic level of investment.  With NIL, exposure and coaching salaries driving recruiting it's now an arms race to be in the top-5.  Do we work to disarm or try a preemptive strike?

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Here is another Wilner article for your pondering...He is expanding on the thoughts from his previous article above. His outlook gets dimmer with each passing day that there is no media deal announced...

 

Wilner – Pac-12 media rights: Our (final) predictions for the revenue, media partners, expansion decisions and more

 

For several months, we viewed Pac-12 survival as a 5.5-point favorite over Pac-12 extinction, which equated to a probability of about 67 percent. The conference had a two-in-three chance to successfully navigate this existential crisis.

 

But as the Hotline detailed a few weeks ago, time and risk move in lockstep in the realignment game.

 

SPORTS360AZ.COM

<p>It has been 244 days since USC and UCLA announced their plans to enter the Big Ten and almost as many since the Pac-12...

 

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On 2/26/2023 at 5:16 PM, Duck Fan 76 said:

Nothing is inherently wrong with the idea, that's how ML Baseball pretty much works.  If Oregon pushes the PAC to fair market compensation then certainly the ACC will follow and then everyone else.  I'm personally not a fan of going down that road because in general it has the effect of locking in the winners and losers.  Not absolutely of course, but the Yankees do seem to win a lot of games.  Would you be okay with Oregon taking on corporate sponsors (besides Nike) to build up enough revenue to make a run at the natty?  

 

To be fair there's a solid argument that Oregon started this arms race for resources in the first place so we shouldn't be shocked that CFB is heading towards a $$ dominated endeavor.  CFB was built on the old model that resources didn't determine W-L records beyond a basic level of investment.  With NIL, exposure and coaching salaries driving recruiting it's now an arms race to be in the top-5.  Do we work to disarm or try a preemptive strike?

CFB starting with BCS and then the playoff (soon to expand for more $) has been fully monetized. No wonder certain schools, FSU and Clemson for example, are asking for a bigger slice of the pie in a capitalized sport that distributes income to conference members in an "equal" manner.

 

If Wake Forest was to receive a lesser cut than Clemson and FSU where is it going to go to make more money?

 

I think we will see more FSU-Clemson demands as the B1G and the SEC continue to distance themselves financially from the P3. I don't like it but money rules the roost today in CFB and CBB.

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On 2/26/2023 at 8:16 PM, Duck Fan 76 said:

Nothing is inherently wrong with the idea, that's how ML Baseball pretty much works.  If Oregon pushes the PAC to fair market compensation then certainly the ACC will follow and then everyone else.  I'm personally not a fan of going down that road because in general it has the effect of locking in the winners and losers.  Not absolutely of course, but the Yankees do seem to win a lot of games.  Would you be okay with Oregon taking on corporate sponsors (besides Nike) to build up enough revenue to make a run at the natty?  

 

To be fair there's a solid argument that Oregon started this arms race for resources in the first place so we shouldn't be shocked that CFB is heading towards a $$ dominated endeavor.  CFB was built on the old model that resources didn't determine W-L records beyond a basic level of investment.  With NIL, exposure and coaching salaries driving recruiting it's now an arms race to be in the top-5.  Do we work to disarm or try a preemptive strike?

FSU and Clemson have already 'jumped the gun.' Very good and very accurate post.

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On 2/26/2023 at 7:31 PM, Duck Fan 76 said:

The discussion on expanding to "stabilize" misses the point that it dilutes revenue under a larger group of schools.  Probably not something Oregon is good with as the flag bearer. SMU and SDSU are the sweet spot for PAC12 growth via SoCal and Dallas I think. 

 

The $31Mil number is possible but it would likely come with some serious baggage.  What I mean is to get that number from a combination of media networks we're probably talking about liquidating the PAC12 networks assets into one of the streamers (Apple most likely) and signing for 7+ years. 

 

It's not a terrible outcome and it keeps the PAC alive.

As Charles has so accurately pointed out streaming could lead to fewer viewrs today but far more viewers down the road. Especially, when switching apps becomes far easier as will happen.

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On 3/2/2023 at 10:05 AM, Jon Joseph said:

CFB starting with BCS and then the playoff (soon to expand for more $) has been fully monetized. No wonder certain schools, FSU and Clemson for example, are asking for a bigger slice of the pie in a capitalized sport that distributes income to conference members in an "equal" manner.

 

If Wake Forest was to receive a lesser cut than Clemson and FSU where is it going to go to make more money?

 

I think we will see more FSU-Clemson demands as the B1G and the SEC continue to distance themselves financially from the P3. I don't like it but money rules the roost today in CFB and CBB.

Yes this is obviously where it's headed and if Oregon and Washington aren't playing this card I'd be amazed (although many P12 decisions are head-scratchers I must admit).  If we're headed down this road (and I believe we are) then my preference would be for performance based payouts rather than the usual beauty contest criteria used by the media.  The cream will rise to the top anyway and if one of the bottom tier teams puts together a playoff run, well good for them and they should be compensated.

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