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Blog Entry

Pac-12 may be looking at another $1 billion

Posted on: May 25, 2011 6:37 pm
Edited on: May 25, 2011 6:38 pm
 

WALNUT CREEK, Calif. -- The Pac-12's financial momentum isn't about to slow.

 Commissioner Larry Scott said Tuesday that the league's media arm could earn the conference an additional $1 billion over a seven-to-10 period. The previously announced Pac-12 Media Enterprises is a kind of holding company, according to Scott, that would bundle the league's new network, the digital rights and the conference's sponsorship and licensing (Pac-12 Properties).

 The expanded conference is just beginning to realize its total worth as it seeks to start its own network. The $1 billion would be separate from the 12-year, $3 billion rights fees deal the Pac -12 finalized with ESPN and Fox earlier this month. 

 "I can tell you this, based on offers people have made to us we've got at least a billion-dollar business we're sitting on," Scott told CBSSports.com. "That's just Pac-12 Media Enterprises."

 He later added:  "That is a broad figure that has been thrown out to us by media investors. That's a potential minimum value over a seven-to-10 year period."

 Dividing $1 billion among 12 schools could mean an additional $83 million is gross revenue total per school. Depending the on length of the deal, that means Pac-12 Media Enterprises alone could produce an additional $8.3 million-$11.9 million per year for each school. The schools already are guaranteed an average of $21 million per school in the ESPN-Fox deal.

 Stanford AD Bob Bowlsby seemed to confirm another pending windfall for the conference telling CBSSports.com that the network and digital rights "may be worth well into eight figures per year." He added, "Time will tell on that. We may know something in the next 90 days."

 Scott called Pac-12 Media Enterprises a "for-profit subsidiary of the conference."

 "I'm not running from it," he added, "but I don't want to leave the impression that our primary focus is financial."

 Scott, as well as industry insiders, is anxious to see the possibilities of the conference's network. The commissioner consulted with -- and gives a lot of credit to -- his peers at the Big Ten and SEC (Jim Delany and Mike Slive) who previously started similar ventures. All parties know the road to network profitability can be a long, hard slog. It took the Big Ten more than two years to realize a profit with its network. That was relatively fast for a start-up but no one knew in the beginning when that profit would come.

 The Pac-12 is seemingly better positioned because Scott negotiated rights to first-tier games in football and basketball for his network. In other words, the Pac-12 Network (or whatever it is called) will have first choice of the best games for its air.

 That situation will help with potential partners, distributors and advertisers. Scott said the league is still deciding how to deploy the network. First reports were that the Pac-12 would own it alone. That approach would maximize profits instead of having to share them with a partner. But Scott said several business models are still on the table.

 Scott even foresees a situation where the Pac-12 Network could be shown on an existing channel. He used the example of the Oprah Winfrey Network (OWN) replacing what used to be Discovery Health.

The digital possibilities, he continues to say, are limitless. There are 2,700 Pac-12 "events" available for broadcast each year according to Pac-12 TV consultant Chris Bevilacqua. To date, only 131 of those have been sold. Scott wants Pac-12 content on every device imaginable. There already have been discussions with Google as a possible partner.

 "It's hard to imagine now but I wouldn't be surprised that five-to-seven years from now we've got more fans on different devices other than TVs," Scott said.

 

 

Comments

Since: Aug 13, 2009
Posted on: May 26, 2011 4:29 pm
 

Pac-12 may be looking at another $1 billion

Someone please tell LSU fan/guy to pipe up...   he's only embarassing himself and the poor state of Louisiana he resides in further!!

Someone get this guy a clue!!!    LOL 



Since: Aug 13, 2009
Posted on: May 26, 2011 4:26 pm
 

Pac-12 may be looking at another $1 billion

Super suprised (or may not) how compeletly ignorant people are from other parts of the country! 

The Pac-12 is probably 2nd or 3rd inf FB and BB in the country.  With all Olympic sports...  it completely blows
away the other conferences... no one is even remotely close.

If people don't believe this - they'll be watching more of these news worthy televison and digital deals
being done over the next few months and years.

You have 3 schools in the Pac-10 w/ over 100 national championships each...  

Sorry, but people need to do some serious research before spouting their mouths.



Since: Oct 27, 2008
Posted on: May 26, 2011 2:32 pm
 

Pac-12 may be looking at another $1 billion

Bad_Call...He means all sports championships and yes it isn't even close.  USC, UCLA and Stanford have more than 300 team titles alone.  That is why the Pac-12 is such a solid brand for the networks.  There is top notch competition in EVERY sport.  Conferences cannot just throw their football clout around anymore as a result of this deal.  Women's water polo and football are on equal footing.  As a sample, to see what I am talking about, watch the softball super regionals this weekend on ESPN.  Of the eight match-up's, six involve a Pac-10 team.



Since: Jul 2, 2010
Posted on: May 26, 2011 1:44 pm
 

Pac-12 may be looking at another $1 billion

Umm... you must be drunk.  The Big 10 has more than double the national championships as the Pac 12.  The SEC also has more.  Even the independents have just as many.  So you might want to do some research before you post a quote 'fact.'




Since: Nov 19, 2006
Posted on: May 26, 2011 9:31 am
 

Pac-12 may be looking at another $1 billion

Boy do these hick Southerners, especially LSU fans, have a lot to learn.  The fact is that the Pac 12 has won more national titles than any other conference.  No one else comes close.  UCLA and USC alone have won more national titles than all of the hicks in the SEC combined.  The fact is that the Pac 12 is now the unquestionable leading conference n the NCAA.  Larry Scott has been nothing short of brilliant in setting up the Pac 12's T.V. package.  Now this, a Pac 12 network that will eventually cover the entire Pacific Rim.  That is a lot more people than you hicks at the trailer park have.  The Big 10+2, Big 12-2, and SEC now look like a penny waiting for change compared to the Pac 12.   



Since: Jan 12, 2008
Posted on: May 26, 2011 1:07 am
 

LSWho4ever

Yeah, let's examine the BCS champs from the SEC.  In 1998 Florida State had to turn to it's 3rd string QB thanks to injuries to Chris Weinke and Dan Kendra.  Only reason way Tennessee won.  Tennessee was one of the weakest BCS champs ever.  2003, LSU played a Chokelahoma team that had no business being there.  Funny how you bring up Auburn in 2004 but not USC in 2003 as a team that should have been in the title game.  USC beats LSU in 2003 if they play.  All the pundits outside of Louisiana said as much.  Deal with it.  2004 USC beats Auburn if they are there "anyways".  2006 Florida won, congrats to SEC.  2007 Another overrated LSU team playing in the title game vs a sorry and always overrated Ohio St.  LSU wins though.  That 2 LOSS Champ was the weakest champ the BCS has ever seen.  It would be a 5-9th place team in most years.  2008 Florida won vs Chokelahoma as expected.  Odds makers in Vegas said USC would have been favored vs either Florida or OU.  Florida should have played USC that year. 2009 Alabama won, Congrats to SEC. But the game completely turned once the Texas QB went down.  2010 Auburn won with a QB that should not have been playing.  Congrats.

Hmmm....Not nearly as dominant as you make it out to be.  Ho...hum......




Since: Feb 27, 2008
Posted on: May 25, 2011 11:09 pm
 

Pac-12 may be looking at another $1 billion

Scott may be one of the best things to happen to the PAC that I can remember.  He respects the current U's and their traditions, and he knows that expansion is important (he has succeeded in that department as well so far).



Since: Aug 18, 2008
Posted on: May 25, 2011 11:06 pm
 

Pac-12 may be looking at another $1 billion

Larry Smith?  Really????



Since: Jan 9, 2008
Posted on: May 25, 2011 10:31 pm
 

Pac-12 may be looking at another $1 billion

Nice.  Larry Smith is showing all other conferences how it's done.  With all this extra cash, maybe the Pac-12 will start buying players like the SEC does



Since: Dec 4, 2006
Posted on: May 25, 2011 9:37 pm
 

Pac-12 may be looking at another $1 billion

I don't know if you know this but schools have sports other than FB and BB, I know you will say no one cares about them but that's because you have never watched the PAC-10. USC and UCLA alone have more NCAA CHAPMS than most confernces,hell if it was not for the PAC-10 the USA would not even go to the Olympics.



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