C7 TV Deal Possibility

[TheA_Bomb]

This CBS Sports Article is reporting that FOX Sports new channel Fox Sports 1 (previously Speed) to debut soon is offering $500mil/12 years.

So this is all about TV markets as speculated and we have that going for us.

http://www.cbssports.com/collegebasketball/blog/eye-on-college-basketball/21504314/report-catholic-7-banking-on-big-payday-with-new-tv-deal

payday with new TV deal

By Matt Norlander | Senior Blogger

January 6, 2013 12:10 am ET

Reportedly, the Catholic 7 stands to earn more than $4 million per school with a new TV deal. (US Presswire)

They said it was about the basketball, but of course it was just as much about the money.

You couldn't have expected the "Catholic 7" -- the seven non-FBS football members of the Big East, who met formally on Friday -- to split off from the league without the promise and prospect of a bigger payday. And now it's looking like that's the case, according to a report Saturday night from ESPN.com.

Darren Rovell's story states the seven Catholic schools are anticipating to rake in at least double the dough from what they earn in their current TV contracts with the Big East. Having a league of basketball-only schools is nice and pure -- and a move not seen until now amid the chaos of conference realignment over the past three years -- but this is optimistic news beyond all wholesome visions of hoops because we're dealing with big, big money in relation to modern college hoops TV deals.

Sources say that Fox, whose Fox Sports 1 channel is set to launch in August, has an initial high offer on the table of more than $500 million for a 12-year deal. Fox Sports 1 will replace the network's motorsports channel Speed, already in 81 million homes. Sources say officials with Fox are scheduled to meet with those representing the interest of the "Catholic 7" in New York City on Wednesday. A Fox spokesman could not immediately be reached for comment. A high-ranking source at NBC Sports Network, which has so far engaged in preliminary discussions with the "Catholic 7," declined comment. ESPN spokesman Josh Krulewitz also declined comment on the network's interest in the "Catholic 7" games.

The Big East's deal, which the Catholic 7 is sheltered under, comes to an end when the 2012-13 season does. ESPN.com's report states the schools at hand bring in between $2 and $3 million under the current contract, meaning, minimally -- if the report is accurate -- the Georgetowns, DePauls, Marquettes and so on would theoretically make $4-$5 million each with a new television partner in their new league.

The Catholic 7 schools would split their shares evenly, then eventually determine and distribute the remaining portion to the to-be-decided schools who will get invites to join the league in due time. (Creighton, Butler, VCU, Xavier, Dayton: just some of the possibilities, but we have no surefire school believed to be joining the mix just yet.)

Details of how/when the Catholic 7 will split from the Big East -- and even if it gets to take the "Big East"name with them -- are still yet to be determined. But now we know there is a demand out there, one that's bigger than we've ever seen before for a basketball-only league.

[AMDG]

I still have to think that our market size (not to mention facilities and academic and institutional reputation) makes us one of the first 3 selected to join. I'm a homer, but I think we bring more to the table than any of the schools being speculated, bar none.

[RUBillsFan]

I am wondering, if these 7 can successfully break from the Big East without many consequences (perhaps even keeping the name, tournament site, and some revenue), why can't say 7 or 8 members of the A-10 just leave and do something similar.

People mention all the time that the A-10 would be ideal without the bottom feeders, but it is difficult to get rid of them. I don't really understand all of the logistics of conference realignments. But if the Catholic 7 can split, why can't some A-10 members just split.

Say SLU, Butler, Xavier, Dayton, VCU, Duquesne, UMass, Richmond and/or Saint Josephs decide to leave the A-10. Isn't that group pretty comparable to the Catholic 7 in terms of basketball power? Couldn't they secure a TV deal that would be worth the same or more than the $2 million or so per school in leftovers the Catholic 7 are offering to schools joining (as has been speculated).

I don't think A-10 members joining should allow the Catholic 7 to hold any members joining hostage and steal their lunch money.

[JMM28]

I am wondering, if these 7 can successfully break from the Big East without many consequences (perhaps even keeping the name, tournament site, and some revenue), why can't say 7 or 8 members of the A-10 just leave and do something similar.

People mention all the time that the A-10 would be ideal without the bottom feeders, but it is difficult to get rid of them. I don't really understand all of the logistics of conference realignments. But if the Catholic 7 can split, why can't some A-10 members just split.

Say SLU, Butler, Xavier, Dayton, VCU, Duquesne, UMass, Richmond and/or Saint Josephs decide to leave the A-10. Isn't that group pretty comparable to the Catholic 7 in terms of basketball power? Couldn't they secure a TV deal that would be worth the same or more than the $2 million or so per school in leftovers the Catholic 7 are offering to schools joining (as has been speculated).

I don't think A-10 members joining should allow the Catholic 7 to hold any members joining hostage and steal their lunch money.

That group doesn't have the top end name power that the BE7 has. As a group it is stronger, but there is no Georgetown, Marquette, or even a sleeping giant like DePaul or St Johns.

[RUBillsFan]

I also wonder if this whole adding only 3 schools thing is really about being able to hold the joining schools hostage. If they have a pool of 6 schools (Xavier, Dayton, Creighton, SLU, Butler, & VCU) that all want to join and that they are willing to take, they can play them against each other because there are only 3 spots. If they say they will add 5, then there is not as much competition for the open spots and it would be tougher to get all 5 schools to take their deal.

[billiken_roy]

I also wonder if this whole adding only 3 schools thing is really about being able to hold the joining schools hostage. If they have a pool of 6 schools (Xavier, Dayton, Creighton, SLU, Butler, & VCU) that all want to join and that they are willing to take, they can play them against each other because there are only 3 spots. If they say they will add 5, then there is not as much competition for the open spots and it would be tougher to get all 5 schools to take their deal.

this post got me to thinking. and Ru has a point. using today's real time RPI numbers, and throwing out any football interested schools, here would be the top 12 schools of the BE7 and The A-10 combined:

1. Butler 10

2. VCU 38

3. Georgetown 35

4. LaSalle 44

5. Marquette 50

6. Saint Louis 52

7. Seton Hall 57

8. St Joseph 67

9. Dayton 80

10. Xavier 99

11. Villanoiva 105

12. Duquesne 122

others for discussion Providence 129, Depaul 182, St Bonaventure, 180 george Washington 208, Fordham 243

while i understand that January 7th isnt necessarily the optimum time yet to look at RPI, and i also realize that there are other factors. the point is, that in reality, the A-10 top teams really do bring a lot to the table. and if someway RU's idea could be realized, not sure if the Billikens wouldnt be better off if the A-10 was chasing the 2-3 better teams from the BE7.

that isnt going to happen as one would assume that the BE7 has vowed all for one. but it is an interesting look. it also says that if the billikens would get left behind, if the A-10 would go find the three suitable replacements, the A-10 remains the best place to be imo. for example what if the remains of the big east becomes only a football league and the remaining schools have to find their own basketball landscape. wouldnt uconn, louisville, and memphis and/or cincy be very suitable replacements for butler, dayton and xavier? i would prefer butler, dayton and xavier, simply for the fact these schools are more like minded institutions in every way to saint louis university, but if our choice would become fight to get uconn, louisville and memphis and/or cincy or be forced into the lesser mvc, give me uconn, louisville and memphis and/or cincy.

[AMDG]

I also wonder if this whole adding only 3 schools thing is really about being able to hold the joining schools hostage. If they have a pool of 6 schools (Xavier, Dayton, Creighton, SLU, Butler, & VCU) that all want to join and that they are willing to take, they can play them against each other because there are only 3 spots. If they say they will add 5, then there is not as much competition for the open spots and it would be tougher to get all 5 schools to take their deal.

this post got me to thinking. and Ru has a point. using today's real time RPI numbers, and throwing out any football interested schools, here would be the top 12 schools of the BE7 and The A-10 combined:

1. Butler 10

2. VCU 38

3. Georgetown 35

4. LaSalle 44

5. Marquette 50

6. Saint Louis 52

7. Seton Hall 57

8. St Joseph 67

9. Dayton 80

10. Xavier 99

11. Villanoiva 105

12. Duquesne 122

others for discussion Providence 129, Depaul 182, St Bonaventure, 180 george Washington 208, Fordham 243

while i understand that January 7th isnt necessarily the optimum time yet to look at RPI, and i also realize that there are other factors. the point is, that in reality, the A-10 top teams really do bring a lot to the table. and if someway RU's idea could be realized, not sure if the Billikens wouldnt be better off if the A-10 was chasing the 2-3 better teams from the BE7.

that isnt going to happen as one would assume that the BE7 has vowed all for one. but it is an interesting look. it also says that if the billikens would get left behind, if the A-10 would go find the three suitable replacements, the A-10 remains the best place to be imo. for example what if the remains of the big east becomes only a football league and the remaining schools have to find their own basketball landscape. wouldnt uconn, louisville, and memphis and/or cincy be very suitable replacements for butler, dayton and xavier? i would prefer butler, dayton and xavier, simply for the fact these schools are more like minded institutions in every way to saint louis university, but if our choice would become fight to get uconn, louisville and memphis and/or cincy or be forced into the lesser mvc, give me uconn, louisville and memphis and/or cincy.

And we would rank in the top half in terms of market size, behind the NY, Phila, Chi, but ahead of Ohio, Indiana, Milwaukee, etc. We have to be a lock.

[billiken_roy]

father biondi has the bullets to make this happen. imo right now this should be his top priority. he needs to be flying from school to school giving it all he has. IF saint louis university gets left out, i hold him completely responsible. he is the man that makes or breaks this deal for the billikens. normally when the man sees dollar signs, he goes into high gear. he is one of the best deal makers i have ever witnessed. i still believe he makes it happen.

[brianstl]

father biondi has the bullets to make this happen. imo right now this should be his top priority. he needs to be flying from school to school giving it all he has. IF saint louis university gets left out, i hold him completely responsible. he is the man that makes or breaks this deal for the billikens. normally when the man sees dollar signs, he goes into high gear. he is one of the best deal makers i have ever witnessed. i still believe he makes it happen.

Roy, would you settle for SLU being a junior member of the new conference getting only half the TV revenue that most members would get?

[moytoy12]

father biondi has the bullets to make this happen. imo right now this should be his top priority. he needs to be flying from school to school giving it all he has. IF saint louis university gets left out, i hold him completely responsible. he is the man that makes or breaks this deal for the billikens. normally when the man sees dollar signs, he goes into high gear. he is one of the best deal makers i have ever witnessed. i still believe he makes it happen.

Roy, would you settle for SLU being a junior member of the new conference getting only half the TV revenue that most members would get?

I would. The short-term positives outweigh the long-term negatives in my mind.

[JMM28]

I am ok with the differing payouts as long as it is phased out over time.

It would be hard to compete over the long haul with GTown, Marquette when they are bringing in 3mm+ per year.

[kshoe]

father biondi has the bullets to make this happen. imo right now this should be his top priority. he needs to be flying from school to school giving it all he has. IF saint louis university gets left out, i hold him completely responsible. he is the man that makes or breaks this deal for the billikens. normally when the man sees dollar signs, he goes into high gear. he is one of the best deal makers i have ever witnessed. i still believe he makes it happen.

Roy, would you settle for SLU being a junior member of the new conference getting only half the TV revenue that most members would get?

I would. The short-term positives outweigh the long-term negatives in my mind.

I would too, but I think it's the long term positives of being associated with the right conference that make the difference.

Here's an interesting thought: If schools like SLU question the appropriateness of entering a conference as second class citizens, think how a school like Xavier must feel. Not only is their on court performance comparable to any of the C7 over the past 10 years but they will likely have to leave behind a significant number of NCAA units in the A-10. Admittedly, I don't know exactly how much the A-10 could keep but Xavier is currently owed well over $10mm in back-logged credits. If they have to forgo much of this, it may not even make financial sense for them to jump ship, much less the indignity of entering as a second class citizen.

Most of the speculation on the C7 board (http://csnbbs.com/forumdisplay.php?fid=772) seems to believe the C7 will ask for more revenues for a while in an attempt to make back the fixed costs of setting up the new conference. Who know if its true as the article doesn't say that, but it does make sense and its not like the article is 100% solid.

[Taj79]

You could negotiate --- I would not be against having a limited, defined period for less but not some open-ended, ad nauseum thing. Short of the umbilical cord attached to all these C7/BE7 schools, the real recent "hot" programs are VCU, Xavier and Butler. I know the ten year window smacksus right across the jaw but that's who we are. In hindsight, it also levels the playing field as far as Creighton, Dayton, St. John's, Providence, RuPaul and the Hall are concerned. And in reality -- it puts most of the noteworthy accomplishments of the Big Three to death -- no Maguire, no Wade, no Massimino, no Ewing, no Mourning, no Thompson and so on.

We have all drooled over this fantasy for some time now --- the iron for us will never be hotter.

[billiken_roy]

father biondi has the bullets to make this happen. imo right now this should be his top priority. he needs to be flying from school to school giving it all he has. IF saint louis university gets left out, i hold him completely responsible. he is the man that makes or breaks this deal for the billikens. normally when the man sees dollar signs, he goes into high gear. he is one of the best deal makers i have ever witnessed. i still believe he makes it happen.

Roy, would you settle for SLU being a junior member of the new conference getting only half the TV revenue that most members would get?

if it is more than we are getting now, i would consider it.

if it is equal or even less for a short period of time and then goes to an equal share later, i would consider it.

if it is forever a lesser amount and less than what we get now, absolutely not.

[billiken_roy]

the real hind teat suckers in all of this are st johns, providence and seton hall who are all in the "what have they done for anything lately" boat. now that this junior share stuff is being leaked, i am having a real hard time with st johns, providence and seton hall being on the other end.

[Prairie Bill]

As I said in another thread, this has to make business sense both to core B7 and new members. Initially, such factors as TV revenue lost/gained, exit penalties, and abandoned NCAA units could be negotiated on a team-by-team basis. But these should be phased out - in the long run, only the rewards for current performance should distinguish the teams. If not, I would rather be a top-rank team in the A-10 or whatever league emerges as the competitor to the super-B7. There inevitably will be one.

[Prairie Bill]

... and I object to being limited by the term "Catholic League", or seen as part of any "Holy Land of Hoops". IMO, that sort of marketing approach is absolute crap.

[Bay Area Billiken]

We've been following the C7 developments.

We want SLU to get in this new league, this long sought conference, period. If SLU gets an invitation, and it comes with 2 Tiers, then SLU should accept. Based upon the TV revenue report/rumor, even with 2 Tiers, SLU would be getting anywhere from 5.6 to 7 times the TV revenue it receives in the A10. Plus, we don't even know for certain that Tiers are in play. And even if Tiers are in play, they can be negotiated.

The key is getting SLU in, where it belongs. These things can be negotiated later, if need be, or now, but not so it jeopardizes SLU's candidacy.

The following are answers to the 2 criteria that have been held against SLU:

1. NCAA Appearances

Who decided on that arbitrary sample size of 10 years? Was it one of SLU's competitors? We just need it expanded to 20 years. SLU looks a lot better with 20 years: 5 NCAA Tournament appearances, coming out of rugged conferences like the Great Midwest and C-USA (not as the only fish coming out of a small, mid-major, Horizon Pond, after all the good teams abandoned it), 3 NCAA Tournament wins, the Miracle of Memphis in 2000, 4 wins in 4 days in a very rugged conference tournament, less than 13 years ago.

By my count, SLU's NCAA Tournament appearances and wins translates to 8 NCAA Tournament units for SLU since the '94 season.

Someone needs to make SLU's case. We just need to change the perameters. Someone else has decided on 10 years. Just change that to 20. 20 years ago was not the Neanderthal Period. The dinosaurs did not walk the Earth 15 or 20 years ago. Nor did they walk the Earth 13 years ago. Those NCAA Tournament appearances happened, as in 4 NCAA's in 7 years, a very good record for SLU, a record to raise in SLU's favor.

2. Geography?

Well, we can't move St. Louis. But I suspect the Eastern 4 of the C7 are going to be getting on planes to Dayton, Cincinnati, and Indianapolis. It's only an hour farther flying to St. Louis than Cincinnati or Dayton, less than an hour farther than Indianapolis. And it's closer for the entire C7 to reach St. Louis, than it is for them to reach Omaha, or Spokane!

Our time has come. SLU is the best school on the whole list of competitors. Let's get it done!

Go SLU! Go Billikens!

[kappy96]

From today's Sports Business Daily...

The seven Catholic schools that plan to leave the Big East to form their own basketball conference "expect to double their money off a television deal," according to sources cited by Darren Rovell of ESPN.com. Sources said that Fox, whose Fox Sports 1 channel is set to launch in August, "has an initial high offer on the table of more than $500 million for a 12-year deal." Sources said that officials with Fox on Wednesday are "scheduled to meet with those representing the interest" of the Catholic 7 in N.Y. A "high-ranking source at NBC Sports Network, which has so far engaged in preliminary discussions with the 'Catholic 7,' declined comment." ESPN VP/PR Josh Krulewitz also "declined comment on the network's interest." The presidents of the schools -- DePaul, Georgetown, Marquette, Providence, Seton Hall, St. John's and Villanova -- met in N.Y. on Friday to "discuss the intricacies of the new conference and announced that they retained the legal services of Proskauer Rose and Pilson Communications for television negotiations." The TV deal "is said to be far along." The Legacy Agency Partner Jordan Bazant has "helped bring Fox to the table." Reps from St. John's and Georgetown "took the lead in those early discussions" (ESPN.com, 1/5).

In Chicago, Toni Ginnetti writes the parameters of Catholic 7 TV negotiations "will involve more than dollars." In addition to the substantial revenue any TV deal would generate, the schools also are "interested in establishing coast-to-coast exposure that can advertise ‘the brand' of the new league." DePaul AD Jean Lenti Ponsetto said, "We’ve hired a very capable television consultant in Neal Pilson, and I know everyone wants our product. But I don’t think you can negotiate a television deal until you know when you will leave." The seven schools currently "receive about $2 million each from the Big East television deal that expires after this season." The proposed packages would "offer at least twice the current payout" (CHICAGO SUN-TIMES, 1/7).

[brianstl]

The extra money you get really does you no good if more than half the conference gets double that. It puts you at a big disadvantage. If it was a one or two year deal, I could live with it. If it fives years, that would be tough. You would be spending your first decade in the conference trying to catch programs that where already ahead of you before you even enter the conference.

Spending a decade occupying the middle or bottom half of a conference because your conference sister institutions put you behind the 8 ball doesn't appeal to me.

[SShoe]

Can these 7 schools alone garner this type of TV deal without the addition of 3 or more A-10/MVC schools/markets? I could be wrong here, but I would think that this type of deal would be highly contingent upon creating a broader "more national" brand and that can't be accomplished with just these 7 programs. That should give the A-10/MVC schools at least some ground to stand on in negotiating an equitable share of the TV deal.

[Bay Area Billiken]

Now is not the time for dissent.

If SLU does not get in, there are no feasible alternatives. An A10 absent Xavier, Butler, and/or Dayton would be geographically prohibitive for SLU given the A10 TV revenue, etc. Add the absence of Temple along with the aforementioned 3 to the C7, and the A10 is weakened.

[SShoe]

I'm not advocating lone dissent, but rather "unionizing" with the other potential teams. As my brother pointed out, if some SLU fans appear irritated by the potential of getting half the $ as the other C7 schools, how do you think X or Butler would take this idea? Obviously these 7 schools hold a lot of the cards, but without adding X, Butler, etc., the conference really isn't all that appealing. So if X, etc. want to help ensure they receive an equitable share, I would think they'd have a better shot if they engage in some form of "collective bargaining."

[Cowboy]

The extra money you get really does you no good if more than half the conference gets double that. It puts you at a big disadvantage. If it was a one or two year deal, I could live with it. If it fives years, that would be tough. You would be spending your first decade in the conference trying to catch programs that where already ahead of you before you even enter the conference.

Spending a decade occupying the middle or bottom half of a conference because your conference sister institutions put you behind the 8 ball doesn't appeal to me.

-the price of poker, ie seats in Chaifetz Arena, goes up in this new conf, if we are in, as the product should be more attractive, that is where some revenue from a SLU perspective gets increased along with tv

[kshoe]

The extra money you get really does you no good if more than half the conference gets double that. It puts you at a big disadvantage. If it was a one or two year deal, I could live with it. If it fives years, that would be tough. You would be spending your first decade in the conference trying to catch programs that where already ahead of you before you even enter the conference.

Spending a decade occupying the middle or bottom half of a conference because your conference sister institutions put you behind the 8 ball doesn't appeal to me.

So we are better off sitting in a crappy conference earning significantly less and competing for one maybe 2 NCAA bids? At the end of the day we are competing for NCAA tournament bids and most of the teams we are competing against are NOT in our conference. They are in BCS football conferences where the football programs support just about every other sport. We need as much revenue as possible to beat those guys...