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Mizzou and A&M = $4.4M per year, per school for SEC?

Posted on 10/25/11 at 4:22 pm
Posted by Smoke Ring
Scenic Highway Crackhouse
Member since Dec 2010
4243 posts
Posted on 10/25/11 at 4:22 pm
So says Jon Wilner, a Bay Area reporter, who was all over the PAC12 expansion and has a lot of contacts in the TV/media world.

Jon Wilner's Rough Estimate of Mizzou/A&M $$$ Additions to SEC

Also, these millions are just from a "renegotiation" (via escaltor clauses) of the existing SEC media contracts. This doesn't include the SEC Network/ESPN partnership that will be coming in a couple of years ...

In case you're wondering about how Wilner got his numbers, he shows it on the Twitter link above:

quote:

Back-o-napkin financials on Mizzou/A&M to SEC. Here we go ...

Combined population of Texas and Missouri is 31 million, which means approx 10.3 million TV homes

Even at conservative estimate of 50 cents/month per in-market subscriber, 10.3 million TV homes equals $5.15 million per month

Which is $61.8 million per year ... divided by 14 schools ... is $4.4 million per year per school from addition of Mizzou and A&M


Posted by fiercey
Boulder, CO
Member since Sep 2011
192 posts
Posted on 10/25/11 at 4:25 pm to
Why not just show the breakdown of what A&M adds vs. what Mizzou adds? Thinking out loud, I know this isn't "you" stating these numbers.
Posted by Smoke Ring
Scenic Highway Crackhouse
Member since Dec 2010
4243 posts
Posted on 10/25/11 at 4:30 pm to
WVU fan, don't get chippy. Y'all will LOVE the Big 12
Posted by teke184
Zachary, LA
Member since Jan 2007
95914 posts
Posted on 10/25/11 at 4:31 pm to
quote:

Why not just show the breakdown of what A&M adds vs. what Mizzou adds? Thinking out loud, I know this isn't "you" stating these numbers.


The guy says 30 million people means 10.3 million TV homes, so a rough figure of 3 people per home.

Missouri contains approximately 6 million people, so approximately 2 million TV homes from the state.


By contrast, WV would bring 1.8 million people, or roughly 600,000 TV homes from the state.



So, yes, A&M brings the lion's share of the value but Mizzou pulls their own weight in bringing in approximately 3.5 times as many TV homes as WV.



EDIT

For just A&M alone, it would be-

(26 million people / 3) = 8.67 million TV homes

8.67 million TV homes * $0.50 per home = $4.33 million per month in subscriber fees

(4.33 million in subscriber fees per month * 12 months) / 13 teams = 3.846 million per team for A&M alone.
This post was edited on 10/25/11 at 4:43 pm
Posted by texasaggie08
Triple D, TX
Member since Dec 2010
1408 posts
Posted on 10/25/11 at 4:37 pm to
These figures are just for Tier 1 and 2, right?

Isn't the potential SEC Network a whole different animal?

edit- nevermind, re-read the OP.
This post was edited on 10/25/11 at 4:38 pm
Posted by fiercey
Boulder, CO
Member since Sep 2011
192 posts
Posted on 10/25/11 at 4:41 pm to
I think it's inaccurate to use state population as a measuring stick for viewers. West Virginia has a couple of unique characteristics that make this inaccurate:

* Highest emigration rate among states. This is why the state population is at or lower than the level it was in 1940. Me, for instance, I live in Colorado and there is a huge contingent of West Virginia fans here that I know personally. Same for other states/area. Those West Virginia residents leaving the state to find jobs remain very loyal fans (and viewers).

* WVU has a very large population of students from New Jersey and New York. These folks move back away from the state after college and remain fans and viewers. At last count, there were 2-1 more out-of-state students than in-state.

These things cannot be measured by "state population". And the television markets attributed to WVU are rubbish.

There's a reason WVU is #15 in the nation in merchandise sales. These people are fans and viewers nationwide. There are reasons why WVU has the #1 Thursday night game and #1 Friday night game viewership all-time on ESPN, and the #12 Saturday game all-time. This isn't because the 1.8 million residents are the only ones watching...

Take it for what you will.
Posted by Stripes314
St. Louis
Member since Oct 2011
5033 posts
Posted on 10/25/11 at 4:43 pm to
That will be a good addition to the total pie. You can just imagine what the SEC Network will make per school.
Posted by Big Kat
Member since Feb 2009
5910 posts
Posted on 10/25/11 at 4:45 pm to
quote:

There's a reason WVU is #15 in the nation in merchandise sales. These people are fans and viewers nationwide. There are reasons why WVU has the #1 Thursday night game and #1 Friday night game viewership all-time on ESPN, and the #12 Saturday game all-time. This isn't because the 1.8 million residents are the only ones watching... Take it for what you will.


There are reasons the SEC wants Mizzou and not WVU
Posted by fiercey
Boulder, CO
Member since Sep 2011
192 posts
Posted on 10/25/11 at 5:03 pm to
quote:

There are reasons the SEC wants Mizzou and not WVU


And that's just a smart-aleck response with nothing to offer to the discussion. Any monkey can be a shite-flicker, but is there anything more to you?
Posted by bayou2003
Mah-zur-ree (417)
Member since Oct 2003
17646 posts
Posted on 10/25/11 at 5:05 pm to
quote:

There's a reason WVU is #15 in the nation in merchandise sales. These people are fans and viewers nationwide. There are reasons why WVU has the #1 Thursday night game and #1 Friday night game viewership all-time on ESPN, and the #12 Saturday game all-time. This isn't because the 1.8 million residents are the only ones watching...


What's WVU's Endowment and then tell me Mizzou's Endowment if we're going to throw $$$$$$$ figures out there
Posted by Dr RC
The Money Pit
Member since Aug 2011
58086 posts
Posted on 10/25/11 at 5:07 pm to
quote:

And that's just a smart-aleck response with nothing to offer to the discussion. Any monkey can be a shite-flicker, but is there anything more to you?


why should he respond with the reasons that have been discussed on this board ad nauseum?


At this point you would have to be willfully ignoring why Missouri is considered the better school for the SEC.
This post was edited on 10/25/11 at 5:08 pm
Posted by Big Kat
Member since Feb 2009
5910 posts
Posted on 10/25/11 at 5:12 pm to
Have fun playing Mizzou's sloppy seconds in the B12. That is your program's reality
Posted by kilo
Member since Oct 2011
27429 posts
Posted on 10/25/11 at 6:06 pm to
That's an interesting breakdown.

Its going to get crazy once the bidding for the SEC network gets a head of steam going.
Posted by bayou2003
Mah-zur-ree (417)
Member since Oct 2003
17646 posts
Posted on 10/25/11 at 6:10 pm to
Nice to see more people from Missouri on this board. Wish Mizzou would join the WEST so we can see LSU up here every other year. Mizzou joining the East sucks for me.
Posted by Adam Banks
District 5
Member since Sep 2009
31928 posts
Posted on 10/25/11 at 6:14 pm to
quote:

These things cannot be measured by "state population". And the television markets attributed to WVU are rubbish.


the big ten network gets significantly higher rate per tv set in states where they have a school it is assumed that the SEC network will be the same
Here is an example with completely made up population numbers for the sake of comparison
Say for example Minnesota has 6 million people they get .75 cents/subscriber
but for say Utah with 6 million peope they only get .25 cents/subscriber

It makes a large difference and WVU can claim OOS viewers all they want but it doesnt matter
Posted by fiercey
Boulder, CO
Member since Sep 2011
192 posts
Posted on 10/25/11 at 6:34 pm to
quote:

Have fun playing Mizzou's sloppy seconds in the B12. That is your program's reality


I take it you didn't actually *graduate* from Texas A&M. Have fun being a perennial doormat.
Posted by fiercey
Boulder, CO
Member since Sep 2011
192 posts
Posted on 10/25/11 at 6:36 pm to
quote:

why should he respond with the reasons that have been discussed on this board ad nauseum


Then why respond with anything at all? I'm stating facts that are in relation to the topic at hand, not just pure vitriol.

Seriously.
Posted by Dr RC
The Money Pit
Member since Aug 2011
58086 posts
Posted on 10/25/11 at 6:38 pm to
if you consider "There are reasons the SEC wants Mizzou and not WVU" as pure vitriol you need thicker skin.






This post was edited on 10/25/11 at 6:43 pm
Posted by fiercey
Boulder, CO
Member since Sep 2011
192 posts
Posted on 10/25/11 at 6:42 pm to
quote:

and WVU can claim OOS viewers all they want but it doesnt matter


And while I agree with that sentiment as a matter of fact, I just disagree with its validity as a means of measure. It is unfortunate for WVU being in a small unpopulous state, when the majority of their viewership is out of state and that is being wholly discounted by the beancounters. Like I said, there are some unique factors at play with West Virginia as a state, primary among them the uniquely high rate of emigration.

At any rate, enjoy Missouri. It's not just WVU fans that think it's a bad choice... plenty of your own feel that way as well. SEC fans are pretty much being sold down the river for a little extra television $$$.
Posted by laxtonto
Member since Mar 2011
1913 posts
Posted on 10/25/11 at 6:44 pm to
I would not believe those numbers at all, considering he forgot to deduct what A&M and Missouri would have to be paid to equal the current payout..

Just back of the napkin...

61M - 36M (A&M and Mizzou at 18m per) is 25M. Then divide by 14...

That is closer to 2 than 4.5 and that is going with the subscriber rate concept that does not really work with how the TV deals are going to play out.

I can agree with the 4.4M figure as long as you preface with +/-3M
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