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Can the networks generate enough revenue to pay out?
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Can the networks generate enough revenue to pay out?

5
May 17, 2023, 12:02 AM

Or better asked, are advertisers going to pay premium rates to buy commercial time so the networks can generate enough revenue to pay out these contracts?

ESPN is laying off employees now. Is their financial situation going to change such that in 2 years when their big contract starts, they can pay out these huge dollars promised to all these schools? What happens if they go belly up in 3-5-9 years?

Fan viewership is up year on year - but only by 1-2% - certainly not enough to entice Toyota or Google or HP to significantly increase what they currently spend on advertising.

On any given Saturday, there are 3 or 4 games that have national interest. The rest are just games. And 20% of those are cupcakes. The games with national interest can demand premium advertising rates. The rest, depending on the game, may be lucky to fill up the commercial time.

Even top ranked Georgia only has one game on their schedule this year that MIGHT attract national interest and thus premium advertising rates.

I hope these schools and conferences have vetted these contracts thoroughly and not been lured in by promises that are not sustainable.

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Re: Can the networks generate enough revenue to pay out?

2
May 17, 2023, 12:29 AM

Yes. ESPN has Week 1 get lsu vs FL. St. Week 2 bama vs Texas. November 4 Clemson vs Irish.

Then if you didn't hate ESPN enough in 2024 all sec games will be on abc/ESPN. Look for ESPN to hype the conference and have all sec teams in the top 25.

Do hate me for posting this. I thought it was a good question. As it turn out ESPN just met with advertisers.

They just posted an article about the fall line up.

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Re: Can the networks generate enough revenue to pay out?

2
May 17, 2023, 2:47 AM

LOL. I don't make it a habit of hating anyone on TNet, especially when they add value to the conversation. Thank you for that. These numbers are just so huge it's hard to get your arms around them when, other than conference affiliation, not much changes.

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Re: Can the networks generate enough revenue to pay out?

1
May 17, 2023, 6:15 AM

Just adds to our cable and streaming bills. ESPN currently charges the providers the most per subscriber and that number is different for every provider.

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MEG


Re: Can the networks generate enough revenue to pay out?


May 17, 2023, 8:15 AM [ in reply to Re: Can the networks generate enough revenue to pay out? ]

ESPN aired all of those games last year as well… Did they have a record year?

I think they are relying on the future playoff and being able to air those games. But those games will be similar to the playoff now. Numbers will be low. Somehow, someway people will find a reason to not watch just like they do now.

The TV contract numbers that are being estimated are so high. I don’t understand how they will come up with so much money just because 2 teams are added. Giving each team an extra 50+ million each year seems a little unrealistic.

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