"making" more
BTN cost each member $45 million. To determine net profit, the money that $45 million was making in their endowment must be subtracted from the amount of profit they receive from their network deal.
If the ACC schools follow the SECN production model, i.e., each school provides the feed (initial outlay ranged from $700,000k at UF to $7 million at Arkansas), then the out of pocket costs are a small fraction of what the B1G members pay.
Given the infrastructure to do that already exists in Charlotte at SECN, I think that is highly likely. I think what they are working on is what ACC content will be distributed and how.
If the ACC is within $3 million of the B1G per school/yr in media payout (I'm not saying it will be) it is at least break even for the ACC.
Depending on the ACCN model, the ACC may also be a little less vulnerable to cord cutting. Raycom for example makes most of its money off of advertising, not cable subs.
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In response to this post by EDGEMAN)
Posted: 03/15/2016 at 09:02AM