Not exactly accurate
The LHN is not solely owned by ESPN. It is currently a joint venture between ESPN and UT. From what I have read, this turns into a wholly owned UT property at the end of the 20 year contract period. That is another reason UT will hesitate and think long and hard about relinquishing it.
As far as returning profits to the ACC, what I explained is how the ACC can (and SEC currently does) increase those profits returned at the end of the year by basically doing ESPN's work for them on tier 3 type broadcasts.
ESPN allows a certain amount per regional type broadcast. Not really sure what that number is, but it covers travel, expenses, wages for the producer and staff (including announcers), pretty much a cookie cutter normal cost associated with that type of broadcast. For arguments sake, lets say $40K to produce, film, and put out a regional basketball broadcast and pay all the people doing it. Doing those in house as all of us are learning to do greatly cuts those costs for ESPN, making the network itself once up and running more profitable. More profits (and higher profit margins) equals more $$$ for everyone at the end of the year.
ESPN sent producers and staff into every SEC school for a full year because they only had one year to ramp up once the decision was made to do a SECN. With the ACC, they are easing more into that scenario because one, the ACC already has digital capabilities and this was not completely foreign to them and two, they are not rushing this into the mainstream like the SECN.
It is a unique approach by ESPN that maximizes not only their profits, but the profits of the schools, as well.
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In response to this post by 33laszlo99)
Posted: 04/26/2016 at 11:25AM