Topic: New CUSA Deal worth $11.3 million per year

[Mako]

From USA Today:

C-USA lands $11.3 million deal

Conference USA announced Tuesday it has made six-year TV rights deals with ESPN and College Sports Television that will begin this fall. The conference will receive a combined $11.3 million a year, the same amount ESPN paid under an expiring contract. But ESPN's rights fee drops 68%, to $3.65 million annually, for prime picks of football and men's and women's basketball games. CSTV will show those sports, plus other events, said CSTV president Brian Bedol.

The deal adds to the major-event portfolio of CSTV, which last August made an all-sports deal with the Mountain West Conference.

The previous contract was $12 million per year divided between 15 schools. That is precisely $800,000 per year per school. ($12,000,000/15 = $800,000). The new contract is $11.3 million divided between 12 schools. Even by the math of a Political Science major, that works out to $941,666.66 per year per school. ($11,300,000/12 = $941,666.66). I would note that the USA Today article states that the $11.3 million is the same amount per year as the current ESPN contract. If that's true, then the previous contract only paid $753,333.33 per school per year so the new contract gives each school almost an additional $200,000 per year.

The MAC's television contract is about $800,000 per year. That works out to $66,666.66 per year per school. (That's for 12 schools. If the MAC ever expands, the revenue will be further divided). Let's see here, $941,666.66 - 66,666.66 = $875,000. In other words, we will be receiving more additional television money each year than the entire MAC conference receives in total.

One of the other things I like is that if neither ESPN nor CSTV pick up a particular game, then anyone can pick it up. This means that every game should be televised at least regionally.

CSTV has picked up all the multi-media rights so all games should be available on Sirrius radio.

Now, before anyone else says anything, I will admit that one of the unknowns is how much cable market penetration CSTV can get. Will they be able to get on most cable systems or just a few? We'll have to wait and see on that one.

Still, $941,000 per year vs. $66,000 per year. Five (or maybe four) bowls vs. two bowls. Memphis and New Orleans road trips vs. Bowling Green and Akron road trips. I just can't see why we're leaving the MAC.
 :roll:

[GreenSteve]

My understanding is that not all of that money goes directly back to the schools. Some of the money goes to maintain our bowl affiliations, which are safe now, and the operations of the league.

Keep in mind, this is only league TV money for the next six years. I would imagine there are separate contracts for bowls, and of course there is the NCAA tournamant units, which Banowsky has managed to keep for some time to come.

THis deal gives the new CUSA a chance to prove itself, and with that chance gain some exposure. If we can put a good football product on the field for the next six years -- that ups the ante for the next negotiations. If we gain NCAA tournament units (more than one a year) at a better rate, the money will flow.

At any rate, this is MUCH better than being in the MAC.

Anyone who can't see that is blind.

OK, we know what we have. Time to get on with the business of being in CUSA.

GS.

[lexkyherdfan]

Mako I agree with you.

I believe this could work out to be a good deal for CUSA.  Like Mako said, the wildcard in this is the amount of cable tv stations that pick up CSTV.  Our cable company here has it but I have Dish Network.  If Dish doesn't pick the channel up by the fall, I will switch back to cable or Direct.  This fall could we could see plenty of CUSA action on CSTV since I believe the Mt. West contract doesn't start until 2006.

The comparisons between TV payments between the MAC and CUSA is a no brainer.  This move will benefit MU so much more than the MAC.  The MAC was good but we like being in a southern league and now we are.

[DJdaHERDfan]

CUSA will put Marshall into that next level we are trying to achieve.

The money is now there. Now it is time for our sports to be there too.

[DJdaHERDfan]

So this new network just saved CUSA's a$$e$ by making up the lost revenue from the original contract.

This new network will be on every cable/dish outlet by end of this summer.
As will the new ESPN too.