ESPN pays Texas

[Kermit]

$12 million a year for Longhorn network.

http://texas.rivals.com/content.asp?CID=1148672


One of the reasons Texas walked away from an invitation to join the Pac-10 in June was because it would have to relinquish its plans to launch its own network.

That is turning out to be a very smart decision.

According to multiple sources, Texas stands to increase its TV revenue by $12 million per year thanks to an agreement reached with ESPN to distribute the Longhorn Network on cable systems beginning in the fall of 2011.

The sources said the deal is for 10 years and guarantees Texas $12 million annually on top of the TV revenue UT would receive as part of the Big 12's current television contracts with ABC/ESPN and Fox.

Texas is expected to earn roughly $17 million in 2011-12 and $20 million beginning in 2012-13 just from its portion of the Big 12 television money.

Those figures are based on projections for the Big 12's new cable TV package, which is up for bid beginning in April (currently held by Fox), as well as an agreement reached in the summer with ABC/ESPN.

During June's college realignment, ABC/ESPN told the Big 12 it would continue to pay the conference as a 12-team league with a championship game despite the Big 12 losing Nebraska to the Big Ten and Colorado to the Pac-10 and losing its title game beginning in 2011.

ABC/ESPN could have utilized an option that allowed it to cut its payment to the Big 12 by $20 million ($10 million per school) because of Nebraska and Colorado leaving the league. But the television network did not do so.

The new agreement between Texas and ESPN for the Longhorn Network includes a $10 million payment up front, sources said. It also would make Texas the top TV revenue-producing school in the country, earning close to $30 million next year in TV revenue and more than $32 million beginning in 2012-13, sources said.

Schools in the SEC currently earn $17 million per year in TV revenue under 15-year contracts with ABC/ESPN and CBS that began in the fall of 2009. Big Ten schools currently earn roughly $20 million per year from the Big Ten Network in a 20-year contract with operating partner Fox that began in August 2007.

According to sources, Fox had guaranteed Texas $2 million per year to distribute the Longhorn Network to cable systems that included at least 500,000 viewers. Then, ESPN came in and provided a bid six times larger with a viewership that reaches from coast-to-coast, sources said.

Texas athletic director DeLoss Dodds told Orangebloods.com in August he hoped the Longhorn Network would bring the school roughly "$3 million annually with an opportunity for growth depending on its success."

According to sources, Texas has exceeded that goal by four times before even launching the network, which will happen in the fall of 2011, sources said.

Pac-10 commissioner Larry Scott told the Big 12 schools he was courting in June (Texas, Texas Tech, Texas A&M, Oklahoma, Oklahoma State and Colorado) they would receive $20 million in TV revenue as part of a conference network if they went west.

Texas would have had to give up plans for its own network because the conference network proposed by Scott would have required "all rights in," sources said.

Two Big 12 sources told Orangebloods.com Scott's numbers were overly aggressive, and that the TV revenue would have been closer to $18 million per school.

In either case, Texas has the chance to dwarf the numbers it would have earned in the Pac-10 with its anticipated combined haul in Big 12 TV revenue and its new deal with ESPN for the Longhorn Network.

The only thing holding up a formal announcement is a vote of the Texas Board of Regents, which will happen either later this month or in December.

UT and ESPN officials declined comment.

[DesignatedT]

money in the bank.

[LoneStarState'sPride]

ka-ching :greedy

[Kermit]

I should also mention that Chip Brown wrote this so the chances of it being true are .001%.

[Blake]

"hey bro, can you put in a good word with ESPN 8 for me? Tell them all I want is tortillas. Thanks."

-Tech

[DMX7]

Sick.

[tlongII]

I doubt that it's accurate.

[elbamba]

If it is accurate its about the only good piece of news for UT this year. That and Malcom Brown.

[DMX7]

If it is accurate its about the only good piece of news for UT this year. That and Malcom Brown.

True.

[Cant_Be_Faded]

I don't see how rich conservative republicans that run UT getting richer will help the program's fans.

Especially pisses me off to know they're bathing in 1 million dollar bills and putting out such a crappy team on Saturdays.

[Kermit]

Damn.

http://www.sportaphile.com/wp-content/uploads/2008/02/scrooge-mcduck-make-it-rain.jpg

https://www.sportsbusinessdaily.com/Daily/Morning-Buzz/2011/01/19/Texas-ESPN.aspx

[The Reckoning]

UT is a money-grubbing university that is increasing its average classroom size twice as much, cutting down on staff, and claims to be in financial woes. apparently they dont let any money trickle down from its athletics program, which is number one in revenue in the nation.

[Kermit]

UT is a money-grubbing university that is increasing its class size twice as much, cutting down on staff, and claims to be in financial woes. apparently they dont let any money trickle down from its athletics program, which is number one in revenue in the nation.

UT athletics trickles down a lot of money. Probably not as much as it could or should, but it gives back.

[The Reckoning]

yeah giving mack brown that raise did alot to help other staff who ended up elsewhere the next semester (including some of my favorite profs)

[Kermit]

yeah giving mack brown that raise did alot to help other staff who ended up elsewhere the next semester (including some of my favorite profs)

:lmao

Blame the legislature. This is a tired argument.

[Kermit]

http://www.statesman.com/blogs/content/shared-gen/blogs/austin/highereducation/entries/2011/01/19/ut_espn_reach_20year_300_milli.html


Powers said half, or about $5 million a year, of the first five years’ guaranteed income from the new deal is earmarked for academic initiatives. The other half will go to athletics.

After five years, academics could receive a larger or smaller share, depending on the revenues, the economic climate and the judgments of the university leaders in place at that time, he said.

In the near term, academic uses of the revenue will include creation of two faculty chairs, each with a $1 million endowment - one in physics and one in philosophy. The UT president said he would work with faculty members and deans on other uses for faculty support, “and not just have it pay the light bills.”

So, they're giving something back. Again, probably not as much as they could or should but it's something.

[CubanMustGo]

And given that Goodhair and his ilk are gonna be taking tens of millions away from UT (hundreds of millions collectively from Texas colleges), you gotta be thankful for any source of new funds.

[The Reckoning]

lol paying the light bills is exactly what they need to do with it, but im glad theyre giving some of it back to the university.

maybe then theyll give back the funding they took away from my degree program so i can go back to the LBJ school :lol.

[The Reckoning]

And given that Goodhair and his ilk are gonna be taking tens of millions away from UT (hundreds of millions collectively from Texas colleges), you gotta be thankful for any source of new funds.


hey, the ignorant public spoke. Texans favored taking money away from institutions of higher learning because they weren't affiliated themselves. why pay taxes for something you aren't participating in?

Texans want to keep social programs and services, but they dont want to pay a dime more in taxes. Goodhair wants more votes, so that's what he'll do. no way is he going to tax big business either because that's his biggest supporter. he does love and support Texas football though. him holding a football looks alot better for his image to the public than a grant or diploma.

[baseline bum]

UT is a money-grubbing university that is increasing its average classroom size twice as much, cutting down on staff, and claims to be in financial woes. apparently they dont let any money trickle down from its athletics program, which is number one in revenue in the nation.

Wasn't UT already known for ridiculous class sizes even beyond freshman stuff? Or is that a a BS urban legend?

[The Reckoning]

my biggest class so far at UT has been 250.

at UTSA, i had a class with over 400.

however, upper division classes that traditionally have 20 people at UT (seminars, usually) are now being bumped up to 40+.

[johngateswhiteley]

its weird they are getting a sweet deal from ESPN, since A&M is better at nearly every sport.

[Blake]

its weird they are getting a sweet deal from ESPN, since A&M is better at nearly every sport.

weird that being better in nearly every sport doesn't generate better revenue.

[TFloss32]

This deal creates an incredibly unfair advantage in Texas' favor simply based off of constant exposure to the rest of the nation. What an incredible recruiting tool to have at your disposal. Pretty gangsta move on Texas' part to convince other universities to remain in a shaky conference with a lucrative ESPN/ABC contract while allowing themselves more time to get the UT Network off of the ground. This affords them the opportunity to basically dictate their next move concerning future conference realignment and other ventures.

[TFloss32]

Wasn't UT already known for ridiculous class sizes even beyond freshman stuff? Or is that a a BS urban legend?

I had classes as small as 20 my last two years at UT. I was in the College of Communication, though (known to have a smaller enrollment). I didn't read through the whole thread, but the first five years of the deal will see half of the revenue going to "academics and faculty support" for those that are concerned.

[The Reckoning]

UT is better than m&a at all major sports. no contest.

[johngateswhiteley]

weird that being better in nearly every sport doesn't generate better revenue.

not really, they've had more success historically and a larger following. though, i'm sure thats what you were getting at. in any case, A&M sports are pretty freakin' good right now...and i think it will remain. at least for a while.

[johngateswhiteley]

UT is better than m&a at all major sports. no contest.

nope. i'll be at the ball game tonight, but we both know it will be extremely difficult for A&M to win...just like when t.u. comes to CS.

right now A&M is better in Football and basketball & baseball remain to be seen.

[Blake]

not really, they've had more success historically and a larger following. though, i'm sure thats what you were getting at. in any case, A&M sports are pretty freakin' good right now...and i think it will remain. at least for a while.

I'm getting at UT being better in football and that's all that really matters.

[Kermit]

Apparently, UT asked A&M if they wanted some of this deal (50/50) and Byrne said no. Blame yourselves.

[The Reckoning]

^

:lol aggies. they wanted to focus more on badminton.

[johngateswhiteley]

Apparently, UT asked A&M if they wanted some of this deal (50/50) and Byrne said no. Blame yourselves.

are you serious?

[tlongII]

$300 M over 20 years. Ridiculous.

[baseline bum]

my biggest class so far at UT has been 250.

at UTSA, i had a class with over 400.

however, upper division classes that traditionally have 20 people at UT (seminars, usually) are now being bumped up to 40+.


I had classes as small as 20 my last two years at UT. I was in the College of Communication, though (known to have a smaller enrollment).

That's not too bad, at least before the budget slashing. 20-40 was about on par with the sizes in most of my upper division classes.

[DesignatedT]

are you serious?

It didn't exactly go down like that (probably more like a 90/10 split :lol) but yes, Texas did offer a deal with A&M awhile back and Byrne said no thanks for a couple reasons. Might have been the wrong choice looking at it now.

Going back to the conference issue.... this conference won't last very long and this is just another step in the direction of it crumbling. A&M will eventually find themselves in the SEC soon.

I just can't believe how much ESPN is paying for this. blows my mind. Initially people thought t.u might get an extra 3-5 mil. not 15.

[Cant_Be_Faded]

Still don't mean a got damn thing to me until we win another championship

Although if UT had this as I was entering the University, I would have REALLY leaned more towards applying to RTV or a Communications program.

[Whisky Dog]

What I am interested in here is where is the line on recruiting? This network will give UT players more exposure than anyone else, but IMO where this will be an unfair advantage is in the proposed partnership with the UIL to showcase and broadcast Texas HS thursday and Saturday showdowns. Since it's ESPN running the network what's to stop them from running a special report on RB Jonathan Gray just before the Aledo game is broadcast on the Longhorn Network? This could be a massive funnel of the state's top HS talent right into Austin.

[NFO]

What I am interested in here is where is the line on recruiting? This network will give UT players more exposure than anyone else, but IMO where this will be an unfair advantage is in the proposed partnership with the UIL to showcase and broadcast Texas HS thursday and Saturday showdowns. Since it's ESPN running the network what's to stop them from running a special report on RB Jonathan Gray just before the Aledo game is broadcast on the Longhorn Network? This could be a massive funnel of the state's top HS talent right into Austin.

Valid points.

Rule 16.4.7.03, Paragraph (e):

13.10.3 Radio/TV Show. A member institution shall not permit a prospective student-athlete or a high school, college preparatory school or two-year college coach to appear, be interviewed or otherwise be involved (in person or via film, audio tape or videotape) on:

(a) A radio or television program conducted by the institution's coach;

(b) A program in which the institution's coach is participating; or

(c) A program for which a member of the institution's athletics staff has been instrumental in arranging for the appearance of the prospective student-athlete or coach or related program material.

Needless to say UT cannot arrange for recruits to be on television.

I'm curious to see if the NCAA has the balls or if other institutions will complain about UTs arrangement, Time will tell I guess.

[Whisky Dog]

Valid points.

Rule 16.4.7.03, Paragraph (e):

13.10.3 Radio/TV Show. A member institution shall not permit a prospective student-athlete or a high school, college preparatory school or two-year college coach to appear, be interviewed or otherwise be involved (in person or via film, audio tape or videotape) on:

(a) A radio or television program conducted by the institution's coach;

(b) A program in which the institution's coach is participating; or

(c) A program for which a member of the institution's athletics staff has been instrumental in arranging for the appearance of the prospective student-athlete or coach or related program material.

Needless to say UT cannot arrange for recruits to be on television.

I'm curious to see if the NCAA has the balls or if other institutions will complain about UTs arrangement, Time will tell I guess.

Well yeah UT and UT staff can't arrange for recruits to be on TV but ESPN sure can, and this network will be run by ESPN.

[Tommy Tuberville]

its weird they are getting a sweet deal from ESPN, since A&M is better at nearly every sport.

this is typical jgw.....

[Tommy Tuberville]

its weird they are getting a sweet deal from ESPN, since A&M is better at nearly every sport.

could you get a more moronic response.....

Remember jgw that the ags were in a 10 year hole not too long ago. As a whole, no, the ags are not better at every sport...just been better as of the last year, maybe two.

They have a following that is tech and the ags combined X 100....

I dont like it either...but thats life....