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- Apr 28, 2014
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Oh yeah I agree I'm not looking at ESPNs revenue, but unless we try to quantify the "value" that each of these programs actually brings we don't and won't know the profit ESPN is making off each program to do a better analysis.This is a lot, but as far as I can tell you are only taking payouts into consideration, not how much revenue ESPN (or anyone else is making). As a very simple example, you can't just say if the ACC went away tomorrow that ESPN would 'save $560M' ($40M x 14 schools) b/c presumably ESPN is making a net profit on televising ACC games.
Is there a path where ESPN could pay Clemson, Miami, FSU, etc more money and still make additional profits b/c they no longer need to pay schools like Duke $40M a year? Maybe, but w/o knowing their take (or projected take) it is hard to do those calculations. They would also need to be able to get out of paying the schools not going to greener pastures.
The point though is whatever that profit is, will still be there if the ACC goes down, because its NOT REALLY ESPN losing valuable programs UNLESS they choose not to get involved in the Big10 at all if they get 4 members, And they also won't be spending more money period. Schools that move to the SEC you could say their Profit would reduce, HOWEVER they'd be in a lot more major games and in new markets, which could increase their profits off those programs... And if they chose to contribute the $40M and follow the ACC schools to the Big10, they'd actually likely profit even more for having bigger games on average.
If the mostly mid level ACC programs move to the Big12, ESPN will more than likely increase their profits on those programs too too, because their expenses are literally getting cut in half, yet are mostly playing the same level of competition except for a handful of games. But it is more national which will have an even broader audience. And obviously the programs they choose not to move into the Big12 - like a Wake or something, they're gaining by just straight up not having to pay at all, or significantly less...