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MEGA Conference Realignment and lawsuits Megathread: Stories, Tales, Lies, and Exaggerations

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Interesting proposal...

"The setup being discussed, sources said, is that this will essentially be the formation of a new commercial entity within the Big Ten that would house all revenue generation such as media rights, sponsorships and league revenue streams.

The working title for the new entity is Big Ten Enterprises, sources told ESPN.

The private capital company would get money back through the new entity through annual distribution in proportion to its financial stake. The Big Ten will essentially have 20 equity shares, comprising the 18 schools, the league and this investor.

Sources told ESPN that this setup eliminates the need to give an outside investor a specific portion of control over decisions or board seats, something that college presidents have generally been uncomfortable with.

"Think of it this way -- the conference is not selling a piece of the conference," a league source told ESPN. "Traditional conference functions would remain 100 percent with the conference office -- scheduling, officiating and championships. The new entity being created would focus on business development, and it would include an outside investor with a small financial stake."
 
"The potentially groundbreaking plan, which has been presented across the 18-member conference over the past few months, calls for immediate cash payments to each school, the amount based on a formula that factors in numerous variables including current budgets.


The amount of those payments is still being discussed, but the basic format, sources told ESPN, is believed to be tiered. All schools in the league are expected to receive at least a nine-figure amount up front.

The final financial details are still being discussed as universities with bigger brands are expected to receive more money."
 
Hoyacane1620 said:
Interesting proposal...

"The setup being discussed, sources said, is that this will essentially be the formation of a new commercial entity within the Big Ten that would house all revenue generation such as media rights, sponsorships and league revenue streams.

The working title for the new entity is Big Ten Enterprises, sources told ESPN.

The private capital company would get money back through the new entity through annual distribution in proportion to its financial stake. The Big Ten will essentially have 20 equity shares, comprising the 18 schools, the league and this investor.

Sources told ESPN that this setup eliminates the need to give an outside investor a specific portion of control over decisions or board seats, something that college presidents have generally been uncomfortable with.

"Think of it this way -- the conference is not selling a piece of the conference," a league source told ESPN. "Traditional conference functions would remain 100 percent with the conference office -- scheduling, officiating and championships. The new entity being created would focus on business development, and it would include an outside investor with a small financial stake."
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I'm doing something wrong when $2B is considered a small financial stake.
 
As someone that has to work with MLB(advanced media), boy do these schools have no idea what they are getting into.

Basically, the schools are admitting they are better off hiring a FT private firm to manage their business development. The upside for the business, profits from media rights, sponsorships… the downside for conferences, potential less profits and lots less control on those rights. This will also filter down to NIl and players rights to media. As of now, it is a three man show: conference, school, player. This makes it Advanced Media, conference, school, player with those at the bottom having the least content/control/power/access.

If you want to see the impact, see the differences between NFL/nba, and MLB player feeds. Do the players get on-court and on-field content posted often or is it more distant, less engaging…

In the end, the private guys know the major streamers are coming full steam ahead for sports. ESPN/disney market cap is $200b. Apple, Amazon, Microsoft, Netflix Google are 500b to 3t. While $2b sounds like a lot of money, it is a drop in the bucket to these organizations. They also can scale tech far better than espn. Amazon is also about to launch a last mile satellite network for internet service further bringing them into play.

Overall, I think they would be NUTS to sign a 15yr deal for $2b. Let it sit for 2-5yrs, watch the media value explode as the streamers come looking for more access. Stop worrying about trying to grow a product you are closer to ******* up. Let the NIL/portal changes continue to impact the game.

Personally, I love where it is headed for Miami. This could change things for the worse Imo. Not just for Miami but all of college sports. Less access to the non-revenue generating content, less competition across all teams, more consolidation of control to the top 10 schools with big money already… it is very much a all in for big money and big schools with little to no care for the rest.

Now maybe we get to a new norm that has the BIG 32 as a minor league and the rest are FBs with far less paid to play(nfl to cfb of college)

My 2cents.
 
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