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The Old “Third-Tier” TV Rights Show UK as Well Positioned for any Changes Coming

The-Hack

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Oct 1, 2016
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In the thread discussing the Supreme Court ruling, I have referred to the Pre-SEC Network “Tier 4” rights.

In fact, they were called “Third Tier,” and were the rights usually retained by big schools to broadcast one football game and three or four men’s baskeball games per year (and all other sports),.

“Third-Tier” rights were those games left-over after “First-Tier” games were selected (for the SEC these are CBS televised games through 2023), and also those left-over after “Second-Tier” games (for the SEC, the ESPN family of Networks pre SEC Network, the contract still in place ‘till 2023).

If you are old enough to remember the 1970’s through the 1990’s, half or more of UK’s football games, and quite a few roundball games, were delayed telecast by Rob Bromley and others. And the individual schools in the SEC bid these rights out to the market, and directly profited without passage through the SEC (some conferences packaged and spilt revenue, but not the SEC.)

In the late 2000’s, with the expansion of the ESPN family of Networks, our Third Tier was whittled down to one FB game and a handful of basketball games, baseball, gymnastics, etc., as were all SEC teams, and most big schools, nationally. The ESPN folks paid 2.5 billion to the SEC beginning in 2009-2023 (which was adjusted upward with Mizzou and A&M joining in ‘12), and CBS $850,000,000 through 2023 (again, I think adjusted upward with our 2012 expansion).

As we approached the establishment of the conference networks, such as the SEC Network in ‘13, some news outlets did FOI and Sunshine Law requests of the major schools to determine what “the market” had valued each schools smattering of televised events after the major Networks had eaten the 85% of juiciest games.

This links the article I remember reading some years, ago:


[I can’t make the link work, but I’ve quoted the best part. If you want to read it, and similar well-written articles from that time frame on TV deals, Google “Kristi Dosh Football.”]

The long and the short of it, Kentucky is a bull in a China shop from the market’s perspective.

Here are the national rankings of market value for Third-Tier rights as they existed just a few years ago:

“The chart below is every school for which I have a value and represents the 2009-2010 school year. Those not listed either showed $0 or did not have to respond to open records requests (either because they’re private or protected by state laws).

1 University of North Carolina $11,171,458.00
2 University of Alabama $8,444,674.00
3 University of Kentucky $7,743,327.00
4 University of Florida $7,450,000.00
5 University of Kansas $7,276,988.00
6 Louisiana State University $7,012,730.00
7 Oklahoma State University $6,395,000.00
8 University of Tennessee $6,293,621.00
9 Oregon State University $6,267,671.00
10 University of Georgia $6,231,392.00
11 University of Wisconsin $5,547,740.00
12
Auburn University
$4,637,605.00
13 University of Nebraska $4,393,529.00
14 University of Missouri $4,081,549.00
15 Virginia Tech $3,769,583.00
16 Kansas State University $3,263,941.00
17 Iowa State University $2,608,896.00
18 North Carolina State University $2,470,750.00
19 Penn State University $2,362,500.00
20 Ohio State University $2,329,462.00
21 University of South Carolina $1,829,000.00
22 University of Connecticut $1,749,796.00
23 University of Louisville $1,675,000.00
24 University of Mississippi $1,658,650.00
25 University of Iowa $1,500,000.00
26 Georgia Tech $1,254,876.00
27 University of Washington $1,248,599.00
28
University of Illinois
$1,175,065.00
29 University of Cincinnati $1,000,000.00
30 University of Arkansas $950,000.00
31 Clemson University $920,000.00
32 Michigan State University $660,025.00
33 University of South Florida $588,298.00“

I saw the same analysis for SEC schools, alone, maybe a year-and-a-half after the 2011 publication date of this article, and Bama and Kentucky had opened an even larger lead with Bama just over 10 million, and Kentucky at 9.5ish million.

The upshot: the measurement for the value of “the property” that is U.K. athletics is not based upon state wealth or size, nor upon the relative size of the metropolitan areas within the state. Rather it’s market value is based upon the number of eyes willing to pay to watch, and for decades, the old U.K. Network had TV and radio outlets that could be seen/heard nearly to Canada, and in as many as 7 states (and DC).

Kentucky is considered a poor state, but Indy, Cincinnati, Chicago, and many of the metro areas that once paid to carry a handful of our games, Coaches shows, etc. are not impoverished areas.

And the ultimate upshot: we and the others who the market valued as Top Ten properties, nationally, should be as well-positioned as any to weather whatever changes are coming with payments to players.

And whenever you hear the typical poor-mouthing of Kentucky “riding the backs of the SEC football powers” for our division of SEC profits, the reality is that Bama and Kentucky are the Big Dogs of the SEC, and have been for decades, when it comes to market valuation of their televised/broadcast rights.

The only caveat I have with regard to Kentucky and Bama being the leaders of the SEC by market value is obviously aTm. Neither big Texas school was listed in the 2011 article I linked, presumably being legally protected from Sunshine laws, by some artifice.
 
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That is very interesting.. I had never seen those figures before.. So UK is in very rare position as of this news..
It should only get better as the FB team improves and more people want to see it if the new O coach Coen works out like we think..

GBB
 
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That is very interesting.. I had never seen those figures before.. So UK is in very rare position as of this news..

When I first saw a true market valuation in 2012/13 it was conference only.

I did not know we were as high as top 3, nationally.

Still, being second only to Bama in conference was a curiosity to me.

Some will say basketball is the main driver, and there’s no way to “split-out” the sports for which we were being paid, unless you have the Nelson ratings in front of you.

Honestly, I think the main driver has been the huge number of Kentucky people who live in the mid-west.

If you leave Georgia, Bama, or Mississippi or Florida or Louisiana and move one state north for work, you’re in another SEC state, and your kids or grandkids might just be for the local team, in a generation or two.

Our old “Network” was very obviously following the diaspora of Kentucky people in places like Detroit, Chicago, etc.

A hint: a friend of mine went to a funeral of his sister, who died at 80, who was born in Kentucky but moved to Indiana, and married a Hoosier.

My friend came back shocked: her descendants in Indiana joined hands and sang My Old Kentucky Home surrounding her grave.

I told him that was cool.

He said, “Hack, they sang the song without the words being provided . . . from memory.”

I said, “Oh, Sh!t!!”
 
It should only get better as the FB team improves and more people want to see it if the new O coach Coen works out like we think..

Frankly, we’ve all seen this coming for at least 5 years, and I have hoped it would take enough time for Stoops to grow the program to a better marketing position.

I think he has, and I see no let up in the development.

Our strong market position in existence for decades and our equally strong social media presence should bode well for us for the future.
 
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