Hey, folks, Dave from What You Pay For Sports here. Just wanted to stop in and say thanks for check out my new site. I hope some of y'all have found it informative.
I also wanted to chime in on a few comments I've seen posted here:
MUSeashells&Balloons wrote:This article completely ignores advertising revenue Fox will be raking in plenty of extra cash(potentially enough for the NBA contract mentioned in the article) if they have good ratings.
The main reason I made no mention of ad revenue was to show that Fox Sports 1/2 wouldn't even need ad revenue to cover the costs of their rights contracts. The ad revenue could cover production and promotion costs, and anything left would be profit. (We also don't know how much ad revenue these channels will bring in yet, as they don't exist. ESPN brought in $3.3 billion in ad revenue in 2012, but extrapolating from that might be a bridge too far.)
marquette wrote:They may even be able to poach some of the other sports channels talent (I'm thinking NHL or MLS, possibly NLL if it continues to grow in popularity.)
Fox Sports 1 won't get the NHL, as NBC has that league locked up through the 2020-21 season. MLS' TV contracts expire in 2014, though, and given that Fox has the 2018 and 2022 World Cups, I could see them swooping in to take MLS back, one way or another. They will also try to keep the UEFA Champions League away from ESPN and BeINSport, though that might cost a bit.
I don't see Fox making a serious run at the NBA, though. The current NBA contracts with ESPN and Turner, which expire in 2016, are worth $960 million a year. Next set of contracts could reach $1.6 billion per year, and FS1's subscriber fees probably won't be enough to cover that by then. Besides, they've got MLB, NASCAR, & UFC to cover, and with the Big East, Big 12, Pac-12, and C-USA on board, they won't have any shortage of basketball to show.
As for the NLL, c'mon, CBSSN has to show SOMETHING. Besides, Fox has the US rights to the Australian Football League, which is FAR more awesome and fantastic overnight programming to boot.
bmorex wrote:If I'm betting on the success of the 3 channels (FOX, NBC, CBS), I'm going:
1. FS1
2. NBCSN
3. CBSSN
Agreed. There's a really good analysis by Morgan Wick
here that explains how and why ESPN actually helped Fox along the way in order to keep NBCSN owners Comcast from ever being able to create a network that devalues ESPN. NBCSN will be stuck as the hockey-soccer-cycling-F1-Olympics channel for a few years, but that's enough to keep it going for a while.
But CBSSN? Aside from a few mid-major conferences like the Mountain West and C-USA, what have they got? Arena Football? Indoor Lacrosse? D-League hoops? Have they struck a deal with the new NASL yet? When do they start showing a pro Ultimate Frisbee game of the week?
Lately, I have wondered what would happen in someone created a sports channel, made up a bunch of sports leagues (and games) from scratch, then treated them like a really big deal. I've only wondered this because CBSSN comes pretty darn close.