The Longhorn Network is killing the Big 12

[greenman]

I figured I'd start a new thread about Big 12 Deathwatch 2011.

Here are the high points of the Texas/TLN/IMG/ESPN contract:

Spoiler:

1. If Texas leaves the Big 12 ESPN receives an exclusive sixty day window to negotiate for all of Texas's athletic rights.

"In the event that UT determines not to participate in any athletics conference in one or more sports, UT agrees to provide ESPN a right of first negotiation of 60 days with respect to its television telecast rights.."

What's more Texas also grants ESPN 48 hours to match the offer of any other entity.

Significantly the language allows this negotiation window to open "in one or more sports."

So could Texas football go independent and cash in while the rest of the sports remained in a conference?

Yep.

2. ESPN agrees to make its best efforts to obtain the Texas high school state championship games to air.

And you thought the weekly high school games were controversial?

Wow.

What if Texas high school kids fought all year for the opportunity to play in a Texas state title game aired on the Longhorn Network? You think that might impact recruiting?

It remains to be seen whether the NCAA would even allow this to happen, but it's interesting that ESPN and Texas agreed to specifically bid for these rights.

3. Woe unto you if you are unfairly critical of Texas on the Longhorn Network.

While ESPN agrees to spend $13 million on a studio and expects to hire 75 employees to work on the network, those employees better be Longhorns through and through.

Here's what I'll call the "Don't Mess With Texas" provision of the agreement:

"in the event that UT reasonably determines that any on-air talent does not reflect the quality and reputation desired by UT for the network based upon inappropriate statements made or actions taken by such talent and so notifies ESPN, ESPN will cause such talent to be replaced (and will in any event no longer allow them on air following such notice)."

Yep, Texas controls who works on the network and what they say, not ESPN.

So much for independent thought and non-homerism.

4. ESPN expects the network to cost $26 million a year and Texas will receive $ 10,980,000 per year growing at a 3% rate of increase. But once that revenue reaches $295 million and ESPN recoups its investment, Texas will begin to receive 70% of the adjusted gross revenue.

At least I think this is true, some of y'all who are better at business can read these provisions and let me know if that's correct. But if I read it correctly that means that Texas will reap a bonanza of cash once the network is paid for in a few years.

The potential payout to Texas is, I think, much greater than previously reported.

5. There's a broad contractual provision that appears to prohibit Texas from being affiliated with any other network.

So those dreams of a Big 12 network? They seem pretty stifled by this language. "Neither IMG nor UT will during the Term and within the Territory i. participate in or permit the development of another "Longhorns Network" or similar network enterprise (regardless of name) related to UT"

The term is twenty years and the territory is defined as Texas.

Again, there are other provisions in here, but that language seems to spell out that Texas doesn't have any desire to be a part of any Big 12 network.

In fact, more alarmingly for the Big 12, Texas may not even have the contractual right to be a part of a Big 12 Network.

6. Under the television portion of the contract: "the parties acknowledge their mutual desire that the Network telecast no less than two (2) such regular season games per college football season"

So far there is just one football game to be aired on the Longhorn Network. Anyone else think that's going to grow? Well, the parties are mutually agreeing to "no less than two."

7. Texas agrees to help ESPN gain "neutral or road games" to air a variety of sporting events.

It probably makes business sense to do that, but do you think other Big 12 schools want the Longhorn Network coming on their campus to carry games? I'd think not.

8. What's redacted from this agreement?

There are a great deal of details included in here. Probably a lot of details that neither ESPN nor Texas really wants to be made public. But what sections are redacted and why? If we've got ESPN's entire business plan for the network -- don't you think Fox and Comcast love to know the cost structure of their competitors? -- what is so controversial that it can't be made public?

I'd be nervous about that if I was another Big 12 school. Really nervous.

I'm just glad that Nebraska got out of that mess last year. And I'm happy that A&M has finally seen the light, but I don't know why Oklahoma isn't raising a bigger stink in public. Maybe they are just Texas' lapdog. The rest of the Big 12 will just bend over and take it because they probably have no better options.

[Blue Man]

Anyone who spends even one dollar of their money to support professional college athletics is a stupid fool.

[sooner82]

My hope is that Oklahoma is quietly working behind the scenes and letting A&M make the noise. Last summer, it was Missouri that was the most publically upset over the conference Texas, but Nebraska was the team that got out.

As far as being Texas' lapdog, it should also be pointed out that the Big12 has been very good to Oklahoma. They've won 7 out of the 15 conference titles and have had 4 BCS title appearances. I can understand why up until now they were fine with the big12 staying together. The LHN does change everything though and they need to get out.

[greenman]

Originally Posted by sooner82

My hope is that Oklahoma is quietly working behind the scenes and letting A&M make the noise. Last summer, it was Missouri that was the most publically upset over the conference Texas, but Nebraska was the team that got out.

I assume that the OU admin has a plan in place if when A&M bolts. I'm sure both the PAC and SEC would take them. If they have to take Okie St with them, that may complicate things if 14 and not 16 teams is the number this go around.

Originally Posted by sooner82

As far as being Texas' lapdog, it should also be pointed out that the Big12 has been very good to Oklahoma. They've won 7 out of the 15 conference titles and have had 4 BCS title appearances. I can understand why up until now they were fine with the big12 staying together. The LHN does change everything though and they need to get out.

Agree.

[Dr T Non-Fan]

OU, OSU go to Pac 12, while TexA&M and one other Texas school (Tech, Baylor?) goes to SEC.

I think Texas will not mind going Independent. Play ND, BYU every year.

[greenman]

From the webmaster of the A&M Rivals site:

Good Bye, Big 12
by Tarp at 8/11 5:47 PM

I just got off the phone with someone on campus who I had been trying to talk to over the last few days because he's very well connected. Unlike a lot of things we had heard over the past few days which might have contradicted something else we heard or came from outside the university itself, his stuff comes from the highest levels and it's like God handing Moses the Ten Commandments.

A&M's going to the SEC.

This is what was said:

When the LHN was announced last fall, A&M officials took a long hard look at the economics of the deal and decided that they couldn't compete with Texas unless they did something different. They have been in discussions with SEC officials since that time. The person he talked to said that all future alignment discussions would be based on economics and that A&M was ahead of the curve in this regard.

On August 22, the A&M BOR will make it official. It doesn't matter what the NCAA decided today regarding the LHN or if the Big 12 has any further meetings or whatever penalties are assessed by the Big 12 for A&M leaving the conference.

There's nothing that can be done at this point to stop this. The BOR has determined that A&M's future lies in the SEC and away from Texas and will ratify this officially.

He was told that although Rick Perry will be in Birmingham and South Carolina this weekend, he has nothing to do with it. He was also told that he didn't have anything to do with the events of last summer. The timing of Perry's trip to the south has to do with his announcement that he is running for president which will be made Saturday on the same day that the Iowa straw polls are being done.

I apologize for not having much prior to this but this is the conversation that I waiting to have because there has been no better source on A&M over the years and because this comes directly from the highest levels. Prior to that, I wanted to be cautious but there's no need to be cautious at this point.

It's over.

[lipman]

And from the ESPN reports, it isn't doing the Longhorn football team any favors either.

[Dr T Non-Fan]

Longing for the good old days of the ol' SWC. Minus Texas. Plus someone. Plus someone for Arkansas, too.

[Whiskey]

So, ncaa just banned any school or conference network from showing any HS event.

[sooner82]

What i'm hearing about Oklahoma is that their number 1 choice is the Big10 and if not then the Pac12. OU's president has always been academics first and he would love to join the either one of those conferences. OU's rivals guy says that the OU has said no to the SEC twice since last year. OU is probably tied to OK St because of the legislature and trying to get unhandcuffed from them would probably be too big of a headache, which probably means the Pac12 is the best fit. Personally, I would prefer the Big10, we could rejoin Nebraska and not have to deal with 9pm central start times for road games.

I have a feeling this won't happen as quickly as last time around. If i'm not mistaken, the deadline to leave in order to start in a new conference in 2012 has passed. There will probably be a few months of rumors about school X having talks with conference Y. I think the Big12 will try to stop the bleeding by adding a couple of small schools like Houston and if that works, i'll lose my shit.