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Moos: Pac-12 Nets payout shy of expectations again; Also, sobering view in looking at Pac-12 big picture compared to SEC, Big Ten

AFTER FIVE YEARS, reports of a $1.5 million payout by the Pac-12 Networks to member schools are “in the ballpark,” Cougar athletic director Bill Moos tells the San Francisco Chronicle. But while the payout has increased each year, it still falls short of expectations. Meanwhile, the overall distribution outlook for the Pac-12 in comparison to the SEC and Big Ten? Not good, says Jon Wilner of the Mercury News.

“We were hoping for $5 million to $6 million when we were launching,” Moos said of the Pac-12 Networks' distributions per school. “There was never a guarantee, but we were optimistic because we owned it outright.”

Published reports, reads the San Francisco Chronicle article, instead peg the payouts to each member school at $1.5 million a year for the Pac-12 Networks, compared to $7.5 million per school by the SEC Network. The Big Ten Network pays out even more, according to industry sources.  According to Moos, BTN (launched in 2007) was already paying its schools $10 million annually when the Pac-12 Networks were born in 2011.   

The Pac-12 Networks has been a boon to the so-called Olympic sports like women’s soccer and volleyball and men’s swimming and wrestling.  “Personally, there’s just as much value in the exposure of the less visible sports” as there is in revenue, Moos says in the article. “Getting our product out was extremely important.”

Commissioner Larry Scott (pictured above) said recently that the Pac-12 Network has met the financial expectations “from our original business plan. (But) expectations change. … I’m not going to tell you right now people are satisfied.”

The Pac-12 Networks and DirecTV have also failed to reach a distribution agreement over the years. It has been estimated DirecTV's 22 million subscribers could translate into $3 million per Pac-12 school each year.

Meanwhile, the Atlantic Coast Conference, in conjunction with ESPN, will launch its network in 2019. One industry insider thinks that deal “will blow the Pac-12 away.” For the full article, click here.

The $7.5 million to each school from the SEC Network is just one piece of its revenue, of course.  Jon Wilner in the Mercury News reports the SEC distributed a whopping $40 million to each school in FY 2015-16. 

The Pac-12 won’t make its FY16 financial information available until May but Wilner estimates the Pac-12 will have distributed $27 million.  Here's how it shapes up, per Wilner:

Fiscal year 2015 school distributions (all figures confirmed):
SEC: $32.7 million
Big Ten: $32.4 million
Pac-12: $25.1 million

Fiscal year 2016 school distributions
SEC: $40 million (confirmed)
Big Ten: $35 million (approximate)
Pac-12: $27 million (approximate)

"That looks bad … that is bad … but it’s about to get much worse for the Pac-12," says Wilner.

Wilner estimates "each Pac-12 school could be $12M – $15M behind its SEC/Big Ten peers every year for the next seven years."

For the complete article, click here.


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