SEC Network could be worth over $35 million for each conference school
If you need more proof why Missouri and Texas A&M moved to the SEC, here it is.
Once the SEC Network reaches full distribution, each school in the conference is expected to receive over $35 million in revenue from the network. The SEC Network is set to launch on August 14.
The SEC Network is charging carriers in states with SEC teams $1.30 per subscriber for the channel. It's $0.25 per subscriber for carriers in the other 39 states. That's where the math begins.
Based on the rate within SEC states alone, if you multiply $1.30 times 12 months times the estimated 30 million subscribers in that footprint, you get $468 million. That would be $33.4 million per school — per year. And that’s without counting advertising revenue or subscribers from non-SEC states. Factor that in, and the SEC Network could easily be worth $500 million per year or $35.7 million per school once full distribution is achieved.
Currently, each SEC school gets about $20 million per year in TV revenue, so it’s easy to see what a huge impact the network will have on SEC bottom lines. LSU Athletic Director Joe Alleva has said he hopes revenue from the SEC Network will reduce or at least postpone the need for raising ticket prices.
In 2012-2013, the Pac-12 had the most revenue of the power five conferences per its tax return. The conference reported $334 million in revenue, approximately $16 million more than the SEC.
The Big 12, the conference A&M and Mizzou left, is distributing $213 million to its 10 members this year. However, without its own network, its projected revenue isn't expected to take the leap like the SEC is expecting.
Of course, the SEC's revenue projections are based on full distribution, and the network isn't even close to that yet. It only has agreements with U-verse and Dish Network nationally, leaving DirecTV and other major southern cable providers on the outside looking in. However, as customers have become accustomed to throughout negotiations between channels and providers, many of the agreements are reached as a deadline is imminent.
With the calendar still a couple of days away from June, there is no deadline looming. The network's first game is Texas A&M against South Carolina on August 28.
But even if the network doesn't get full distribution, the revenue per school and for the conference will still increase. While the Pac-12 controls its own network (the SEC Network is in partnership with ESPN), it doesn't have an agreement with DirecTV, the largest satellite carrier in the country. If it did, it would obviously generate more revenue.
Because of the power of ESPN, the SEC Network will likely get full distribution or somewhat close to it. Yes, the ESPN-backed Longhorn Network has struggled for a national footprint, but the LHN is centered around one school in one state, not 14 schools in 11 states in a conference considered the best football one in the country.
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is the assistant editor of Dr. Saturday on Yahoo Sports. Have a tip? Email him at nickbromberg@yahoo.com or follow him on Twitter! Follow @NickBromberg
