Broadcast Rights Wide.

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Presentation transcript:

Broadcast Rights Wide

Play Calls History of Broadcast Sports NCAA Controls on Broadcasting NCAA v. Oklahoma University and the University of Georgia (1984) College Football Association Current Playing Field Bowl Championship Series

Sports and TV History In 1938, first college football game was broadcast In 1945, less than 7,000 TV sets in the US, and only 9 stations 3 in New York City 2 in Chicago 2 in Los Angeles 1 in Philadelphia 1 in Schenectady In 1946, NBC’s “Gillette Cavalcade of Sports” air Joe Louis/Billy Conn fight 150,000 viewers 5,000 televisions

Sports and TV History In 1951, NCAA revokes marketing policy for sports. In 1960, Winter Olympics broadcasted. $500,000 cost 15 hours of coverage In 1963, instant replay is introduced at Army-Navy football game. In 1964, instant replay is used regularly in the NFL. In 1979, ESPN is introduced.

Sports and TV History In 1984, Oklahoma and Georgia sue NCAA In 1991, Notre Dame negotiates its own contract with NBC In 1998, the Bowl Championship Series is created. In 2000, NBC began exclusive broadcast of Olympics 3.5 Billion Dollars

NCAA Controls University of Pennsylvania challenges NCAA authority to control TV broadcasts. Association-wide television contract signed in 1952 between NCAA and NBC $1.14 Million Exclusive Saturday broadcast

Conract Details Exclusive rights to college football Rights fees distributed to schools that appeared on TV. Limits for the number of times a team could appear on TV. Game selection controlled by network

Dissention In Ranks Multiple appearances by football powerhouses Some teams never appeared on the game of the week Tension among schools because fees were distributed according to TV appearances Powerhouses wanted more money.

College Football Association 62 Football schools formed the CFA in 1977 All members were still part of the NCAA Original purpose was to coordinate lobbying efforts on behalf of college football Included universities from major conferences: SEC ACC WAC Big 8 SWC Independents Did not include the Big Ten or Pac Ten

CFA and TV Increase demand for college football Increase share of revenue for powerhouse schools In 1981, the CFA was offered $180M by NBC

NCAA’s New Plan Required CBS and ABC to feature 82 different teams over a two year period. Maximum 6 appearances for any team over two years No more than 4 national appearances

NCAA v. Oklahoma University and University of Georgia 1984 Plaintiffs sought to terminate the NCAA’s central control of broadcast rights New broadcast plan was in violation of Sherman Act Individual schools should be able to negotiate broadcast rights

NCAA’s Argument NCAA recognized that controls could be potential violation of Sherman Act. College football market with no controls would: Adversely affect actual attendance at games Concentrate recruiting advantages in traditional powers Doom weaker schools to obscurity

Broadcast Vacuum Some games were put into syndication Broadcast rights fees decreased sharply Many schools looked to the CFA for joint TV negotiation

Immediate Aftermath CFA’s 1st contract with ABC for $12M for one year Big Ten and Pac Ten signed with CBS for $9.6M for one year New era of competition between networks Additional freedom for schools ESPN joins the mix

The Numbers? 4x’s as many games available on TV after 1984 Rights fees to schools dropped: Under NCAA plan - $74M Under CFA - $31 30 second advertising costs 1983 - $60,000 1984 - $15,000

CFA Reign Years Networks Participation Fees 1985 -1986 ABC and ESPN $50,000 1987 - 1990 CBS and ESPN $100,000 1991 - 1995 ABC $150,000

More Dissention In 1987, ABC offered the SEC $24M to leave the CFA. Lower profile teams sacrificed to keep SEC in the CFA.

ABC Takes Control In 1991, ABC/ESPN signs both the CFA and Big Ten/Pac Ten contracts ABC moves to more regional broadcasts Forces a member school out.

NBC and Notre Dame N B C

NBC and Notre Dame B C 4 years - $38M

Notre Dame Bertelli Lujack Hart Lattner Hornung Huarte Brown

Notre Dame YEAR RECORD COACH 1924 10-0-0 Knute Rockne 1929 9-0-0 1930 1943 9-1-0 Frank Leahy 1946 8-0-1 1947 1949 1966 9-0-1 Ara Parseghian 1973 11-0-0 1977 11-1-0 Dan Devine 1988 12-0-0 Lou Holtz

Notre Dame

Notre Dame

Notre Dame

Notre Dame

Hitting the fan Fox takes over professional football CBS is left without football CBS makes direct pitch to SEC $85M for five years Guaranteed 6 national exposures

CFA demise No Notre Dame No Penn State No Big Ten No Pac Ten No SEC ESPN, ESPN2, ESPN8, Fox and Fox Sports CFA closed its books on June 30, 1997 and dispersed its assets to member institutions

The Networks ESPN

BCS Rules The previous ranking system has resulted in multiple National Champions BCS established to ensure a #1 vs. #2 game A new ranking was created Factors AP and Coaches Poll Strength of Schedule Losses

Class Struggle Exclusion from Big-Money Bowls Damaging the ability to build a fan base Creation of the Presidential Coalition for Athletic Reform

Going Bowling GRAND TOTAL: $108 Million Also solidified the idea of Top Tier Bowls TOTAL PAYOUT PER TEAM $13.5 Million $13.5 Million $13.5 Million $13.5 Million GRAND TOTAL: $108 Million

Lower Tier Bowls $750,000 $750,000 $750,000 $800,000 $750,000 $780,000 $750,000 $750,000 $750,000 $800,000 $750,000 $780,000 $750,000 $750,000 $1,200,000 $2,000,000 $750,000 $1,350,000 $750,000 $1,000,000 $750,000 $1,350,000 $750,000 $1,300,000 $1,900,000 $800,000 $2,550,000 $3,000,000 $1,600,000 $5,125,000

Bowl Comparison BCS Bowls Lower Bowls $108 million 4 Bowls 8 Teams

BCS Conferences 63 Teams

The Have Nots 52 Teams INDEPENDENTS

Discussion and Questions?