247sports buys Scout

Submitted by Wolverine Devotee on

It looks like one of the original 2 recruiting services is officially finished. 

Sam will likely be heading over to 247. 

https://www.thestreet.com/story/13975598/1/cbs-247sports-com-will-buy-s…

Scout's most valuable assets are its contracts with the publishers who operate those team sites and its analysts that track recruits. The "vast majority" of Scout's contracts will be assumed by 247, a person familiar with the matter told TheStreet.

 

Of the few contracts that aren't immediately assigned to 247, most will be renegotiated, according to the source, who declined to be named because 247 and Scout have not yet finalized which contracts will be assigned. Any publisher contracts that remain with Scout's bankruptcy estate could be sold at a later date.

 

Scout's websites will operate on the debtor's web platform for six months as they get transferred over to 247, the debtor said in court.

FreddieMercuryHayes

February 5th, 2017 at 12:52 PM ^

There goes one data point in recruit evaluations and rankings. But damn, if they roll Webb into UM's 247 site with Lorenz, that easily becomes the best UM recruiting info source out there. I imagine they'll hire him, they'd be fools not to.

I Like Burgers

February 5th, 2017 at 1:42 PM ^

They filed for Ch. 11 bankruptcy back in December with plans to sell off the business at auction.  CBS/247 won the auction last week with a winning bid of $9.5M.  They were the only bid.  The guy that founded Scout tried to ask for more time to put together a bid, but was denied.

Real Tackles Wear 77

February 5th, 2017 at 1:01 PM ^

In your haste to be the first to post about this topic you leave out the single most important detail that Sam himself said (along with other Scout employees) that his site will continue to operate as it does now for the foreseeable future. Even when owned by 247, Scout will continue to be a thing.

I Like Burgers

February 5th, 2017 at 1:27 PM ^

Yeah I don't know why there is all of this RIP Scout talk. 247's CEO has said they plan to keep Scout running as is and stablize that suite of sites and run it along with 247. They see them as complementary businesses. Which, on the surface doesn't make sense, but if you think about it, if Scout's Michigan site is profitable, and 247's Michigan site is profitable you may as well keep them both running. Keep the edit staff for both and then save on combined hosting fees and whatever else backend you can. I think eventually they will combine some sites, but for now their plan is to keep everyone and run two separate recruiting sites. So you'll still have a Scout 300 and a Top 247, they will just be coming from different parts of the same company. Which feels extremely redundant to me, but hey, it's not my money.

M_Born M_Believer

February 5th, 2017 at 2:09 PM ^

That it depends on brand name recognition and like loyalty. While the backend business will no doubt be streamline, if there is enough subscription loyalty to both brand names, they will keep both. If not then they would shutdown Scout. 247 just bought market share. If subscribers are loyal to Scout then it would be foolish to close down the site. You can not automatically assume that every subscriber would join/ stay with 247. The Cheavy/ Cadillac analogy is good. I would say it's closer to Proctor and Gamble with their multiple brand names under the parent business umbrella.

BlueCube

February 5th, 2017 at 8:41 PM ^

change. Why have totally separate scouting departments when you can share costs and save money? Also, how are 247Sports subscribers going to feel if Scout breaks stories and keeps the information to that board when 247Sports subscribers pay more?

I can see a couple of purposes in trying to keep both money. First, there are likely some people paying for both sites. Secondly they may not want to open a gap for Jim Heckman to step back in.

Michigan has two strong sites, although from what I have heard, most hate Scout's technology on their site. I'm not sure how this necessarily works in some other locales. My guess is that if they continue with two sites, Scout will be a basic site with 247Sports as a premium if you pay more. Premium members may get Steve and Sam while basic members get only Sam.

Anyone who thinks the current format stays is having delusions of the money tree in Sam's back yard.

rob f

February 5th, 2017 at 1:17 PM ^

He never should have sold his trusty horse.  Scout deserves better than the glue factory.

 

 

Guess who's walking, Tonto?

 

RIP,  Scout!

buddhafrog

February 5th, 2017 at 1:20 PM ^

I like 247 much more than Scout, so I'm very OK with this - assuming Sam simply moves over the 247. I'd much hear him talk about 247 ranking because that is the only one I follow.

TheReal_GR3

February 5th, 2017 at 1:22 PM ^

I'm signed up over at 247 and honestly they were fantastic once the football season ended. I was thinking I wasn't getting much of anything but then something changed. The updated became much more regular and the information was pretty good. With Sam Webb I am truly excited. I hope this doesn't have any impact on his show The Michigan Insider as that was the same name of the Scout site. Looking forward to this.

OneBadMutha

February 5th, 2017 at 1:24 PM ^

Consumers initially think they'll get the best of both worlds in one place but usually the parent company consolidates stuff to save money.  My ballz say that 247 will think it's over-kill having both of them in one spot.  I just started listening to Sam and think he's great.  Wondering if Sam might be better off starting his own thing.  He's connected enough and does enough to support it. 

I Like Burgers

February 5th, 2017 at 1:33 PM ^

You're pretty far off here, WD.  Scout isn't going anywhere.  Read THIS interview with 247's CEO.

 

“[We’ll] absolutely keep running both of them,” he said. “These are two separate brands, two separate companies if you will within the CBS Sports family. Back in technology, marketing, sales, things of that nature, you know, we will share resources, but our first order of business is to give the Scout customers a great product and to stabilize that business for the employees. Fortunately for us, there isn’t a lot of overlap. We’re really strong in a market that they’re really weak in pretty much across the board. We have no plans of shutting down any site or merging them at this time. That’s something that we will discuss way down the road, once we get the business thriving.”

ScruffyTheJanitor

February 6th, 2017 at 12:52 PM ^

What he said is probably eventually correct. Running two buisnesses at the same time that do the same thing makes no damn sense. He probably had to come out and say something like this because you don't want employees looking over their shoulder, thinking they might have their job taken from someone else.

Making a logical conclusion based on evidence doesn't make him "Full of shit." Sam will probably move over. What is the problem with that?

jalenwestman

February 5th, 2017 at 2:40 PM ^

Could see Sam joining with some other guys (different regions) to start a new one. Not sure what 247 pays, that will probably determine his move in the future.

Don

February 5th, 2017 at 5:33 PM ^

Same overall market and combined some portions of management and production, but there are two different readership bases, hence the two different papers.