The BTN will now be part of NY/NJ cable packages

Submitted by Erik_in_Dayton on

http://www.nj.com/rutgersbasketball/index.ssf/2014/05/big_ten_network_strikes_deals_with_time_warner_cablevision_for_local_distribution.html

The BTN agreed to a contract with Cablevision and Time Warner in which it will become a part of those carriers' NY/NJ cable packages.  The BTN hopes to reach a similar agreement with Comcast before the football season. 

Quick thought: The addition of the parasite that is Rutgers would have been a complete disaster if this somehow didn't go through, so I suppose we should be glad given that Rutgers is set to start draining the B1G's bodily fluids in the near future.  Of course, it remains to be seen whether any of the money  from these deals will go to improving B1G football and/or improving the lives of athletes.   

EDIT:  The recent profits of B1G teams are below.  The money from these deals could make more of a difference than I realized for the Minnesotas and MSUs of the world.  A look at the profit figures from 2007-08 until 2012-13 for 13 of the 14 Big Ten schools. Northwestern, a private school, did not report figures.

 

School Total Profit Average Profit
Michigan $90,243,483 $15,040,580.50
Penn St. $52,918,867 $8,819,811.17
Ohio St. $52,533,144 $8,755,524
Iowa $31,789,258 $5,298,209.67
Indiana $24,034,454 $4,005,742.33
Nebraska $18,202,291 $3,033,715.17
Purdue $17,792,141 $2,965,356.83
Illinois $16,792,323 $2,798,720.50
Wisconsin $12,727,545 $2,121,257.50
Mich. St. $11,821,079 $1,970,179.83
Minnesota $6,841,924 $1,140,320.67
Maryland $3,208,826 $534,804.33
Rutgers $423,319 $70,553.17

http://espn.go.com/blog/ncfnation/post/_/id/95196/b1g-numbers-revenues-and-expenses

I Like Burgers

May 20th, 2014 at 11:27 AM ^

Crap on Delany all you want, but the guy cracked the NY/NJ market 3-4 months before Rutgers even played a game in the Big Ten.  Usually these things go down to the wire.  Also, its Rutgers and no one in NYC/NJ gives two shits about Rutgers.

I Like Burgers

May 20th, 2014 at 2:03 PM ^

Everyone keeps talking about when the current TV model is going to change, but realistically when do you think that'll happen?  Its not going to be in the next five years.  Might not even be in the next 10.  There are a lot of very powerful and rich people that would very much like to keep TV and cable the way it is.  And (not to get political) given the way the FCC and cable are very much simpatico these days, a whole lot will have to change about the way we do business in this country for things to change.  Especially when it comes to sports.

So in the meantime, Delany saw an opportunity that works in the current economic structure and climate and took it before someone else did.

BiSB

May 20th, 2014 at 11:29 AM ^

But so is the number of hands reaching into the pie.

So, I guess what I'm saying is USE PLATES AND FORKS YOU DIRTY BASTARDS.

wile_e8

May 20th, 2014 at 11:31 AM ^

I guess this means that when we have to watch the football team play Rutgers and Maryland this fall instead of teams like Wisconsin, Iowa, or Nebraska, at least we'll be able to find comfort in the fact that the athletic department will have marginally more money to pay coaches.

Farnn

May 20th, 2014 at 11:33 AM ^

Somehow I don't feel happy with Michigan making even more money on football by taking it from 20 million cable customers in the NY/NJ market who don't give a damn about Rutgers.  And they are just going to spend it on shopping classes for players who don't have money to spend.

ChiBlueBoy

May 20th, 2014 at 11:37 AM ^

This deal isn't all about Rutgers. The NY/NJ market is very diverse, and I'm sure that there are alot of B1G fans there, with or without Rutgers. Rutgers may have been the tipping point, but it wasn't, of itself, sufficient for this deal to be done, is my guess.

Gameboy

May 20th, 2014 at 11:36 AM ^

When I first brought this possibility as why B1G was adding Rutgers, there were quite a few folks thought that this was mere fantasy. I wonder where those people are now...

I Like Burgers

May 20th, 2014 at 11:58 AM ^

Even if the cable model changes (which if it is, its still a long ways off) its a decent gamble to add in Rutgers and the NYC market.  Live events are the one and only thing that still gets advertisers cutting checks, and that's not changing any time soon.  No other major conference was in the NYC market, so if the Big Ten has to add in shitty ol' Rutgers to tap that market, then so be it.  More potential viewers, bigger checks from advertisers and bigger checks from cable affiliates.  That's not temporary.

Plus, now they have a good 5, 10, 20 years (or however long it is before the cable modle changes) to get people in the #1 media market interested in their name brand schools and build up those fan bases.  Plus, they can also access the already large alumni bases living in NYC, so if we go to some sort of streaming or pay per view system, then you can access the people there too.

And adding Rutgers isn't a permanent move any more than the current cable modle is permanent.

In reply to by SECcashnassadvantage

gbdub

May 20th, 2014 at 12:32 PM ^

Of course, when we're playing Rutgers instead of Wisconsin, the non-cheering section will extend to at least the 20s. But hey, at least Jim Delaney can expense a few more NYC business trips.

gbdub

May 20th, 2014 at 12:37 PM ^

Who actually thought we weren't making a play for the NYC cable market? Most of the bitching was because that was the ONLY reason the expansion made any sense, plus people positing that no one will actually watch Rutgers, B1G member or not.

Of course the best reason to bitch still stands: for most fans, the idea of the B1G making incrementally more money isn't worth never seeing Michigan play half the traditional Big Ten.

snarling wolverine

May 20th, 2014 at 4:35 PM ^

I don't think TV money was the only reason.  Gaining access to some talent-rich East Coast states for recruiting was a big deal, too.  And more generally, it offered the chance to change the image of B1G from a strictly Midwestern league to a more Northern league in general, including the Atlantic coast. 

You can certainly disagree with the rationale (I personally didn't have a problem with being a Midwestern league, and would have rather stayed with 12 teams) but you can understand it.

 

Zone Left

May 20th, 2014 at 11:48 AM ^

I feel like this is an expression of the contempt cable companies hold for their customers. New York isn't interested in Rutgers sports, but since most New Yorkers have even less choice than most cable customers, Cablevision feels like they can just cram the subscriber fee down their throats and tell them to like it.

MaizeAndBlueWahoo

May 20th, 2014 at 11:56 AM ^

That profit table says we really ought to be in favor of anything that reduces conference revenue, not raises it.  Let's cut the conference payout by about $2.5M and put Sparty and Wiscy in the red.

Monocle Smile

May 20th, 2014 at 12:01 PM ^

As if we needed Rutgers to push through this deal. Somehow I think the Big Ten alumni base in NJ and NY would be enough to make this happen regardless.

Also, I'm saddled in CT about 10 minutes from the NY border, so fuck me, right? Good thing I'm trying to leave this godforsaken place.

I Like Burgers

May 20th, 2014 at 12:03 PM ^

Fellow CT resident here.  Can confirm this place blows.  I'm routinely bummed out about how expensive this state is, and what kind of house I could get for the same money back in MI (50% larger house on a lake?  No problem).  Or pretty much any other state.

But hey, at least I'm on Cox cable and they offer the BTN.  So you know I'm all over that Oct 4th Michigan v. Rutgers game...

Monocle Smile

May 20th, 2014 at 12:15 PM ^

Everything is expensive, nothing is worth the expense, and Danbury is one of the worst places I can imagine for a young, single professional who has no interest in associating with WestConn students.

I've never even heard of Cox Cable, but Comcast has a sports package with BTN well worth the $8 a month. I'll also be at the Rutgers game if I'm still around.

sadeto

May 20th, 2014 at 1:22 PM ^

Both of you should look into Verizon Fios as an option, if it is available in your area. I have it on Long Island, and BTN has been a part of their mid-level TV package for a while now. 

I sympathize with you about CT, I grew up there and it can be tough if you're young and single. The coast where I grew up is beautiful, but outside of the beach there isn't much going on.

But don't talk to me about expensive, as I said I live on Long Island. I sometimes think about moving to CT to reduce my expenses and tax burden.

I Like Burgers

May 20th, 2014 at 2:08 PM ^

Like most areas, there's a monopoly on the available cable options where I live.  Itx Cox or nothing (lol, Cox...never gets old).

And yeah, there are certainly more expensive areas to live.  Friend of mine here had an interview for a job out in San Francisco.  Would have been about double the pay, but its San Francisco, so in a lot of respects, that would be a pay cut.  Even coming from CT.

snarling wolverine

May 20th, 2014 at 4:40 PM ^

As if we needed Rutgers to push through this deal. Somehow I think the Big Ten alumni base in NJ and NY would be enough to make this happen regardless.
The BTN has been around seven years. If we didn't need Rutgers, why didn't we get on cable in NYC before they joined? The pre-expansion B1G had a solid alumni base in the NYC area, but Rutgers probably was what pushed us past the tipping point.

LSAClassOf2000

May 20th, 2014 at 12:46 PM ^

I believe that the BTN as it is contributes around $8 million per school to the total conference payouts each year as it is, so I am guessing that number just got a healthy bump. Between that and the well-timed expansion of the conference schedule to coincide with the other TV negotiations, that projection of about $45 million per school by 2018 or thereabouts is shaping up to be pretty close to the truth for the Big Ten. 

micheq

May 20th, 2014 at 1:51 PM ^

And the payout to Rutgers (and perhaps MD?) are limited, which I didn't realize: "There are also the significant financial benefits the network provides, as the member schools are projected to receive $44.5 million each in 2017-18 from the conference's next television contract. Rutgers won't be eligible for a full share until the 2020-21 school year...."

http://www.nj.com/rutgersfootball/index.ssf/2014/05/big_ten_network_has_big_plans_for_rutgers.html

 

BluePants

May 20th, 2014 at 12:53 PM ^

Because they MAY be merging? And they want to ensure that if it's delayed, B1G will have contracts with both major providers? Or if it's blocked, they'll still have contracts? And to ensure that when they do merge, both entities have contracts in place that the successor entity needs to honor?

Mainly that.

TheNema

May 20th, 2014 at 1:14 PM ^

Are they going to try to amp up their awful production values and on-air talent to impress the NY market or will they continue to do it all on the cheap?

gwkrlghl

May 20th, 2014 at 2:02 PM ^

At least the PR wreck of a university is going to make all of our athletic departments more money so we can spend it on gold plated boats for the crew team and waterfalls made of diamonds in our lockerrooms. Football ticket prices will continue to go up

cutter

May 20th, 2014 at 4:26 PM ^

The numbers that ESPN used was probably from the Department of Education's Equity in Athletics Data Analysis Cutting Tool.  You can find it here:  http://ope.ed.gov/athletics/GetOneInstitutionData.aspx

If you look at the University of Michigan Athletic Department's annual fiscal year budgets, you get a different picture.  The local newspapers report UM's Net Operating Surplus which is the difference between Current Fund Revenues and Current Fund Expenses.  That's where you'll read how UM's AD had profits ranging from $8M to $15M per year (and we'll probably see the same thing next month when the new budget is presented to the Regents).

The athletic department also reports Net Transfers and Capital Expenses on its budget.  This money is used largely to pay for athletic campus building and renovations along with private donations and debt.  Those amounts ranged from $2.6M in FY 2010 to $31.8M the next fiscal year between FY 2004 and FY 2013.

From Fiscal Year 2004 through 2013, the Athletic Department increased its Current Fund Balances increased a little under $7M.  While Michigan's Net Operating Surplus those years was $135.4M, the AD had Net Transfers and Capital Expenses of  around $128M.

 

 

 

M-Dog

May 20th, 2014 at 9:55 PM ^

This ultimately benefits us, not just Rutgers and Maryland.
 
It will work something like this:  A future five star recruit will be watching a Rutgers game on the BTN with his dad, a Rutgers alum.  Later on, he will flick on the TV and it will still be tuned to the BTN.  He goes to change the channel, but pauses a second to see who's playing.  It's Michigan vs. Indiana.  
 
"I could not care less about Michigan or Indiana.  But . . . those helmets are kinda cool.  Who are these guys?  Are they the Wolverines, or is that the other Michigan team?  Michigan State?  I can never remember.  I do like how they run out of the tunnel and touch the banner though.  Catchy fight song tune.  Let me watch for just a second . . . "
 
The next thing you know, he's on a recruiting trip to Ann Arbor because he's been a big Michigan Fan all of his life.  
 
Kind of like the Jabrill Peppers story, multiplied by N.  I will take as many of those stories as I can get.