New media deal announced...

Submitted by Rush N Attack on

New media deal announced by Michigan:

 

Report: Michigan agrees to $86 million media rights deal

by John Heuser | The Ann Arbor News
Monday August 04, 2008, 1:30 PM

The Sports Business Journal reported Monday that the University of Michigan has agreed to a 12-year, $86 million media rights deal with IMG College, which will run through 2020.

IMG College will own the media rights to everything associated with Michigan athletics except for apparel rights, which will continue to be managed by the school, and local TV rights, which are controlled by the Big Ten Network.

IMG College will handle Michigan's radio rights, publishing and Web site rights, corporate sponsorships, coaches' TV and radio shows and other opportunities, according to the report. Host Communications, which previously held Michigan's radio rights, as well as its publishing and Web site rights, was sold to IMG College last year.

In June of this year, IMG College struck a broad media rights deal with the University of Nebraska worth $112.5 million over 13 years.

MGoBoard

mjv

August 4th, 2008 at 3:47 PM ^

Unless Nebraska threw in the apparel and local TV rights, that seems very odd that they would garner a larger annual fee than us. I'm guessing the deals are apples and oranges with the Big XII's lack of a network and its lesser TV arrangements than the Big X(I).

Joined: 06/30/2008

MGoPoints: 3656

Blake

August 4th, 2008 at 4:27 PM ^

Yeah, I'd assume it's because of Michigan being unable to sell the local tv rights like Nebraska was able to do. So instead of in previous years when local area networks were able to pick up the rights to certain games that weren't broadcast nationally or regionally (i.e. ESPN+ football and basketball games), all of those are now on the Big Ten Network. Also, don't let the numbers fool you, with Nebraska's deal for 13 years as opposed to Michigan's 12 year deal, the difference amounts to under $1.5 million/yr, and I'm sure M's take on BTN revenues amounts to well over that.

Joined: 06/30/2008

MGoPoints: 97

mjv

August 4th, 2008 at 5:21 PM ^

The Huskers Adidas deal signed in Jan-05 was worth $22M over 8 years (ending in 2013) ($2.75M/year) (http://journalstar.com/articles/2005/01/25/huskerextra/doc41f56afdd286f…) Texas A&M's Adidas deal is worth roughly $2M/year (http://blogs.chron.com/aggies/2007/06/chime_in_on_new_adidas_uniform_1…) Notre Dame's Adidas deal is worth $60M over the 10-year deal ($6M/year) (http://www.fanblogs.com/notre_dame/006095.php) Michigan's Adidas deal, according to Jim Carty "Now, it's out with Nike and in with Adidas, complete with a $6.5 million signing bonus, the first such bonus in college sports history according to Martin. The deal is worth $7.5 million annually, $3.5 million more than Michigan was receiving under an expiring deal with Nike." ($7.5M/year -- almost 3x Nebraska's deal) http://blog.mlive.com/jim_carty/2007/07/bill_martin_talks_adidas_part.h…) An additional year of the contract is not what is generating the incrementally higher fees for Nebraska. This difference must be due to something fundamentally different about what the huskers are offering and what we are offering. (TV rights and/or apparel rights.)

Joined: 06/30/2008

MGoPoints: 3656