Catholic 7 Potential TV Deal

  Johnnies and GT take the lead!

Sources: 'Catholic 7' eyes big TV deal
Updated: January 6, 2013, 12:05 AM ET
By Darren Rovell | ESPN.com

The seven Catholic schools that plan to leave the Big East to form their own basketball conference expect to double their money off a television deal, according to sources.

Sources say that Fox, whose Fox Sports 1 channel is set to launch in August, has an initial high offer on the table of more than $500 million for a 12-year deal. Fox Sports 1 will replace the network's motorsports channel Speed, already in 81 million homes. Sources say officials with Fox are scheduled to meet with those representing the interest of the "Catholic 7" in New York City on Wednesday. A Fox spokesman could not immediately be reached for comment. A high-ranking source at NBC Sports Network, which has so far engaged in preliminary discussions with the "Catholic 7," declined comment. ESPN spokesman Josh Krulewitz also declined comment on the network's interest in the "Catholic 7" games.

The presidents of the schools -- DePaul, Georgetown, Marquette, Providence, Seton Hall, St. John's and Villanova -- met in New York on Friday to discuss the intricacies of the new conference and announced that they retained the legal services of Proskauer Rose and Pilson Communications for television negotiations.

But the television deal is said to be far along. In fact, before the non-football schools left the Big East, sources say the presidents knew they'd be better off leaving. That's because Jordan Bazant, the main partner of New York-based The Legacy Agency, which represents Fox broadcasters including Troy Aikman, Chris Myers and Daryl "Moose" Johnston, already had helped bring Fox to the table. Representatives of St. John's and Georgetown took the lead in those early discussions.

Under the current Big East deal, which expires at the end of this season, the non-football schools receive between $2 million and $3 million from the television contract. There was initial fear the defections of recent football members would leave the non-football schools in a worse position.

It is believed the "Catholic 7" would divide its share of the television rights evenly and split the rest among what ideally will become the other three-to-five schools that it adds to form a 10- to 12-team conference. One source said it is likely the new schools wouldn't share the same amount as the "Catholic 7," which would allow the former Big East basketball schools to earn in the $5 million range. It's thought that free agent schools such as the ones in the Atlantic 10 would be fine with making less than half of that on an annual basis because they currently pull in $400,000 a year. However, under current conference bylaws, there's a required 27-month window in order not to owe exit fees.

In a perfect situation, the "Catholic 7" would be able to leave the Big East at the end of this season and bring in new members, which would allow its television contract to begin next season. Perhaps the promise of new money would allow it to pay fees to get out earlier.

No doubt television deal will dictate some of the teams that will potentially be added to the conference as Fox likely to have some input or rather recommendations as to the markets they like to tap. 

Couple of observations:

You gonna create animosity down the road if you only given the new schools half of what the 7 is making. Thats a big disparity that will get under ADs' skins.

and

Brian Willaims > Sheppard Smith

Couple of observations:

You gonna create animosity down the road if you only given the new schools half of what the 7 is making. Thats a big disparity that will get under ADs' skins.

and

Brian Willaims > Sheppard Smith

Great points and quite clever Choz!

Couple of observations:

You gonna create animosity down the road if you only given the new schools half of what the 7 is making. Thats a big disparity that will get under ADs' skins.

and

Brian Willaims > Sheppard Smith

Agree with Choz, but we don't know for a fact that is how it will be split up yet.  Fox is paying for the big markets that the Catholic 7 provide like NYC, DC, Philly.  The market is bearing 400k per school or less for any potential additions like those from the A-10.  It could be re-negotiated after the initial deal as well down the road.  The teams being added are more than happy as they'd still be making 6 times what they are currently making.  Not sure there would be much animosity because this deal would still be a huge upgrade for any schools added to the new league. 

Interesting that SJU and Georgetown lead the charge and were the proactive ones cutting deals whle everybody thought the Catholic schools were sitting idle as we got raided.

Initially if the Catholic 7 make 3 million a year and the 3-5 additions get 1.5 million they will be more than happy with a window to renegotiate down the road. Plus with the new league possibly getting 4-5 bids a year that's a lot more NCAA units to split than they are getting in a 2-3 bid conference.

I am really surprised by the numbers being thrown around for a new "Big East"

Overall, Fox has $ and this potentially bodes well for new league's long term health. ESPN IMO could care less about us, so why not link with Fox?  As MCN just noted, good to see SJU front and center in process.

Couple of observations:

You gonna create animosity down the road if you only given the new schools half of what the 7 is making. Thats a big disparity that will get under ADs' skins.

and

Brian Willaims > Sheppard Smith

Agree completely. That is why the Big 12 almost imploded.  It should be spread evenly.  Maybe phase it in but in the end everyone should be equal partners.

Just sayin you want unity after comin from a conf that had lost evry bit of it. Don't create an artificial divide. Won't lead to anytin good.

You want the 7 to earn a lil more since they the ones takin the risk and frontin the startup costs...thats all good. But not double, specially when y'all have a school like Xavier killin the hall and pc on a nightly basis.

Overall, Fox has $ and this potentially bodes well for new league's long term health. ESPN IMO could care less about us, so why not link with Fox?  As MCN just noted, good to see SJU front and center in process.

Agree 100%. Fox would be heavily invested in our success and we wouldn't be just an afterthought like at espn.  Hope this all works out the way things seem to be.  Fwiw, Fox is likely going to want this league to retain the Big East name for marketability purposes.

The Catholic 7 are not getting services from Proskauer, Pilson and others pro bono.  In addition, they may have to pay fees to leave the BE conference (which is probably higher than leaving the A10).  Since they are not "public" schools, they can't stick the bill to state taxpayers.  It will have to come from us as alumni or from current students in tuition hikes or from the contract they negotiate.  They could ask others they admit to pay an up front fee to buy in to the new conference or they could divide revenues in a manner that would allow recovery of costs plus a modest return on investment over the course of the first contract.   I look at Pilson as an investment banker working out a deal/merger.  IB's get a base fee and a percentage of the deal that they get for our new conference.  We really don't have a clue as to the costs of this so we should not be so quick to judge a tiered split of revenues as a negative--unless you want to write those checks as alumni and students to cover SJU's portion of the costs.

The article said nothing about recovering costs.  Nobody would have issue with that.  It should be an equal partnership so the league would be unified and strong.  Big mistake if they don't treat everyone equally.

The article said nothing about recovering costs.  Nobody would have issue with that.  It should be an equal partnership so the league would be unified and strong.  Big mistake if they don't treat everyone equally.

There will be significant costs. Including the one to recover the Big east name.  Not sure why the first contract has to be split evenly.

The article said nothing about recovering costs.  Nobody would have issue with that.  It should be an equal partnership so the league would be unified and strong.  Big mistake if they don't treat everyone equally.

Disagree.  The "founders" should make more as they take the bigger risk, negotiate the deal, bring the history and build the new conference.   At least initially.  New members would be happy to come, especially if their shares are multiples of what they're getting today.  Incentives can be built in to increase their share based on performance, tv ratings, etc.

The C7 have to be careful that they don't come off looking greedy. They already received some heat (I think unfairly) because of their announcement right after the conn tragedy. If I were them, I would some how get the word out why we need more money now, compared to the rest of the teams that will join us to make the conference. Would hate to see something great turn into "greedy Catholic schools" only caring about money.

I have faith the firms, hired to guide this process,will negotiate with potential partners in an equitable way to satisfaction of all parties.

Good summary by a Providence guy
http://friarbasketball.com/2013/01/breaking-down-the-espn-report-catholic-7-eye-big-tv-deal/

If we can get close to 5 mill a year. With the conference getting a really good pay check, then I think we should think about taking a run at gonzaga. It might be hard to build rivalries be so far away but they Are a national known basketball school.

Am I missing some thing here, but the proposed new conference would probably include all current collegiate sports, such as baseball, soccer, etc. 

If that is correct, then adding a west coast school would be a high travel cost item, as well as the wear and tear on the student/athletes traveling to the west coast.  Adding some of the west coast power BB schools sounds good on paper, but the other sports have to be considered in the big picture.

Reason to get this done ASAP is that it will help in recruiting.  Without it. others can say the we won't be on national TV next year as BE doesn't have a contract.  This contract will put us on a rock solid foundation.  Imagine Terry Bradshaw humping BE basketball on the NFL today show or when Fox has promos during Real (pro) FB such as on a Giants/RedsKins/Eagles game.  They would probably love to have our tournament during their dead time in sports in March.  Do we also get more back page in the Post