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SEC Network and Expansion

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Multiple outlets are reporting that the SEC is "weeks away" from ending negotiations with its TV partners (CBS/ESPN) for a new deal. According to the link, however, CBS doesn't see much value in the addition of TAnM and Mizzou, and may not increase 1st tier payouts as much as hoped. To counter, the SEC is attempting to start The SEC Network. As of now, the partner in the network has not been selected, nor have ownership rights or payouts or any such details been publicly discussed. Additional information can be found here. You can count on the SEC to attempt to drive its 3rd tier profits with the SEC Network as high as possible, however, based on this story in the USA Today. The Pac-12 Network will be launched this August, and is already slated for distribution in 40 million homes. According to the article, thats 10 million MORE than BTN. So the Pac is projecting upwards of $30 million or more per school per year, once the bugs have been worked out of the network. Compare that to projections for the SEC without a network, where generous estimates see an annual payout of around $25 million per school. And thats assuming that CBS is willing to pay more without getting more content. Which they apparently are not. If you take all this and compare it to the $20 million per year deal that the Big XII will apparently get WITHOUT Florida State and Clemson or Miami, you have to imagine that the deal would climb WITH the additions once they're official. Couple the addition of the east coast television markets with the re-formulated Big XII title game and you're pretty close to $25 mil per year. If the Big XII expands to 14 with Miami and Georgia Tech, $25 million would have to be the absolute lowest projection for the new deal. So... If a 12 team Pac and 12 or 14 team Big XII is paid more than the SEC, and a small handful of ACC teams become available due to FSU's defection to the Big XII, do you think the SEC will hold at 14?

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