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November 3, 2008
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BCS Asking Fox For Up To 60% Rate Increase For Next Round Of Games

 
The BCS last week entered into exclusive talks with Fox, seeking a six-year, $800M deal which would mark “as much as a 60[%] increase in its rights fee,” according to sources cited by Ourand & Smith of SPORTSBUSINESS JOURNAL. Under that scenario, Fox would have to pay “an average of $132[M] a year if the network wants to keep the rights to its four BCS bowl games.” The figure is “much higher than industry executives were expecting, especially given the current economy and sluggish advertising market, and well above the $82.5[M] annual figure in the current deal.” While the BCS could end up accepting less than the desired terms, industry analysts said that the “steep price suggests that the BCS wants to take its games to the open market.” Should the rights go to an open market, sources said that ABC/ESPN “would become a clear front-runner to outbid Fox and other potential bidders.” Ourand & Smith note Fox’ exclusive negotiating window “is set to expire Friday, but more meetings have been planned beyond that date,” and the talks are expected to continue “for at least another week to 10 days” (SPORTSBUSINESS JOURNAL, 11/3 issue).


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