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Pac-10 Gains Exposure, Revenue From New 12-Year, $3B TV Rights Deal

The "most significant components" of the Pac-10's new 12-year, $3B TV deal with Fox and ESPN are "increased exposure and revenue for the conference," according to Jon Wilner of the SAN JOSE MERCURY NEWS. Each school under the deal "will receive an average of $21 million annually -- approximately four times the amount generated by the current contracts with Fox and ESPN." That "windfall will help cash-strapped athletic departments on multiple fronts" and will "provide an immeasurable boost to the money-makers: football and men's basketball." Wilner also writes the "more visible Pac-12 teams are from coast to coast, the more chances they have to impress top-25 voters and basketball selection committee members" (SAN JOSE MERCURY NEWS, 5/5). Pac-10 Commissioner Larry Scott said, "A very, very high priority throughout this process was improving the exposure, if anything, from a competitive standpoint. That was always paramount. ... Our football and men's basketball are among the best in the country, yet we didn't feel we had the distribution platform. Now we can look at all coaches and student-athletes in the eye today and say, 'You're going to have every bit as (good), if not better, national exposure.' Long term, that's the most important thing" (DENVER POST, 5/5). YAHOO SPORTS' Jeff Eisenberg wrote ESPN's "involvement at all is a huge coup for a league that has long lagged behind its BCS-affiliated peers in terms of exposure" (SPORTS.YAHOO.com, 5/4). ESPN.com's Diamond Leung wrote a "clear winner in all this is college basketball because the new deal gives the Pac-12 not only more exposure, but also the necessary number of platforms to broadcast all the games" (ESPN.com, 5/4).

NETWORK NEWS: ESPN.com's Ted Miller reported details of the Pac-12's forthcoming network, "such as how and where it will be distributed, haven't been worked out as of yet." But Scott yesterday said that he is "confident it would prove a successful venture." Scott: "It's going to be distributor friendly" (ESPN.com, 5/4). In Seattle, Bud Withers notes the network will be "wholly owned by the league," but Scott said the conference will "make decisions about who its strategic partners will be." Some have "speculated Comcast, with heavy West Coast penetration, would be a logical distribution partner." It is "hard to say" how much the network would cost viewers, but a consultant said that "a dollar per household per month increase might be a goal of the Pac-12" (SEATTLE TIMES, 5/5). In S.F., Tom FitzGerald reports there "will be a draft among the networks" to select football games, and the Pac-12 Network "will have first choice two weeks each season." Meanwhile, Scott yesterday announced the formation of Pac-12 Media Enterprises, "which will own the Pac-12 Network, along with a new digital network and Pac-12 Properties." The company "will manage the conference's sponsorship and licensing rights, a role previously handled by Fox Sports" (S.F. CHRONICLE, 5/5). CSNBayArea.com's Barry Tompkins noted the Pac-12 network is "going to take away all the local TV rights," as they are "all going to fall under that umbrella of the Pac-12 network" ("Chronicle Live," Comcast SportsNet Bay Area, 5/4).

FREE TO EXPLORE: In L.A., Diane Pucin notes under terms of the expiring deal, Fox "had the right to decide the site of the Pac-10 men's basketball tournament, which has been at Staples Center." Scott said that it "will now be the right of the Pac-12 to determine the location and other cities would be considered." But Fox Sports Media Group co-President & co-COO Randy Freer and ESPN Exec VP/Programming & Acquisitions John Wildhack said that their "preference would be for the event to remain at Staples" (L.A. TIMES, 5/5).

IS THE PRICE RIGHT? CABLEFAX DAILY notes Freer and Wildhack defended the "rising costs" of TV rights deals. Freer: "As fragmentation continues, advertisers and distributors will continue to look to sports for larger audiences and portability across devices." Wildhack added the value of sports content "to distributors and advertisers continues to rise." He said that "sports is the 'ultimate reality programming' while espousing the genre's attractive demos and tech utility" (CABLEFAX DAILY, 5/5). Meanwhile, Comcast Chair & CEO Brian Roberts said that the company did not land rights to the Pac-10 because it was “financially disciplined.” Comcast had been rumored to want the rights in part to put more properties on Versus, but lost to ESPN and Fox. Roberts: “It fit their business plans perhaps better than it was able to fit ours” ("Squawk Box," CNBC, 5/4). 

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