Will there be others who, like Arizona State, take back their multimedia rights from third-party rights holders?
The Pac-12 is counting on it. That’s why Commissioner Larry Scott led the creation of Pac-12 MMR, the conference’s wholly owned subsidiary, to help schools manage their own rights and keep more of their revenue from sales.
Scott brought in multimedia rights veteran Tom Stultz from JMI Sports last year to work with the conference on constructing this model. Scott said he had heard complaints from Pac-12 schools about their rights holders so he decided to create a different option, one that would enable schools to take back their rights if they choose.
“We’re always looking for ways to improve the situations of our schools, including new ideas for increasing revenue,” Scott said in April 2015 when the league embarked on this new model. “We’ll explore any and all ways to look at the multimedia rights space.”
The major players in the rights space, IMG College and Learfield, fired back, saying their expertise from 40 years in the business cannot easily be replaced.
Industry sources say that Oregon, Stanford and Washington, each of which currently outsource their rights and have two to three years remaining on their contracts, are watching the Arizona State/Pac-12 MMR venture closely. UCLA, on the other hand, opted to renew with IMG College recently in a long-term deal that will pay the school close to $15 million per year. California is in renewal talks as well.
“We’re working together with Arizona State to create and define a structure,” said the Pac-12’s Bob Keyser, who oversees Pac-12 MMR. “We’re putting this option out there to help schools if they need it.”
Judging by the feedback and the number of questions he’s getting from his peers, Ray Anderson knows there’s a significant level of curiosity among school leaders both inside and outside the Pac-12. But Arizona State’s athletic director is quick to admit that developing an in-house sales model is not for everyone.
Deals with third parties like IMG College or Learfield pay annual guarantees that can reach $10 million or more on the high end, providing schools with predictability while mitigating risk. It’s why the two behemoths in the industry have more than 200 school clients combined.
The in-house model is “an intense, everyday endeavor,” Anderson said. “You better be real confident about your expertise. … For us, it’s a unique opportunity to be genuinely entrepreneurial, and to take control of our rights.”
