Budget Cuts? Not in the Big 12

Fox Sports Group has agreed with the Big 12 to play football games for the next 13 years for a small cost of $1.1 billion. Fox networks will play 40 games each season and to satisfy the financial needs of the schools that decided to leave the league last summer. This will take effect in the fall of 2012 and will average $90 million a season. This might increase the payment by customers to cable and satellite providers for getting these Fox channels. The conference is also has an eight year contract with ABC and ESPN worth $480 million that runs through 2015-16. Their total TV revenue will average about $150 million per season for the 10 team league.
This is INSANE!!!! This is one of the main revenue streams for each school and it goes right back in the athletic department while the rest of the country is in an economic drought. We learned in class on March 22nd and 24th that rights fees have in fact escalated rapidly since 1960s. We also learned that sports depend very highly on media to broadcast them to the public or otherwise people will not know what is going on in the world of sports. People will pay their cable provider an outrageous amount of money to see sporting events. Which is why there are so many sports channels you can chose from.


http://www.chron.com/disp/story.mpl/sports/fb/fbc/7520352.html