SEC Network Revenue Projections

Great interview by The Advocate with Justin Connolly, ESPN senior vice president for college networks, on SEC Network. Here are some quick facts from that article and what we know about SEC Network already:

• SportsBusiness Journal‘s projections have subscriber fees at $1.30 per month/per subscriber in the 11-state SEC footprint, and $0.25 per month/per subscriber outside of the SEC footprint.

• There are 30 million estimated subscribers within the SEC footprint, which could generate $468 million in revenue annually with a $1.30 subscriber fee. Factor in advertising revenue, and revenue from subscribers outside of the SEC footprint, and you’re looking at the possibility of $500 million annually if the network reaches full distribution according to The Advocate. The article from The Advocate goes on to say that breaks down to $35.7 million annually for each of the SEC’s 14 schools, however, my followers on Twitter like @TxAgLawGuy, @carnot3 and @JayAU92 correctly pointed out that doesn’t include ESPN’s cut (which hasn’t been made public) or the fact that the SEC office splits revenue 15 ways to give itself a cut for operating expenses.

• Programming: in the first full year, more than 1,000 live events will be available on SEC Network, including 450 live games on television (and an additional 550 distributed digitally). Live games will include “approximately 45 football games, more than 100 men’s basketball games, 60 women’s basketball games and events from across all 21 SEC-sponsored sports.”

• Commissioner Mike Slive on SEC spring meetings this week: “I think it’s unrealistic to think we’ll have full distribution at the time when we launch in August.” Keep in mind Big Ten Network launched to 17-18 million households initially. After Appalachian State beat No.5-ranked Michigan, Dish Network signed on to get the network to 30 million households. However, Big Ten Network remained in a stalemate with Comcast and Time Warner through most of its first season. It took two years for Big Ten Network to have full distribution in its footprint. Pac-12 Networks launched to 48 million homes thanks to deals with Comcast, Time Warner, Cox and BrightHouse. Eventually, AT&T U-verse and Dish Network, but it still hasn’t reached a deal with DirecTV.

• All 14 SEC teams will have a game on SEC Network in the first four weeks of the 2014 football season.

• Currently, SEC Network has distribution deals with AT&T U-verse, DISH, Google Fiber and NRTC. That covers about 25 percent of subscribers in the SEC’s footprint.

• Launch date: August 14, 2014. First football games: August 28 (Texas A&M at South Carolina and Temple at Vanderbilt).