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Reports: ESPN to Pay UT $12M Per Year for Longhorn Network

Orangebloods.com and several other outlets are now reporting that ESPN and Texas have reached an agreement for distribution rights for the new Longhorn Network that will pay UT $12 million a year.

Star-divide

If accurate it is dramatically more money than originally thought to be available to UT and it will make the Longhorns the richest program in the NCAA in terms of media revenue. Sources are reporting that it is a 10-year distribution deal for a minimum of $12 million a year. The revenue is in addition to the Big 12 package, which ABC/ESPN also holds and which promises to pay $20 million a year.

First reports aren't clear if UT has any equity in the Longhorn Network, but it appears that ESPN and IMC College -- who is the media rights holder for Texas -- will own the network and make its money off of sales and distribution.

Schools in the SEC currently clear around $17 million a year in TV revenue, while Big 10 schools are making $20 Million. When the Pac 10 made its run at Texas and other Big 12 schools this summer they estimated that they would pay $18-20 million per year to each program. However, UT would have had to give up all rights to its own network venture.

The fall of 2011 is the target date for the rollout of the Longhorn Network. The reported deal between ESPN and UT could be ratified at the next Board of Regents meeting.

Fox was the other bidder for the Longhorn Network, but ESPN had more dollars and deeper experience in distribution and sales to spice up the deal for Texas. Aside from the money, being a part of the ESPN family will pay dividends in terms of credibility and public relatations as well.

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Dayum. Also can we get an update from the Aggie posters insisting we got punked in the realignment process?

by Minnesotahorn on Nov 5, 2010 2:09 PM CDT reply actions  

I hope you get more leverage than Auburn did, because being part of the ESPN contract is still no guarantee that your game won’t be blacked out on ESPN2.

by Vulcan on Nov 5, 2010 2:10 PM CDT reply actions  

Did the deal include a clause that assigns Pam Ward to call every game? She’s ballsy.

by Vasherized on Nov 5, 2010 2:10 PM CDT reply actions  

32 million vs. 18-20 million. Is that what the cut of this deal is? If so, the suits on the 40 did rather well…….Hope this isn’t like the initial reports on the Texas Rangers’ TV deal.

I read that Fox was offering 2 mill per and then ESPN rolled over and offered 6 time more? Can that be right? Que the Jones’ quote….

That like 25k per sideways pass call by Greg Davis……Nice.

by Patrick Bateman on Nov 5, 2010 2:12 PM CDT reply actions  

Can we now buy GD a $1 million retirement house in the location of his choosing? An expression of gratitude for all he’s down for the program (but only if he retires immediately.)

by Carpe Diem fishing on Nov 5, 2010 2:17 PM CDT reply actions  

What team sports will be covered by the Longhorn Network? Assuming football, then how many games?…given that other networks have contracts with Texas to broadcast football.

by utexex on Nov 5, 2010 2:18 PM CDT reply actions  

utexex:

It is assumed that at least one home game a year will be made available to the Longhorn Network (instead of pay-per-view). There will be several basketball games live on the network (those games are already covered by ESPN for regional distribution). And of course women’s basketball and baseball will have a lot of live coverage.

ESPN will offer a lot of expertise in the off-the-field inventory — such as classic games from the past or mini-documentaries that I assume can be produced right out of the UT facility in the north endzone.

by srr50 on Nov 5, 2010 2:22 PM CDT reply actions  

I’m still trying to wrap my brain around how Tuesday night women’s volleyball matches against Centenary are worth $12 MM a year. Football and Men’s Basketball won’t be on this network, will it? Since A&M women’s sports programs are superior to UT-Austin’s, we should get $14 MM from someone, right?

by Ag_in_TX on Nov 5, 2010 2:29 PM CDT reply actions  

You should concentrate on Equestrian.

by Sailor Ripley on Nov 5, 2010 2:32 PM CDT reply actions  

Ag_in_Texas, put me in charge of women’s volleyball presentation (uniforms, behind the scenes stories, etc.), and I will absolutely provide a product that TV will pay millions for.

by TaylorTRoom on Nov 5, 2010 2:32 PM CDT reply actions  

Your secondary teams may be better, but ours have uniforms that just say “Texas” on them with a Longhorn logo.

by Huckleberry on Nov 5, 2010 2:37 PM CDT reply actions  

The odds just shot up that we’ll soon get another savory ‘Bill Byrne responds to a fan email.’ That side has to be glow in the dark green with envy right now.

by DD's backside on Nov 5, 2010 2:41 PM CDT reply actions  

Ag, can you warp (sic) your brain around this?

\m/ \m/ \m/ \m/ \m/ \m/ \m/……

by TXStampede on Nov 5, 2010 2:49 PM CDT reply actions  

Holy. Fuck.

Ag – see Srr’s comment above yours. It seems like there should be quite a bit of Men’s basketball if you think about it. We are obviously a lock to be on ESPN when we play Kansas or some of our big name OOCs, but there are many times when we play decent in conference games that don’t make it to the main ESPN channel. Since we will be part of ESPN those games can get moved from ESPNU and ESPN3 and shown on BevoD. From last year, that would include games like: A&M, TTech, BU, and @ Mizzou.

by ut-06 on Nov 5, 2010 2:59 PM CDT reply actions  

TTR – so true, so true. You, sir, spent too many week nights at Gregory Gym.

by Ag_in_TX on Nov 5, 2010 3:00 PM CDT reply actions  

Does this mean the end of Lapham calling UT games? Or did he somehow work himself in as part of a package deal.

by Colby on Nov 5, 2010 3:00 PM CDT reply actions  

ut-06 – I doubt if your network will have broadcast rights to away games.

by Ag_in_TX on Nov 5, 2010 3:01 PM CDT reply actions  

Does this replace super-conferences as the new trend? I saw Bryan Fischer bemoaning USC for not jumping on the wagon during the last decade.

by villagehorn on Nov 5, 2010 3:04 PM CDT reply actions  

Good call on that. I just went through and quicly copied that short stretch of the schedule. Point stands though that we play quite a few games on ESPNU and ESPN3 that could get picked up.

by ut-06 on Nov 5, 2010 3:11 PM CDT reply actions  

Could the Burnt Orange Pravda article be a response to all the negative PR Texas has been getting lately? Walk of Legends…Frank The Tank claiming UT won’t be making the money they expect…UT basketball human seat warmers…overall poor performance of the football team…they’ve all put the UT prestige in a freefall. Nothing like an article claiming that UT will make 4X more than anyone anticipated.

Of course, Austin Chip also claimed Nebraska and Colorado would be forced to pay $40+ million to the B12 to get out which overshot the mark by $24+ million.

by seattlehusker on Nov 5, 2010 3:26 PM CDT reply actions  

seattlehusker – scoreboard.

by TXStampede on Nov 5, 2010 3:32 PM CDT reply actions  

1-9

by Bitter Corn on Nov 5, 2010 3:34 PM CDT reply actions  

I understand that UT fans want some good news right now… NEED some good news right now but I’m not sure Austin Chip is very credible. That’s all I’m saying.

by seattlehusker on Nov 5, 2010 3:39 PM CDT reply actions  

The Right Stuff references come to mind…

Sorry ags – No bucks, no buck rogers.

Light that freaking candle under GD’s ass and start building some quality viewing content.

F’n A bubba…

by GM Platter on Nov 5, 2010 3:41 PM CDT reply actions  

sh: UT’s prestige is in a freefall? Bitterness does not become you. But, for the heck of it… 20-13.

Frank the Tank doesn’t know anything more than the rest of us. He’s basing his opinion on the SBJ story.

by Bob in Houston on Nov 5, 2010 4:01 PM CDT reply actions  

Colby: Fox’s contract with the B12 is not affected by this deal, as best I can tell.

by Bob in Houston on Nov 5, 2010 4:03 PM CDT reply actions  

Bob in H: I’m not saying this is a longterm trend but you’d have to admit that UT has been taking quite a few punches recently. Look at any of the UT message boards for evidence. I highly suggest ShaggyBevo for comedy.

by seattlehusker on Nov 5, 2010 4:06 PM CDT reply actions  

Why would ESPN pay UT$12 million a year?

Because they can

by Srr50 on Nov 5, 2010 4:19 PM CDT reply actions  

Gotta say I am blown away by that number.

Helps you make sense of UTs slamming the brakes on re-alignment for now.

When does NDs contract come up? Anybody think Bill Powers already knows that off the top of his head?

by bullzak on Nov 5, 2010 4:26 PM CDT reply actions  

Need more sports for me to consider it. I am not plunking down $9.99 a month for women’s sports and baseball along with the men’s basketball opponents whose RPI ranges in the 300s.

Add men’s soccer and men’s lacrosse. Then, I will pay $9.99 for the package.

by texpat on Nov 5, 2010 4:43 PM CDT reply actions  

This seems like a huge first step towards independence.

by loopingstarship on Nov 5, 2010 4:44 PM CDT reply actions  

Now that the money angle is settled, can someone please settle the &%#@ FOOTBALL TEAM?

by LurkerintheDark on Nov 5, 2010 4:45 PM CDT reply actions  

I hope that the fact that it is with ESPN means I will be able to get the channel in Virginia.

by Texas Wahoo on Nov 5, 2010 4:50 PM CDT reply actions  

Shirley ESPN would have a provision in the contract that have to fire Greg Davis.

by Blueshorn on Nov 5, 2010 5:08 PM CDT reply actions  

I don’t think anyone should assume that means UT will net profits from the network anywhere close to 12mm a year. The production costs will be higher than they expect to produce a product folks will subscribe to.

by paleohorn on Nov 5, 2010 5:44 PM CDT reply actions  

BTW, srr50, appreciate you manning the teletypes on this issue. If not for you, this would be slipping through the slippery slope crack of information.

by TXStampede on Nov 5, 2010 5:59 PM CDT reply actions  

Is this enough money to hire Dave Lapham to cover ALL of our games??

by Canuck Horn on Nov 5, 2010 6:08 PM CDT reply actions  

Hahah, I’m not a huge fan of Dodds, but how many people are eating crow right now?

Dude just got FOX and ESPN into a bidding war and came out of this thing smelling like a rose.

by The Republic on Nov 5, 2010 7:28 PM CDT reply actions  

ND’s money advantage never translated to wins. I hope ours does.

by fear_the_cow on Nov 5, 2010 7:44 PM CDT reply actions  

Does that include Chris Berman’s thought provoking catch phrases being prodcasted on the Jumbotron at key moments of the game to liven the DKR game enviroment followed by the Taco Bell gong?

by Davey O'Brien on Nov 5, 2010 7:47 PM CDT reply actions  

I’m excited. This means that we can afford to give Greg Davis a big raise so he won’t leave to take that head coaching position at a big school that wants him….

by Longhorn in Canada on Nov 5, 2010 10:48 PM CDT reply actions  

Keep Greg happy offer the max so he has no other choice but return to Texas. Max out his contact! 5 years 10.5M should do I hear crocket has asked for his resume

by Mysterious Package on Nov 6, 2010 12:52 AM CDT reply actions  

ESPN now has a vested interest in the success of Texas sports. That’s never a bad thing.

by alma on Nov 6, 2010 8:02 AM CDT reply actions  

“Look at any of the UT message boards for evidence.”

What’s wrong with that premise?

by g'69 on Nov 6, 2010 1:33 PM CDT reply actions  

seattlehusker — Thanks!

It’s always great to be reminded that no matter how tough a year might feel, we are, after all is said and done, still TEXAS!!! So news like this is always a great thing, and certainly hard to improve upon, but I must admit that getting that sweet taste of envy and jealousy from wannabe rivals just makes it all the sweeter. Please come by and let us taste your tears more often. Even when we fail to thank you, we still enjoy it mightily.

by The Bobs on Nov 6, 2010 2:52 PM CDT reply actions  

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