Big Ten Hockey Conference Pt II - The Exodus

[dxmnkd316]

Re: Big Ten Hockey Conference Pt II - The Exodus

The question asked I believe was how the BTHC adds revenue to the member schools. He explained it.

$2.6 million a year extra from the BTN?

[Almington]

Re: Big Ten Hockey Conference Pt II - The Exodus

You have to understand how the BTN makes its money. It's not about ratings. Instead, the lion's share of BTN revenue comes from subscriber fees. That is, a portion of every single cable bill of every single household that has the BTN goes to that channel, whether they watch it or not. That could range from $.10 per subscriber per month in non-Big Ten regions, and around $.70 - $.80 per subscriber per month in the Big Ten states. When you're talking about 50 million or more households paying that much per month (once again, regardless of whether those households actually watch the channel), you're looking over a couple of hundred million dollars per year of revenue for the Big Ten... and that's before the channel sells a SINGLE commercial. It's pretty easy to see why the BTN is so important to the Big Ten schools.

We all get that, how does forming a B10 hockey conference make more money for the B10? It isn't that they will be able to make huge money selling comercials because of the low rating that hockey will get nor will they be able to demand more per subscriber. Live broadcasts are not cheap to produce (it is the sat time that is expensive, not the other production costs).

I's not the BTN alone that has made huge money for the league, but also their FB and BB contracts with ABC/ESPN.

How UW hockey lost money last year, I do not know. Almost seems like some weird accounting issue.

[Almington]

Re: Big Ten Hockey Conference Pt II - The Exodus

The question asked I believe was how the BTHC adds revenue to the member schools. He explained it.

No he didn't. He explained how the BTN adds revenue to the schools, not how the BTHC is going to increase revenue.

[Frank the Tank]

Re: Big Ten Hockey Conference Pt II - The Exodus

Frank, that's great. Now explain how a sport that gets lower ratings than re-runs of old college football games somehow increases the amount the BTN can command? They can and will demand whatever they want, because of football, and college hockey will cause no change as to whether that ends up being agreeable to a cable network. None. Nada. Zip. Zilch. Again, the average ratings for last year's NCAA regionals were 55,000 households. Or about .05 of a Nielsen point. Dogs turn on television channels for higher ratings than that.

Then why do Fox Sports North and Fox Sports Detroit broadcast any games and actually pay schools like Minnesota and Michigan a material amount for them? There's local interest. That's really the entire value proposition of the BTN. Not that many people across the nation really care about, say, an Indiana vs. IUPUI basketball game in November, but the ones that do care happen to care about it a lot (to the point where they'd switch cable providers if they didn't carry the BTN) and are highly concentrated in a particular market (Indianapolis and the rest of the Indiana). Add up a whole bunch of various events within the Big Ten region like that (including hockey) and this is how the BTN makes its money. Hockey *by itself* isn't necessarily a financial driving force, but that sport combined with football, basketball and other events is what sells the channel. You have to look at the offerings of the network as a whole (and this is the case with any cable network).

[dggoddard]

Re: Big Ten Hockey Conference Pt II - The Exodus

A further point as to why Illinois and Indiana are always talked about as possible future hockey schools: they're looking to either massively renovate current or build brand new basketball arenas, and they'd be looking to make them multipurpose facilities with icemaking capabilities.

Two problems with multipurpose arenas. It usually costs $5,000 to $10,000 each time you convert them and you can't play or practice if its set in the other format.

[SOTA]

Re: Big Ten Hockey Conference Pt II - The Exodus

Frank The Tank:

I think you make some very good points. I do think you're undervaluing Minnesota from a Big Ten Network perspective a bit by just looking at the success of the football & basketball programs on a national level rather than the market it delivers with the subscribers in the Minneapolis/St. Paul & suburban market. Just my thought, though.

I do question one thing: do you think the BTN will realistically be able to add to subscriber fees simply because of hockey? In economic times like this, I could see people scraping it because of increased fees. Even though .10 is really nothing in the big scheme of things, it's more the principal and the collective attitude of "higher rates? Screw cable/satellite." I don't see hockey bringing in as many new subscribers as the BTN does.....but then again, they know a lot more regarding what they're talking about considering the success that they've had.

[dxmnkd316]

Re: Big Ten Hockey Conference Pt II - The Exodus

Just a point that should illustrate this whole debacle for everyone:

One, JUST ONE, Big Ten school made a profit on hockey last year. ONE! That was Minnesota.

The average operating expenses of a Big Ten member that had a men's hockey team was $2.7 million (the previous $1.6 million came from ALL teams in NCAA who have a D1/D2 football team). Big Ten teams made a total of -$488,774 last year. Take away Minnesota's $3.5 million surplus and you have a net of nearly -$4 million.

[Almington]

Re: Big Ten Hockey Conference Pt II - The Exodus

You don't have to stop going to the F5

I may keep going.

I may also start writing random $2000 checks to schools that are not located in Madison or Minneapolis.

[BlueDevilRadio]

Re: Big Ten Hockey Conference Pt II - The Exodus

As a Wisconsin fan, this whole Big Ten Conference deal sucks. That's all that needs to be said...

[Shirtless Guy]

Re: Big Ten Hockey Conference Pt II - The Exodus

I may keep going.

I may also start writing random $2000 checks to schools that are not located in Madison or Minneapolis.

I know one in Houghton that's going to need help financially to be able to afford Cary Eades, I can send you the mailing address

[dxmnkd316]

Re: Big Ten Hockey Conference Pt II - The Exodus

You know what's more profitable than hockey? Literally building an incinerator and dumping bags of money in it.

[Almington]

Re: Big Ten Hockey Conference Pt II - The Exodus

I know one in Houghton that's going to need help financially to be able to afford Cary Eades, I can send you the mailing address

Sure, why not start at the bottom and work my way up.

[goldy_331]

Re: Big Ten Hockey Conference Pt II - The Exodus

How UW hockey lost money last year, I do not know. Almost seems like some weird accounting issue.

Blame Alverez, we always do.

[Shirtless Guy]

Re: Big Ten Hockey Conference Pt II - The Exodus

Frank The Tank:

I think you make some very good points. I do think you're undervaluing Minnesota from a Big Ten Network perspective a bit by just looking at the success of the football & basketball programs on a national level rather than the market it delivers with the subscribers in the Minneapolis/St. Paul & suburban market. Just my thought, though.

I do question one thing: do you think the BTN will realistically be able to add to subscriber fees simply because of hockey? In economic times like this, I could see people scraping it because of increased fees. Even though .10 is really nothing in the big scheme of things, it's more the principal and the collective attitude of "higher rates? Screw cable/satellite." I don't see hockey bringing in as many new subscribers as the BTN does.....but then again, they know a lot more regarding what they're talking about considering the success that they've had.

Do you really think Comcast in Minnesota would not lose a ton of subscribers if they only way they could watch gopher hockey was BTN and Comcast decided not to carry it? How many subscribers did DishNetwork lose this fall over FSN North?

[Almington]

Re: Big Ten Hockey Conference Pt II - The Exodus

You know what's more profitable than hockey? Literally building an incinerator and dumping bags of money in it.

That sounds kinda fun, where do I sign up?