Virginia Tech's Babcock talks ACC channel, fan experience, football ticket sales

[jostar1]

More big picture, I asked Babcock about expenses Tech and other major conference schools will incur as the NCAA approves enhanced, cost-of-attendance scholarships and reacts to the recent O’Bannon legal decision that allows athletic departments to reward football and men’s basketball players up to $5,000 per year for their names, images and likenesses (NILs).

Babcock estimated annual outlays of $1.5 million to $3 million to finance NILs, increased scholarship costs, improved food and greater insurance/medical coverage. He noted Maryland’s announcement this week of “scholarships for life” for athletes and Indiana’s recent student-athlete bill of rights.

“We’ve created a draft of something we feel is uniquely Virginia Tech,” Babcock said, describing a pledge Hokies coaches can use in recruiting, “but rather than release it (now), I want to see the breadth of all (the NCAA legislation). … We stay on top of it, but I’m just waiting for someone to tell me (after January’s NCAA convention) how the new game is supposed to be played and what the rules are.”

With the increased financial obligations, Babcock acknowledged the importance of the ACC following the Big Ten, Pacific 12 and, most recently, the Southeastern Conference, in creating a cable channel. Like the SEC’s, the ACC’s would be in concert with ESPN.

Fans often ask me when they can expect the ACC to launch such a project, and Babcock said he expects a yes-or-no decision within 18 months.

“That SEC Network is really impressive,” he said. “I believe even before they launched they had more households than ESPNU. … I think in some respects we need to root for the SEC Network to do well because ESPN will have the template and we can follow it in 2016. If the SEC Network did flop for some reason, I don’t know that ESPN would jump in and try (again).”

Babcock is right. After reaching a distribution agreement with DirecTV, the SEC Network is available in 87 million homes, 12 million more than ESPNU. Moreover, posting on Nasdaq.com, the Motley Fool theorizes that the SEC Network could net $400 million annually, about $28 million for each of the league’s 14 schools.

Virginia Tech’s share of ACC revenue in 2012-13 was $18.3 million.

“I’m envious of the SEC Network,” Babcock said, “but in some ways, maybe it’s a silver lining for the ACC moving forward.”

http://www.dailypress.com/sports/teel-blog/dp-teel-time-babcock-acc-channel,0,3594606,full.post

 

[dayooper]

Again, it's not just what an ACCN could bring ESPN, but what ESPN would give The ACC. A network would be great, but you have already sold all of your assests, how much will you get in return. Part of the deal that ESPN struck with The SEC was how much they were giving for the majority of their rights. The ACC doesn't have that leverage. They can't go to Fox, NBC, or any other media group.

Would they get something? Absolutely. How much that will be is in question. $28 million is laughable.

 

[Pudge]

I think you missed the punchline/main point:

Indeed, the overarching theme of Babcock’s seven months as the Hokies’ athletic director has been enhancing fan experience, and during a wide-ranging interview Thursday he detailed many of those efforts, while also discussing the costs of impending NCAA legislation and the benefits of a network dedicated to ACC programming.
Just this week Tech announced the hiring of Carly Northup as an assistant athletic director for external engagement. A Northern Virginia native and Liberty University graduate, Northup worked with Babcock at West Virginia and Missouri, the latter a pioneer in catering to fans in an era when more and more are electing to stay at home.
“The fact that she had done it, worked at a school that had been progressive on that front and is a Virginia native,” Babcock said of his rationale in hiring Northup. “If you do enough little things (for fans), I think over time it adds up. Our entire staff will be dedicated to that, but Carly will have the specific focus.”

This is something that Warde Manual and everyone in UConn needs to focus on: FAN EXPERIENCE.

Losing fan base; not drawing like we did 15 years ago ... for what are now LEGACY programs has got to be a key priority going forward. This guy Babcock wants to get there.

 

[bobbyinaz]

Again, it's not just what an ACCN could bring ESPN, but what ESPN would give The ACC. A network would be great, but you have already sold all of your assests, how much will you get in return. Part of the deal that ESPN struck with The SEC was how much they were giving for the majority of their rights. The ACC doesn't have that leverage. They can't go to Fox, NBC, or any other media group.

Would they get something? Absolutely. How much that will be is in question. $28 million is laughable.

$28MM per school is not a real number for the SEC Network either. ESPN will keep at least 50% of the net revenues (I'm sure there will be some creative accounting on their part to keep every dime they can) so the actual number for the SEC Network is closer to $14MM per school

 

[dayooper]

$28MM per school is not a real number for the SEC Network either. ESPN will keep at least 50% of the net revenues (I'm sure there will be some creative accounting on their part to keep every dime they can) so the actual number for the SEC Network is closer to $14MM per school

$14 million is way out of the reach of a potential ACCN. They will take whatever ESPN gives them. What that will be, I have no clue.

 

[pj]

The question is whether they will take less money if it does poorly, more if it does well, by assuming some of the risk if ESPN transfers their content to an ACC network. ESPN would probably welcome such a deal. How the network does would be a good test of the power of the ACC brand.

Alternatively, they could wait for the expiration of the current contract.

 

[Stinger92860]

How could this help or hurt us?

 

[ArizonaKnight]

How could this help or hurt us?

If the ACC doesn't get a Network that pays enough to stay in the same ballpark as the B1G/SEC, they may begin to look into their options, and costs associated with moving. If the reward outweighs the risk, Tech goes for their best offer (assuming there is one). In that instance, I have to imagine that UCONN backfills.

 

[CL82]

Blah, blah blah. Blah, blah blah. Blah, blah. Blah, blah blah.
“I’m envious of the SEC Network,” Babcock said, “ Blah, blah. Blah, blah, blah.

http://www.dailypress.com/sports/teel-blog/dp-teel-time-babcock-acc-channel,0,3594606,full.post

How I read that quote.

 

[pj]

How could this help or hurt us?

If they get a network, they will add us, because we would bring $30-40 million per year to a network. If they don't get a network, they have no incentive to add us, since they rely on national game audiences and our following is local, not national.

But I wonder if the SEC might think about adding us. It seems crazy, but it would bring them into huge markets and might significantly increase per-school revenue. It would also add basketball for year-round presence.

 

[WestCoastHusky]

The way I read it from Tech is "Hey SEC, we are available and willing to talk if there is a way for us to join the SEC. Rather than waiting for the ACC to get something, SEC network looks pretty good".

 

[zls44]

There is absolutely no incentive right now for ESPN to start an ACC Network. Nada. Zilch. Zero.

 

[billybud]

OK...thanks for that.

 

[Fishy]

There is absolutely no incentive right now for ESPN to start an ACC Network. Nada. Zilch. Zero.

None - it's not a small undertaking and they'd be peeing into SEC/Big Ten headwinds.

It'll always be 18 months away to save face.

 

[Dooley]

If they get a network, they will add us, because we would bring $30-40 million per year to a network. If they don't get a network, they have no incentive to add us, since they rely on national game audiences and our following is local, not national.

But I wonder if the SEC might think about adding us. It seems crazy, but it would bring them into huge markets and might significantly increase per-school revenue. It would also add basketball for year-round presence.

I completely agree with all of this. ACC schools will soon realize, if they haven't already, that they need an ACCN to compete against the B1G and SEC schools in recruiting. To get an ACCN, the ACC will have to look to more exposure in big markets. At that point, I wonder if our friends in upstate NY and Chestnut Hill will back down in their relentless pursuit for northeast turf. Would a large ACCN payday be enough to persuade ND to joining full time if they had BC, UCONN and the Fruit to play games in the northeast on a yearly basis?

About the SEC: I don't see it happening because ultimately, the SEC cares deeply about southern culture. But we're in a whole new world of college athletics where money trumps all else. We all know that the SECN will be the #1 conference channel in the fall. But their ratings will suffer a HUGE drop (I am guessing) in the winter. Adding an elite hoops program like UCONN (and its markets) wouldn't be the worst idea in the world. Sure, we'd be on the island and have NOTHING in common with anyone in the entire conference. But we would bring instant winter ratings and heated rivals for Kentucky men and Tennessee women.

 

[BoatShow]

I completely agree with all of this. ACC schools will soon realize, if they haven't already, that they need an ACCN to compete against the B1G and SEC schools in recruiting. To get an ACCN, the ACC will have to look to more exposure in big markets. At that point, I wonder if our friends in upstate NY and Chestnut Hill will back down in their relentless pursuit for northeast turf. Would a large ACCN payday be enough to persuade ND to joining full time if they had BC, UCONN and the Fruit to play games in the northeast on a yearly basis?

About the SEC: I don't see it happening because ultimately, the SEC cares deeply about southern culture. But we're in a whole new world of college athletics where money trumps all else. We all know that the SECN will be the #1 conference channel in the fall. But their ratings will suffer a HUGE drop (I am guessing) in the winter. Adding an elite hoops program like UCONN (and its markets) wouldn't be the worst idea in the world. Sure, we'd be on the island and have NOTHING in common with anyone in the entire conference. But we would bring instant winter ratings and heated rivals for Kentucky men and Tennessee women.

Southern New England is South right?? Let's get it done!

 

[Dooley]

Southern New England is South right?? Let's get it done!

Ha! That's one way to spin it, I suppose. Or, we could propose the following conference naming change:

SouthEASTERNConference

 

[BoatShow]

Not thaaaat different. If VPI is added too it looks even less weird!!

 

[pj]

Great. Move Missouri to the West, add VPI and UConn to the East, change the conference name to the South and Eastern Conference, and you're done.

Oh - and the AAC would be much better as an 8-team conference. Chuck Tulsa, Tulane, ECU (sorry guys), and one of Navy or Temple. Then we have 8 teams of reasonable quality all located in major markets. There is room to grow west with BYU, Boise, San Diego St, etc.

 

[Fishy]

You three should never interact - individually, you have bad ideas, but when you collaborate, you hit levels that most people would require hallucinogens to achieve.

 

[dayooper]

You three should never interact - individually, you have bad ideas, but when you collaborate, you hit levels that most people would require hallucinogens to achieve.

Makes sense. I thought I had some bad mushrooms in my spaghetti.

 

[Fishy]

Once we start talking about UConn and the SEC and eight-team conferences, I start thinking of adding drug testing to the terms of service.

 

[Marty Jackson]

There is absolutely no incentive right now for ESPN to start an ACC Network. Nada. Zilch. Zero.

I disagree. If the acc schools are at a disadvantage, they leave. Sure there is a legal battle but in the long run if a school wants to leave they leave.
That leaves espn with a big contract to an altered acc.
Espn has the leverage but it's not as one sided as you think.

 

[UConn990411]

Yes it is.

 

[CL82]

Once we start talking about UConn and the SEC and eight-team conferences, I start thinking of adding drug testing to the terms of service.

or depression counseling.

"Everything will be alright as soon as the SEC takes us."