Pac-12 Networks financials
- Thread starter dgibbons
- Start date
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This is the first financial information provided for the Pac-12 Networks other than one schedule in the federal tax returns. Distributions to the schools have never even hit the "low end" projections Scott provided. Projected distributions for 2019 are the same as for 2018. Revenue is down due to the U-Verse termination. The Pac-12 Networks will need to cut costs to hit (or exceed) the school distribution projections.
All in all, the networks were budgeted to generate $127.4 million in revenue against $92.5 million in total operating expenses in FY19.
“It’s in line with expectations, but given its current structure, it has to figure out a way to cut costs,” said one of three media industry experts asked by the Hotline to analyze the budget.
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Prior to launch, commissioner Larry Scott, who serves as executive chairman of the Pac-12’s media company — his compensation is based on those dual roles — provided the schools with three ranges for annual payments (as previously reported by the Hotline):
High end: $7 million-to-$10 million per school per year
Middle range: $5 million-to-$7 million per school per year
Low end: $3 million-to-$5 million per school per year.
Based on information previously collected by the Hotline from campus sources and the FY18/FY19 data in the budget projections, the approximate annual payments to the campuses are as follows:
2013: None
2014: $862,000 per school
2015: $1,677,500 per school
2016: $1,980,250 per school
2017: $2,596,750 per school
2018: $2,789,593 per school
2019: $2,789,593 per school
Scott needs to go.
“It’s in line with expectations, but given its current structure, it has to figure out a way to cut costs,” said one of three media industry experts asked by the Hotline to analyze the budget.
******
Prior to launch, commissioner Larry Scott, who serves as executive chairman of the Pac-12’s media company — his compensation is based on those dual roles — provided the schools with three ranges for annual payments (as previously reported by the Hotline):
High end: $7 million-to-$10 million per school per year
Middle range: $5 million-to-$7 million per school per year
Low end: $3 million-to-$5 million per school per year.
Based on information previously collected by the Hotline from campus sources and the FY18/FY19 data in the budget projections, the approximate annual payments to the campuses are as follows:
2013: None
2014: $862,000 per school
2015: $1,677,500 per school
2016: $1,980,250 per school
2017: $2,596,750 per school
2018: $2,789,593 per school
2019: $2,789,593 per school
Scott needs to go.
Well if the HQ was in a cheaper facility that'd be a start in the cost cutting. Let Scott take a haircut given the targets he's missed. Replace Dixon with someone cheaper and better. Line by line, there's ways to cut the overhead before you start chewing into production cuts. Also, given their obsession with rights, can't they just sell streaming access on their site? If you can't work with the distribution network that exists then find a way to go around it.
Their mid-range projections would put the annual profits at $75M. Right now they are at $35M. They are $30M off.
A wholesale change in strategy is needed. I highly doubt they are going to make that gap up by misc cost cutting.
My take:
Outsource the operations of the network.
Partner with a large network to get better distribution. I doesn't mean you have to give up your licensing.
A wholesale change in strategy is needed. I highly doubt they are going to make that gap up by misc cost cutting.
My take:
Outsource the operations of the network.
Partner with a large network to get better distribution. I doesn't mean you have to give up your licensing.
