SIAP Dean Blevin's tweet

[HookemDTX]

Texas source tells me: "Saban sitting on 10-yr deal worth $100M & 1% of <s>#</s>LonghornNetwork." Smart way 2 get cooperation w non-stop TV cams

 

[CallawayItIs]

Not sure if serious?

 

[bigbird]

that's a lot of money

 

[Mr. Cosell]

I assume 1% of LHN so long as he is the coach? Surely not 1% ownership.

 

[CallawayItIs]

I'm all in if Uncle Nick is.

 

[Hookem14]

I thought UT got a fixed 300 million over 20 years? One percent of 15mil would be 150,000 per year which isn't significant. Is there something else in the deal which I'm not aware of?

 

[PDX Horn]

UT doesn't own the LHN, ESPN does.

What would be the 1%?

 

[bigbird]

I thought UT got a fixed 300 million over 20 years? One percent of 15mil would be 150,000 per year which isn't significant. Is there something else in the deal which I'm not aware of?

wouldn't the revenue/value of LHN increase in the event that it gets picked up by carriers (which would likely happen in the event of saban)...? it has the potential to be a very powerful and valuable thing

 

[HookemDTX]

Bierce is one of the 247 experts on these areas. Here's his post.

The University does not own a % of the Longhorn Network. It only receives royalties for the use of the University name, logo, and the rights to broadcast products to which the University owns rights. However, the royalties can increase in the event the network makes over a certain amount of money. At least, that is what I think I remember was in the licensing agreement. I don't see the problem with the University agreeing to paying a % of the royalty fee.

Whether there is a problem with the NCAA with a network directly paying a coach's salary in whole or in part, I have no idea; however, I can't imagine that a network would do such a thing, since it would raise serious questions about conflicts of interest in reporting. ESPN couldn't possibly want to be worried about being accused of not being fair in its treatment of certain schools and their coaches.

OK, you can stop laughing now, all of you.

 

[LongviewLobo01]

Pretty sure it was discussed when the deal was signed that there was a very good chance at the end of the deal that Texas stood to make much, much more than the $15 million a year that was guaranteed if it were picked up and successful. Of course the fact that everything has pretty much gone to hell in a handbasket since makes it seem impossible, but Saban could make a lot of money if he turns this thing around like he should.

 

[gecko]

If Nick is signed up the LHN will coming to a cable provider near all of us real soon. That 1% will be worth a lot more in the coming years.

 

[Jettexas]

Texas can share their own profits with Saban. It's called profit sharing.

 

[PDX Horn]

Bierce is one of the 247 experts on these areas. Here's his post.
The University does not own a % of the Longhorn Network. It only receives royalties for the use of the University name, logo, and the rights to broadcast products to which the University owns rights. However, the royalties can increase in the event the network makes over a certain amount of money. At least, that is what I think I remember was in the licensing agreement. I don't see the problem with the University agreeing to paying a % of the royalty fee.

Whether there is a problem with the NCAA with a network directly paying a coach's salary in whole or in part, I have no idea; however, I can't imagine that a network would do such a thing, since it would raise serious questions about conflicts of interest in reporting. ESPN couldn't possibly want to be worried about being accused of not being fair in its treatment of certain schools and their coaches.

OK, you can stop laughing now, all of you.

Here are the exact details of the contract. Texas receives $11,000,000 per year from the contract with 3% raises each year.

ESPN invested $295 million in launching the LHN. Once the $295 million is recouped then UT stands to receive 70% of all profits from LHN in addition to the yearly payout. This is where the potential for huge money is to be made.

Here is the link:

Longhorn Network Contract Between Texas and ESPN Revealed, Big 12 Future Not Bright | The Big Lead

 

[LongviewLobo01]

That's what I was thinking of PDX. Thanks.

 

[Thiggystyle]

Well, we all knew the Saban's were 1%ers now it's contractual.