August 4, 2023
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You’re hopefully wrapping up work this summer Friday, and we’re bringing you the very latest on the conference realignment in college sports, a situation seemingly changing minute by minute.
Also, the Braves had their first earnings report since becoming their own publicly-traded company, and Warner Bros. Discovery wants you to stream live sports on Max in the near future.
— David Rumsey [[link removed]]
Pac-12’s Fate Uncertain As Oregon, Washington Plan Exits [[link removed]]
Troy Wayrynen-USA TODAY Sports
College sports’ conference realignment took another major turn on Friday.
Sources confirmed to Front Office Sports that Oregon and Washington are headed to the Big Ten. Meanwhile, Arizona appears to be moving to the Big 12, leaving the Pac-12 with just six schools — and possibly fewer.
Fox will be funding somewhere between $35 million to $40 million for each of the schools to join the Big Ten, sources told FOS, growing the conference to 18 teams. Arizona has reportedly [[link removed]] applied for Big 12 membership and could be accepted soon. The moves would take effect in 2024.
The Pac-12 schools in question were not happy with a proposed [[link removed]] media rights deal from Apple. Oregon and Washington aren’t even expected to receive a full share of the Big Ten’s media allotment, which could be $70 million per school according [[link removed]] to ESPN, but they clearly still see more dollar signs jumping ship than staying put.
Should Arizona join the Big 12, it would be hard to imagine that Arizona State and Utah wouldn’t follow, boosting that conference to 16 teams.
What’s Next For Pac-12 Leftovers?
Within days, there could be just four Pac-12 schools remaining: Stanford, California, Oregon State, and Washington State.
From there, a variety of scenarios could play out.
Those schools could stick together and try to rebuild the Pac-12 with schools from the Mountain West, although exit fees could make that difficult. Each school could also contact the Big Ten, Big 12, or even ACC, if those conferences are open to further expansion.
Additionally, the remaining schools could be forced to join a non-Power Five conference in 2024. Stanford could reportedly [[link removed]] explore becoming an independent school.
Braves’ Revenue Trending Up Amid Split From Liberty Media [[link removed]]
Dale Zanine-USA TODAY Sports
The MLB-leading Atlanta Braves are bringing in more revenue than last year, but profits are slightly declining this season, thanks in part to an increased payroll.
In the team’s first earnings report since being spun off [[link removed]] by parent organization Liberty Media into its own publicly traded company, the Braves said revenue grew to $270 million in the second quarter and to $301 million in the first half of 2023 — respective increases of 8% and 11% over last year.
According to Spotrac, the Braves’ active payroll [[link removed]] sits at $211 million, which would be $20 million more than their final 2022 payroll. In Q2, baseball operating costs are up 15% over last year to $195 million and up 19% to $232 million through the first six months of 2023.
The Braves’ broadcasting revenue was up 8% to $68 million in Q2, helping total baseball event revenue grow 12% to $162 million.
All told, the Braves reported an adjusted profit of $42 million in Q2, down 13% from 2022, and $11 million on the year, down 52% from last year.
Around The Grid
Liberty Media also reported Q2 earnings for Formula 1. Revenue was down just 3% to $724 million, and the racing series’ adjusted profit was relatively flat, increasing by 1% to $155 million.
F1 is expecting a financial windfall from the debut Las Vegas Grand Prix in November, having already spent [[link removed]] $500 million on infrastructure and charging millions [[link removed]] for some ticket packages.
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NBA Games Eyed for Max’s Potential Live Sports Tier [[link removed]]
Ron Chenoy-USA TODAY Sports
The idea of the Max streaming service (formerly HBO Max) as a regular destination for live sports has picked up steam.
On Thursday’s earnings call, Warner Bros. Discovery CEO David Zaslav announced [[link removed]] that the company has been considering a sports tier for the platform with a simple but surprising comment: “We own the digital rights to our sports.”
While it was known that some of WBD’s sports deals included streaming capabilities, the idea of NBA games being available to stream on Max is a novel one. The current NBA rights deal was signed in 2016 — four years before HBO Max launched — and also before Turner Sports parent Time Warner was acquired by AT&T and eventually spun off into Warner Bros. Discovery in 2022.
WBD confirmed to Front Office Sports that all of its sports contracts — NBA, MLB, NHL, the NCAA tournament, and U.S. soccer — do indeed include digital rights, but declined to comment further. A source told FOS that the NBA and WBD are in discussions regarding simulcasts on Max.
WBD’s current NBA contract runs through 2025 and the company is negotiating to extend its NBA deal amid several other suitors [[link removed]]. Meanwhile, ESPN confirmed to FOS it also has the rights to simulcast any game on any platform, including ESPN+.
While WBD could theoretically start simulcasting NBA, NHL, or MLB games on Max at any moment, there are plenty of complicating factors. WBD must manage relationships with its cable provider partners — who could be opposed to sports fans bypassing them to watch games.
So far, the only live sports Max has streamed have been U.S. soccer matches.
Conversation Starters Aaron Rodgers purchased a $9.5 million mansion [[link removed]] in Montclair, New Jersey — just 20 minutes from MetLife Stadium. The eight-bedroom property features a wine cellar, fitness room, and views of the New York City skyline. For the first time in Ford Field’s 21-year history, the Detroit Lions have sold out [[link removed]] season tickets. This week, Tom Brady auctioned [[link removed]] off a round of golf with Jim Harbaugh at Michael Jordan’s private golf course, Grove XXIII. Proceeds from the $155,000 winning bid are going toward Michigan athletes’ NIL.
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