ESPN’s $793 Million in Ad Sales on the Line With College Football
No company has more money tied into the fate of this upcoming
college football season than the
Walt Disney Co.
The dominant corporate force in college sports, Disney’s
ESPN co-owns two conference networks, has broadcast deals with nearly all of college football’s top division, and televises every major bowl. It also owns—literally—a large chunk of the smaller postseason games, and controls commercial rights like sponsorships and naming rights to the biggest.
Last year
ESPN’s family of networks televised 282 games and sold $792.5 million in ads, according to Standard
Media Index. To put that in perspective, ESPN’s NFL package only generated $314.8 million. Those numbers don’t include the college games televised by ESPN’s ACC Network and SEC Network, nor the plethora of other matchups streamed on ESPN+, its digital service, which costs $5 per month and is popular among football fans.
The sheer scale of the company’s college football business will create a lot of headaches, and lost revenue, if the season is further disrupted. The Big Ten and Pac-12 have already nixed early-season games and some smaller conferences, like the Ivy League (an ESPN+ partner), have cancelled fall sports altogether. The
NCAA’s board of governors meets Friday and
could vote to cancel all NCAA-sponsored fall sports.
Should college football’s doomsday scenario comes true, ESPN will have to negotiate make-goods for ad buyers, and sort hundreds of millions in rights payments it owes to schools, conference and bowl properties. Unwinding that billion-dollar web of payments will be a Herculean task.
ESPN’s $793 Million in Ad Sales on the Line With College Football