College Football - Bowl Games

[jersey cubs fan]

If you're relying on profitability when creating a valuation, you're doing it wrong.

 

If Texas is explaining the value of 1% of the LHN to Saban based on current profits, they're doing it wrong.

 

Nobody was talking about 1% of the total valuation. The only thing mentioned was profits.

A lot of media outlets were saying "1% of the Longhorn Network". To me, that doesn't imply 1% of profits; it implies an equity stake.

 

The media in general, and the sports media in particular, is horrible when it comes to specific language related to business issues. I would have to imagine it would be a profit-sharing situation, as an actual equity stake in a television network is an entirely different beast.

[Ryne Ween]

These things, in general, are not a long term equity model. They are generally partnerships between the thing that provides the content (the school, team etc), the broadcaster, and the cable company. Pro teams or colleges need these things to cash flow immediately. Especially for a non-profit that doesn’t need to worry about the tax impact of taking a bunch of income. Also, the network has zero value when Texas pulls out or some ruling happens etc. So the cash is probably flushed every year.

 

If the long horn network expands its content, puts more games on, and grows its distribution the 1% could be very meaningful to a coach’s salary.

[ConstableRabbit]

If you're relying on profitability when creating a valuation, you're doing it wrong.

 

If Texas is explaining the value of 1% of the LHN to Saban based on current profits, they're doing it wrong.

 

Nobody was talking about 1% of the total valuation. The only thing mentioned was profits.

A lot of media outlets were saying "1% of the Longhorn Network". To me, that doesn't imply 1% of profits; it implies an equity stake.

 

The media in general, and the sports media in particular, is horrible when it comes to specific language related to business issues. I would have to imagine it would be a profit-sharing situation, as an actual equity stake in a television network is an entirely different beast.

Sure, but when we're talking about figures already as large as $100m, 1% of profits from LHN is more of a throw-in than a deciding factor. Seems silly to offer.

 

ETA: And by that I mean, I expected some sort of game-changing offer akin to what ther Angels tried to do with Pujols.

Edited December 11, 2013 by ConstableRabbit

[Ryne Ween]

If it was a meaningless throw in than why offer it? It has such potential for negative publicity, if it didnt matter why include it.

[ConstableRabbit]

If it was a meaningless throw in than why offer it? It has such potential for negative publicity, if it didnt matter why include it.

I didn't say it was meaningless -- I said it was a throw-in compared to the reports of $100m in guaranteed money that it came with. Alabama can throw money at Saban, too. An ownership stake in a network is something that would be truly game-changing and that no other team outside BYU could offer.

[Ryne Ween]

Im saying "1% of profits" is the same as "1% of the network". The network doesnt have hard assets, it has a contract to with Texas that grants them rights to certain content thus you cannot sell your stake in the longhorn network, and 1% equity would be completely illiquid.

 

The difference between profit sharing and ownershiop only matters when money stays in the business, and in this case it doesnt matter.

[shnsajax]

I don't doubt that Mack will be forced to "resign" and that Texas believes they are getting Saban (hence all the stories) but I just can't believe he would make that move at this point. And is 1% of the LHN actually worth anything? I saw a writer last night that estimated that value at $150K but he could have been joking.

 

He's 9 wins from most in Texas history, right? He ain't resigning.

 

Resigning = forced out here. Doesn't really matter, Joe Jamail is work in his exit payout as his contract doesn't pay the buyout if he resigns. I wish my job paid me to leave.

[Tracer Bullet]

I don't doubt that Mack will be forced to "resign" and that Texas believes they are getting Saban (hence all the stories) but I just can't believe he would make that move at this point. And is 1% of the LHN actually worth anything? I saw a writer last night that estimated that value at $150K but he could have been joking.

 

He's 9 wins from most in Texas history, right? He ain't resigning.

 

Resigning = forced out here. Doesn't really matter, Joe Jamail is work in his exit payout as his contract doesn't pay the buyout if he resigns. I wish my job paid me to leave.

 

Right, but what I'm saying is Mack is going to make Texas fire him. And he probably come right out afterwards and say he didn't resign, but was fired, and try to make UT look bad. Maybe that will actually upset some people but I doubt it.

 

If you're Texas, why would you do this unless you already had the next guy lined up? There's a lot of ways this can guy worse if Saban or Briles or whatever isn't already signed (and could go bad, even with one of them).

[shnsajax]

I don't see that really happening, even if it does the public support for Brown is so low and it really won't affect other potential hires especially with the amount some will get paid.

[Tracer Bullet]

I don't see that really happening, even if it does the public support for Brown is so low and it really won't affect other potential hires especially with the amount some will get paid.

 

You think he'll resign?

[NOLA]

OMC will probably laugh at this as much as I am, but there are rumors of Houston Nutt to the Arkansas State job. Dear God I despise that man.

[OleMissCub]

OMC will probably laugh at this as much as I am, but there are rumors of Houston Nutt to the Arkansas State job. Dear God I despise that man.

 

Wow. Hugh Freeze to Malzahn and then to Houston Nutt. Quite the downgrade for them.

[vance_the_cubs_fan]

vance - where are you seeing Saban to Texas is done?

 

Stephan Stevenson who is a reporter for the Fort Worth Star Telegram tweeted it. He's fairly reliable, and said his source is confident.

 

Later he tweeted if he had enough to write a story on it, he would, but that he trusts his source.

 

 

Stevenson says his source comes from the Texas regents.

 

Now, I'm not saying it will happen. First Mack has to leave and then I guess we will see. My guess is if it happens, it will happen soon so Saban can get some of his commits to flip to Texas.

[Guest]

This is semi-serious but take it with a grain, the wife has a student whose husband is a big muckity-muck in the Alabama air national guard. Every year he sends Sabin footballs to sign for guys who are retiring. Anyway, Saban's assistant told him this would be the last balls Sabin will be signing for Alabama.

[jersey cubs fan]

They probably won't miss knock off Sabin balls.

[Tracer Bullet]

They probably won't miss knock off Sabin balls.

lol

[Guest]

Tosh Luopi is recruiting players to USC while still being under contract with Washington.

 

http://oregon.247sports.com/Article/Tosh-Lupoi-continues-recruiting-Oregon-commit-Tui-Talia-165754

[Guest]

They probably won't miss knock off Sabin balls.

lol

spelling is not a strong suit, get over it.

[Tracer Bullet]

They probably won't miss knock off Sabin balls.

lol

spelling is not a strong suit, get over it.

 

Lighten up Francis

[Tracer Bullet]

Diaco gone too. Can 2013 ever end?

[jersey cubs fan]

They probably won't miss knock off Sabin balls.

lol

spelling is not a strong suit, get over it.

 

I assumed it was some sort of auto-correct situation, but also thought it was weird that you had two Sabins and one Saban in a three sentence post.

[Derwood]

What time is the kickoff for the

?

[Guest]

Derwood just discovered Key & Peele.

[KingCubsFan]

Diaco gone too. Can 2013 ever end?

The year will probably be capped by Jaylon Smith transferring and Tommy Rees being magically granted another year of eligibility just as Everett Golson is denied re-entry.

[Tracer Bullet]

Diaco gone too. Can 2013 ever end?

The year will probably be capped by Jaylon Smith transferring and Tommy Rees being magically granted another year of eligibility just as Everett Golson is denied re-entry.

 

I'm going to assume that half the team gets decapitated in Yankee Stadium as Brady Hoke, in shirtsleeves with no headset, stands looking on totally covered in blood, but nonetheless oblivious.