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NCAA May Opt Out Of CBS Contract

Sports Business Journal, Tuesday, April 13, 2010 11:34 PM

Interim NCAA President Jim Isch is expected to reveal his decisions on whether the NCAA should opt out of the last three years of its 11-year, $6 billion media contract with CBS on April 29. Several NCAA and media executives expect Isch to recommend opting out and expand the tournament from 65 to 96 teams. That would likely mean that either CBS will partner with Turner Sports to carry the games, or ESPN would pick up the tournament on its own.

Because of the heavy escalators in the contract, the deal's final three years are worth $2.13 billion, which is more than a third of the total value of the deal. Industry sources say that CBS wants relief from a $710 million average rights fee over the next three years. Teaming with Turner means help with rights fees. The tournament is critically important to the NCAA, which derives 98% of all revenue from March Madness.

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basketball, television

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