Fansided

CFB Playoff’s poor ratings is costing ESPN a lot of money

By David Rouben

Nov 14, 2015; Waco, TX, USA; A general view of the College Football Playoff National Championship Trophy during the game between the Baylor Bears and the Oklahoma Sooners at McLane Stadium. Oklahoma won 44-34. Mandatory Credit: Joe Camporeale-USA TODAY Sports
Nov 14, 2015; Waco, TX, USA; A general view of the College Football Playoff National Championship Trophy during the game between the Baylor Bears and the Oklahoma Sooners at McLane Stadium. Oklahoma won 44-34. Mandatory Credit: Joe Camporeale-USA TODAY Sports /
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The decision to broadcast the College Football playoff on New Year’s Eve is costing ESPN a lot more than just ratings.

A recent report by Broadcasting & Cable (h/t College Spun) has highlighted the full extent of the ratings disaster that was the College Football Playoff. The semifinal games between Alabama and Michigan State and Clemson and Oklahoma experienced a significant drop-off (35%) in ratings compared to last year, and the CFP executive is in no rush to make any changes.

Because the ratings were much lower than estimated, ESPN owes advertisers roughly $20 million. The Broadcasting & Cable report details it as such:

"Despite the efforts of the College Football Playoff committee and some media outlets downplaying the financial hit ESPN took by being forced to televise the two national championship semi-final games on New Year’s Eve, media buyers say the network owes upwards of $20 million in ad makegoods for ratings shortfalls for the two games."

"ESPN may have gotten a bit greedy when setting its ratings estimates and offering higher guarantee levels to advertisers for the two games, knowing audiences might not flock to their TV sets, despite the optimism of the CFP committee. However, advertisers are concerned about next season’s potential audience levels for the games, which will also be televised on New Year’s Eve. Even if the ratings guarantees by ESPN are set lower, advertisers would prefer the games be moved to New Year’s Day or even on consecutive primetime nights, exclusive of New Year’s Eve, when more people would likely watch."

It’s a very peculiar situation and one that ESPN did not want to find themselves in. Of course, it didn’t help that the two games, as well as the rest of the New Year’s Six, were such massive blowouts. But in addition to the $20 million, ESPN should be paying back all of us who had to sit through this terrible ad.

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