As the College Football Championship game proved, ESPN paid a fair price to host the playoffs. Even though Ohio State wasn't favored in any of its playoff games, fans enjoy the intregue of anything happening. That will keep viewers coming, ratings high and advertising profits that will make this a good deal for ESPN.
I believe that ESPN will profit from the $7.3 billion deal to air the college playoffs. More and more people are watching college playoffs and lets not forget how much money commercials are bringing. I am sure that ESPN will be able to cover the expenses and profit on commercial breaks.
There is no question that ESPN's agreement to air the NCAA football playoffs will be profitable for the network. The National Championship Game and the two playoff games already rank in the top 20 viewed TV events in the past 12 months. ESPN will net more than $150 million profit just on this years three games.
Being greedy does not pay off; it rings true time after time. ESPN's $7.3 billion deal clearly testifies to that very fact. The obscene amount of money ESPN has invested to air the college playoffs will not pay off in the end. Too much money has been allotted to one venture. Putting all your eggs in one basket is not the safe avenue in the business world.