In Context: The big business of high school sports

Marketplace:

Illinois based-Paragon Marketing Group is working on a deal to bring high school football to a national audience. The group – which brought LeBron James’s high school basketball games to TV – is currently in negotiations with several states and ESPN to bring some type of high school football playoff to television. ESPN wouldn’t comment on the negotiations, with Paragon saying the talks are ongoing and private.

Yet, at least one contract between Paragon and one of the states it’s working with has been made public: Florida officials have agreed to let two state high schools participate in such a playoff each year.

Paragon Marketing Group will pay the Florida High School Athletic Association $10,000 each year for allowing the state’s schools to participate in a national playoff or bowl series. If two or more teams from Florida are picked to participate by Paragon, the Florida High School Athletic Association would receive $40,000.

Meanwhile, Florida high schools participating in a playoff will receive $12,500 for appearing in the game, and another $25,000 in merchandising fees. Paragon Marketing, the group organizing the event has until October 31st to cancel a playoff or high school bowl series this year, according to the contract the team signed with Florida.