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Big 10 revenue exceeds expectations. $54 million per team
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Hokie Mark Offline
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Post: #10
RE: Big 10 revenue exceeds expectations. $54 million per team
(05-18-2019 12:17 AM)Statefan Wrote:  
(05-17-2019 10:54 PM)HtownOrange Wrote:  A few key points to remember before everyone delves into the "woe is my team, we don't make enough money" mode.

1) The B1G is already getting paid for hoops. The nonsense that football drives the bus and hoops means nothing is just that, nonsense. The big boost in the B1G's contract is due to hoops earning a larger share. The moral of the story is that the P5 conferences will be getting paid much more.

2) The B1G shares gate revenue. When one considers the giant stadiums most B1G teams have, that is a nice chunk of money. The Gate revenues (which other conferences keep for the home team) are added into this pool. This inflates the overall payout at the expense of revenue for the home team. Basically, just padding the stats for the B1G payout and making Rutgers have less of a deficit.

3) The ACC will soon see increases based on the ACCN.

4) Credit the BTN for actually being foresighted enough to own and maintain their own network. NOTE: The Big East once had their own network of sorts, te first by a college conference, until a small cable channel in Connecticut bought it.

5) Most importantly: Even though $54MM sounds big, most P5 universities are billion $$ to multi billion $$ enterprises. This explains why so many schools can run in the red in the AD and not really worry too much about the balance sheets.



From the above cited article:

"Big Ten teams share 35 percent of the net gate receipts, after sales tax, from conference home games, up to $1 million per game and at minimum $300,000 per game.
Each school has four conference home games per season, meaning the most any would pay in is $4 million. Five schools reached that level in 2012: Iowa, Michigan, Nebraska, Ohio State and Penn State.
The money from that pool gets split 12 ways and returned evenly to the schools.
In 2012, the total of gate receipts for the league's 48 games was $36,458,053.71, or $3,038,171.14 per school.
Those five schools that paid in $4 million each ended up with a net loss of $961,828.86. Wisconsin paid in a little less - three of its four home games reached the $1 million cap but the home game against Illinois did not - so its loss was a little less as well.
It ended up being $957,854.22 out of the Badgers' budget. Randy Marnocha, the UW associate athletic director for business operations, told a meeting of the UW Athletic Board's finance, facilities and operations committee earlier this month that the department had budgeted to lose $800,000 last year in that revenue sharing agreement.
Michigan State also had a net loss ($862,933.66), while five schools had a revenue gain from the program:
* Indiana, $1,722,143.29
* Illinois, $1,312,175.70
* Northwestern, $1,271,654.13
* Minnesota, $1,266,143.74
* Purdue, $1,057,815.29"

The B10 now has 4.5 home games per school per year. I'm sure since 2012 the net gate is up at least 30%. Essentially splitting around 52-55 million or about 4.5 million per school. The bottom five would be getting about a half a million more than in 2012 or there abouts.

Splitting the "gate" doesn't include anything other than the face price of the ticket. The "gate" at a Duke basketball game for example will not include the 8K a year needed to have the privilege to buy the tickets in the first place.

If you are taking in a hundred million less than Ohio State, how much does an extra $2 million actually help? It just goes to show how stupid the MD administration really is and has been these last 25 to 30 years.

2 comments:
1. To your point that this doesn't help the schools much - AGREED.
2. To the previous comment that this inflates Big Ten conference revenue in a misleading way - Also Agreed. $0.3M to $1M/game X 63 total conf. games = $19M to $63M in conference "revenue" which then gets "paid out" is very misleading.

That said, the B1G is definitely way out in front of the ACC in terms of TV money.
05-18-2019 06:24 AM
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RE: Big 10 revenue exceeds expectations. $54 million per team - Hokie Mark - 05-18-2019 06:24 AM



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