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Big 10 revenue exceeds expectations. $54 million per team
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nole Offline
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Big 10 revenue exceeds expectations. $54 million per team
Unbelievable revenue being brought in. 54 mill per school now.
https://www.usatoday.com/story/spor...it...686089002/
05-16-2019 08:26 AM
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Hokie Mark Online
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Exclamation RE: Big 10 revenue exceeds expectations. $54 million per team
(05-16-2019 08:26 AM)nole Wrote:  Unbelievable revenue being brought in. 54 mill per school now.
https://www.usatoday.com/story/spor...it...686089002/

That link didn't work for me, so here's a good link:

https://www.usatoday.com/story/sports/20...686089002/

$54M per school appears to be legit and is over $10M per school more than 2nd place SEC (at least until the SEC signs a new Tier 1 TV contract). Of course, it's about double what the ACC is paying out. CRAZY numbers!

So far the ACC is able to compete (obviously, as shown by all of the national championships), and ACCN revenue can only help... but that is a huge financial advantage on top of the ticket sales and donor advantages Big Ten schools already enjoyed.

CORRECTION: This is NOT media rights fees only, it's TOTAL conference revenue, which includes the Big Ten's crazy ticket-revenue-sharing scheme where they tax every school on their ticket sales, then redistribute it back and count that as revenue (no other conference does that). Nonetheless, they ARE making more money that the ACC for sure.
(This post was last modified: 05-16-2019 08:52 AM by Hokie Mark.)
05-16-2019 08:37 AM
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bluesox Offline
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RE: Big 10 revenue exceeds expectations. $54 million per team
I think you got to look at it as an apple to apples that would be what would each league get if their contract was started today. The other issue is if the big 10 can expand without losing money
05-16-2019 10:20 AM
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HRFlossY Offline
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RE: Big 10 revenue exceeds expectations. $54 million per team
There has to be a ceiling........eventually.........right??!?03-drunk
05-16-2019 11:41 AM
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Statefan Offline
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RE: Big 10 revenue exceeds expectations. $54 million per team
(05-16-2019 08:37 AM)Hokie Mark Wrote:  
(05-16-2019 08:26 AM)nole Wrote:  Unbelievable revenue being brought in. 54 mill per school now.
https://www.usatoday.com/story/spor...it...686089002/

That link didn't work for me, so here's a good link:

https://www.usatoday.com/story/sports/20...686089002/

$54M per school appears to be legit and is over $10M per school more than 2nd place SEC (at least until the SEC signs a new Tier 1 TV contract). Of course, it's about double what the ACC is paying out. CRAZY numbers!

So far the ACC is able to compete (obviously, as shown by all of the national championships), and ACCN revenue can only help... but that is a huge financial advantage on top of the ticket sales and donor advantages Big Ten schools already enjoyed.

CORRECTION: This is NOT media rights fees only, it's TOTAL conference revenue, which includes the Big Ten's crazy ticket-revenue-sharing scheme where they tax every school on their ticket sales, then redistribute it back and count that as revenue (no other conference does that). Nonetheless, they ARE making more money that the ACC for sure.

B10 gate sharing is meager and most people do not understand that it's window dressing.

https://www.athleticbusiness.com/more-ne...works.html
(This post was last modified: 05-16-2019 03:56 PM by Statefan.)
05-16-2019 03:54 PM
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Hallcity Offline
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RE: Big 10 revenue exceeds expectations. $54 million per team
(05-16-2019 11:41 AM)HRFlossY Wrote:  There has to be a ceiling........eventually.........right??!?03-drunk

The ceiling is the roof.
05-16-2019 04:00 PM
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RE: Big 10 revenue exceeds expectations. $54 million per team
(05-16-2019 04:00 PM)Hallcity Wrote:  
(05-16-2019 11:41 AM)HRFlossY Wrote:  There has to be a ceiling........eventually.........right??!?03-drunk

The ceiling is the roof.

We don't need no water....
05-16-2019 10:24 PM
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RE: Big 10 revenue exceeds expectations. $54 million per team
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.
05-17-2019 10:54 PM
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Statefan Offline
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RE: Big 10 revenue exceeds expectations. $54 million per team
(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.
(This post was last modified: 05-18-2019 12:30 AM by Statefan.)
05-18-2019 12:17 AM
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Hokie Mark Online
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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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CardinalJim Offline
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RE: Big 10 revenue exceeds expectations. $54 million per team
They are going to need it to pay the civil suits resulting from the sexual abuse incidents at many of their member universities. What is going on in The Big Ten?
05-18-2019 01:01 PM
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OrangeDude Offline
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RE: Big 10 revenue exceeds expectations. $54 million per team
In terms of the national TV $$$ portion of the payout, one only has to look at their TV ratings for both revenue sports. They are close seconds in both sports. Also please note their recent history in negotiations - no long term contracts. Biggest mistake the ACC made (and the SEC to a lesser extent) is accepting longer term contracts for stability.

But it is what it is.

Cheers,
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05-19-2019 07:07 PM
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zoocrew Offline
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RE: Big 10 revenue exceeds expectations. $54 million per team
How rock solid is this GOR? Asking for a friend. lol jk
05-22-2019 12:08 PM
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RE: Big 10 revenue exceeds expectations. $54 million per team
$54M is a tad misleading as Ruttie and Maryland are paid peanuts right now.
05-22-2019 03:32 PM
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Hokie Mark Online
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RE: Big 10 revenue exceeds expectations. $54 million per team
(05-22-2019 03:32 PM)TexanMark Wrote:  $54M is a tad misleading as Ruttie and Maryland are paid peanuts right now.

It looks legit this time - the $54 is the AVERAGE of all 14 teams.
05-22-2019 05:49 PM
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nole Offline
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RE: Big 10 revenue exceeds expectations. $54 million per team
Yikes


All Power 5's have now released FY 18 tax returns.
Per-school distributions for the year, according to the docs:
-Big Ten: $54M to 12 longest-standing schools
-SEC: $43.7M to all except Mississippi (postseason ban)
-Big 12: $34.7M
-Pac-12 and ACC: $29.5M each



ACC commissioner John Swofford credited with a little more than $3.5 million in total compensation for 2017 calendar year, new conference tax doc shows. That's up from $3.3 million in 2016.
05-24-2019 02:05 PM
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RE: Big 10 revenue exceeds expectations. $54 million per team
Steve Berkowitz

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All Power 5's have now released FY 18 tax returns.
Per-school distributions for the year, according to the docs:
-Big Ten: $54M to 12 longest-standing schools
-SEC: $43.7M to all except Mississippi (postseason ban)
-Big 12: $34.7M
-Pac-12 and ACC: $29.5M each
05-24-2019 02:42 PM
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Hokie Mark Online
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Exclamation RE: Big 10 revenue exceeds expectations. $54 million per team
(05-24-2019 02:05 PM)nole Wrote:  Yikes

All Power 5's have now released FY 18 tax returns.
Per-school distributions for the year, according to the docs:
-Big Ten: $54M to 12 longest-standing schools
-SEC: $43.7M to all except Mississippi (postseason ban)
-Big 12: $34.7M
-Pac-12 and ACC: $29.5M each

ACC commissioner John Swofford credited with a little more than $3.5 million in total compensation for 2017 calendar year, new conference tax doc shows. That's up from $3.3 million in 2016.

I projected $28M/school for the ACC 2017-18, so this is actually $1.5M more than that. [Revenue Projections 2015-2017]

For next year I projected a $3.5M/school increase in TV revenue... which is going to be wiped out by the fact that the Orange Bowl was a playoff site. So, about the same as this year ($30M or so). That should be followed by a huge jump ($7 million per school) in the 2019 tax return, barring some unforeseen changes [see B1G Projected Revenue Through 2029].

So in 2 more years the ACC should be paying out approximately $37.4M, and the gap will depend on how much the Big Ten* and SEC revenues grow - their networks are both mature, so it's not likely to come from there, but they could see increases in their Tier 1 TV contracts I suppose.

* Currently the Big Ten, like the ACC, is ahead of previous revenue projections.
05-25-2019 06:24 AM
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zoocrew Offline
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RE: Big 10 revenue exceeds expectations. $54 million per team
Based on these numbers would it really be that surprising to see realignment start up again in 3 years announcement wise? Don’t see why they couldn’t take whatever Big 12 teams they want given the numbers, if they do in fact want Big 12 teams.

The B1G gets a new TV deal in 2023 so for the best deal possible would they not tell the networks which Big 12 teams would be coming over in 2025 once that league’s GOR runs out? This stuff gets announced years in advance sometimes. Navy joined the Big East/AAC 4 whole years after we knew they’d be there.

I feel like the prevailing belief is that we won’t see anything until the 2025 offseason but I actually think we could get concrete stuff starting to come in 3 offseason from now.

Edit:

Never-mind apparently the overlords were already aware.

http://www.espn.com/college-football/sto...-shuffling
(This post was last modified: 05-25-2019 04:51 PM by zoocrew.)
05-25-2019 04:35 PM
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RE: Big 10 revenue exceeds expectations. $54 million per team
(05-25-2019 04:35 PM)zoocrew Wrote:  Based on these numbers would it really be that surprising to see realignment start up again in 3 years announcement wise? Don’t see why they couldn’t take whatever Big 12 teams they want given the numbers, if they do in fact want Big 12 teams.

The B1G gets a new TV deal in 2023 so for the best deal possible would they not tell the networks which Big 12 teams would be coming over in 2025 once that league’s GOR runs out? This stuff gets announced years in advance sometimes. Navy joined the Big East/AAC 4 whole years after we knew they’d be there.

I feel like the prevailing belief is that we won’t see anything until the 2025 offseason but I actually think we could get concrete stuff starting to come in 3 offseason from now.

Edit:

Never-mind apparently the overlords were already aware.

http://www.espn.com/college-football/sto...-shuffling

1. I expect serious conversations with prospective parties to begin around 2021, but behind the scenes due to GOR stipulations. I look for key Big 12 schools to be involved and perhaps a couple of non-core PAC schools.

2. The SEC will have a new T1 contract prior to 2023 and the old contract for 55 million which is 15 years old is expected to at least be 275 million (58.3 million per school per year) and possibly over 300, (61 million range).

If these kinds of numbers are indeed realized the revenue gaps between the SEC/B1G and everyone else will be massive.

Should either the SEC or Big 10 add either or both of Oklahoma and Texas the difference in essence will be insurmountable.

So yeah, interesting times ahead.

IMO, the ACC should be trying to figure out how to offer a 5 team division to the Big 12 and move to 20 with N.D. to agree to come in when contracts permit. It's the only way to circumvent what likely will either happen for SEC or Big 10, or both by 2025.
05-25-2019 06:28 PM
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