“Michigan received a revenue distribution of $51 million from the Big Ten for the past fiscal year.”
Dick Vitale spreading that sheit.
1 Like
College sports will be very exciting with only 30 or 40 programs. Most all of the others will be financially unsustainable . . . . .
1 Like
The dirty little secret in college athletics is that athletic departments are quasi government entities, which by definition don’t have retained earnings. So everything brought in has to be spent. On top of that there are wage controls on the vast majority of the employees (i.e. Athletes). Then to top it off, the “business” of college athletics is a for profit business where more money is generated if you make the playoffs etc.
So you have a for profit enterprise run by government entities who have colluded to enforce artificial wage controls on the vast majority of its employees.
The real problem in college athletics is that it’s a completely screwed up economic system. The system ensures that there will be a black market formed for the most important assets ( athletes) and the money made “legitimately” will be spent very wastefully on the least important people.
Can’t wait for football to begin.
4 Likes
That’s $52 million just for tier 1 and 2 TV revenue. Tier 3 from the Big 10 Network is another $7 million plus. Compare that to what the Big 12 pays out. $38 million for tiers 1 and 2. UT earns the highest for its tier 3, $15 million for the LHN for a total of $53 million. That means the highest earning Big 12 program is getting less for its media value than the smallest Big 10 program. I am sure UT fans are really happy with the Big 12.
3 Likes
The money disparity can be addressed by uneven distribution amongst conference members.
The real question lies in whether UT wants to be among more peers academically (OSU, Michigan, USC, UCLA, UNC, etc) or athletically (Alabama, USC, FSU, OSU, etc). If so, then UT leaves.
If UT is content having a better shot at the title game then it stays.
UT can earn as much money in the big 12 as it can anywhere else so that’s not a deciding factor.
1 Like
Well, he certainly took care of his kids when he was coaching at Detroit…just ask anyone near Jerry Davis from West Oso…LOL…
The gap between B12 and SEC/B10 revenues will continue to grow. I think eventually the Big 12 will have to resort to unequal revenue sharing even for tiers 1/2. Its the only way UT and OU will remain happy in the Big 12.
2 Likes
OU and UT cannot exist in the same conference. OU considered itself to be the equal to UT and then the flirtation with the PAC happened. That started with UT, OU, TT, and OSU going to the PAC. That fell apart when UT refused to abandon the LHN or merge it into the PAC 12 networks. OU then tried to save the deal by suggesting other schools to replace UT and was told that without UT there was no deal. That is when OU found out they are not UT’s equal and that has really hurt their ego.
1 Like
This has been the P5 goal all along. This is designed to squash G5 programs and make the P5 a Saturday N.F.L. type product. It is halfway there. The so called cfp is clear indication of the P5 business strategy.
This has never been about academics. It was, is and will always be about business.
OU without UT is Nebraska.
Except that UT can print money so he can take and do account other factors
And yes: All signs point to a slew of bidders (legacy and new media) for the Pac-12 media rights starting in FY25 — the value of live sports is only increasing.
But it’s worth noting that the future value of Pac-12 content will be inexorably tied to football success … and football success depends on resources … and resources are linked, in part, to conference distributions.
In other words, the revenue deficit facing athletic departments over the next six years could adversely affect the football product to such an extent that the conference doesn’t get max value for the content.
This, in a nutshell, is the number 1 problem for the PAC. 76.7% of the US population live in the Eastern and Central (non footprint ) time zones and 23.3 % live in the Mountain and Pacific (footprint) time zones. The number 2 problem they have is that they are trying to operate the PAC 12 networks as owners rather than doing what the BIG and SEC do which is leasing out their names for big annual payments.
4 Likes