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The Big Ten’s revenue distributions will top $52 million per school next year

Posted on 6/22/18 at 9:41 am
Posted by RLDSC FAN
Rancho Cucamonga, CA
Member since Nov 2008
51401 posts
Posted on 6/22/18 at 9:41 am
quote:

Thanks to this photo shared by the Detroit News‘s Angelique Chengelis, we know that the Big Ten sent out $51 million to its members in 2018 and will distribute $52 million in ’19.

The Big Ten now distributes 250 percent of that number thanks to the cash-grab additions of Rutgers and Maryland and the league’s new TV contracts with ESPN and Fox. But wait, there’s more: that 6-year, $2.64 billion contract that pushed the Big Ten past the $50 million mark? Commissioner Jim Delany signed such short deals that his league will cut the line in front of the rest of the Power 5 and be the first league at the negotiating table for the next round of contracts, too.



LINK

Posted by RedRifle
Austin/NO
Member since Dec 2013
8328 posts
Posted on 6/22/18 at 10:25 am to
Pay. The. Players.

fricking Rutgers is getting a $52m check.
Posted by Dr RC
The Money Pit
Member since Aug 2011
58030 posts
Posted on 6/22/18 at 10:31 am to
When will this sports rights bubble pop? It can't keep growing.
Posted by KosmoCramer
Member since Dec 2007
76449 posts
Posted on 6/22/18 at 10:37 am to
quote:

When will this sports rights bubble pop? It can't keep growing.


Why not?
Posted by Dr RC
The Money Pit
Member since Aug 2011
58030 posts
Posted on 6/22/18 at 10:39 am to
B/c the cable bubble will eventually pop and the streaming services are not going to be paying the same kind of cheese at that point. They won't need to.
Posted by VerlanderBEAST
Member since Dec 2011
18981 posts
Posted on 6/22/18 at 10:55 am to
You people do realize even with 50 mil Programs like Rutgers and Purdue are still pretty much breaking even
Posted by Ghost of Colby
Alberta, overlooking B.C.
Member since Jan 2009
11131 posts
Posted on 6/22/18 at 1:34 pm to
Streaming services could be a factor that keeps the bubble expanding. Netflix & Amazon have billions available to invest, and the rights to sporting events is an opportunity to expand their offerings, while striking a big blow to traditional TV.

The old model of adding Maryland or Rutgers to a conference primarily because they are in heavily populated areas is quickly becoming outdated. That bubble will burst soon.

That model relied heavily on subscriber fees to generate revenue. Those fees are determined by a universities footprint. Both Maryland and Rutgers have a footprint across multiple states in heavily populated areas, so the Big Ten network charges higher rates to cable/satellite companies in those areas.

However, cord cutting has put the emphasis on viewership and quality. Rutgers isn’t attracting viewers, but they do generate revenue through backdoor fees.
Posted by mizslu314
Dirty STL
Member since Sep 2013
15955 posts
Posted on 6/22/18 at 1:49 pm to
quote:

Pay. The. Players.


Sounds so easy, doesnt it?





Well its not.
Posted by Bunk Moreland
Member since Dec 2010
52923 posts
Posted on 6/22/18 at 1:57 pm to
Good points. Dan Wetzel from Yahoo always thought a la carte programming would kill the golden goose, but maybe not if the conferences get their money elsewhere from streaming.

quote:

Both Maryland and Rutgers have a footprint across multiple states in heavily populated areas, so the Big Ten network charges higher rates to cable/satellite companies in those areas.


Yeah, I thought the situation there is not so much about eyeballs from those markets, but that BTN can charge cable providers more once they have a team in those states.
Posted by 50_Tiger
Dallas TX
Member since Jan 2016
39945 posts
Posted on 6/22/18 at 1:57 pm to
NFL Team Cap is what? 177.2 million. However, NFL Players get paid millions.

How can a school not run their program for a third of that while also giving a little something-something.
Posted by 3nOut
Central Texas, TX
Member since Jan 2013
28799 posts
Posted on 6/22/18 at 2:05 pm to
quote:

How can a school not run their program for a third of that while also giving a little something-something.



because they have to pay for water polo, lacrosse WBB, softball, tennis, and gymnastics scholarships too. those don't make money. they take money.
Posted by TigerintheNO
New Orleans
Member since Jan 2004
41151 posts
Posted on 6/22/18 at 2:11 pm to
quote:

You people do realize even with 50 mil Programs like Rutgers and Purdue are still pretty much breaking even


Yes, technically Rutgers athletic dept. broke even $83,974,159 in revenue and $83,974,159 in spending. However that was with the school contributing over $28 million to their athletic department, to make up the difference.

Looks like only a handful of Big Ten schools are in the black. The two newest schools Maryland and Rutgers were a combined $44 million in the red.


USAToday '16 numbers
Posted by VerlanderBEAST
Member since Dec 2011
18981 posts
Posted on 6/22/18 at 2:13 pm to
quote:

Yes, technically Rutgers athletic dept. broke even $83,974,159 in revenue and $83,974,159 in spending. However that was with the school contributing over $28 million to their athletic department, to make up the difference.

Looks like only a handful of Big Ten schools are in the black. The two newest schools Maryland and Rutgers were a combined $44 million in the red.

Yes but now even with the substantial increase they are at best breaking even
Posted by BayouCatFan
Member since Jul 2008
4580 posts
Posted on 6/22/18 at 2:18 pm to
Profits from basketball and football pays for all the other sports, academic scholarships and research. If we want those things to continue, then colleges don't have the money to pay student athletes.
Posted by TigerintheNO
New Orleans
Member since Jan 2004
41151 posts
Posted on 6/22/18 at 2:20 pm to
From 2016 school year- NCAA athletic departments that did not take money from their school (general education fees or student fess) are-

Oklahoma, Texas, Texas A&M, LSU, Tennessee, Arkansas, Miss. State, Kentucky, South Carolina, Ohio State, Penn State, Nebraska, and Purdue.

that's 13 out of 230 schools
This post was edited on 6/22/18 at 2:23 pm
Posted by SeeeeK
some where
Member since Sep 2012
28026 posts
Posted on 6/22/18 at 2:26 pm to
except there isn't going to be those big tv deals.

ESPN is not the player it once was. Disney has told them that shite of overpaying and out bidding yourself(right to 1st refusal) days are over.

Board told the Disney guy to clean the f'in books up, they are an anchor.
Posted by mizzoubuckeyeiowa
Member since Nov 2015
35421 posts
Posted on 6/22/18 at 2:42 pm to
Jeez.

The Pac-12 had a record year last year and the payout was $30 million per school.

Big10 is printing money.
Posted by RD Dawg
Atlanta
Member since Sep 2012
27291 posts
Posted on 6/22/18 at 2:47 pm to
quote:

Streaming services could be a factor that keeps the bubble expanding. Netflix & Amazon have billions available to invest, and the rights to sporting events is an opportunity to expand their offerings, while striking a big blow to traditional TV.


Absolutely correct...Amazon and Netflix alone have more cash on hand than the big 3 networks combined.Streaming
will be the future of all highly watched sports.
Posted by RedRifle
Austin/NO
Member since Dec 2013
8328 posts
Posted on 6/22/18 at 2:50 pm to
quote:

Sounds so easy, doesnt it?





Well its not.


Why not? What is so fricking hard about it?
Posted by RD Dawg
Atlanta
Member since Sep 2012
27291 posts
Posted on 6/22/18 at 2:54 pm to
quote:

Looks like only a handful of Big Ten schools are in the black


Sorry,AD accounting is about as shady as Las Vegas casinos in the 70's.Revenue to P5 schools has TRIPLED
in the last 20 years yet the schools still claim their losing money.Coaches salaries are going through the roof along AD staff salaries.
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