ESPN, Fox Open Discussions for Next Big 12 Deal

2speedy1

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If the tier 3 is wrapped into the amount that ESPN is paying and the tier 1 rights are coming in at around 32mil where is the other 18mil coming from to get you to 50 before the CFP? I’m genuinely asking because I always thought the tier 3 rights were where that extra money was coming from.
Keep in mind the chart below shows 26M for media rights money. We were only paid 22M per school last year I believe because of covid reductions etc.

The rest is a varied break down of where the rest of the money comes from. Some sources I have seen further break this down, but I have not seen one as current as this.

So the big picture is on whether the Tier 3 money is included, or if that content is already agreed upon at the current rate of 4M per school on top of the agreed 32M per new contract or that it is lumped in.

Either way we are looking to be in the mid to upper 40s now if 4M of the 9M+ is actually the Tier 3 money that still would be at least a 5M+ increase per year, which still puts us 50M+ or pretty damn close.

You then have to expect what everyone everywhere is saying somewhere in the ballpark of 10-20M per school for playoff expansion. Sounds like a lot but that is what is being said. Most are averaging right around 15M Per, I think the biggest discrepancies is for those that are guessing how they break down payments for multiple teams from a conference in said playoffs, and how much that will increase the pay. Meaning it could mean 20M for the SEC and 13M for the Big 12, as people are guessing. Or it could be 15M for all.

What that saying is the Big 12 should be paying in the 50-55M range at the start of this contract, possibly more depending on how Yormark does selling more sponsorships and other creative revenue sources he has mentioned. Plus other escalators that have been mentioned for adding more schools. Next with the playoff expansion we should see a minimum of 10M bump to as much as 15-20M as some estimate. This would put the Big 12 solidly in the 65-70M range, and again with possible additions, possible escalators, possible new sponsorships and other ideas Yormark has talked about we could be above 70M, by the time the dust settles in a couple years after the new playoff starts, the new members join. etc.

One final thing to note. The 4 new members are not getting full shares for several years and the 31.6M is actually taking into account that they would be getting a full share. What that means is the full members will be getting a extra bump in pay from those not getting the full amount.

I find it strange when people talk about the Big 10 contract they put everything in the pot and then look at every possible future scenario that could increase it, and then believe totally that conference will get it. Then when you lay out the actual amounts that the Big 12 contract has, then the increases, and what it hs paid and what it will pay. Then add the same increases that are expected in other conferences for things like the Playoff etc. They say well that doesnt make sense how can the Big 12 get that, how can you believe that. Its literally in writing. Its literally what we have been getting, plus what is agreed upon. Plus what everyone is expecting for every other conference in the future. Its strange that the people that say we were going to lose money after OUT still are saying we wont make more money when this contract is documented and an apprx 73% increase over the current contract with OUT in the conference. 75% increase people!!!!! (something like 73% to be exact) over what we had with OU and TX.


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FriendlySpartan

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Jul 26, 2021
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Keep in mind the chart below shows 26M for media rights money. We were only paid 22M per school last year I believe because of covid reductions etc.

The rest is a varied break down of where the rest of the money comes from. Some sources I have seen further break this down, but I have not seen one as current as this.

So the big picture is on whether the Tier 3 money is included, or if that content is already agreed upon at the current rate of 4M per school on top of the agreed 32M per new contract or that it is lumped in.

Either way we are looking to be in the mid to upper 40s now if 4M of the 9M+ is actually the Tier 3 money that still would be at least a 5M+ increase per year, which still puts us 50M+ or pretty damn close.

You then have to expect what everyone everywhere is saying somewhere in the ballpark of 10-20M per school for playoff expansion. Sounds like a lot but that is what is being said. Most are averaging right around 15M Per, I think the biggest discrepancies is for those that are guessing how they break down payments for multiple teams from a conference in said playoffs, and how much that will increase the pay. Meaning it could mean 20M for the SEC and 13M for the Big 12, as people are guessing. Or it could be 15M for all.

What that saying is the Big 12 should be paying in the 50-55M range at the start of this contract, possibly more depending on how Yormark does selling more sponsorships and other creative revenue sources he has mentioned. Plus other escalators that have been mentioned for adding more schools. Next with the playoff expansion we should see a minimum of 10M bump to as much as 15-20M as some estimate. This would put the Big 12 solidly in the 65-70M range, and again with possible additions, possible escalators, possible new sponsorships and other ideas Yormark has talked about we could be above 70M, by the time the dust settles in a couple years after the new playoff starts, the new members join. etc.

One final thing to note. The 4 new members are not getting full shares for several years and the 31.6M is actually taking into account that they would be getting a full share. What that means is the full members will be getting a extra bump in pay from those not getting the full amount.

I find it strange when people talk about the Big 10 contract they put everything in the pot and then look at every possible future scenario that could increase it, and then believe totally that conference will get it. Then when you lay out the actual amounts that the Big 12 contract has, then the increases, and what it hs paid and what it will pay. Then add the same increases that are expected in other conferences for things like the Playoff etc. They say well that doesnt make sense how can the Big 12 get that, how can you believe that. Its literally in writing. Its literally what we have been getting, plus what is agreed upon. Plus what everyone is expecting for every other conference in the future. Its strange that the people that say we were going to lose money after OUT still are saying we wont make more money when this contract is documented and an apprx 73% increase over the current contract with OUT in the conference. 75% increase people!!!!! (something like 73% to be exact) over what we had with OU and TX.


View attachment 104816
Thanks for the info man, you always bring the goods with data and breakdowns. Appreciate it
 

1UNI2ISU

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Another important thing to remember is that every dollar doesn't flow through to the schools. The league takes a cut to run the league office as well as running championships for non-revenue sports.
 

Kinch

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Good luck to the Pac12 thinking Amazon and Apple will save them. They would have the SEC contract before they think about Pac12.
 
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theshadow

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Another important thing to remember is that every dollar doesn't flow through to the schools. The league takes a cut to run the league office as well as running championships for non-revenue sports.

In any given year, you can take TV contract + bowls/CFP + about 60-66% of the NCAA revenue and get the total outlay to the schools.

The conference effectively operates on the rest of the NCAA revenue, ticket sales, and other miscellaneous income.
 

2forISU

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Oct 8, 2008
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No, The big 10 is expected to get to 100M+ with the expected playoff money. When that happens the expected payout for the Big 12 will also increase. So the big 10 will be making aprx 90-100M after the playoff expansion. The Big 12 will be making 65-70M with the same playoff increase, that people are including in the increase for the big 10.
If everything goes right for the Big12 it could see 30-40% gap between the Big10, but majority of the time Big12 will roughly see a 40-50% gap.
 
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2forISU

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What more can you invest in a college football team? Seriously, strength and conditioning, nutrition, facilities are already maxed out at pretty much all power 5 schools that give a **** about football (ISU included). Places like Alabama and LSU are redoing their locker rooms every 2-3 years because they literally have no better use for the money. The Big 12 INCREASING the payout despite OUT leaving is huge for the Big 12 to still be in the same ball park for competitiveness. There will be a divide but I don't think it will be as large as people think, especially with the expanded playoffs and the metrics for how teams get in.
Paying coaches, funding projects, building facilities, more money into other programs(basketball, softball, soccer, etc). Does universities start paying players(I don't know), but I'm amazed how quickly college sports has evolved in the last 5 years. An extra $30-$50mm every year is sizeable amount of money especially when ISU is dead last in donation revenue in the Big12. BYU, Cincy, and Houston will have some pretty deep pockets once they join (no idea on UCF).
 

Mr.G.Spot

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Ok. 40%-50% less per year. Iowa is making $80-100MM a year and ISU will be $40-$50MM a year
It appears we are pushing $60-$65, including playoffs. Yet to be confirmed. bigtin numbers were $75 before playoffs.
 

2speedy1

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Paying coaches, funding projects, building facilities, more money into other programs(basketball, softball, soccer, etc). Does universities start paying players(I don't know), but I'm amazed how quickly college sports has evolved in the last 5 years. An extra $30-$50mm every year is sizeable amount of money especially when ISU is dead last in donation revenue in the Big12. BYU, Cincy, and Houston will have some pretty deep pockets once they join (no idea on UCF).
 

SolarGarlic

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Noticed that he only picked out Washington and Oregon to compare to the entire Big12. It's almost as if he purposely left out 80% of the conference when making his comparison.
And "leftover Big 12" as if the Pac 12 isn't losing two of their biggest brands. He's an arrogant tool and for absolutely no reason.
 

HFCS

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It appears we are pushing $60-$65, including playoffs. Yet to be confirmed. bigtin numbers were $75 before playoffs.

We're already close to facilities being maxed out at a lot of these places. There are lots of college teams that have better facilities in some ways that pro teams.

9 of the 10 current big 12 schools either have new stadiums or massive recent renovations with the money from the previous smaller deals. I imagine the Big Ten is similar with the even more unlimited supply of money.

What will happen is the half of the Big Ten that sucks at football, because it's never been good at football top to bottom and somebody has to lose in the future money league, will just constantly hire and fire coaches with this money hoping they catch lightning in a bottle. I can't say it's a crazy approach, that's what I'd probably do with unlimited money. If a coach isn't dominating in year 3, move on, unlimited money for coaches anyway.
 

Mr.G.Spot

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I've made this point in the past, but athletic departments are either a division of a university or they are separate tax ID number and are a nonprofit.

Can you imagine making all this money and all of your facilities are up to speed thru capex dollars and maintenance expenditures are taken care of? The big variable expense in the future to get them to break even will be salary expense. Obviously, tuition will never go down, but the coaches' salaries will be the plug item to be sure that they are not "making money" and continue to operate at or near break even.
 

HFCS

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I've made this point in the past, but athletic departments are either a division of a university or they are separate tax ID number and are a nonprofit.

Can you imagine making all this money and all of your facilities are up to speed thru capex dollars and maintenance expenditures are taken care of? The big variable expense in the future to get them to break even will be salary expense. Obviously, tuition will never go down, but the coaches' salaries will be the plug item to be sure that they are not "making money" and continue to operate at or near break even.

The fact that donating to NIL collectives is a tax deduction is one of the most stupid realities of US law.

There are nearly an infinite number of behaviors that would benefit society more that we could reward with tax deductions.

In my opinion it's a symptom that this all isn't sustainable and the masses just aren't paying attention to some of the most stupid details of it all.
 

cygrads

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Paying coaches, funding projects, building facilities, more money into other programs(basketball, softball, soccer, etc). Does universities start paying players(I don't know), but I'm amazed how quickly college sports has evolved in the last 5 years. An extra $30-$50mm every year is sizeable amount of money especially when ISU is dead last in donation revenue in the Big12. BYU, Cincy, and Houston will have some pretty deep pockets once they join (no idea on UCF).
I think that's why Cytown is so important.
 

HFCS

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Sorry if this was already posted and lost somewhere but when do we find out how this compares to Pac?

I mean that's the only real burning question at this point right?
 

Jkclone15

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Sorry if this was already posted and lost somewhere but when do we find out how this compares to Pac?

I mean that's the only real burning question at this point right?
Whenever the PAC finalizes a deal. Their presidents are meeting today but don't have a deal to look at yet. Rumor says ESPN and Amazon will be the likely partners. I wouldn't be surprised if they get close to what we're getting, but with a ton more risk. They will get a couple of games late night on ESPN and maybe 1 or 2 premier games earlier in the day, but the vast majority would be streaming. Will people watch? Will it hurt the conference's prestige further not being on cable like the other conferences? Very possible. On the other hand maybe with the shift to streaming they will be okay. That's the danger with being the first to do this, but they have to take that risk or fall further behind in money.
 

HFCS

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Whenever the PAC finalizes a deal. Their presidents are meeting today but don't have a deal to look at yet. Rumor says ESPN and Amazon will be the likely partners. I wouldn't be surprised if they get close to what we're getting, but with a ton more risk. They will get a couple of games late night on ESPN and maybe 1 or 2 premier games earlier in the day, but the vast majority would be streaming. Will people watch? Will it hurt the conference's prestige further not being on cable like the other conferences? Very possible. On the other hand maybe with the shift to streaming they will be okay. That's the danger with being the first to do this, but they have to take that risk or fall further behind in money.

Is there any way that deal is similar to ours but Washington and Oregon don't sign a significant grant of rights? Does hesitation to do that alone set off implosion?

If the meeting is today would that mean real news next week? Isn't that about how it was for B12?