Big 12 (and ISU) Cashing Checks in a 12 team playoff...

[cymonw1980]

So, now the real reason for a 12 team playoff... $2B per year (3x current payout). Best part? In the current setup, the B12 gets about $3M more per team than the 14 team conferences... ($10M vs. $7M per school). In the new format the payout could be $32M per school. B12 payed out $34M this year (down due to pandemic), and $37.7M in 2019. 2020 probably would have been over $40M had it been a "normal" year... but we are still talking about over 50% more money (+$22M, $32M vs. $10M).

This distribution is the average per year and be lower to start, higher to finish. But, all of a sudden a 10 team conference is not looking so bad...

College football’s staggering $2 billion option: How a new playoff could triple the payout

The Big 12 announced it was distributing $34.5 million to its schools and could get that much from CFP revenue alone with expansion.

theathletic.com

 

[cymonw1980]

So, now the real reason for a 12 team playoff... $2B per year (3x current payout). Best part? In the current setup, the B12 gets about $3M more per team than the 14 team conferences... ($10M vs. $7M per school). In the new format the payout could be $32M per school. B12 payed out $34M this year (down due to pandemic), and $37.7M in 2019. 2020 probably would have been over $40M had it been a "normal" year... but we are still talking about over 50% more money (+$22M, $32M vs. $10M).

This distribution is the average per year and be lower to start, higher to finish. But, all of a sudden a 10 team conference is not looking so bad...

College football’s staggering $2 billion option: How a new playoff could triple the payout

The Big 12 announced it was distributing $34.5 million to its schools and could get that much from CFP revenue alone with expansion.

theathletic.com

here is the graphic from the article:

 

[knowlesjam]

2019 payouts to Big 12 teams averaged $38.5M...under the new CFP, this number rises to $60.5M...of course, this could adjust upward or downward depending on the next TV contract and yearly number of participants in the CFP. The BIG continues to print $'s...they averaged $54M in 2019...under the CFP, the number climbs to $70M. It does close the gap between the BIG and Big 12 from $15.5M in 2019 to $9.5M in the new CFP.

The increase benefits ISU more so than a university like Iowa in that ISU supports 16 sports between women and men...Iowa supports 22. The 6 additional sports that Iowa funds definitely costs more than the $9.5M difference between the two schools.

 

[helechopper]

That’s ******* crazy money.

 

[cymonw1980]

2019 payouts to Big 12 teams averaged $38.5M...under the new CFP, this number rises to $60.5M...of course, this could adjust upward or downward depending on the next TV contract and yearly number of participants in the CFP. The BIG continues to print $'s...they averaged $54M in 2019...under the CFP, the number climbs to $70M. It does close the gap between the BIG and Big 12 from $15.5M in 2019 to $9.5M in the new CFP.

The increase benefits ISU more so than a university like Iowa in that ISU supports 16 sports between women and men...Iowa supports 22. The 6 additional sports that Iowa funds definitely costs more than the $9.5M difference between the two schools.

And this is just playoff revenue. If you consider b10 rev is maximized by current cable tv model (millions of households in NY/NJ/DC area pay for b10 network as part of a package but could care less about Maryland/Rutgers, and the b10), there is real potential for the B12 to close the gap as streaming becomes more prevalent and content is more important then tv market size. As the cable model declines Rutgers becomes a 14th mouth to feed with limited content value.

 

[SCarolinaCy]

When it arrives, first it goes to pay for the losses sustained during last year's covid.

 

[Aclone]

As the cable model declines Rutgers becomes a 14th mouth to feed with limited content value.

Greg Schiano has other plans.

Rutgers 2022 Football Commits

Rutgers

247sports.com

 

[RustShack]

When it arrives, first it goes to pay for the losses sustained during last year's covid.

They could pay off the 20 year loan quicker than anticipated, or just continue to make the improvements to the football stadium/facilities/pay raises for the staff to keep CMC around. And you know maybe some HiltonMagic upgrades as well.

 

[Mr.G.Spot]

They could pay off the 20 year loan quicker than anticipated, or just continue to make the improvements to the football stadium/facilities/pay raises for the staff to keep CMC around. And you know maybe some HiltonMagic upgrades as well.

I could be wrong, but I think the covid loan is in the $14 million range instead of $25 million.

A blip on the radar over the long haul......I think.

 

[Mr.G.Spot]

here is the graphic from the article:

View attachment 86408

Not a subscriber...... thanks for the graphic. Great information.

 

[RustShack]

I could be wrong, but I think the covid loan is in the $14 million range instead of $25 million.

A blip on the radar over the long haul......I think.

I believe the deficit was smaller than the loan. But then factor in renovations, hiring a new basketball staff, and upping the salary of football coaches it was calculated.

In the grand scheme yes it’s just a blip, especially if income goes up as mush as it should.

 

[Aclone]

I could be wrong, but I think the covid loan is in the $14 million range instead of $25 million.

A blip on the radar over the long haul......I think.

COVID plus buying out Prohm plus buying out T.J’s contract with UNLV.

And since we’re talking about the year’s total deficit, the University’s fiscal calendar runs through June 30th. Everything has to be resolved at that point. So, for example, all those Official Visits go on the tab as well. It’s not a done deal yet.

 

[OnlyCyclones]

So, now the real reason for a 12 team playoff... $2B per year (3x current payout). Best part? In the current setup, the B12 gets about $3M more per team than the 14 team conferences... ($10M vs. $7M per school). In the new format the payout could be $32M per school. B12 payed out $34M this year (down due to pandemic), and $37.7M in 2019. 2020 probably would have been over $40M had it been a "normal" year... but we are still talking about over 50% more money (+$22M, $32M vs. $10M).

This distribution is the average per year and be lower to start, higher to finish. But, all of a sudden a 10 team conference is not looking so bad...

College football’s staggering $2 billion option: How a new playoff could triple the payout

The Big 12 announced it was distributing $34.5 million to its schools and could get that much from CFP revenue alone with expansion.

theathletic.com

Is this per team that makes the playoff? Or is this guaranteed revenue?

Edit: if the SEC gets four teams and the Big 12 gets one, are they getting four payments?

 

[SolarGarlic]

Is this per team that makes the playoff? Or is this guaranteed revenue?

Edit: if the SEC gets four teams and the Big 12 gets one, are they getting four payments?

Guaranteed equal revenue

 

[Bipolarcy]

It wasn't that long ago (20 years or so) that we were struggling to raise $40 million for our entire athletic department budget. Now, we could get up to $32 million in one lump payment and that's not counting revenue from other sports. That payment will put us over $100 million for total revenue. We're at $80-something million right now.

 

[cymonw1980]

Is this per team that makes the playoff? Or is this guaranteed revenue?

Edit: if the SEC gets four teams and the Big 12 gets one, are they getting four payments?

This has nothing to do with teams in the playoff. There is a small modifier for participation… but it’s in the +/- 10% range. For example, last year the sec made an incremental 14M for their 3 participants in the New Years 6 and the B12 made 8M for their 2 (+6M for every playoff team, +4M for every NY6 team in current deal). But when the base payment is 100M for the conference the participant bonus is not a game changer.

 

[cymonw1980]

It wasn't that long ago (20 years or so) that we were struggling to raise $40 million for our entire athletic department budget. Now, we could get up to $32 million in one lump payment and that's not counting revenue from other sports. That payment will put us over $100 million for total revenue. We're at $80-something million right now.

That’s right. P5 is going to get paid in this deal. They let the group of 5 into the dance…. But they are not going to have a dress to wear.

The gap between the P5 and the g5 is going to be massive. This is only the first shoe to drop. In the Athletic story they note that the playoff money was going to double even if no changes were made to the format due to the increased value of media rights (live sports is one of the last places advertising can still be targeted at captive audiences). So if media rights have doubled in value, what does that do to the current P5 contracts up for negotiation in the next couple years?

Net, if the current B12 contracts doubled (in line with the market increase noted in the article) and the playoff revenue tripled as forecasted, ISU could be bringing in 90M-100M per year in media rights alone in the next 5 years…. This does not count tickets, donations, 3rd tier rights (these could start making money soon too), or any other sources of revenue. CRAZY.

 

[BCClone]

2019 payouts to Big 12 teams averaged $38.5M...under the new CFP, this number rises to $60.5M...of course, this could adjust upward or downward depending on the next TV contract and yearly number of participants in the CFP. The BIG continues to print $'s...they averaged $54M in 2019...under the CFP, the number climbs to $70M. It does close the gap between the BIG and Big 12 from $15.5M in 2019 to $9.5M in the new CFP.

The increase benefits ISU more so than a university like Iowa in that ISU supports 16 sports between women and men...Iowa supports 22. The 6 additional sports that Iowa funds definitely costs more than the $9.5M difference between the two schools.

What do we get for tier 3? 2019 we didn’t have Espn3 deals and had our own ownership and sales. Texas makes 15 or 20 mill from their tier 3. So teams like UT and OU would make more in the big XII than any other conference

 

[Mr.G.Spot]

What do we get for tier 3? 2019 we didn’t have Espn3 deals and had our own ownership and sales. Texas makes 15 or 20 mill from their tier 3. So teams like UT and OU would make more in the big XII than any other conference

I have been told it was $3-4 million, but has decreased with the ESPN+ arrangement. I have verified this amount.

 

[BCClone]

I have been told it was $3-4 million, but has decreased with the ESPN+ arrangement. I have verified this amount.

Decreased with the E3 agreement? Seems kinda dumb to do that unless they are willing to take a hit to get exposure first.