Perspective from the Big Ten and some much needed clarifications

[isucy86]

Oh i am sure they are. LHN is an awful deal for espn that they want out of and that contract would never be renewed for how much money its lost espn. Big ten still makes more money per school then texas with the 37mil from big 12 and the 15 mil from the longhorn network.

The big ten's deal is expected to bring in 80mil per school in less then 18 months. I would imagine the SEC would be getting something close to that and they get the added stability. (the fact that they created the instability in the first place isnt lost on me)

I don't think $80M is going to be seen in 18 months? The 2020 Big10 payout to schools was $54M and I would expect that to be around $65M when the current rights deals are done after 2022/2023 FY

So the new Big10 media rights deals will increase from that $65M baseline and increase 5%ish annually. So the $80M likely won't be seen by schools until later part of the decade..

 

[BCClone]

Im not 100% clear if you are saying that 20mil should be enough to pay for 3/4 sports or not? Largely that depends on the sport and the capital needed to run said sport. MSU got rid of the diving team because the pool upgrades were going to be too expensive

Thinking 20 MM should be enough. Generally capital projects come from donors for the most part. Sports like women’s field hockey, rowing, lacrosse are things that seem very possible with 20 MM.

 

[BCClone]

I don't think $80M is going to be seen in 18 months? The 2020 Big10 payout to schools was $54M and I would expect that to be around $65M when the current rights deals are done after 2022/2023 FY

So the new Big10 media rights deals will increase from that $65M baseline and increase 5%ish annually. So the $80M likely won't be seen by schools until later part of the decade..

What is the the SEC supposed to be paying out in a couple years? Guessing that will be the high payout deal.

 

[FriendlySpartan]

Thinking 20 MM should be enough. Generally capital projects come from donors for the most part. Sports like women’s field hockey, rowing, lacrosse are things that seem very possible with 20 MM.

Yeah I would agree with that. Do they spend more on football and basketball then you do?

What is the the SEC supposed to be paying out in a couple years? Guessing that will be the high payout deal.

I imagine the SEC will be in the same ballpark as that. The one trick is that the big ten owns part of the big ten network whereas the SEC owns none of their own network so even if their rights deal is more the big ten might still get more money. I don't know anything about SEC media deals though

 

[BCClone]

Yeah I would agree with that. Do they spend more on football and basketball then you do?

I imagine the SEC will be in the same ballpark as that. The one trick is that the big ten owns part of the big ten network whereas the SEC owns none of their own network so even if their rights deal is more the big ten might still get more money. I don't know anything about SEC media deals though

They did have the highest paid S&C coach in the nation before he was fired. They also pay their MFHFC Kirk Ferentz and million or so more than ours. Unsure on basketball.

 

[SEIOWA CLONE]

ISUs budget this year is 98.6MM, Iowa’s (not sure what MSU is so I will go with Iowa’s and guess they should be similar) is 117 MM. Iowa cut sports this year so now they have 3-4 more sports than we do. No way that 3-4 more sports should run just under 20 MM more. Total schoolships for most schools don’t tally that amount.

Iowa spent in 2019 was $146 million , Michigan St. $135, and ISU $95 million. Michigan was a little short of $191 million,.

College Finances - USA TODAY

 

[BCClone]

Iowa spent in 2019 was $146 million , Michigan St. $135, and ISU $95 million. Michigan was a little short of $191 million,.

College Finances - USA TODAY

For Iowa and ISU, I was going with what they presented to the regents.

 

[jcyclonee]

Not a big deal. Just pointing out that for some teams, making the most of anybody isn’t enough.

Several teams in the big XII carry a few less teams than the big 10 teams do. It allows us to be a few million less in revenue.

In all honesty, let’s say you guys go from 55 to 80 MM. what do you use that 25 MM on? Most people have upgraded facilities to a point that there isnt much left. You can jack up coaching salaries but there isn’t a need to go much higher, coaching salaries are basically at the high end and all that does is push up buyout costs, better travel and tutors only cost so much. When do we hit the wall when ADs aren’t back stabbing other schools? Texas netted 20MM plus in the Covid reduced year. They have donors wanting to give money to name things and have ran out of things to name.

I guess the AD's could start giving money back to the universities. I dislike Texas as much as the next guy but their AD does at least contribute to the university. I know that it's happened at Alabama too.

I know. Fat chance. Football is king.

 

[jcyclonee]

I agree. Can we please just refer to him as Coach Dreamy?

 

[jcyclonee]

I'm not so sure about that. There is at least some use in the Big12 as a vote at the table against the SEC, even if we are essentially Belgium in NATO.

There's no fear about an OSU or ISU taking a playoff spot, they have that rigged already.

Plus I would guess there is enough bonhomie about teams getting hosed that they don't want to see the Big12 die. They won't go very far out of their way to prevent it, but they aren't actively seeking it, imho.

You're comparing us to a hybrid country that speaks two languages and was created simply to prevent France from becoming too strong?

I'll accept it. They make great waffles.

 

[JM4CY]

I agree. Can we please just refer to him as Coach Dreamy?

No.

 

[jcyclonee]

No.

So in about 7 years, after TJ has won 5 straight national titles and he accepts his new job as president of the United States, we hire a new coach who's name rhymes with Ted Floiburg. What are we supposed to call him?

 

[isucy86]

What is the the SEC supposed to be paying out in a couple years? Guessing that will be the high payout deal.

Its going to be CRAZY money- my estimate is $91M annual average over the period 2024-2034. And that might be conservative AND doesn't include 8 or 12 team playoff upside.

The SEC media rights payout for 2020 was $45.5M and will probably be around $55M when ESPN replaces CBS and and UT/OU added in a few years.

• The deal with ESPN replacing CBS is an incremental $250M or $15M new money/school.
• Adding OU/Texas adds around $340M or $21M/school. This is based on Big12 schools earning around $450M in TV Rights during last year of current deal, plus a 50% increase expected in next round of TV Rights negotiations and OU/UT responsible for 50% of Big12 TV rights value.

 

[cubuffsdoug]

Its going to be CRAZY money- my estimate is $91M annual average over the period 2024-2034. And that might be conservative AND doesn't include 8 or 12 team playoff upside.

The SEC media rights payout for 2020 was $45.5M and will probably be around $55M when ESPN replaces CBS and and UT/OU added in a few years.

• The deal with ESPN replacing CBS is an incremental $250M or $15M new money/school.
• Adding OU/Texas adds around $340M or $21M/school. This is based on Big12 schools earning around $450M in TV Rights during last year of current deal, plus a 50% increase expected in next round of TV Rights negotiations and OU/UT responsible for 50% of Big12 TV rights value.

I think you allowed yourself to inject some Big 12 flavor into calculating the payout for the SEC.
How do you know the B1G will increase payouts annually in the range of 5%, but the SEC will see increases in the neighborhood of 50% with the addition of OU and UT. The SEC will deal only with ESPN (& ESPN+) for payouts. ESPN made sure of that by getting the SEC to drop its deal with CBS. The B1G could do like pro sports and split their new deal across a few platforms to maximize its earnings. You can earn more by breaking up the product across competing media platforms than by selling your entire product to one source.

SEC giving ESPN everything they want is not in their best interest. If ESPN doesn't gain control of the CFP and NY6 games, then all of these moves were for nothing. CFP Governance has indicated they plan on letting the contract run out and hit the open market for competitive bids. ESPN could lose the CFP and NY6 games, then what?

 

[RustShack]

I think you allowed yourself to inject some Big 12 flavor into calculating the payout for the SEC.
How do you know the B1G will increase payouts annually in the range of 5%, but the SEC will see increases in the neighborhood of 50% with the addition of OU and UT. The SEC will deal only with ESPN (& ESPN+) for payouts. ESPN made sure of that by getting the SEC to drop its deal with CBS. The B1G could do like pro sports and split their new deal across a few platforms to maximize its earnings. You can earn more by breaking up the product across competing media platforms than by selling your entire product to one source.

SEC giving ESPN everything they want is not in their best interest. If ESPN doesn't gain control of the CFP and NY6 games, then all of these moves were for nothing. CFP Governance has indicated they plan on letting the contract run out and hit the open market for competitive bids. ESPN could lose the CFP and NY6 games, then what?

Then our Amazon overlords control football.

 

[Cyclones1969]

I think you allowed yourself to inject some Big 12 flavor into calculating the payout for the SEC.
How do you know the B1G will increase payouts annually in the range of 5%, but the SEC will see increases in the neighborhood of 50% with the addition of OU and UT. The SEC will deal only with ESPN (& ESPN+) for payouts. ESPN made sure of that by getting the SEC to drop its deal with CBS. The B1G could do like pro sports and split their new deal across a few platforms to maximize its earnings. You can earn more by breaking up the product across competing media platforms than by selling your entire product to one source.

SEC giving ESPN everything they want is not in their best interest. If ESPN doesn't gain control of the CFP and NY6 games, then all of these moves were for nothing. CFP Governance has indicated they plan on letting the contract run out and hit the open market for competitive bids. ESPN could lose the CFP and NY6 games, then what?

It’s not any more exaggerated than 80 million per team in the big 10.

And as far as value, there are 6 Ohio states in the new sec. so if Ohio state Michigan and penn st are worth 80, then twice as many schools of that caliber, and a second tier with actual national programs like auburn and Arkansas instead of Indiana and Purdue will be worth more.

 

[RustShack]

It’s not any more exaggerated than 80 million per team in the big 10.

And as far as value, there are 6 Ohio states in the new sec. so if Ohio state Michigan and penn st are worth 80, then twice as many schools of that caliber, and a second tier with actual national programs like auburn and Arkansas instead of Indiana and Purdue will be worth more.

It’s a difference of tier rights and where their respective media partners view them. The B1G made a killing from getting the B1G network in a lot more homes.

 

[Cyclones1969]

It’s a difference of tier rights and where their respective media partners view them. The B1G made a killing from getting the B1G network in a lot more homes.

Right, the btn has been a huge money maker for them.

 

[cubuffsdoug]

It’s not any more exaggerated than 80 million per team in the big 10.

And as far as value, there are 6 Ohio states in the new sec. so if Ohio state Michigan and penn st are worth 80, then twice as many schools of that caliber, and a second tier with actual national programs like auburn and Arkansas instead of Indiana and Purdue will be worth more.

First Michigan is overrated and Penn State isn't far behind. Second, There is Alabama then the rest of the SEC. Let's not act as if every team in the SEC is god.

As for the $80 million, it wasn't random. The B1G went from $33 million (2016) to the current $54 million and will the current TV deal at $65 million per team on the most recent deal. That money was from network broadcast and nothing from streaming. Former B1G commish Delany had the foresight to see streaming as the next step in making money, and that's why he did a short deal. The B1G is not held hostage to one network when negotiating a new media deal. This is why some pundits think the upper 70s to $80 million is realistic if you are looking at cable and streaming together. They will likely set another scenario for expansion around the new deal to add value and increase each team's payout. The SEC will get their huge payout, too, and in the end, it will be the SEC and B1G standing tall over everyone else. I just think there will be no super conference.

 

[Cyclones1969]

First Michigan is overrated and Penn State isn't far behind. Second, There is Alabama then the rest of the SEC. Let's not act as if every team in the SEC is god.

As for the $80 million, it wasn't random. The B1G went from $33 million (2016) to the current $54 million and will the current TV deal at $65 million per team on the most recent deal. That money was from network broadcast and nothing from streaming. Former B1G commish Delany had the foresight to see streaming as the next step in making money, and that's why he did a short deal. The B1G is not held hostage to one network when negotiating a new media deal. This is why some pundits think the upper 70s to $80 million is realistic if you are looking at cable and streaming together. They will likely set another scenario for expansion around the new deal to add value and increase each team's payout. The SEC will get their huge payout, too, and in the end, it will be the SEC and B1G standing tall over everyone else. I just think there will be no super conference.

Some pundits?

and you’re saying that Oklahoma Georgia LSU Florida and even Texas don’t have the National appeal of Ohio state, and more than either Michigan and penn st?

content will still matter. There’s going to be more in the Disney package.