B1G Money for B1G Schools

[JonDMiller]

The Big Ten Network has helped change the face of athletic departments throughout the league…literally. Most programs have either built new or upgraded existing facilities in recents years, or have plans in the works to do so.

The benefits of those dollars can be seen in those shiny new facilities but the printing press of revenues is only just getting started.

Through an open records request, the Lafayette Journal & Courier was able to get a look at what Purdue has brought in and what it may bring in in the future.

In 2012-2013, Purdue’s athletics department received $25.4 million in revenues from the Big Ten. Part of this money is from the Big Ten Network and part of the money is from the TV deal the league has with ABC/ESPN, CBS and Fox. In all, the revenues totals comes from the following: television agreements, NCAA distributions, bowls, the Big Ten’s football title game and the men’s basketball tournament.

Iowa, and most of Big Ten teams save Nebraska, Rutgers and Maryland, received the same amount. That figure will be closer to $30 million this year and then things start to get real interesting.

The article shared information obtained related to future revenues, once the Big Ten’s new TV deal for games currently on ESPN is factored in, along with the new College Football Playoff revenues that it will take part in.

How much more money? From the item: $30.9 million in 2014-15; $34.1 million in 2015-16 and $35.5 million in 2016-17.

2016-2017 is the final year of the TV deal with ESPN…and negotiations for the next TV deal are currently under way. The Big Ten is now the last major conference whose has at least a piece of their long term TV rights still up for grabs in the near future. Having the last piece of land can be a valuable thing. How valuable?

Try $44.5 million per school…or rather, per athletic department.

That’s nearly 50% of Iowa’s entire athletic department budget right now. It’s huge dollars and another reason why it’s very, very good to be a member of the Big Ten.

 

[OakRaiders]

Let's give KF another $4,000,000!!

 

[nationalchamps]

 

[Easton]

Think of what the payouts would be if we had something like CycloneTV. billions

 

[JHHawk]

Iowa needs to take 2 million and give 1 million to our top recruiter in fb and bb. Hire Calipari to be our recruiter in bb. Hire James Franklin to be our fb recruiter.

 

[eyekwah]

I don't think the whole story is the projection, but what may be behind that projection. What events could happen between now and 2016 when the negotiations are concluded?

On Monday a NC judge ordered Maryland and the ACC into mediation with an arbitrator to try to find a settlement. Here is the problem for the ACC. It will be hard to prove that the members have been hurt financially when the ACC will receive more money regardless of Maryland being a member. How can you be damaged if you already are ahead financially without Maryland. ESPN has not ever asked to cut the ACC contract without Maryland. When Missouri and Texas A&M left the Big 12, ESPN didn't reduce the payment to the contract. This is why Maryland will never pay the ACC $52M. It is going to be under $25M, probably closer to what Nebraska paid the Big 12 to exit.

The Maryland settlement will open the door for other ACC members and Big 12 members to entertain other offers. The SEC wants a member from NC and VA to get to 16. The Big Ten can go east or west. The Omaha World Herald reported that the Big Ten has looked at Oklahoma. Oklahoma has been working to improve its academic standing so maybe it isn't far fetched that Kansas and Oklahoma might be candidates.

I don't think that projection is based on 14 teams.

 

[Clark]

Iowa needs to take 2 million and give 1 million to our top recruiter in fb and bb. Hire Calipari to be our recruiter in bb. Hire James Franklin to be our fb recruiter.

yeah, it' gonna take a hell of a lot more than 1 million.

 

[JHHawk]

I don't think the whole story is the projection, but what may be behind that projection. What events could happen between now and 2016 when the negotiations are concluded?

On Monday a NC judge ordered Maryland and the ACC into mediation with an arbitrator to try to find a settlement. Here is the problem for the ACC. It will be hard to prove that the members have been hurt financially when the ACC will receive more money regardless of Maryland being a member. How can you be damaged if you already are ahead financially without Maryland. ESPN has not ever asked to cut the ACC contract without Maryland. When Missouri and Texas A&M left the Big 12, ESPN didn't reduce the payment to the contract. This is why Maryland will never pay the ACC $52M. It is going to be under $25M, probably closer to what Nebraska paid the Big 12 to exit.

The Maryland settlement will open the door for other ACC members and Big 12 members to entertain other offers. The SEC wants a member from NC and VA to get to 16. The Big Ten can go east or west. The Omaha World Herald reported that the Big Ten has looked at Oklahoma. Oklahoma has been working to improve its academic standing so maybe it isn't far fetched that Kansas and Oklahoma might be candidates.

I don't think that projection is based on 14 teams.

Would OK and KU really carry their weight as full members of the Big Ten....adding 80+ million between them?

Can you imagine the Big Ten West without Purdue, and with OK and KU? Neb, Iowa, OK, Wis would be a tough football league.

 

[CAARHawk]

Iowa needs to take 2 million and give 1 million to our top recruiter in fb and bb. Hire Calipari to be our recruiter in bb. Hire James Franklin to be our fb recruiter.

Who do we hire as attorney to handle the recruiting violations case?

 

[chadfrey]

The Big Ten is now the last major conference whose has at least a piece of their long term TV rights still up for grabs in the near future. Having the last piece of land can be a valuable thing. How valuable?

Very good question, especially as the television market evolves over the next few years. There quite possibly could be a massive change coming to the economic models used for television.

 

[JonDMiller]

The Maryland settlement will open the door for other ACC members and Big 12 members to entertain other offers. The SEC wants a member from NC and VA to get to 16. The Big Ten can go east or west. The Omaha World Herald reported that the Big Ten has looked at Oklahoma. Oklahoma has been working to improve its academic standing so maybe it isn't far fetched that Kansas and Oklahoma might be candidates.

I don't think that projection is based on 14 teams.

Except the ACC and B12 and other leagues now have assigned their Tier 1 media rights to the conference. Maryland left before that happened. So these sorts of things are not going to be happening for a good long while.

 

[SpecialKHawk]

Very good question, especially as the television market evolves over the next few years. There quite possibly could be a massive change coming to the economic models used for television.

The landscape is shifting. The key is someone is going to have to pony up as the content will not be given away for free. It only underscores the importance of the current battle and consolidation of conferences.

As the B1G understands getting coverage across large markets/geographical areas and potential fan bases is huge. The more you control the more content you have to make money. In addition picking up strong research schools brings in dollars on the academic side so it is a win-win.

I could foresee several powerful conferences banding together in some sort of agreement to monopolize content even more. Several conferences are going to be the strong arm in this. The dollars will be coming from somewhere.

 

[Doublewide]

This bubble will eventually burst, and its going to be hard. Good for the Big Ten for getting while the getting is good but no way this lasts forever. It will eventually lead to Ala Carte cable and this model won't last. Or internet based cable. When and how long till this happens but it is heading this way no doubt. You can right now find any game online for free albiet illegally in most cases but that wont stop.

 

[SpecialKHawk]

This bubble will eventually burst, and its going to be hard. Good for the Big Ten for getting while the getting is good but no way this lasts forever. It will eventually lead to Ala Carte cable and this model won't last. Or internet based cable. When and how long till this happens but it is heading this way no doubt. You can right now find any game online for free albiet illegally in most cases but that wont stop.

If you have the content in the most popular sport that people want you do not have to sweat the model and I do not see illegal viewing as the model. The money comes in regardless.

I would be more worried if you are sitting in a small market in a conference that has little ability to expand. There will be buyers and sellers and you better have something to sell if your not in with the buyers.

 

[deanvogs]

This bubble will eventually burst, and its going to be hard. Good for the Big Ten for getting while the getting is good but no way this lasts forever. It will eventually lead to Ala Carte cable and this model won't last. Or internet based cable. When and how long till this happens but it is heading this way no doubt. You can right now find any game online for free albiet illegally in most cases but that wont stop.

What self respecting fan would watch a game on a computer with the buffering problems, and the terrible picture, when they can get it in full HD glory?

 

[ColumbusHawk]

Kansas has absolutely no chance of becoming a member of the Big Ten. They bring absolutely nothing to the table. No TV market & the football program is horse hooey. Basketball is irrelevant. Compared to football, basketball is pocket change. It is all about football & TV sets.

In the scheme of economics, basketball is only slightly more important than college wrestling. Heck, Central Florida or South Florida bring more to the table than Kansas because of TV sets. Kansas basketball is meaningless!

 

[imported_ankle23]

What self respecting fan would watch a game on a computer with the buffering problems, and the terrible picture, when they can get it in full HD glory?

gotta remember who you are responding to.....these guys huddle around their laptops......that are plugged into cyclown.net........which is being shot by some nerdy kid probably painted in red........likely with a red cape on also.......FULL HD? nah......they'd settle for a steady camera shot!

 

[Seth53]

Ahhh......."Amateur" athletics and student/athletes.....how refreshing.

 

[treychase]

Very good question, especially as the television market evolves over the next few years. There quite possibly could be a massive change coming to the economic models used for television.

This article is correct & the B1G will not get what they think they're going to get because of it. Being last this time may have profound impact on the future of the B1G.

 

[treychase]

Except the ACC and B12 and other leagues now have assigned their Tier 1 media rights to the conference. Maryland left before that happened. So these sorts of things are not going to be happening for a good long while.

There's a line 5 miles long of lawyers that WANT a shot at the grant of rights, Jon.
I'd bet every penny I have that a grant of rights has a dollar figure on it that would be negotiated just as the exit fees have been.

If a school wants out, they'll get out.