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That TV money is having tangible effects, too, leading to the conference having five of the top fourteen paid coaches in 2016 as per USA Today (including Jim Harbaugh, tops at $9 million, and Urban Meyer, third at $6 million, before any bonuses). The splashy hires we’ve seen this offseason at even schools like Purdue (Jeff Brohm, six years, $20 million plus a $3.5 million annual pool for staff) and Minnesota (P.J. Fleck, five years, $18.5 million) also are proof of the conference’s riches..
The league’s new TV deal kicks in later this year, a reported $2.6 billion package over six years. The Cedar Rapids-Gazette reported that per-school payouts are conservatively estimated to top $43 million in 2017-18 and could top out at $54 million per school at the end of the contract.
The SEC is the only other league in that stratosphere, and the Big Ten is expected to outpace everyone in total revenue.
“That’s the engine that drives every athletic department,” [Northwestern AD Jim] Phillips said of the rising tide of TV money.
How far will the Big Ten be pulling away from the SEC in terms of TV money? Well, Bennett’s piece doesn’t say, but we know the Big Ten’s new deal averages $440 million per season ($220 million from Fox, $190 million from ESPN, $10 million from CBS for basketball). Of course, that’s annual value, and as this July piece from Forbes’ Chris Smith notes, these deals usually start at the bottom and grow over time.
The conference networks also need to be factored in. According to Smith, the SEC made $375 million from its own TV deals (including the SEC Network) for the 2015-16 season, while the Big Ten made $291 million (counting its network) there. He writes that it looks like that will change significantly under the new deal, even at the start:
This year the SEC generated an estimated $375 million in TV money, by far the most of any conference (we estimate that the Big Ten made $291 million from its TV deals last year, second-most among college conferences). The SEC also collected another $140 million from football and basketball postseason play. That’s $515 million in total, or roughly $37 million per member school. No other conference comes close to matching that per-school revenue – the Big Ten and Big 12 both sit at just over $30 million – and only the Big Ten was able to crack even $400 million in gross income. …
Assuming that the Big Ten’s new deals have a similar 5% annual escalator in place, that means the conference will earn somewhere in the neighborhood of $390 million next year. That same year the SEC will generate around $255 million in rights fees from its ESPN and CBS deals. The conference-specific networks are major factors here, but they’re mostly equivalent at this point – we figure each conference made around $125 million from its respective network. In other words, even at its least valuable the Big Ten’s new TV income will give it a major head start, and that should easily put the conference back in the hunt for the title of college sports’ most valuable conference...
The rest of the Power Five are in nowhere near as strong of a position. The Pac-12 Networks haven’t caught on the same way and still face big distribution issues (especially with DirecTV, although they did add four million subscribers thanks to a Dish tier change), the ACC Network is digital-only until 2019 and the Big 12 has nothing conference-wide (but hey, Longhorn Network!). Here’s Smith’s Forbes‘ analysis of the 2015-16 season conference revenues and distributions (regular TV deals plus postseason money):..
That analysis had the SEC with $515 million total ($36.8 million per school) and the Big Ten with $431 million total ($30.8 per school) for 2015-16. Now that the Big Ten’s closer to the SEC, the gap to everyone else looks larger. The Big 12 made the next largest per school over that timeframe($302 million, $30.2 per school), while the Pac-12 had $351 million (29.8 per school) and the ACC had $328 million ($21.9 per school). ACC revenues are going to rise a bit with this new digital network, but not to the scale of the SEC or Big Ten networks, and while it’s possible the Pac-12’s network income could rise, it seems hard to imagine it closing the gap...
http://awfulannouncing.com/2017/the...-the-lead-may-provide-a-competitive-edge.html
The league’s new TV deal kicks in later this year, a reported $2.6 billion package over six years. The Cedar Rapids-Gazette reported that per-school payouts are conservatively estimated to top $43 million in 2017-18 and could top out at $54 million per school at the end of the contract.
The SEC is the only other league in that stratosphere, and the Big Ten is expected to outpace everyone in total revenue.
“That’s the engine that drives every athletic department,” [Northwestern AD Jim] Phillips said of the rising tide of TV money.
How far will the Big Ten be pulling away from the SEC in terms of TV money? Well, Bennett’s piece doesn’t say, but we know the Big Ten’s new deal averages $440 million per season ($220 million from Fox, $190 million from ESPN, $10 million from CBS for basketball). Of course, that’s annual value, and as this July piece from Forbes’ Chris Smith notes, these deals usually start at the bottom and grow over time.
The conference networks also need to be factored in. According to Smith, the SEC made $375 million from its own TV deals (including the SEC Network) for the 2015-16 season, while the Big Ten made $291 million (counting its network) there. He writes that it looks like that will change significantly under the new deal, even at the start:
This year the SEC generated an estimated $375 million in TV money, by far the most of any conference (we estimate that the Big Ten made $291 million from its TV deals last year, second-most among college conferences). The SEC also collected another $140 million from football and basketball postseason play. That’s $515 million in total, or roughly $37 million per member school. No other conference comes close to matching that per-school revenue – the Big Ten and Big 12 both sit at just over $30 million – and only the Big Ten was able to crack even $400 million in gross income. …
Assuming that the Big Ten’s new deals have a similar 5% annual escalator in place, that means the conference will earn somewhere in the neighborhood of $390 million next year. That same year the SEC will generate around $255 million in rights fees from its ESPN and CBS deals. The conference-specific networks are major factors here, but they’re mostly equivalent at this point – we figure each conference made around $125 million from its respective network. In other words, even at its least valuable the Big Ten’s new TV income will give it a major head start, and that should easily put the conference back in the hunt for the title of college sports’ most valuable conference...
The rest of the Power Five are in nowhere near as strong of a position. The Pac-12 Networks haven’t caught on the same way and still face big distribution issues (especially with DirecTV, although they did add four million subscribers thanks to a Dish tier change), the ACC Network is digital-only until 2019 and the Big 12 has nothing conference-wide (but hey, Longhorn Network!). Here’s Smith’s Forbes‘ analysis of the 2015-16 season conference revenues and distributions (regular TV deals plus postseason money):..
That analysis had the SEC with $515 million total ($36.8 million per school) and the Big Ten with $431 million total ($30.8 per school) for 2015-16. Now that the Big Ten’s closer to the SEC, the gap to everyone else looks larger. The Big 12 made the next largest per school over that timeframe($302 million, $30.2 per school), while the Pac-12 had $351 million (29.8 per school) and the ACC had $328 million ($21.9 per school). ACC revenues are going to rise a bit with this new digital network, but not to the scale of the SEC or Big Ten networks, and while it’s possible the Pac-12’s network income could rise, it seems hard to imagine it closing the gap...
http://awfulannouncing.com/2017/the...-the-lead-may-provide-a-competitive-edge.html
