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Old 03-13-2015, 03:04 PM   #1
Legacy
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Follow the Money - The Big Business of College Football

With the College Football playoffs and conference media rights deals, 2014-15 revenue distribution is expected to skyrocket for the Power-5 teams. Some conferences are additionally collecting more revenue from local or regional media. The Longhorn Network brings revenue to the University of Texas.

SEC and the SEC Network
For example, the SEC distributed $20.9 million to each of its members for the 2013-14 year. For 2014-15, from the SEC Network alone, each university will receive an estimated $23 million. The SEC Network is estimated to generate $468 million or $33.4 million per team per year with full distribution. (However, ESPN and the SEC office gets cuts of tha total, which will reduce that per team total). The NCAA tournament brings in an additional $11 million per SEC team.

The College Football Playoff
The College Football Playoff will bring in an additional $87.5 million to the SEC conference for 2014-15. Each Power-5 conference begins with $50 million and then divides the remaining pie and distributes the revenue first based on participation in different bowls and then subdivided among the conference schools based on formulas devised by each conference.

COLLEGE FOOTBALL PLAYOFF PAYOUTS/REVENUE DISTRIBUTION FOR 2014-15

The Big Ten and their media money
Big Ten is the leader in conference revenue. The Big Ten estimates each team will receive $44.5 million for the 2017-18 year in their first year of a new media contract deal. Each media deal is backended so that the most money will come towards the end of the contract. (That's just the media deal money.)

So, it's hard not to consider Power-5 football as a big business. Coaching contracts and building lavish facilities, recruiting budgets are reflections of the huge revenue burst. With pending lawsuits, it may be difficult to argue against players getting paid from some of this.

What do you think about these issues?

Last edited by Legacy; 03-13-2015 at 03:33 PM..
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Old 03-13-2015, 04:05 PM   #2
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I like the idea of schools making a great deal of money to support their educational missions, but would appreciate it if spending outside this mission were reduced. I don't really like the idea of coaching salaries exploding and ESPN being the real winner in all of this. I have no problem with a nonprofit taking in millions as long as it's spent on things like new lab equipment (the Jordan Hall of Science was the main beneficiary of our bowl revenues in 2005/2006) and books.

Also, the players being paid debate is played out. Still think it's an idea both stupid and pernicious.
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Old 03-13-2015, 04:37 PM   #3
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Question, and maybe this is dumb. If the power 5 conferences are getting all that money from the new CFP, how long will ND be independent missing on their chunk of that $. (maybe they get some already and i dont know it).
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Old 03-13-2015, 06:03 PM   #4
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Quote:
Originally Posted by NDdomer2 View Post
Question, and maybe this is dumb. If the power 5 conferences are getting all that money from the new CFP, how long will ND be independent missing on their chunk of that $. (maybe they get some already and i dont know it).
ND tries to avoid letting economics be the primary driver of sports decision-making, which explains how we didn't jump at the chance to join the B1G. However, I believe we basically get treated as our own conference (with limitations) at the big boy table-- Swarbrick gets to sit on the committee directly, whereas I think everyone else is a conference commissioner.
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Old 03-13-2015, 07:13 PM   #5
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Old 03-13-2015, 07:26 PM   #6
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My thoughts:

All good with everyone making more money and the separation for the Power-5 (and ND) from the rest. Hopefully it will lead to a future where there are less non-competitive games.

Looking at these numbers, I simply don't understand the argument barring compensation for players. What is the harm in it in today's society? I don't think it even needs to be cash from the schools. Ironically, getting the money on the table instead of under the table would be cleaner and easier to regulate. Seriously, if Jaylon Smith wants to sign autographs for $20 at a Chevy dealership or Will Fuller wants to introduce the WSBT news for an endorsement fee, what is the harm? If supporters want to donate money to some fund that will someday result in money for the players, what is the downside again? I guess that would mean less donations going directly to the schools. Tax it, manage it, spread it around, etc... but let them exploit the market!

THEY PLAY FOR MILLIONS OF DOLLARS A GAME, just not for themselves. It seems rooted in some kind of puritanical BS and it's feels kinda racist too in 2015 terms. I mean what other segment of society is barred from leveraging their value in the open market while others capitalize? The idea that they get nothing from video game licensing is insane and will have to change with those lawsuits.

Lastly, and I'm not surprised by this, but it seems Notre Dame really **** itself signing their current deal with NBC through 2025. $15m seems like chump change compared to where these Power-5 conference members will be headed by 2025. Live broadcast rights are rising faster than any other licensing in sports and entertainment. Perhaps a future enhanced ACC deal will allow ND to renegotiate.
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Old 03-13-2015, 07:31 PM   #7
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Quote:
Originally Posted by JTLA View Post
My thoughts:

All good with everyone making more money and the separation for the Power-5 (and ND) from the rest. Hopefully it will lead to a future where there are less non-competitive games.

Looking at these numbers, I simply don't understand the argument barring compensation for players. What is the harm in it in today's society? I don't think it even needs to be cash from the schools. Ironically, getting the money on the table instead of under the table would be cleaner and easier to regulate. Seriously, if Jaylon Smith wants to sign autographs for $20 at a Chevy dealership or Will Fuller wants to introduce the WSBT news for an endorsement fee, what is the harm? If supporters want to donate money to some fund that will someday result in money for the players, what is the downside again? I guess that would mean less donations going directly to the schools. Tax it, manage it, spread it around, etc... but let them exploit the market!

THEY PLAY FOR MILLIONS OF DOLLARS A GAME, just not for themselves. It seems rooted in some kind of puritanical BS and it's feels kinda racist too in 2015 terms. I mean what other segment of society is barred from leveraging their value in the open market while others capitalize? The idea that they get nothing from video game licensing is insane and will have to change with those lawsuits.

Lastly, and I'm not surprised by this, but it seems Notre Dame really **** itself signing their current deal with NBC through 2025. $15m seems like chump change compared to where these Power-5 conference members will be headed by 2025. Live broadcast rights are rising faster than any other licensing in sports and entertainment. Perhaps a future enhanced ACC deal will allow ND to renegotiate.
15 mill was the previous deal... This deal is 22-25 million a year. Either way if we wanted the most money we would join the Big 10(Yuck).

ND is at a disadvantage when it come access to the playoff I think because it's us versus these mega conferences.
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