BIG Media Rights Negotiation Update

[AuH2O]

AD's are restricted by the NCAA in using funds for NIL deals. Since most of these are public institutions, it wouldn't be that hard to prove if it were happening either.

But to your point, what are they going to do with this money? I feel like its at the point where all these schools already have new and shiny stuff. I guess they could pay coaches and administrative more. The SEC will probably do locker room renovations every couple years now (it already seems like they are).

If this was pre-NIL, the marginal value of these media dollars to football and MBB would be pretty small. Pretty much every power conference team has good enough facilities and services to student-athletes that it was having a small impact on recruiting and thus on the field performance. BIG has had a massive media dollar advantage over the Big 12 for 15 years and it never materialized to on the field/court superiority.

Post-NIL, these media dollars become much more valuable as donors that used to dump big money into ADs now likely divert at least some to pay for play.

If it was pre-NIL, I think you would've seen a big boost to the money losing sports (basically everything but MBB and FB). They will still probably see some, but you might see ADs hoarding some cash in anticipation of donor diversions to pay for play.

 

[Cyclad]

B1G schools ain't going to make $100 mill a year from this.

Will the Power 5 soon become the Power 2? Unpacking new TV revenue projections for a 12-team CFP world

Updated projections indicate the SEC and the Big Ten stand to make nearly twice as much as the Big 12, Pac-12 and ACC by 2026.

theathletic.com

 

[Farnsworth]

Lawyers and a cleaver AD, can figure out a way. The mechanics would need to be determined, but donors simply give their money to NIL to buy players rather than donating to the athletic department, who no longer needs the money.

This.

Iowa State AD still relies on donors to help fund the department. If we had a deal like this where everything was easily taken care of by TV rights, all donations could be funneled to NIL instead.

BIG and SEC won't need donors anymore, so they can put their money into the sham companies being created for NIL.

 

[cyman05]

B1G schools ain't going to make $100 mill a year from this.

Not from TV alone but the total conference payout won’t be far off from $100 million if the article is true

 

[Gonzo]

Not from TV alone but the total conference payout won’t be far off from $100 million if the article is true

If current projections are true then B1G schools would make around $71 mill per year from the media rights deal. I don't see schools making an additional $25-$30 mill annually from bowl/CFP payouts, lower-tier media, and whatever else goes into it. Maybe one or two of the big dogs, but not everyone.

 

[cyman05]

If current projections are true then B1G schools would make around $71 mill per year from the media rights deal. I don't see schools making an additional $25-$30 mill annually from bowl/CFP payouts, lower-tier media, and whatever else goes into it. Maybe one or two of the big dogs, but not everyone.

I don’t know. The article says right now tv is 440 mil per year which is $31 million per team. Last years total payout was $54 mil and that was lower than the year before due to Covid. If the new TV deal is 1.1 billion per year that is $78 million per team in tv revenue. If you add $23 million total excess beyond tv to be consistent with last year that’s $101 mil per team.

As others said, if the tv dollars can sustain the whole athletic dept then you funnel all the other dollars to NIL. If that were to happen then how does any non-B10 or SEC school compete? Something is going to break or radically change in the next 5-10 years

 

[Cyclad]

If current projections are true then B1G schools would make around $71 mill per year from the media rights deal. I don't see schools making an additional $25-$30 mill annually from bowl/CFP payouts, lower-tier media, and whatever else goes into it. Maybe one or two of the big dogs, but not everyone.

My point was really not to argue the exact dollars, although $100M is not far fetched.
I basically said - for that kind of money I would gladly follow the lead of Michigan and Ohio State. I doubt Rutgers will be complaining.

 

[VeloClone]

I don’t know. The article says right now tv is 440 mil per year which is $31 million per team. Last years total payout was $54 mil and that was lower than the year before due to Covid. If the new TV deal is 1.1 billion per year that is $78 million per team in tv revenue. If you add $23 million total excess beyond tv to be consistent with last year that’s $101 mil per team.

As others said, if the tv dollars can sustain the whole athletic dept then you funnel all the other dollars to NIL. If that were to happen then how does any non-B10 or SEC school compete? Something is going to break or radically change in the next 5-10 years

The big 10 headquarters will suddenly be inadequate and they will be building a new Taj Majal as well as giving their commissioner a fat raise. When there is more money, there is more skimming.

 

[Gonzo]

I don’t know. The article says right now tv is 440 mil per year which is $31 million per team. Last years total payout was $54 mil and that was lower than the year before due to Covid. If the new TV deal is 1.1 billion per year that is $78 million per team in tv revenue. If you add $23 million total excess beyond tv to be consistent with last year that’s $101 mil per team.

As others said, if the tv dollars can sustain the whole athletic dept then you funnel all the other dollars to NIL. If that were to happen then how does any non-B10 or SEC school compete? Something is going to break or radically change in the next 5-10 years

Yeah but you can't divide that last $440 mill evenly by all 14 schools. Some of the newer schools weren't getting a full share. So some of the schools were getting quite a bit more than the $31 mill from the TV deal, reducing what they'd get from everything else to hit $54 mill. Looks like conferences get $4 mill for each non-playoff bowl participant, so if 8 teams make a bowl game that's $32 million to the B1G which is split evenly among all 14 members... $2.3 mill. I just don't see how they would bring in that much more through bowl games and the other stuff.

 

[cyman05]

Yeah but you can't divide that last $440 mill evenly by all 14 schools. Some of the newer schools weren't getting a full share. So some of the schools were getting quite a bit more than the $31 mill from the TV deal, reducing what they'd get from everything else to hit $54 mill. Looks like conferences get $4 mill for each non-playoff bowl participant, so if 8 teams make a bowl game that's $32 million to the B1G which is split evenly among all 14 members... $2.3 mill. I just don't see how they would bring in that much more through bowl games and the other stuff.

Maybe you’re right- but to the point above, the exact dollars aren’t important but what are the implications of creating a huge revenue gap? Time will tell

 

[FriendlySpartan]

Yeah but you can't divide that last $440 mill evenly by all 14 schools. Some of the newer schools weren't getting a full share. So some of the schools were getting quite a bit more than the $31 mill from the TV deal, reducing what they'd get from everything else to hit $54 mill. Looks like conferences get $4 mill for each non-playoff bowl participant, so if 8 teams make a bowl game that's $32 million to the B1G which is split evenly among all 14 members... $2.3 mill. I just don't see how they would bring in that much more through bowl games and the other stuff.

80-85 million per school is where the final number is expected to land once all the rights are accounted for. Fox will get the majority of games, NBC and CBS are competing for a couple, and the streaming services are looking for tier 3 or weekday games.

 

[Cyrealist]

Yep, this would be the smart thing to do. Since the AD no longer needs as much money, fans can funnel more money towards NIL.

I could see Iowa's baseball program and wrestling program getting some nice additions though.

I think in today's world, it would be more likely to go for some kind of stipend for non-revenue sports. If it went to players.

 

[FriendlySpartan]

I think in today's world, it would be more likely to go for some kind of stipend for non-revenue sports. If it went to players.

That would be a very tough sell. It will go to coaches and assistant coaches salaries, facilities, and facilities for preferred non revenue sports.

 

[Yellow Snow]

That would be a very tough sell. It will go to coaches and assistant coaches salaries, facilities, and facilities for preferred non revenue sports.

I believe the poster you quoted was saying that with all of the TV money coming in, the bulk of the booster money normally dedicated to improving facilities, coaches salaries, etc. can now be diverted to paying players.

That is where we lose.

 

[Gunnerclone]

I believe the poster you quoted was saying that with all of the TV money coming in, the bulk of the booster money normally dedicated to improving facilities, coaches salaries, etc. can now be diverted to paying players.

That is where we lose.

That is where everyone loses.

 

[FriendlySpartan]

I believe the poster you quoted was saying that with all of the TV money coming in, the bulk of the booster money normally dedicated to improving facilities, coaches salaries, etc. can now be diverted to paying players.

That is where we lose.

This is correct and It is already been happening for awhile. Hopefully some NIL regulation comes through although I’m not sure how it can be enforced or managed. If nothing else the active recruiting of already enrolled athletes needs to stop and that has a ton of support.

 

[Yellow Snow]

This is correct and It is already been happening for awhile. Hopefully some NIL regulation comes through although I’m not sure how it can be enforced or managed. If nothing else the active recruiting of already enrolled athletes needs to stop and that has a ton of support.

That's kind of where I am at. We... or Michigan State for that matter aren't going to be able to compete in the high school market for recruits. You guys better than us, but whatever. So why bother? Why not recruit the portal with the NIL money?

They've already transferred. Less risk of bolting with a free transfer year.

This is going to kill High School recruiting for us.

 

[cykadelic2]

This is correct and It is already been happening for awhile. Hopefully some NIL regulation comes through although I’m not sure how it can be enforced or managed. If nothing else the active recruiting of already enrolled athletes needs to stop and that has a ton of support.

And the only way to effectively stop it without NCAA subpoena power is reinstating the transfer one year sit out rule for FB, MBB and WBB.

 

[iahawks]

That is where everyone loses.

Yep, my dad said in the 90s that all the money NASCAR was getting was going to ruin the sport and he was right. I think the same can be said about College Athletics soon.

 

[Beyerball]

I'll tell you exactly what is going to happen...By 2030..

With all NiL nightmare etc...

College football will govern itself with a governing board and rotating President..similar to NFL and NBA.

College football as it's own governing entity is not going to allow 28 teams to make 100% more TV revenue while other 40 teams just say "ok no problem"...College football will negotiate its entire package with several networks...Like NFL and NBA and have shared revenue equally across 68 or whatever teams.

There won't be an argument of "why should ohio st share revenue with Iowa State"...Ohio State shares revenue with Rutgers.

Especially since we are headed down a path of athletes becoming employees of the University. Matter of time.