Realignment Megathread (All The Moves)

[FriendlySpartan]

The point is, those with the most will most of the time have the best, "performance". And those with less will most of the time be the ones without.

Like I said if you can buy the best players, have the best of everything, in most cases you will remain the "best" so you will have the "best performance" and stay there.

No matter how you swing it, unequal revenue distribution is designed to keep those with the money and power, exactly that, and those without, as exactly that, cannon fodder.

And I disagree. Most big ten schools have had a staggering amount of recourses compared to ISU and don’t have a fraction of there recent success. Before this season what good were all those recourses for A&M? How about Florida? How are they doing with all their resources? What about Clemsons fall?

Football is cyclical and that’s why having but in unequal revenue sharing is a massive problem. That’s my point back in 2022 when we were discussing media deals and it’s my point now with all these other revenue sources that are potentially popping up.

 

[isucy86]

It’s not at all about the brand, it’s about the performance. Come on you have to get that with this logic. Penn state doesn’t have a coach, they could very well struggle to find one the way Michigan did, the way Florida has, you name it. OSU is on an unprecedented tear but the other programs are pretty cyclical.

Again, it’s why it’s ok because then you get Penn state and Michigan on the sidelines while Indiana is in. Every school has the opportunity.

Its about both and it's probably how it should be structured.

The Big10 Media Rights deal combined with Private Capital infusion allows Big10 Conference to reward Ohio State, Michigan and Penn State for their brand. They are being rewarded for consistently having higher TV viewership than the other 15 schools.

Schools will also be unequally paid for on-field/court performance through a higher share of CFP and NCAA Tournament revenues.

 

[Kinch]

I struggle to see how this is a good deal for Big10 schools. It's hard to find exact details of the proposal, but from what I've read this is my understanding:

1. Cal Investments is going to pay Big10 Enterprises $2.4B upfront and Big10 Enterprises is going to pay Cal Pension back principal & interest.
2. Cal Investments is also going to get a 10% equity stake in Big10 Enterprises.
3. Big10 Schools are being asked to extend their GOR from 2036 to 2046.
4. The Big10 Conference Office and all participating schools will receive a share of the $2.4B capital infusion.
5. Reports are:
   1. Ohio State, Michigan & Penn State will each receive $190M
   2. Oregion & USC will each receive $140-$150M
   3. The remaining 13 schools will each receive $100-110M

Pretty clear most Big10 athletic departments are:

• Over leveraged,
• Have no experience in cost containment
• Are struggling to pay the House Settlement liability
• Trying to find ways to fund their in-house NIL collective

I am sure I lack a lot of details of the financial transaction and PE is not in my knowledge base, but my questions are:

• Why would the Big10 agree to pay Cal Investments back principal and interest plus give up a 10% equity stake? It's not like there's much risk of Big10 media rights revenue going down and not paying Cal Investments back.
• If Cal Investments was willing to give Big10 Enterprises $2.4B when all 18 schools were in play and is still willing to give the Big10 $2.4B without USC & Michigan- sounds like Cal Investments knows it has plenty of upside (aka they got the better end of the deal).
• If Cal Investments is willing to do the deal, why wouldn't each Big 10 school's Endowment management team be willing to structure a similar deal? Keep the interest & equity in-house per se.
• If USC & Michigan don't participate, can they separately negotiate their own PC deal?
• Sure $110-$190M sounds like a lot upfront, but I imagine most schools will spend that money in the next 5-10 years. So where do the Big10/Little13 schools turn next to fund: Facilities, House Settlement & NIL?

With all the current hand-wringing about the Big10 deal, I fully expect the Big12, ACC and SEC will follow suite once the Big10 has created the template/financial structure. If not at a conference level, then at a University level.

There will be plenty of lawsuits when this is said and done. Cash advances are not a way to prosperity.

 

[FriendlySpartan]

Its about both and it's probably how it should be structured.

The Big10 Media Rights deal combined with Private Capital infusion allows Big10 Conference to reward Ohio State, Michigan and Penn State for their brand. They are being rewarded for consistently having higher TV viewership than the other 15 schools.

Schools will also be unequally paid for on-field/court performance through a higher share of CFP and NCAA Tournament revenues.

If the capital infusion goes through. Big if currently and really hoping it doesn’t.

 

[2speedy1]

And I disagree. Most big ten schools have had a staggering amount of recourses compared to ISU and don’t have a fraction of there recent success. Before this season what good were all those recourses for A&M? How about Florida? How are they doing with all their resources? What about Clemsons fall?

Football is cyclical and that’s why having but in unequal revenue sharing is a massive problem. That’s my point back in 2022 when we were discussing media deals and it’s my point now with all these other revenue sources that are potentially popping up.

If it is about performance, why is Indiana listed in tier 3 of the revenue share, and not in tier 1 in place of Penn State?

If it is about historical performance, then that is exactly about brand, because that is how those schools became a brand. A blue blood is a blue blood because of the brand they created historically.

 

[2speedy1]

There will be plenty of lawsuits when this is said and done. Cash advances are not a way to prosperity.

Yes, exactly. The point of that is, it doesnt matter where or how they justify the unequal distributions, in the end it is still unequal and will cause cracks in the conference.

Spartan has said on here, the B1G has been strong partly because they never did unequal shares, and he was right. But, that very well could change if they open the door to it, in one way, and in the end could very well snowball in to more and more, until it tears the conference apart, just like it has others in the past.

 

[FriendlySpartan]

If it is about performance, why is Indiana listed in tier 3 of the revenue share, and not in tier 1 in place of Penn State?

If it is about historical performance, then that is exactly about brand, because that is how those schools became a brand. A blue blood is a blue blood because of the brand they created historically.

That’s my whole point! Winner winner!

Having additional payouts for playoff births and NCAA bids is about performance! You got it!! That’s why it’s different then just having it baked in.

I knew we would get you to come around. That’s why if they moved away from unreal playoff payouts (within reason) no one would have an issue. If it’s baked in like you’re talking about then yeah it’s a problem and why the media deals won’t go that route.

 

[Kinch]

Yes, exactly. The point of that is, it doesnt matter where or how they justify the unequal distributions, in the end it is still unequal and will cause cracks in the conference.

Spartan has said on here, the B1G has been strong partly because they never did unequal shares, and he was right. But, that very well could change if they open the door to it, in one way, and in the end could very well snowball in to more and more, until it tears the conference apart, just like it has others in the past.

Exactly. At what time will tavern Hoks find out that Penn State gets $80 million more than the squawks? And Nebby. And Spartans. Did the Shorthorns screw us for $80 million? Unequal distribution always leads to a nasty breakup. And the GOR means nothing. This will not have a happy ending now no matter which way they go.

 

[IceCyIce]

Uggg I wish everyone would just blow up the current model and pull football out of the NCAA jail and bring back regional football. Pay the teams that win now "coaches and ""players"" get fired for not performing now.

With these big ass conferences it's crazy how many teams can go damn near an entire season and not play a ranked team. Then throw in "Protected Rivalries". Iowa has THREE protected rivals and all three of them are **** teams. They might as well have kept the big ten west in tact.

I wish I didn't care as much as I do. Time for another bourbon. Peace Out!!

 

[IceCyIce]

Exactly. At what time will tavern Hoks find out that Penn State gets $80 million more than the squawks? And Nebby. And Spartans. Did the Shorthorns screw us for $80 million? Unequal distribution always leads to a nasty breakup. And the GOR means nothing. This will not have a happy ending now no matter which way they go.

I love happy endings, thats why the hallmark channel is a must!!

 

[2speedy1]

That’s my whole point! Winner winner!

Having additional payouts for playoff births and NCAA bids is about performance! You got it!! That’s why it’s different then just having it baked in.

I knew we would get you to come around. That’s why if they moved away from unreal playoff payouts (within reason) no one would have an issue. If it’s baked in like you’re talking about then yeah it’s a problem and why the media deals won’t go that route.

But, the PE that is being discussed is not doing that, at least not what is being told anyway. That was my point.

 

[Cyhig]

B1G/$EC: “$80 million in revenues per year? WE DEMAND MORE! We can’t manage our athletics on a measly $80 million”

ACC/Big 12: “We will manage with what we have”

 

[FriendlySpartan]

But, the PE that is being discussed is not doing that, at least not what is being told anyway. That was my point.

Yeah the PE thing is BS and we don’t have the actual details especially with the pushback it’s getting. Rumors amongst Michigan people is that there are a couple more schools on their path just not making the public noise about it.

Any PE deal is wrong. What I was saying was the potential for future changes to post season payments which you called moving the goal posts and I’m trying to say how it’s both not and how it’s different then baked in unequal share.

If the PE deal goes through then the schools get what’s coming for them as this is so stupid and shortsighted. The more press this gets and it comes to light how little about the deals details have been shared the farther away this is from coming to reality.

 

[2speedy1]

Yeah the PE thing is BS and we don’t have the actual details especially with the pushback it’s getting. Rumors amongst Michigan people is that there are a couple more schools on their path just not making the public noise about it.

Any PE deal is wrong. What I was saying was the potential for future changes to post season payments which you called moving the goal posts and I’m trying to say how it’s both not and how it’s different then baked in unequal share.

If the PE deal goes through then the schools get what’s coming for them as this is so stupid and shortsighted. The more press this gets and it comes to light how little about the deals details have been shared the farther away this is from coming to reality.

Ok, I guess we were on different wave lengths I guess.

I was talking about the PE money, that has been discussed has the possibility of not being equal, not the potential playoff payout distribution. The playoff distribution, is tricky, I understand the idea behind it, but still say it is a way for the power/money to stay in the same hands. And once you introduce one kind of unequal equity in something it has a tendency to infect other areas as well. Once you open that box it is hard to close it, and as we have seen it tends to cause a lot of problems as it spreads.

 

[ISU_Guy]

B1G/$EC: “$80 million in revenues per year? WE DEMAND MORE! We can’t manage our athletics on a measly $80 million”

ACC/Big 12: “We will manage with what we have”

the difference is they need more to pay and fire coaches and put gold in locker rooms

 

[Cloneon]

Zero offense taken.

Because one is baked in and one is performance, speaking about paying programs more for post season performance not the PE thing which is a whole separate issue.

Looking at the 2025 season as an example Indiana would get a playoff share while Penn state and most likely Michigan won’t. That’s totally fine, they did it on the field and deserve it. With the unequal media dollars Penn State would be making more regardless of what they actually do on the field. This is something that people have a problem with especially as football is cyclical.

Yes, but even you'd have to agree it's like Vegas odds; over time the house always wins. Or put another way, given OSU's dominance over time, one or two outliers will not be enough to sustain them in closing the gap. I think, more importantly, those outliers increase the value of the conference. That aside IU is a fun story so far as they're performing well above their recruited talent level when compared to MU or OSU. That must be some incredible coaching.

 

[Cloneon]

I struggle to see how this is a good deal for Big10 schools. It's hard to find exact details of the proposal, but from what I've read this is my understanding:

1. Cal Investments is going to pay Big10 Enterprises $2.4B upfront and Big10 Enterprises is going to pay Cal Pension back principal & interest.
2. Cal Investments is also going to get a 10% equity stake in Big10 Enterprises.
3. Big10 Schools are being asked to extend their GOR from 2036 to 2046.
4. The Big10 Conference Office and all participating schools will receive a share of the $2.4B capital infusion.
5. Reports are:
   1. Ohio State, Michigan & Penn State will each receive $190M
   2. Oregion & USC will each receive $140-$150M
   3. The remaining 13 schools will each receive $100-110M

Pretty clear most Big10 athletic departments are:

• Over leveraged,
• Have no experience in cost containment
• Are struggling to pay the House Settlement liability
• Trying to find ways to fund their in-house NIL collective

I am sure I lack a lot of details of the financial transaction and PE is not in my knowledge base, but my questions are:

• Why would the Big10 agree to pay Cal Investments back principal and interest plus give up a 10% equity stake? It's not like there's much risk of Big10 media rights revenue going down and not paying Cal Investments back.
• If Cal Investments was willing to give Big10 Enterprises $2.4B when all 18 schools were in play and is still willing to give the Big10 $2.4B without USC & Michigan- sounds like Cal Investments knows it has plenty of upside (aka they got the better end of the deal).
• If Cal Investments is willing to do the deal, why wouldn't each Big 10 school's Endowment management team be willing to structure a similar deal? Keep the interest & equity in-house per se.
• If USC & Michigan don't participate, can they separately negotiate their own PC deal?
• Sure $110-$190M sounds like a lot upfront, but I imagine most schools will spend that money in the next 5-10 years. So where do the Big10/Little13 schools turn next to fund: Facilities, House Settlement & NIL?

With all the current hand-wringing about the Big10 deal, I fully expect the Big12, ACC and SEC will follow suite once the Big10 has created the template/financial structure. If not at a conference level, then at a University level.

Here's what I don't get. Maybe someone can help me out here. Why is the B1G so hard up for cash? My only guess is that the cost of infrastructure in populated areas where the real-estate value is through the roof creates a huge debt for improvements. Other than that, I don't get it.

 

[CascadeClone]

I struggle to see how this is a good deal for Big10 schools. It's hard to find exact details of the proposal, but from what I've read this is my understanding:

1. Cal Investments is going to pay Big10 Enterprises $2.4B upfront and Big10 Enterprises is going to pay Cal Pension back principal & interest.
2. Cal Investments is also going to get a 10% equity stake in Big10 Enterprises.
3. Big10 Schools are being asked to extend their GOR from 2036 to 2046.
4. The Big10 Conference Office and all participating schools will receive a share of the $2.4B capital infusion.
5. Reports are:
   1. Ohio State, Michigan & Penn State will each receive $190M
   2. Oregion & USC will each receive $140-$150M
   3. The remaining 13 schools will each receive $100-110M

Pretty clear most Big10 athletic departments are:

• Over leveraged,
• Have no experience in cost containment
• Are struggling to pay the House Settlement liability
• Trying to find ways to fund their in-house NIL collective

I am sure I lack a lot of details of the financial transaction and PE is not in my knowledge base, but my questions are:

• Why would the Big10 agree to pay Cal Investments back principal and interest plus give up a 10% equity stake? It's not like there's much risk of Big10 media rights revenue going down and not paying Cal Investments back.
• If Cal Investments was willing to give Big10 Enterprises $2.4B when all 18 schools were in play and is still willing to give the Big10 $2.4B without USC & Michigan- sounds like Cal Investments knows it has plenty of upside (aka they got the better end of the deal).
• If Cal Investments is willing to do the deal, why wouldn't each Big 10 school's Endowment management team be willing to structure a similar deal? Keep the interest & equity in-house per se.
• If USC & Michigan don't participate, can they separately negotiate their own PC deal?
• Sure $110-$190M sounds like a lot upfront, but I imagine most schools will spend that money in the next 5-10 years. So where do the Big10/Little13 schools turn next to fund: Facilities, House Settlement & NIL?

With all the current hand-wringing about the Big10 deal, I fully expect the Big12, ACC and SEC will follow suite once the Big10 has created the template/financial structure. If not at a conference level, then at a University level.

WHAT? Theyre getting P&I back AND equity too?!?!? Thats effing insane!! Thats the kind of deal you get if you are teetering an bankruptcy, huge risk. B1G is nowhere near that level of danger.

Anyone signing up to that from the B1G, anyone CONSIDERING it, should be fired, immediately, from a cannon, into the sun.

Where can i get a piece of that?

 

[SolterraCyclone]

Here's what I don't get. Maybe someone can help me out here. Why is the B1G so hard up for cash? My only guess is that the cost of infrastructure in populated areas where the real-estate value is through the roof creates a huge debt for improvements. Other than that, I don't get it.

Most schools (B10 and others alike) are hard up for cash because they had a 10-20% expense, with the house settlement, added to a budget that’s already been allocated 100% for the foreseeable future.

In laymen’s terms, you could make a million dollars a year, and the general public would be thinking “damn that person is doing well!” But if you’re living paycheck to paycheck and have an established lifestyle, an unexpected $100,000 cost is going to hit you hard.

 

[1UNI2ISU]

Here's what I don't get. Maybe someone can help me out here. Why is the B1G so hard up for cash? My only guess is that the cost of infrastructure in populated areas where the real-estate value is through the roof creates a huge debt for improvements. Other than that, I don't get it.

14 of the 18 schools have spent every future dime they had coming and then rev share hit.