Conference TV Contracts and Revenue

[Fieldhouse Flyer]

This topic has arisen in a number of other threads (mostly in the context of possible future BE expansion), so I’m starting this as a Reference Thread containing information which may be useful in other discussions. Some of the information below has been previously posted but most of it has not.
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Conference TV Contracts and Revenue - The P5 Conferences

Previously posted on February 10, 2017: ACC experiences record revenue growth – The (Raleigh NC) New & Observer – June 10, 2016

The SEC generated $527.4 million of revenue and dispersed $457.8 million to its 14 member schools - an average of $32.7 million per school.

The Big Ten generated $448.8 million of revenue and dispersed $411.3 million to its 14 member schools - an average of $32.4 million per school.

The Pac-12 generated $439 million of revenue and dispersed $301.4 million to its 12 member schools - an average of $25.1 million per school.

The ACC generated $403.1 million in revenue and dispersed $373 million to its 15 member schools - an average of $26.2 million per school.

The Big 12 generated $267.8 million in revenue and dispersed $227.2 million to its 10 member schools - an average of $22.7 million per school.
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Information concerning the payout ratio between football and basketball is scarce, but this appears to be a reasonable percentage:

Previously posted: New Atlantic 10 Television Contract Shows Big East Basketball Schools Aren't Going Anywhere – October 3, 2012

The ACC television deal is divided 80% for football and 20% for basketball.

SEC Net Basketball Revenue = 20% of $32.7 million per year per school = $6.54 million per year per school.

Big Ten Net Basketball Revenue = 20% of $32.4 million per year per school = $6.48 million per year per school.

Pac-12 Net Basketball Revenue = 20% of $25.1 million per year per school = $5.02 million per year per school.

ACC Net Basketball Revenue = 20% of $26.2 million per year per school = $5.24 million per year per school.

Big 12 Net Basketball Revenue = 20% of $22.7 million per year per school = $4.54 million per year per school.
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Conference Take = (total revenue generated by conference) - (total amount dispersed to member schools)

SEC Conference Take = $527.4 million - $457.8 million = $69.6 million per year

Big Ten Conference Take = $448.8 million - $411.3 million = $37.5 million per year

Pac-12 Conference Take = $439 million - $301.4 million = $137.6 million per year

ACC Conference Take = $403.1 million - $373 million = $30.1 million per year

Big 12 Conference Take = $267.8 million - $227.2 million = $40.6 million per year
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Conference Payout Ratio = (total amount dispersed to member schools) / (total revenue generated by conference)

SEC Payout Ratio = $457.8 million / $527.4 million = .868

Big Ten Payout Ratio = $411.3 million / $448.8 million = .916

Pac-12 Payout Ratio = $301.4 million / $439 million = .687

ACC Payout Ratio = $373 million / $403.1 million = .925

Big 12 Payout Ratio = $227.2 million / $267.8 million = .848
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The Big Ten’s new TV deal puts it into the lead, may provide a competitive edge - Andrew Bucholtz, AwfulAnnouncing – January 15, 2017

[Fieldhouse Flyer]

Conference TV Contracts and Revenue - The Big East

Previously posted:

BE Conference Gross Revenue per Year = ($500 million) / (12 years) = $41.7 million per year

BE Gross Revenue per Year per School = $41.7 million per year / (10 schools) = $4.17 million per year per school

The calculation above does not include any allowance for Conference Take, which is used to pay the salaries and expenses of the Big East Commissioner and her staff, and the game officials for all men’s and women’s sports. The BE’s Conference Take also has to cover rent and utility bills for the Big East Headquarters, insurances, taxes, and many other miscellaneous expenses.

Since the Big East has not publicly disclosed this information (to the best of my knowledge), three arbitrary assumptions will be quantified:


1. Big East Conference Take = $15 million per year

==> BE Net Revenue per year per school = ($41.7 million per year - $15 million per year)/(10 schools) = $2.67 million per year per school.

==> BE Conference Payout Ratio = ($26.7 million per year)/($41.7 million per year) = .640


2. Big East Conference Take = $12.5 million per year

==> BE Net Revenue per year per school = ($41.7 million per year - $12.5 million per year)/(10 schools) = $2.92 million per year per school.

==> BE Conference Payout Ratio = ($29.2 million per year)/($41.7 million per year) = .700


3. Big East Conference Take = $10 million per year

==> BE Net Revenue per year per school = ($41.7 million per year - $10 million per year)/(10 schools) = $3.17 million per year per school.

==> BE Conference Payout Ratio = ($31.7 million per year)/($41.7 million per year) = .760


It should be noted that the Big East’s total annual fixed costs are shared by only 10 schools, whereas the total annual fixed costs for P5-conference schools are shared by up to 15 schools. That denominator makes a big difference. It should also be noted that the P5-conferences have very significant football-related expenses that the Big East does not have. All things considered, I would be very surprised if the Big East’s Conference Take is more than $15 million per year or less than $10 million per year.

This means that each of the Big East’s 10 member schools likely receive a net revenue in the range of $2.67 million to $3.17 million per year from the Fox Sports TV Contract.

[Fieldhouse Flyer]

Conference TV Contracts and Revenue - The 2017 NCAA Tournament Payout

ACC nabs highest NCAA March Madness payout among all conferences - Derek Helling, Fansided - April 5, 2017

The ACC led all conferences with 19 game units in 2017, matching their leading total from 2016. The SEC was second with 16, followed by the Big 10 and Big East with 15. The Big 12 was next with 14, then the Pac-12 with 11.

The West Coast Conference recorded six game units. The A-10 Conference got four game units. The American and the WAC each got three. Conference USA and the Missouri Valley Conference both recorded two game units each. All other qualifying conferences received a single game unit.

Because of its 19 game units, the ACC will reap $32.49 million over the next six years.

The SEC will haul in $27.36 million. Both the Big 10 and Big East will have $25.65 million to disperse.

The Big 12 should expect to get $23.94 million and the Pac-12 $18.81 million.

The NCAA doesn’t regulate how conferences dispense these funds between their member schools. Most conferences disperse the funds evenly between all their members, even those schools which didn’t qualify for the NCAA tournament.

Big East: $25.65 million / (6 years) / (10 schools) = $427,500 per year per school (if the revenue is shared equally).

[BEXU]

Love the statfest but who cares? 20% to basketball programs? Who knows? What's the bottom line? Is BASKETBALL PROFITABLE? Who knows with these stats. 85% of FBS schools LOSE MONEY on their programs and some have the taxpayers picking up the losses. One would expect the SEC and BiG to make all kinds of money on their huge deals, but there are still those teams that struggle. You can have revenue of a billion dollars on your program and spend a billion and a half.

http://www.washingtonpost.com/sf/sports ... 59dddeca3e

[HallHoops]

Big East numbers are available as follows for the year ended June 30, 2015:

Revenues:
FOX Rights Fees $31,572,757
NCAA Credits 4,185,882
Conference Championships 4,399,610
Corporate Sponsorships 2,036,632
Other 440,463
Total Revenues $42,635,344

Expenses:
Payments to conference members $28,938,025
Expenses to run conference 13,556,557
Total Expenses $42,494,582

Retained by conference $140,762

2015
Butler $2,950,070
Creighton 2,215,475
DePaul 2,380,570
Georgetown 3,217,909
Marquette 2,703,538
Providence 2,977,189
Seton Hall 2,377,653
St. John's 2,923,504
Villanova 3,273,830
Xavier 3,220,709
$28,240,447

[myopicraiderfan]

To true up revenues distributed to the conference members, remember that with the exception of the B12, the conferences own third tier rights. I believe for last year the B12 distributed 30.4 million to each school not counting third tier rights. Obviously Texas gets 15 million extra a year with the Longhorn Network, but even KU and West Virginia are reportedly getting 8 and 9 million a year for their T3 rights. Ultimately, money is why the B12 will stay together and not expand, maybe even past 2025 when their GoR expires. As long as the money continues to come in, the B12 will last, but if the SEC or B10 networks start to vastly over perform what the B12 gets, then the most valuable teams will leave.

[Bill Marsh]

Big East numbers are available as follows for the year ended June 30, 2015:

Revenues:
FOX Rights Fees $31,572,757
NCAA Credits 4,185,882
Conference Championships 4,399,610
Corporate Sponsorships 2,036,632
Other 440,463
Total Revenues $42,635,344

Why are Fox revenues listed as $31.5 million? Is that a typo?

The contract is $500 million for 12 years, which equals $41,666,667 annually - unless it starts low and has an escalator to increase the pay out annually.

[Fieldhouse Flyer]

Previously posted: Value of College Hoops Teams

Interesting Wall Street Journal article on the value of college basketball teams...

http://www.wsj.com/articles/how-much-is ... 1459459516

Louisville remains college basketball’s most valuable team according to an annual study by Ryan Brewer, an assistant professor of finance at Indiana University-Purdue University Columbus.

Brewer studied 175 of Division I’s 351 teams, accounting for those in major conferences and others that have made the tournament in recent years. Brewer analyzed each program’s revenues and expenses and made cash-flow adjustments, risk assessments and growth projections to calculate what a college team would be worth on the open market, if it could be bought and sold like a professional franchise.


11 - Connecticut ($137,900,000)
24 - Dayton ($80,600,000)
26 – Xavier ($78,100,000)
35 – Marquette ($59,600,000)
37 – St. John’s ($55,000,000)

51 – DePaul ($42,900,000)
52 – Georgetown($42,200,000)
54 – Villanova ($40,400,000)
73 – Providence ($29,700,000)
78 – Creighton ($28,100,000)
79 – Seton Hall ($27,700,000)
93 – Butler ($20,200,000)
96 - Saint Louis ($18,600,000)

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How Much Is Your College-Basketball Team Worth? – The Wall Street Journal - March 30, 2017

In an annual study, Ryan Brewer, an assistant professor of finance at Indiana University-Purdue University Columbus, assesses what every college team would be worth on the open market if it could be bought and sold like a professional franchise. The study analyzes each program’s revenues and expenses with cash-flow adjustments, risk assessments, and growth projections.

Rank - Team • 2016 Valuation • 2015 Valuation • % Change

21 - Dayton • $88,415,000 • $80,594,000 • +9.70%
28 - Marquette • $71,918,000 • $59,623,000 • +20.60%
29 - Xavier • $70,562,000 • $78,084,000 • -9.60%
38 - Connecticut • $57,962,000 • $137,895,000 • -58.00%
47 - Villanova • $50,534,000 • $40,445,000 • +24.90%

52 - Georgetown • $47,910,000 • $42,157,000 • +13.60%
55 - St. John's • $45,213,000 • $55,036,000 • -17.80%
73 - Providence • $31,734,000 • $29,656,000 • +7.00%
74 - Creighton • $31,619,000 • $28,084,000 • +12.60%
81 - Saint Louis • $28,094,000 • $18,570,000 • +51.30%
82 - DePaul • $27,210,000 • $42,911,000 • -36.60%
85 - Seton Hall • $25,715,000 • $27,689,000 • -7.10%
92 - Butler • $22,588,000 • $20,240,000 • +11.60%

[DudeAnon]

This is hilarious. Fieldhouse has officially just become a wikipedia bot. Can you please add some human thought to your stat dumps? What am I supposed to take from all this shit?

[HallHoops]

Why are Fox revenues listed as $31.5 million? Is that a typo?

The contract is $500 million for 12 years, which equals $41,666,667 annually - unless it starts low and has an escalator to increase the pay out annually.

Not a typo.

- Not sure that $500 million over 12 years is accurate

- Fox paid $35 million of that upfront in 2013 as soon as the new Big East was formed, so it's really $500 million over 13 payments = $38,462,000 average per year if the $500 million is correct

- I'm sure there is an escalation clause as well