Money Question

[billyjack]

You would imagine how annoying it would be for the b-ballers to have to share the weight room with a bunch of 315 lb football guards stinking up the place with steroid laced sweat.

Great line...

[XtoDC]

I mean....I just had to go back and check that again. That's about a 140% return for Xavier based on what they made versus what they spent. DAMN!!!! They need to teach a class!!

Exclusively own your own 10,000+ seat modern arena with luxury suites is a really good place to start. That really helps keep cost down because of no rent, then just sell out all the seats and suites and receive a big payday. It isn't much of a secret, but it sure as heck isn't easy to do.

[marquette]

Also, we left a ton of ncaa units with the A-10 which didn't help.

Hopefully that should be a thing of the past very soon. We've had a pretty good run of collecting units these past three years plus we are splitting them 10 ways vs the A10 splitting between 14 (15 back then?) schools.

[HallHoops]

Big East Finances - June 30, 2014

The financials for the Big East for the year ended June 30, 2014 (the first full year of the new Big East) are in and they seem disappointing to me on a number of levels.

First and foremost, though, keep in mind that the seven members of the old Big East (“OBE”) received a windfall in the year ended June 30, 2013 of $5 million each from the new Big East (“NBE”) from a bonus rights fee from the FOX TV contract plus each received a share from the OBE as follows that includes the negotiated buyout amounts and is much higher than the normal payouts from the OBE (see below for further info on that):

Here is a review of the NBE financials for the period March 22, 2013 (date of inception) through June 30, 2013:

Revenues:
FOX Bonus Rights Fee 35,000,000
Entrance Fees 10,000,000
Infrastructure Support 6,000,000 $51,000,000

Expenses:
Payments to 7 OBE schools 35,000,000
Expenses to run conference 2,003,297 37,003,297

Retained by conference $13,996,703

Some thoughts:

- Entrance Fees are from the 3 new members: Butler, Creighton, and Xavier
- Infrastructure Support is from the 7 members from the OBE and average $857K per school

Now let’s take a look at the financials for the year ended June 30, 2014, the first year of competition in the NBE:

2014
Revenues:
FOX Rights Fees $30,388,692
NCAA Credits 10,969,746
Conference Championships 4,346,883
Corporate Sponsorships 1,750,000
Other 410,345
Total Revenues $47,865,666

Expenses:
Payments to conference members $35,838,549
Expenses to run conference 10,152,115
Total Expenses $45,990,664

Retained by conference $1,875,002

Some thoughts:

- FOX TV fees of $30 million are low based on what has been reported in the media previously
- Good to see a healthy NCAA Credits amount
- Conference Championships expenses were $3,170,824, leaving a margin of $1,176,059

Here is the breakdown of the payments to conference members from the NBE and a comparison to what each of the seven members of the OBE received in the year ended June 30, 2012 (a normal year):

Villanova = $6,258,848
Marquette = $6,084,421
Georgetown = $4,273,068
Creighton = $3,142,530
Providence = $3,104,615
Xavier = $2,910,599
St. John's = $2,893,590
DePaul = $2,595,191
Seton Hall = $2,300,985
Butler = $2,274,702

My main takeaways are that the FOX TV contract may not be as lucrative as originally thought (although there is probably/hopefully escalation each year) and the division of funds to the members seems awfully skewed. It also takes quite a bit of money to run the conference. Certainly can’t take what has been reported in the media on the FOX TV contract, divide by 10, and think that is what each school gets. This was still a great option of course for the seven members of the OBE, given the other options, and now they control their own destinies.

Thoughts and questions?