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Meanwhile Big12/Fox playing hardball:
It's pretty tough to set a budget when your revenue is based on team performance. Obviously that happens to some extent when it comes to attendance and merchandise revenue, but if it's the different between 18 million and 54 million (50% swing off 36.1m) that's huge. Also, what if 75% of the league makes the NCAA tournament or goes bowling? The more I think about it, the more I'd advocate for a lower static allocation (ie 30m) and then pool the last 6m per team and divvy it up to the top performers.This is interesting. I’m not sure I see it getting sufficient votes from the school presidents In that there are more have nots than haves. Still, perhaps the Boston colleges of the world have come to the realization that their best and highest function in athletics is as a parasite. The tick doesn’t tell the host where to walk or what to do. It just hangs on.
You can pay teams a fixed amount and then have a variable component based on performance. Say the total revenues for a 14 team conference are $504 million or $36 million per team. You could pay a fixed $30 million per school for a total of $420 million and then pay the rest of the pool, $84 million, based on performance. So, a school that has a good performance year might earn $60 million and the next team earns $50 million,... Or, you could have multiple teams make $45 million based on performance,....It's pretty tough to set a budget when your revenue is based on team performance. Obviously that happens to some extent when it comes to attendance and merchandise revenue, but if it's the different between 18 million and 54 million (50% swing off 36.1m) that's huge. Also, what if 75% of the league makes the NCAA tournament or goes bowling? The more I think about it, the more I'd advocate for a lower static allocation (ie 30m) and then pool the last 6m per team and divvy it up to the top performers.
They're already discussing this.Here is a thought...
Why, with an expanded playoff, would not the Big Ten and SEC push for a playoff payout like the one in basketball. If those two conferences load up the playoff roster, than they can gain most of the money.
Conferences would get paid per game in the playoff....I can see Sankey picking up the phone and calling Warren..."Kevin, I have an idea that I think you should listen to..."
Is that based on any reports?50% of all playoff revenue will likely go to the SEC and B1G. The other 50% will be split by everyone else with the PAC, ACC and Big 12 receiving more than the G5.
Is that based on any reports?
Thanks for sharing - interested to see if this unequal revenue sharing will continue under the expanded playoff. It seems like they should consider sharing revenues more similarly to the March Madness revenue sharing as that has certainly helped grow the game of basketball at the collegiate level.
Revenue distribution
This is the next-biggest task for conference commissioners and university presidents to tackle, several sources told CBS Sports. It must be determined what fair compensation looks like for the conferences, a task last undertaken when CFP started in 2014.
Basically, whatever kind of weight the SEC and Big Ten throw around the room will be a huge factor. In expansion, those conferences are trading money for access. They'll get their money, but the remaining eight conferences get a better shot at the playoff. That will be a first.
That access -- tripling the field -- keeps the feds away from collusion or antitrust accusations from the smaller conferences. Those lesser leagues now have more access than ever. That in itself smothers any talk of a monopoly.
"The playoff is the key," Aresco said. "If you have access to that, I think you'll stay relevant. Your donors will care. Your fans will care. The schools will make the investment because they have a chance to compete. … That's going to be the key to everything."
In 2021, the Power Five conferences each got $74 million annually from the CFP for, well, being Power Five conferences. The Group of Five split $95 million, about 20% of the total annual net distribution. Back when the CFP was formed, that percentage was basically agreed upon as a number that would keep the Group of Five from suing. With access going from four to 12, that reinforces the unlikely prospect of any legal action.
Going forward, here's one educated guess on the future distribution assuming a doubling of the annual revenue brought in by the CFP from $600 million (four teams) to $1.2 billion per year (12):
These projections do not include deductions for revenue distribution to FBS independents, FCS and NCAA Divisions II and III.
- SEC and Big Ten combine to get half the total, $600 million ($300 million each). That's an additional $16.7 million per year for each of those leagues' schools.
- ACC, Big 12 and Pac-12 (depending on membership) split 30% of the pot, $360 million ($120 million each). That's approximately $10 million more per year for those schools. Another consideration: Perhaps the ACC, given the strength of some of its programs, sits on a tier of its own earning a sum between the Power Two and the Big 12 and Pac-12.
- Group of Five conferences split the remaining 20% of the pot, $240 million ($48 million each). That's an additional $3.9 million per year for each school in the AAC, Conference USA, MAC, Mountain West and Sun Belt.
It’s always been that way. You need to have a sugar daddy thing for the raids. In the case of the Big East that was ESPN. Since ESPN was footing the bill, they could’ve told the ACC make sure you include the University of Connecticut. They didn’t and that cost the state hundreds of millions of dollarsAka expansion that makes money. Aka no expansion as there are no schools that increase the bottom line.