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School-Specific Broadcasting Revenue

Yesterday I showed you how each conference’s television contracts compare in terms of first and second tier rights fees. I didn’t cover third tier rights because they’re so hard to track down. Some third tier rights are bundled by the conference as a whole and sold to regional networks while others are retained by each individual school and sold to a local or regional network.

What I can show you is what each school is showing as revenue for broadcasting rights (television, radio and internet) through their responses to open records requests. This is separate from the money they receive from conference distributions, so it shouldn’t include any broadcasting money received from conference-wide media rights contracts.

The chart below is every school for which I have a value and represents the 2009-2010 school year. Those not listed either showed $0 or did not have to respond to open records requests (either because they’re private or protected by state laws).

1 University of North Carolina $11,171,458.00
2 University of Alabama $8,444,674.00
3 University of Kentucky $7,743,327.00
4 University of Florida $7,450,000.00
5 University of Kansas $7,276,988.00
6 Louisiana State University $7,012,730.00
7 Oklahoma State University $6,395,000.00
8 University of Tennessee $6,293,621.00
9 Oregon State University $6,267,671.00
10 University of Georgia $6,231,392.00
11 University of Wisconsin $5,547,740.00
12
Auburn University
$4,637,605.00
13 University of Nebraska $4,393,529.00
14 University of Missouri $4,081,549.00
15 Virginia Tech $3,769,583.00
16 Kansas State University $3,263,941.00
17 Iowa State University $2,608,896.00
18 North Carolina State University $2,470,750.00
19 Penn State University $2,362,500.00
20 Ohio State University $2,329,462.00
21 University of South Carolina $1,829,000.00
22 University of Connecticut $1,749,796.00
23 University of Louisville $1,675,000.00
24 University of Mississippi $1,658,650.00
25 University of Iowa $1,500,000.00
26 Georgia Tech $1,254,876.00
27 University of Washington $1,248,599.00
28
University of Illinois
$1,175,065.00
29 University of Cincinnati $1,000,000.00
30 University of Arkansas $950,000.00
31 Clemson University $920,000.00
32 Michigan State University $660,025.00
33 University of South Florida $588,298.00
34 Washington State University $562,098.00
35 West Virginia University $404,284.00
36 Florida State University $349,869.00
37 University of Texas $338,171.00
38 University of Minnesota $324,000.00
39 University of Oklahoma $317,361.00
40 University of Colorado $155,528.00
41 University of Oregon $108,452.00

Because I know fans enjoy arguing about which conference is better, here are the averages for each conference (keep in mind, however, each conference has one or more schools whose numbers aren’t available):

SEC: $4,750,091

ACC: $2,848,077

Big 12: $2,620,997

Big Ten: $1,389,879

Pac-10: $1,169,546

Big East: $902,896

Don’t give these averages too much weight in terms of comparing conferences. Tough to really compare the conferences, because the third-tier rights left for each school to sell individually varies greatly by conference based on what third-tier rights have been packaged by the conference as a whole.

If you’re interested in seeing a conference-by-conference breakdown, follow the jump…

Read the rest of this entry

Televison Contract Breakdown

UPDATED INFO AVAILABLE: Kristi has posted an updated breakdown of the television contracts on ESPN.com (5/10/12).

My search for details on all of the current television deals for each conference in one place failed. Which must mean BusinessofCollegeSports.com needs to compile all the details in one easy-to-find place, right?

To understand the chart, you first need to understand the types of rights available. Here is a very general explanation. First-tier rights are for football and/or basketball games broadcast nationally. Second-tier rights are for football and/or basketball games not selected by the first-tier rights holder. Third-tier rights are any games not selected by the first or second-tier rights holders and rights for all sports other than football and basketball. These rights are often sold on a per-school basis (not negotiated by the conference as a whole) and often go to regional networks (like Comcast Sports Southeast, Raycom, or SportsNet New York) or can be reserved for networks like the Big Ten Network and the Texas Longhorn Network.

All that being said, deals are now being done for multiple tiers. For example, the Pac-12′s new deal with ESPN and Fox covers first and second tier rights. Meanwhile, the ACC’s new deal that begins this fall covers football,  men’s and women’s basketball, Olympic sports and all conference championship games. Basically, it’s an all-inclusive package with a sublicensing arrangement in place with Raycom for games not broadcast by ESPN.

First-Tier Rights Term of First-Tier Rights Second-Tier Rights Term of Second-Tier Rights Total Per Year Average
Big 12  $480,000,000 (ESPN) 8 Years $1,170,000,000 (Fox) 13 Years $150,000,000
08/09-15/16 12/13-24/25
Pac-12 $3,000,000,000 (ESPN and Fox) for first and second-tier; 12 years (12/13-23/24) $250,000,000
ACC $1,860,000,000 (ESPN) for all-inclusive; 12 years (11/12-22/23) $155,000,000
SEC $825,000,000 (CBS) 15 Years $2,250,000,000 (ESPN) 15 Years $205,000,000
09/10-23/24 9/10-23/24
Big Ten $1,000,000,000 (ESPN) 10 Years $2,800,000,000 (BTN) 25 Years $212,000,000
06/07-15/16 07/08-31/32
Big East $200,000,000 (ESPN) 6 Years $54,000,000 (CBS) 6 Years $42,333,333
06/07-11/12 7/8-12/13

Some caveats are in order now that you’ve seen the chart. Keep in mind that the per year number is an average. It is not necessarily what each school gets each year. A number of these contracts have escalator clauses, including the new Pac-10/12 contract. In the early years of that contract, it will be $180 million per year (or $15 million per school) and in the later years it escalates, according to Larry Scott via conference call on Wednesday following the contract’s announcement.

Though it doesn’t fit in the chart, you can’t forget the money Texas is receiving for The Longhorn Network. They’ve been guaranteed $300 million over the next 20 years from ESPN. Similarly, the amount listed above for Big Ten Network revenue is a projected amount which could grow if the network exceeds expectations.

Deals for third-tier rights are too cumbersome to cover here. Some third-tier rights are bundled by conferences and sold to regional networks while others are retained by schools and sold individually to local or regional networks. More on that in a future post.

The next contract we expect to hear about is out of the Big East. Rumors of a new deal have been circulating lately and reports have it that they were close to a deal with ESPN but considering shopping on the open market. Numbers floating around for a deal with ESPN were in the $110-130 million range per year, which would more than triple their current contract. With the SEC, ACC and Pac-12 now all on the ESPN family of stations, can the Big East get a deal with enough exposure from them?

And what will happen with the Big 12′s first-tier rights? I’ve heard a lot of comparisons between their recent deal with Fox and the Pac-10/12′s  new deal announced yesterday with ESPN. I think it’s comparing apples to oranges. It should be no big shock that the Pac-10/12 would receive more money for their first tier rights than the Big 12 received for their second tier rights. Let’s wait and see what kind of dough the Big 12 commands when their first tier rights are up for grabs in the next few years.

UPDATE: I’ve posted school-specific broadcasting revenue from third tier rights sold individually here.

Special thanks to Mark Ennis of Big East Coast Bias for helping me track down the elusive value of CBS’s contract with the Big East!

Which Programs Rely on Student Activity Fees – Pt 2

This morning we took a look which athletic departments in the SEC, Big Ten and Big 12 rely on student activity fees. The big recipients, however, are in the ACC and Big East. Before we get to them, however, let’s take a look at the Pac-10:

Pac 10 Dollar Amount Percent of Revenue
University of California – Los Angeles $2,750,481.00 4.45%
University of California – Berkeley $2,146,402.00 3.10%
Oregon State University $2,142,702.00 3.85%
Washington State University $1,862,522.00 4.73%
University of Oregon $1,544,344.00 1.26%
University of Washington $0.00 0.00%
University of Arizona $0.00 0.00%
Arizona State University $0.00 0.00%
Stanford University N/A N/A
University of Southern California N/A N/A

In terms of average amount of student fees received, the Pac-10 comes in at $1.3 million, which puts it ahead of the Big Ten and Big 12. As we saw in the SEC, Big Ten and Big 12, top football revenue generators in the Pac-10 didn’t rely on student activity fees, namely Washington and Arizona State. In addition, Washington turned a $2.4 million profit (according to Department of Education data) without reliance on these types of fees.

Two of our top five student activity fee recipients come from the ACC, where all schools who reported receive these fees to supplement the athletic department’s budget:

ACC Dollar Amount Percent of Revenue
University of Virginia $12,160,103.00 14.86%
Florida State University $6,919,449.00 9.30%
University of North Carolina $6,859,868.00 9.42%
Virginia Tech $6,533,756.00 10.27%
Georgia Tech $4,643,368.00 8.39%
North Carolina State University $4,200,610.00 8.49%
Clemson University $1,585,556.00 2.75%
Duke University N/A N/A
University of Maryland N/A N/A
Wake Forest University N/A N/A
University of Miami N/A N/A
Boston College N/A N/A

University of Virginia ranks second both in amount and percentage of total revenues. If you’ve read the piece on the finances of ACC football programs and overall athletic department finance, you’ll remember UVA led the conference in overall athletic department revenue even though they were below the midpoint for football revenue. That prompted me to call their athletic department and ask a few questions, wherein they revealed the high dollar amount they receive in student activity fees. Upon finding out that conference opponent Georgia Tech only received roughly a third of that amount, I decided to begin work on this piece.

There does seem to be some correlation between the average student activity fee received by schools within a conference and where that conference falls in terms of average football revenue. Before we look at that, however, here’s how the Big East stacks up: Read the rest of this entry

Money Not As Big in Big East Football

After writing about the football finances of the SECBig Ten, ACCPac-10 and Big 12, it’s time to turn to the Big East.  The numbers are drawn from schools’ reports to the U.S. Department of Education on the state of their athletic departments’ finances for July 1, 2009 to June 30, 2010. See the note at the end for more details on the data.

  Football Revenue
West Virginia University $29,467,612.00
University of Pittsburgh $22,513,336.00
Rutgers University $19,494,261.00
Syracuse University $19,152,691.00
University of South Florida $16,562,391.00
University of Louisville $15,537,276.00
UCONN $14,400,371.00
University of Cincinnati $13,325,304.00

Not surprisingly, money isn’t as big in Big East football as the other BCS conferences. In fact, the biggest earner doesn’t even make as much as the average in the SEC, Big Ten or Big 12:

Football Revenue:

SEC ($49.9m)

Big Ten ($40.6m)

Big 12 ($35.4m)

Pac-10 ($24.6m)

ACC ($20.9m)

Big East ($18.8)

Despite the Big East’s overall average being the lowest amongst BCS conferences, there are several schools from other conferences making less than the lowest revenue generator in the Big East: University of Maryland ($11.5m), Wake Forest ($10.2m) and Washington State ($12.8m).

We’ll see the same when we take a look at expenses, as a number of schools from other conferences spend less than the most conservative spender in the Big East. The biggest surprise to me when looking at expenditures on football was how far down the list top-earner West Virginia fell.  Read the rest of this entry

Did Texas Tattle on Oregon for Suspicious Recruiting?

Thursday night, Charles Robinson of Yahoo! Sports reported that University of Oregon expense records show money going to two men who are tied to “multiple recruits who signed letters of intent with the school.”

For those unfamiliar with how this aspect of recruiting works in college football, scouting services are run all over the country by people who are not affiliated directly with any one school, or at least that’s how it’s supposed to work.  They act as outside scouts for programs who can’t send their own recruiters to see the athlete in person. Often, they put together tapes and other information on recruits and provide it to colleges who might be interested in the player.

According to Oregon coach Chip Kelly, “Most programs purchase recruiting services.”  This in itself is not against NCAA regulations.

What is against NCAA regulations is paying someone to influence a player’s decision on where to play. These are the allegations now surrounding Oregon’s relationship with a man named Willie Lyles.

Oregon financial documents show a $25,000 payment to Lyles just days after highly-touted recruit Lache Seastrunk signed a letter of intent with the school. The payment was made for recruiting services, but far exceeds the $5,000 a handful of football coaches polled by ESPN yesterday say that recruiting services typically charge. In the previous two seasons, Oregon paid Lyles $16,500 or his recruiting services.

Perhaps most surprised by the news was Lache Seastrunk’s mother, Evelyn. She told ESPN, “Willie said he was a trainer. Now Oregon says he’s a scout? Is he on Oregon’s payroll? If Willie Lyles collected $25,000 off my son he needs to be held accountable. The NCAA must find out for me. I don’t know how to digest someone cashing in on my son.”

New information made available today on ChuckOliver.net from a source who used to be a business associate of Lyles suggests Lyles has a habit of preying on athletes with single  mothers, like Seastrunk.

Ingram Smith, author of the ChuckOliver.net story, makes an interesting point about the origin of the story. Last night the story broke on Yahoo! Sports, ESPN and Sports Illustrated, leaving Smith to wonder if the same source didn’t tip off all three media outlets.

Smith has sources who tell him that the University of Texas has been growing suspicious of Lyles for awhile. Says Smith, “Inside the Longhorn’s program there is tremendous suspicion regarding Lyles’ influence on some of the state’s top talent and how many of the state’s best players that were associated with Lyles, like Seastrunk, are leaving the state at an historically high rate and under fishy circumstances.”

There seems to be a growing number of instances where schools are rumored to be “tattling” on other schools. Remember that both Mississippi State and University of Florida were rumored to have pointed the finger at Cam Newton initially. Instead of being like a fraternity who protects its members at all costs, it appears college football is splintering as schools battle for top recruits and championships. Given the number of coaches and assistants who move around each and every year, taking with them inside knowledge of their former programs, look for this phenomenon to continue to grow.

This article offers the personal observations of Kristi Dosh, and does not represent the views of her law firm or its clients.  Any information contained herein does not constitute legal advice. Consult your own attorney for legal advice on these matters.

Pac-10 Financials Show Little Athetics Profit

After writing about the football finances of the SECBig Ten, and ACC, it’s the Pac-10’s turn.  The numbers are drawn from schools’ reports to the U.S. Department of Education on the state of their athletic departments’ finances for July 1, 2009 to June 30, 2010. See the note at the end for more details on the data.

For comparison’s sake, the Pac-10 stacks up more like the ACC than the SEC or Big Ten in terms of football revenue, as you can see:

Football Revenue:

SEC ($49.9m)

Big Ten ($40.6m)

Pac-10 ($24.6m)

ACC ($20.9m)

Probably not coincidentally, the average size of football stadium in each conferences lines up in exactly the same order:

SEC (78,348)

Big Ten (75,447)

Pac-10 (64,546)

ACC (58,880)

I was a little surprised to see who generated the most football revenue in the Pac-10. Read the rest of this entry

What’s Next in Conference Realignment?

This week could very well mark a turning point in college football.  Is the Pac-10 becoming the Pac-16?  Will the Big-12 still exist?  And the newest and most interesting question…will USC be banned from postseason play for the next two years?

For weeks we’ve been hearing about the possibility of expansion in the Pac-10, Big 10 and SEC.  Now it appears that at least some of the rumors are manifesting into reality.  Colorado has already been invited to join the Pac-10, and sources say invitations will be extended to Texas, Texas A&M, Oklahoma, Oklahoma State, and Texas Tech.  Sources are also reporting that Nebraska will be moving to the Big Ten.  That leaves Baylor, Kansas, Kansas State, Missouri and Iowa State behind in the former Big-12.  All indications seem to be that if that were the case, the Big-12 would dissolve.  So who will step in to scoop up what remains?

There have been rumors for weeks now that the SEC was considering extending invitations to four new teams.  Those rumored to be possibilities were Miami, Georgia Tech, Florida State, Texas, Texas A&M and Clemson.  If the SEC did extend four invitations and several of those went to ACC teams, what would become of the ACC?  The rumors on the expanded SEC have died down, but the possibility is still interesting.

Does anyone else wonder if all this realignment is in response to the heightened scrutiny on the BCS?  If nothing else, it would at least provide the perfect timing for a redesign of postseason play.

Speaking of postseason play, the most interesting news with regards to college football is coming out this morning.  It seems college football powerhouse USC might be absent from postseason play for the next two years.  Sanctions are expected from the NCAA today, and sources say the punishment will include a reduction in scholarships, a forfeiture of wins from at least the 2004 season, and being banned from postseason play for the next two years!  The sanctions are in response to violations by both the men’s football and basketball programs.  USC will have a chance to appeal the decision.

The NCAA is clearly looking to make an example of USC, a perennial contender in the BCS.  No BCS team has been banned from postseason play in the past seven years.  The combined effect of the conference realignment, the possible dissolution of the Big-12, and the absence of USC from postseason eligibility for the next two years, sets the stage for a complete BCS overhaul.  The biggest question remaining for most fans, however, is if the BCS will take this golden opportunity to revisit its system and make some important changes.

This article offers the personal observations of Kristi Dosh, and does not represent the views of her law firm or its clients. Any information contained herein does not constitute legal advice. Consult your own attorney for legal advice on these matters.