Are any P5 teams outside the ACC?...

[the artist FKA zipp]

...making more money than they did before the last round of realignments?

That is, will Ohio State or Alabama be making more money after their respective new conference mates join their conferences?

Or is this just breakeven for existing teams in the SEC, B10, and BXII?

I don't study these conference media deals that closely. I just know the right questions to ask...

 

[beantowncard]

I guess the question is, did those universities you named vote for or against expansion?

 

[the artist FKA zipp]

No, I’m really try to gauge the “intelligence” in these realignments.

People are critical of the ACC at the moment. But as I understand, each of the current teams in the conference will be receiving more money than they were before the three teams were added.

Is that true of, for example, the SEC after adding Texas and OK? Somewhere in the range of $100-120 million would need to be added to the SEC media package for Alabama to break even.

And I don’t follow these particular finances that closely. Did the SEC get that? Same question for the B10 that’s adding four teams…

 

[Mayoman]

After the 2020-2021 season the SEC made about 780 million or 55 million per team. They are projected to make apprx. 1.3 billion after adding Texas and Oklahoma, in 2024, with each team dividing that up equally. That should be around 81 million each. The Big Ten is expected to make a little more. During that same year, the Big 12 will be next at 600 million, per a yahoo article a couple months ago. But the SEC remained within their blueprint of being a southeast conference whereas the other conferences will be travelling well outside of their present territories. That`s an additional expense for them.

Funny that you think Texas and Okie are in the south east.

The folks that live there know it is the southwest and always has been and will be. You are bragging about an issue that you are making an issue...how you feel on that island by yourself?

Soon enough you will find out what a curse having Texas in your league is. Okie not so much. Likely you will see it is fools gold when the problems begin to present themselves to the other members of the league.

 

[Wildcat40229]

Funny that you think Texas and Okie are in the south east.

The folks that live there know it is the southwest and always has been and will be. You are bragging about an issue that you are making an issue...how you feel on that island by yourself?

Soon enough you will find out what a curse having Texas in your league is. Okie not so much. Likely you will see it is fools gold when the problems begin to present themselves to the other members of the league.

First of all I`m not bragging, just replying to Zipp`s question with facts from a yahoo article I read. Also, I`m not arguing, too old and mature for that and that doesn`t place me on any island. Your correct Texas and Oklahoma are Midwest states, same as Texas A&M, Arkansas and Missouri which are teams the SEC already travels too, so their travel blueprint didn`t change. The leagues are in this for money, so I`m not sure how adding $300 million to your league is fools gold, maybe in wins and losses, but financially not so. I`ll ask you this question, what problems will this create? Adding another loss to some teams? Maybe, but it`s already a tough league and each school won`t play them every year. I would place an emoji here, smiling, but I`m not sure how to do that........old and not computer competent.
I`m here as a college football fan and not as the enemy. Another emoji goes here, showing a peace sign. The one question I have is how long can this last? ESPN is in financial trouble as is most cable companies, so how can they pay out this much money but cant pay their employees?

 

[the artist FKA zipp]

After the 2020-2021 season the SEC made about 780 million or 55 million per team. They are projected to make apprx. 1.3 billion after adding Texas and Oklahoma, in 2024, with each team dividing that up equally. That should be around 81 million each. The Big Ten is expected to make a little more. During that same year, the Big 12 will be next at 600 million, per a yahoo article a couple months ago. But the SEC remained within their blueprint of being a southeast conference whereas the other conferences will be travelling well outside of their present territories. That`s an additional expense for them.

Appreciate the info which helps make my point...

The SEC revenue distribution has averaged around 8% annual growth, from $41 million per school in FY2017 to $56 million in 2021. (Your above number for 2021 is $55 million.) At that rate of growth, revenue would be about $76 million per school in 2024.

The above number for 2024 of $81 million is $5 million higher (up 7%), reflecting the addition of Texas and OK that year.

The ACC is projecting a $50-60 million annual distribution on top of its regular distribution once the three schools are added. These are additional funds to be paid annually to the ACC but withheld from SMU, Stanford, and Cal entirely or in large part. It's the cost these orphaned schools are willing to bear.

Using the ACC's $617 million base distribution for FY2022, a $55 million bonus is 8% on top of the 6% annual increase that the ACC has been averaging the last five years. That's a 14% increase that swamps what the enlarged SEC will be increasing its payout by. And it's hard to fathom how those numbers won't be worse for the B10 with FOUR new mouths to feed.

I'm not an ACC wonk, but this looks like a pretty sweet deal for the 14 football playing schools currently in the conference.

If anyone has comparable before and after numbers for the B10, I'll be happy to analyze them...

 

[Wildcat40229]

Appreciate the info which helps make my point...

The SEC revenue distribution has averaged around 8% annual growth, from $41 million per school in FY2017 to $56 million in 2021. (Your above number for 2021 is $55 million.) At that rate of growth, revenue would be about $76 million per school in 2024.

The above number for 2024 of $81 million is $5 million higher (up 7%), reflecting the addition of Texas and OK that year.

The ACC is projecting a $50-60 million annual distribution on top of its regular distribution once the three schools are added. These are additional funds to be paid annually to the ACC but withheld from SMU, Stanford, and Cal entirely or in large part. It's the cost these orphaned schools are willing to bear.

Using the ACC's $617 million base distribution for FY2022, a $55 million bonus is 8% on top of the 6% annual increase that the ACC has been averaging the last five years. That's a 14% increase that swamps what the enlarged SEC will be increasing its payout by. And it's hard to fathom how those numbers won't be worse for the B10 with FOUR new mouths to feed.

I'm not an ACC wonk, but this looks like a pretty sweet deal for the 14 football playing schools currently in the conference.

If anyone has comparable before and after numbers for the B10, I'll be happy to analyze them...

I know you can`t answer this question, but how can ESPN and other media outlets continue to pay out billions to these conferences when they can`t pay their current employee`s? Spectrum, for example, claims their losing 5 -6 million subscribers a year. The only way I can see this continuing is through live streaming the games. Then we would have to pay to watch each game and our cost will go up. I watch both UL and UK games, but under this scenario, I would have to pick one and the other games.............. o`well.

 

[2330859]

Texas is not in the Midwest, as clearly Austin is located in the Southwest, as is A&M‘s campus in College Station.

The ESPN business model is not sustainable long term, as it only exists as long as they have the TV rights; competition will ultimately interrupt their revenue stream.

 

[the artist FKA zipp]

I know you can`t answer this question, but how can ESPN and other media outlets continue to pay out billions to these conferences when they can`t pay their current employee`s? Spectrum, for example, claims their losing 5 -6 million subscribers a year. The only way I can see this continuing is through live streaming the games. Then we would have to pay to watch each game and our cost will go up. I watch both UL and UK games, but under this scenario, I would have to pick one and the other games.............. o`well.

That's a lot more complex question that I'm not qualified to answer with any exactness. What I am sure is true is what matters in the decision to keep paying more money...

ESPN loses money on most of its programming from a clock/time standpoint. That is, 80% of their broadcast day is filled with breakeven or money losing content. Where they make bank is live broadcasts of high demand events like college athletics, specifically football.

Everything gets evaluated on its own merits. Each category of content is like a profit center or product line. Because live college football brings in huge revenue, they keep paying big money. It doesn't really matter if the compnay overall is less profitable. And all their competitors look at their situations the same way.

They save money NOT by paying less for highly prized content; it's by cutting everywhere else.

Where it ends ultimately is when the revenues no longer cover the costs for thr premium content. Because conference distributions keep increasing YOY by 5-10%, we're apparently not at that saturation point. And even when it gets there in total--all teams and conferences combined stop increasing--you'll still have realignments in which the big dogs try to steal more from the small ones.

It's why your own dog and how well it's doing becomes more important...

 

[billoliver40]

The mega conferences are a made for TV spectacle. As long as someone throws insane money at it, it's gonna work.
Compared to previous deals, Texas got gut punched in what was there financial deal...I think they used to get 70% of league rev and kept everything out of the Longhorn Network.

As far as the SEC goes there's always gonna be a Georgia/Oklahoma, Texas/Alabama that will dominate the week, but there will also always be a UK/Vanderbilt or Missouri/ anybody that few people outside the schools of the guys forced to call the game care anything about.

In real short, rich get richer, everybody else gets the leftovers.