John these numbers don’t seem correct. or I am missing something “We’ve been told by an expert source on media rights from within the college sports industry that SEC schools will most likely bring in $30-35 million per year once the new Sugar Bowl partnership, college football playoff, SEC Network, and CBS and ESPN contract renegotiations are finalized. This past year, the average payout for the league’s schools was $20.1 million”.
- CBS and ESPN $20.1M
- TIER 3 $10M
- football playoff (would get anyway) $91M/14=$6.5M
- Sugar Bowl partnership (would get anyway) $40M/14=$2.85M
- Total $39.45M
I assume in the numbers provided to John that all schools roll their Tier 3 rights into the SEC network. Doesn’t sound like the SEC network is very lucrative.
@GatorBuc2 I'm with you on these numbers. I've been told that our new ESPN contract would be closer to 27 million and that with the C.B.S. money (at the present number of 14 teams) would remain about the same per team somewhere just over 2.1 million each. We would be looking at 29 million minimum before we even considered the Sugar Bowl addition of the 2.85 million you list. The total payout for the playoff is $475 million split four ways. The SEC share with 1 spot in the 4 team playoff would be 118.75 million split 14 ways which equals 8.48 million each. By my calculations we are looking at 40.43 million per team with out any SEC Network revenue entering the picture.
I may be wrong, but I think the bigger projections for the SEC Network are based on the league getting teams in NC and VA(which would immediately become states #4 and #5 in terms of population size within the footprint).
I think the Big Ten figures we've been seeing thrown around lately are either inflated or take into account all of their new states. The Big Ten is just barely ahead of the SEC in TV revenue, but the difference is that they're already counting their league network money. This stream of revenue is untapped for the SEC right now.
@JRsec @GatorBuc2 I haven't heard anything different and I wouldn't know as far as being an insider goes because I'm not one...lol. I do find it hard to believe though that the Big Ten's real numbers are that much higher than the SEC's. I believe they are in the $22-24 million range right now? Correct me if I'm wrong.
Adding MD and NJ certainly help fill the pot, but the other states are already being accounted for in their current figures I believe. I can't see how adding MD and NJ would represent a bump of an extra $20M for them.
@AllTideUp @GatorBuc2 I have heard that the Big 10 presents the gross figures. The expenses for the Big 10 Network are shared by the schools and those figures must be subtracted to receive the NET income. The figures of between 42-45 million per team that were shown to Maryland were projections of future income. If you have heard something else let me know.
Don't forget, gentlemen, the league office takes a full cut. There are 15 shares... not 14.
I stand by the estimates given to me by an someone in the college athletics industry who's experienced in cutting media deals for schools. Those numbers were then given a "yep, that's ballpark" by someone in the SEC office.
Infallible? No and things could always change based on what schools move where. But I'll stand by the numbers. They were presented to me by someone in the know and they were verified by someone in the league office.
Thanks for reading the site,
It all depends on perspective, I would think. If a school was making about $20 million per year and then it saw that revenue nearly double to $35 million per year, I don't think there would be too many people in that school's administration who would call those numbers "disappointing."
As I noted above, these figures will rise and fall -- for each league -- as more shuffling plays out. The $30-$35 million figure was thrown out to me before the Big Ten added Maryland and Rutgers. Start the wheel of realignment and you never know who'll wind up where or how much TV contracts and league-owned networks will be impacted.
But my guess -- and it's an educated one as I've discussed it with TV folks and SEC people -- is that the Big Ten and SEC will wind up very much in the same ballpark with one another when all this stuff slows down. They have the two best brands and it's difficult to see the Pac-12 or Big XII catching them on a year-in, year-out basis. For now, the Big XII doesn't have to as they're splitting their revenue just 10 ways.
My point: I've not spoken to anyone anywhere who thinks the SEC will be disappointed when all this sorts itself out. The league's schools will be able to keep up with the Big Ten's schools (huge media markets, much bigger alumni bases) and should still be ahead of the other two or three big leagues' schools (depending on the ACC's survival or death). So there's really no need to start worrying about contract numbers that are still guesstimates at this point.
Again, many thanks,
@John at MrSEC @GatorBuc2 Thank you John. I enjoy your articles and I find your information to be some of the most accurate and consistently accurate of the sites I read. Your right about the conference cut and I did not calculate that in. However if those numbers wind up being accurate then I must say they would be disappointing. We knew that CBS wasn't going to significantly up their payout, but the 25 million mark per team was consider the low estimate for ESPN's new contract and the 28 Million mark was considered being close to the ceiling of expectations. I would think the disappointment would have to reside in the ESPN figures if these are true.
Perhaps they are adjusted for network start up expenses. Let us know when you do.