Seems like it's a band-aid to try and keep the strongest brands happy (and less likely to litigate). If ESPN is able to add some $ to the pot, it could make it more palatable. 2036 Is such a long way away and the business model doesn't seem very stable right now.
College Sports / Conference Realignment
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Seems like it's a band-aid to try and keep the strongest brands happy (and less likely to litigate). If ESPN is able to add some $ to the pot, it could make it more palatable. 2036 Is such a long way away and the business model doesn't seem very stable right now.
Not sure where you're getting that number. Can you post a link?
Here is where mine came from https://www.google.com/amp/s/www.cb...ion-haul-for-2023-fiscal-year-per-report/amp/
from Bing: what is the Big Ten media rights per school :
Per the Action Network, Big Ten schools will receive the same distribution in 2023-24 as it will this year, roughly $60 million per school.
The payout will increase slightly in the second year of the deal before it jumps to roughly $100 million per school, annually, starting in 2025.
from Google, same question
The Big Ten's media rights deal is worth between $80 million and $100 million per year for each member school. The deal is the largest in college athletics history.
I went to Google and clicked on the link to where it says Google gets the info. It's from a September 2023 source citing the Big Ten's expectations on what the deal would net per school. https://www.nielsen.com/insights/20...s,$100 million annually to each member school.
The article I linked is from May 2024, and is based on what the Big Ten actually distributed.
I know there are terms in the deal that increase the value of the deal, but if you think about it the deal has been reported as a $7 billion deal for 7 years. To distribute $100 million a year to 18 members over 7 years would mean it was really a $12.6 billion deal. That's quire a disparity. I think a more likely scenario is that the way it is structured, the payout will be in the $80 to $100 million range by the end of the deal, not throughout.
The distribution for 2024 may well be higher than it was for 2023, but we probably won't know for sure for several months. But will it jump by $20 million per school? By $40 million? I'm a little skeptical.
Big Ten Courts Private Equity Investment, Retains Evercore
America's richest athletic conference has retained investment bank Evercore to solicit bids from PE investors.
www.sportico.com
I flippin' HATE this!!! If it comes to pass, I'm out..... I'll devote the myriad of hours I currently devote to Illini/B1G sports to something more deserving of my time, because that won't be worth a wooden nickel to me. Sad how things have devolved to the point where something like this is even considered as opposed to being emphatically rejected without hesitation immediately. Ignorant, stupid decisions like this along with other anti-fan changes have already killed my interest in the NBA, NFL, and MLB leagues. I was never much of an NHL fan so I can't speak to that league. It's just so incredibly ignorant.... how do these people even make a livable wage, let alone MILLIONS?!?!?!?Big Ten Courts Private Equity Investment, Retains Evercore
America's richest athletic conference has retained investment bank Evercore to solicit bids from PE investors.
That is a truly bad idea.Big Ten Courts Private Equity Investment, Retains Evercore
America's richest athletic conference has retained investment bank Evercore to solicit bids from PE investors.
GrayGhost77
- Centennial, CO
Greed kills everything good in this world.
The same CBS article says the following:
"These numbers will change radically in 2024 as conference realignment and new TV deals start to take effect."
CBS for example was not part of the 2023 deal for the Big Ten.
The premise of the original question was why would Norte Dame ever join a conference if they are getting $20M from the CFP. My point was that this year is their best possible scenario--getting to the championship game--and even with that best possible scenario, Notre Dame would still likely to earn more in the Big Ten. If we are using 2023 numbers like is being used in the CBS article than the Norte Dame NBC TV deal is only worth $20-25M per year vs the $60M for the Big Ten.
I don't get what would be gained by this. What investment would be made with the upfront PE money that would generate even more cash flow for the conference to justify selling a 15-20% state in the future revenue?
my only academic business sense is a 1983 accounting degree from the beloved .
in addition . i’m also self taught in real life business
this “deal” makes zero sense to me
No one has been able to answer your excellent question.
What does PE offer that can’t be done without them? How do they create value that can’t be otherwise created? It’s very clear WHY they’d want to tap into this growing gusher of revenue, but HOW might they EARN a piece of it? Nothing but crickets so far.
I dont share the reflexive aversion toward private equity that some have.
At the same time this situation doesn't seem to fit. College football isn't some startup without access to capital looking for someone to accelerate their growth plans.
The B1G isn't some poorly run business bleeding money on the way to bankruptcy.
I'm thinking some VC guys are making a pitch and playing on the ignorance of people. I can't imagine it going far.
At the same time this situation doesn't seem to fit. College football isn't some startup without access to capital looking for someone to accelerate their growth plans.
The B1G isn't some poorly run business bleeding money on the way to bankruptcy.
I'm thinking some VC guys are making a pitch and playing on the ignorance of people. I can't imagine it going far.
it makes ZERO business sense to me & I’ve tried to attempt to think about it from different angles . I just don’t think they add any value .
My reflex is skepticism, not aversion. The last years of my career involved fielding proposals by consultants pitching their ability to improve a thriving business, often when they didn’t fully understand it. It became very tiring after a while. Seagull jokes about consultants abound for a reason.
I’m sure there are useful PE proposals and recognize there are very capable consulting firms out there. However, both PE and consultants are relentlessly drawn to big revenue streams, even when they have nothing to offer. Skepticism is your first line of defense. Demand to be shown where they add net value beyond what you can do on your own.
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RabidDawgClassic
- Los Angeles, CA
My experience with consultants is that my bosses were incapable of coming up with any good ideas themselves, they would just farm it out to consultants. Then, when those ideas would fail, they’d call em back and ask “okay, whatta got for us now?,” repeating the process over and over and over…
Battle89
- Cary-Grove, the better Trojan team
Been thinking similar and the only thing I can see is that they want to be first at this table. FOMO if the SEC is thinking or doing the same (and that the SEC is also considering such offers I am sure of) and not wanting to be on the outside looking in if your main conference rival suddenly has an extra few hundred million to throw around.
Sort of the 'one big move' theory. First conference with the huge kitty basically buys every good player for the next few years and relegates the opposing conference to ACC / B12 status.
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