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SEC $19.5m TV payout per team

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#1
Noah

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he SEC is richer than it's ever been--but is it rich enough?
The Birmingham News reported Friday that according to the league's tax documents, the SEC distributed a conference record $19.5 million to each of its member schools for the 2010-2011 season, an increase of $1.2 million on both its 2009-2010 payout and its initial 2011 estimates. Thanks to the new(ish) CBS Sports/ESPN television contracts fueling the increase, those revenues also represent a whopping $6.5 million per-school bump -- a 50 percent increase -- over the league's distribution numbers just two seasons before.

That's the great news for the SEC. The less-great news is that those figures still leave them a bit behind the Joneses Mike Slive is looking to keep up with in the Big Ten and Pac-12; the Sports Business Journal recently estimated those conferences' per-member distributions* at "close to $21 million," with the growth from their respective networks expected to push those numbers even higher in the coming years. The SEC, meanwhile, is locked into its current contracts until 2023, with TV revenue only increasing 3 percent in the second year of the league's new deals.

That those revenues will be divided 14 ways rather than 12 following the additions of Texas A&M and Missouri would be another headache for Slive if those additions didn't also open up the possibility for a renegotiation of those television contracts. The ACC's ongoing expansion-triggered renegotiation is expected to net the league an additional $1 to $2 million per team per year--hardly chump change, but likely not the sort of numbers that would keep the SEC even with the Big Ten and Pac-12 come 2017 or '18, much less the tail end of its current contract (which could also be extended as part of the renegotiation).

Make no mistake: the SEC is currently swimming in money, will continue to swim in money, and has the kind of advantages that have nothing to do with money -- overwhelming fan interest, proximity to recruiting hotbeds, a firmly cemented reputation as college football's gold standard -- that will keep it at or near the top of the college football heap. Slive is hardly in crisis management mode. But "or near" may not be good enough for the SEC after its recent run, and a potential $4 or $5 million gap per-school between the league and its Midwestern/West Coast "rivals" -- sustained over a period of years -- could (or would?) eventually even (or even tilt) the playing field.

Times are no doubt very, very good for the SEC both on the field and in its checkbook. But the upcoming negotiations between the league and its TV partners will likely play a huge role in whether future times are as very good or not.

*The SBJ also estimated the SEC's distribution figure at only $17 million, which could be either a good sign or a bad one from an SEC perspective; if that figure was simply wrong while the Big Ten's and Pac-12's was accurate, then the gap isn't as wide as believed. But if the SBJ was simply being conservative across the board and the B1G's/P12's numbers are also underestimated, it would mean those leagues' networks and TV deals have established a substantial financial edge even before they really get rolling.    

http://eye-on-colleg...156338/34876036
After everything is said and done, more is said than done. - Noah

#2
cocky4ever

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The guy who played a huge role in making the SEC what it is today isn't dumb enough to pay out to two more schools without having any more money coming in. We'll renegotiate since the addition of A&M and Mizzou and we I'm sure we'll end up getting more per school than before.And along with the tv contracts we'll also have more teams going to bowl games.

#3
Noah

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I predict that once the SEC re-negotiates TV rights that the payout will jump to $25m per team.
After everything is said and done, more is said than done. - Noah

#4
w00k

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they're gonna ruin this sport like they did boxing.

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#5
MizzouMark

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There is so much money being left on the table if they don't renegotiate, St. Louis and Kansas City are pretty big TV markets, and helped the Big 12 quite a bit, when we were apart of it.
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#6
kchero

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View PostMizzouMark, on 20 February 2012 - 03:40 PM, said:

There is so much money being left on the table if they don't renegotiate, St. Louis and Kansas City are pretty big TV markets, and helped the Big 12 quite a bit, when we were apart of it.

Exactly, the addition of Missouri and ATM are huge gains to the population base of the SEC footprint. Mike Slive will be renegotiating or else he wouldn't have expanded to begin with. I easily see the new deal putting the each SEC school at par with the Big 10/Pac-12 if not over in regards to their payout.

#7
JoeGator

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I still don't understand how the Pac12 got so much cash.
Someone overpaid A LOT.

Edited by JoeGator, 24 February 2012 - 10:28 AM.


#8
Tider27

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View PostJoeGator, on 24 February 2012 - 10:26 AM, said:

I still don't understand how the Pac12 got so much cash.
Someone overpaid A LOT.

Yeah, you can't tell me the west coast watches college football that much. Laughable.

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