2015 Big Ten Payouts for the 3 newest members

[Cruising Route 66]

Thought you guys might be interested in the actual numbers.

MARYLAND:

TV Rights - $ 23,629, 451
NCAA Basketball Fund - $20,000
NCAA Supp Rev - $433,284

Total - $24,082,735


NEBRASKA:

TV Rights - $ $17,037,000
Bowl Games - $2,317,030
NCAA Supp Rev - $433,284

Total - $19,787,314


RUTGERS:

TV Rights - $ 8,659,986
NCAA Broad Based Fund - $1,314,343
NCAA Supp Rev - $433,284

Total - $10,407,613

All other schools received total payouts averaging $32,406,817 which included a $1,000,000 payout of BigTen Network profits. The BTN reported Revenue of $304,727,000 and net profits of $108,515,000 of which BTN Holding's allocation was $29,915,806, The Network distributed $$29,037,000 of cash to Holdings which brought the conference's consolidated cash holdings to $49,819,678.

Also, The conference advanced Maryland $11,608,000 in 2015 and agreed to advance similar future amounts during the next five years through 2020 in accordance with their integration plan. These advances are interest-free, and to be repaid in six consecutive equal annual installments beginning in fiscal 2021; the Conference will offset the amount due from Maryland to the Conference each year from the net distributable revenue otherwise due to Marland for such year. The conference also agreed to make a contingency loan to Maryland during the transition period. Amounts loaned plus interest (at market rates) would be repaid in six annual installments beginning if fiscal 2021 in the same manner described above.

 

[vm7118]

interesting indeed. i wonder how nebraska feels about playing second fiddle to UM, "loan" or not. where is your source on this?

 

[RUScrew85]

Sounds like we got the shaft on the surface but WE'RE IN THE B1G and almost any price was worth that.

 

[OntheBanks]

That $10 million beats the hell out of the AAC or Big East money of a few years ago.

 

[BlockR]

why isnt Rutgers getting the same TV PAYOUT??Are these numbers before the new TV and if so,is RU going to get the full share of new TV money?..and WHEN?

 

[OTBOTOR]

why isnt Rutgers getting the same TV PAYOUT??Are these numbers before the new TV and if so,is RU going to get the full share of new TV money?..and WHEN?

Phase-in til 2020-21.

 

[patk89]

Thought you guys might be interested in the actual numbers.

MARYLAND:

TV Rights - $ 23,629, 451
NCAA Basketball Fund - $20,000
NCAA Supp Rev - $433,284

Total - $24,082,735


NEBRASKA:

TV Rights - $ $17,037,000
Bowl Games - $2,317,030
NCAA Supp Rev - $433,284

Total - $19,787,314


RUTGERS:

TV Rights - $ 8,659,986
NCAA Broad Based Fund - $1,314,343
NCAA Supp Rev - $433,284

Total - $10,407,613

All other schools received total payouts averaging $32,406,817 which included a $1,000,000 payout of BigTen Network profits. The BTN reported Revenue of $304,727,000 and net profits of $108,515,000 of which BTN Holding's allocation was $29,915,806, The Network distributed $$29,037,000 of cash to Holdings which brought the conference's consolidated cash holdings to $49,819,678.

Also, The conference advanced Maryland $11,608,000 in 2015 and agreed to advance similar future amounts during the next five years through 2020 in accordance with their integration plan. These advances are interest-free, and to be repaid in six consecutive equal annual installments beginning in fiscal 2021; the Conference will offset the amount due from Maryland to the Conference each year from the net distributable revenue otherwise due to Marland for such year. The conference also agreed to make a contingency loan to Maryland during the transition period. Amounts loaned plus interest (at market rates) would be repaid in six annual installments beginning if fiscal 2021 in the same manner described above.

Interesting. Just so that I understand, MD is really earning $24,083 less $11,608 or $12.475 million currently compared to RU making $10.407 million? The loan just allows them to get cash flow earlier than RU but they will be getting $11.6 million less during the payback years. All these numbers will jump when the new tv contracts kick in. RU will be rolling in it!

 

[RUChoppin]

why isnt Rutgers getting the same TV PAYOUT??Are these numbers before the new TV and if so,is RU going to get the full share of new TV money?..and WHEN?

These are 2015 numbers, per the OP, so that would be before the new TV deal.

 

[Cruising Route 66]

interesting indeed. i wonder how nebraska feels about playing second fiddle to UM, "loan" or not. where is your source on this?

Source is the BIG's audited financial statements (by RPM Global formerly McGladrey) and non public documents I have access to.

 

[RU#1fan]

Sounds like we got the shaft on the surface but WE'RE IN THE B1G and almost any price was worth that.

What happened to New Jersey pricing ?
Our state always overpays for everything and we are being "shortchanged " on our fair $hare ???? lol
Know this will correct itself in 6 years .

 

[NorthNJRUFan]

The disparity is going to be awful when the new deal kicks in

 

[RMed]

I'm 99% positive MD got paid way more than us because of their stellar year in NCAAB.

They were ranked in the top 10 pretty much all season; there wasn't a single week when one of their games wasnt on primetime.

 

[MADHAT1]

I'm 99% positive MD got paid way more than us because of their stellar year in NCAAB.

They were ranked in the top 10 pretty much all season; there wasn't a single week when one of their games wasnt on primetime.

Maryland came in getting more front end and will have it even out by the end.
Believe their $31 million buyout and their athletic department's poor finances made that possible.
As for Nebraska, Maryland and Rutgers revenue sharing, when they came in the shares they would be receiving was based on the revenue they were making in the conference they left.
Nebraska is close to receiving a full share and came in the B1G before Maryland and Rutgers so will only say what I think about the partial revenue Rutgers and Maryland will be receiving until they have the time in to receive full shares.

I believe, even without the front end help to offset their financial problems , Maryland would have been receiving more each year because when they came in to the B1G they were earning far more as an ACC team than RU was earning while a AAC member.
How many times on TV, no matter what sport(s) or how good or bad their team(s) were had nothing to do with what revenue they're receiving from the B1G.
I was what they earned as an ACC member that set the price and the same goes for Rutgers and why RU is earning less ( revenue help Maryland's reciving not included ).

 

[koleszar]

Like I've said in previous posts once the new TV deal hits, for three years the gap is going to widen even further until we get our full share. We're not going to receive anymore money from this new TV deal during our buy in. It looks like we're stuck with our negotiated ramp up for the buy in period.

Still it's better than being stuck in no man's land. But even when we receive our full share it's going to take years for us to catch up to even the lower end teams in the B1G. We're behind the 8 ball already and it's only going to get worse. Long term this deal is great, in the short term this new TV deal does absolutely nothing for us, but put us farther behind everyone in the B1G.

 

[Husker.Wed.]

interesting indeed. i wonder how nebraska feels about playing second fiddle to UM, "loan" or not. where is your source on this?

Thought I would come over here to see what you guys and gals are talking about.

Our B1G income is what it is due to the terms of the deal at the time. We got what we would be expected to get in the B12 under their old contract until we ramped up and become whole in 2017. At the time we didn't appear to have a lot of options and were in no position to bargain. Misery was going to the SEC as was A&M, Colorado was going to the PAC 10. There was talk of Texas, Oklahoma and maybe one or two of the other Texas schools going to the PAC 10 too. Nebraska could have been stuck with Kansas, Kansas St, Iowa St and Oklahoma St. in what used to be known as the "Missouri Valley Conference."

So yeah, it sucks we make less than the Terrapins right now, but I sleep 100% better at night knowing we are secure in the future. I assume many of you feel the same way in spite being short-changed at the moment.

 

[Husker.Wed.]

P.S. Congrats on breaking into the Rivals top 20 in recruiting. Looks as if your new staff is busting some hump.

 

[e5fdny]

Our B1G income is what it is due to the terms of the deal at the time.

So yeah, it sucks we make less than the Terrapins right now, but I sleep 100% better at night knowing we are secure in the future. I assume many of you feel the same way in spite being short-changed at the moment.

When you look at it this way...

 

[Scarlet_Scourge]

Why do some people keep getting surprise by this every year?

 

[Knight Shift]

It's New Jersey, where people love to whine when someone else has nicer things than them. . .

 

[Virginiarufan]

This article is probably the best one I've read in explaining why Maryland got paid more than RU. In addition to the loan from the B1G, Maryland got what they would have gotten fromm the ACC and it seems this doesn't have to get paid back.

http://www.thegazette.com/subject/sports/newest-big-ten-additions-earn-different-paychecks-20160628

 

[Crazed_RU]

Thought I would come over here to see what you guys and gals are talking about.

Our B1G income is what it is due to the terms of the deal at the time. We got what we would be expected to get in the B12 under their old contract until we ramped up and become whole in 2017. At the time we didn't appear to have a lot of options and were in no position to bargain. Misery was going to the SEC as was A&M, Colorado was going to the PAC 10. There was talk of Texas, Oklahoma and maybe one or two of the other Texas schools going to the PAC 10 too. Nebraska could have been stuck with Kansas, Kansas St, Iowa St and Oklahoma St. in what used to be known as the "Missouri Valley Conference."

So yeah, it sucks we make less than the Terrapins right now, but I sleep 100% better at night knowing we are secure in the future. I assume many of you feel the same way in spite being short-changed at the moment.

This is the understatement of the century. There is not an informed RU fan alive that would disagree.

 

[srru86]

I'm 99% positive MD got paid way more than us because of their stellar year in NCAAB.

They were ranked in the top 10 pretty much all season; there wasn't a single week when one of their games wasnt on primetime.

On field or court performance is one of the least important factors. They brought the Balto/DC/NVA TV market. They had leverage and serious expenses to leave the ACC.

 

[RU85inFla]

This article is probably the best one I've read in explaining why Maryland got paid more than RU. In addition to the loan from the B1G, Maryland got what they would have gotten fromm the ACC and it seems this doesn't have to get paid back.

http://www.thegazette.com/subject/sports/newest-big-ten-additions-earn-different-paychecks-20160628

I believe MD got a loan to pay back the ACC as well as advanced payments. One is interest free and the other with interest.

 

[srru86]

Cedar Rapids IA Gazette
Newest Big Ten additions earn different paychecks
Maryland receives more money than Nebraska, Rutgers

 

[demauroj]

Sounds like we got the shaft on the surface but WE'RE IN THE B1G and almost any price was worth that.

On paper it looks like we got the shaft however we will not be paying off a loan starting in 2021. Maryland is obviously using the vast majority of that money for infrastructure. We are getting some of our infrastructure done through private donations and some state tax credits. There will be a period of time when they will be less than everybody else.

They are taking a gamble by doing this,but they were in real bad shape financially and had no choice to do this.

 

[Best7Years]

I'm glad RU didn't take a loan. If we used the loan for FB/BB staff/infrastructure, I'd be ok with it. But in reality we'd be under huge pressure to use it to lower or subsidy amount which means instead of having a subsidy of ~20M for 6 years we'd have a subsidy of ~10M for 12 years. Now, when we become full members in 3 years, RU athletics should be roughly even or possible cash flow positive. This in turn will give the AD some leeway to get things done and will (hopefully) shut up some haters.

 

[RU62]

If needed perhaps Rutgers could also "borrow" like Maryland to handle some of the construction projects on the drawing board. I am sure Hobbs is also looking into this. Our leverage might be Rutgers being in the NY metro market.

 

[demauroj]

I'm glad RU didn't take a loan. If we used the loan for FB/BB staff/infrastructure, I'd be ok with it. But in reality we'd be under huge pressure to use it to lower or subsidy amount which means instead of having a subsidy of ~20M for 6 years we'd have a subsidy of ~10M for 12 years. Now, when we become full members in 3 years, RU athletics should be roughly even or possible cash flow positive. This in turn will give the AD some leeway to get things done and will (hopefully) shut up some haters.

I agree it was a prudent Business decision, and a very smart move by Barchi and Pernetti at the time. They had the brains to see the forest thru the trees.

 

[PatrickRU92]

If needed perhaps Rutgers could also "borrow" like Maryland to handle some of the construction projects on the drawing board. I am sure Hobbs is also looking into this. Our leverage might be Rutgers being in the NY metro market.

Hobbs told a group of us in LA that he was not going to "borrow" future earnings for facilities.

 

[Scarlet_Scourge]

It was High Risk, High Reward for the Big Ten to add us. As much as we all love Rutgers, we are not a big name like Penn State or Nebraska, which were slam dunk additions. Maryland was a bigger name and were coming from a Power 5 conference. Rutgers was stuck in the dead Big East and an AAC that was going to get a huge drop in annual pay. We had a Football program that was being held back by bad coaching and a mess of a MBB program.

It was ultra low risk and, ultra high reward for Rutgers to join the Big Ten. We knew we had to pay our way before getting the full payout just like every other school that joined and we also knew it wasn't going to be as much since we were coming from a group of 5 conference rather than a power 5 like Nebraska and Maryland.

In the end it worked out BIG TIME for the Big Ten, the risk payed off huge and now all Big Ten schools will be swimming in huge money, much more than all of the Group of five conference put together! More than all of the other Power 5 conferences. Even more than ESPN's beloved SEC. Even more than rich schools like UND and Texas! In a few years, Rutgers will be making more money than all of them from the TV payouts. This is finally happening, the giant has awaken!

Until then, we just need to keep pushing forward like we have done hiring a real AD and Football and MBB HCs. Like raising record funds (for Rutgers anyway). We need to keep showing everyone that we can complete like Women's Soccer and Wrestling against the big time schools but in Football and MBB as well even with just a fraction of the money everyone else is making.

Finally once we get equal pay, there will be no limit as to how far we can take this.

 

[Scarlet Shack]

I assume this is for 2015-2016 (which ends on June 30, 2016) and NOT 2014-2015...?

 

[jorand]

On paper it looks like we got the shaft however we will not be paying off a loan starting in 2021. Maryland is obviously using the vast majority of that money for infrastructure. We are getting some of our infrastructure done through private donations and some state tax credits. There will be a period of time when they will be less than everybody else.

They are taking a gamble by doing this,but they were in real bad shape financially and had no choice to do this.

Maryland's infrastructure improvements isn't coming from B1G money. State and private donations.

The B1G money was primarily to pay the ACC buyout.

 

[srru86]

Hobbs told a group of us in LA that he was not going to "borrow" future earnings for facilities.

His predecessor had the same direction from Barchi, no more borrowing, reduce subsidy.

 

[RU2055]

And what was our share in the AAC? For now, that really should be the only comparison that matters.

When we start winning B1G titles, then we can compare to the rest of the B1G members.

 

[eceres]

The Big East was an AQ bcs game conference. We were never in a group 5 conference.

BCS ended in 2013 Big East/AAC was an AQ, with college football playoff replacing it in 2014 same time we joined Big Ten. CFP announced in April 2013, this was 5 months after we announced we were joining Big Ten (November 2012).

While our future was in question we were never in the group of 5 and we're always in AQ/Power 5 conference.

NJ and it's self hate...

 

[DJ Spanky]

So the state government has 4 years to position themselves to be the tick on our prized steer.

 

[Scarlet_Scourge]

The Big East was an AQ bcs game conference. We were never in a group 5 conference.

BCS ended in 2013 Big East/AAC was an AQ, with college football playoff replacing it in 2014 same time we joined Big Ten. CFP announced in April 2013, this was 5 months after we announced we were joining Big Ten (November 2012).

While our future was in question we were never in the group of 5 and we're always in AQ/BCS conference.

NJ and it's self hate...

AAC sure as hell isn't considered a Power 5 conference and it never was considered one.

Well, the terms didn't exist back then. You are confused, you mean BCS? Different system now. Group of 5 and Power 5 didn't exist back in the Big east days.

 

[koleszar]

So yeah, it sucks we make less than the Terrapins right now, but I sleep 100% better at night knowing we are secure in the future. I assume many of you feel the same way in spite being short-changed at the moment.

Couldn't have said it any better myself.

 

[RoxboroughKnight]

This article is probably the best one I've read in explaining why Maryland got paid more than RU. In addition to the loan from the B1G, Maryland got what they would have gotten fromm the ACC and it seems this doesn't have to get paid back.

http://www.thegazette.com/subject/sports/newest-big-ten-additions-earn-different-paychecks-20160628

If we are getting paid for the first 6 years at the projected AAC payout we're going to be seeing headlines about the subsidy for longer than I thought.

I don't know why I thought it was a gradual transition to getting the full member payout. It sounds like it's actually 6 years of payouts that are close to what we used to get, and then a giant leap in the 7th year.

 

[koleszar]

Maryland's infrastructure improvements isn't coming from B1G money. State and private donations.

The B1G money was primarily to pay the ACC buyout.

You make it sound like they have such a great and huge donor base. In actuality the major contributor to these projects is just one. Under Armour. They lucked out, they got the B1G to pay for their buyout and then Under Armour swooped in and gave them a boat load of cash. Before this Maryland was in worse financial shape than RU. There were no big donors coming to their rescue and lucked out with the Under Armour backing.