2015 Big Ten Payouts for the 3 newest members

[koleszar]

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.

It's a ramp up by year six we get a little over 19 mil. all others probably 55 mil. except Maryland. Yes the talk of the sudsidy is going to continue for the foreseeable future. I thought just like you with the increased TV deal the B1G would throw us a bone. But they're not even going to throw us the scraps. Just have to deal with these stories a little longer, they're really getting old and annoying. Don't worry I'm sure nj.com has one coming soon.

 

[RURM85]

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

I'm assuming these numbers are for our first year in the B1G (7/1/2014 - 6/30/2015). Payouts for our second year (ending tomorrow) have not taken place and I'd be surprised if any numbers have been released prior to the end of the fiscal year.

In Mid-May, USAToday came out with an article about Big Ten revenues increasing by 33% for FY2015 (FY ending on 6/30/2015). The numbers reported in the article match up with the payments above.

"Nebraska, Maryland and Rutgers are each on separately negotiated paths to full shares of Big Ten revenue. In fiscal 2015, Nebraska received $19.8 million, Maryland $24.1 million and Rutgers nearly $10.5 million"

 

[Upstream]

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.

I guess you can look at Nebraska as the model. In their 4 years in the Big Ten, their payout has increased from $14.3 MM (58% of established B1G schools), to $15.4MM (59%), $16.5MM (60%), and $19.8MM (61%).

 

[Upstream]

I'm assuming these numbers are for our first year in the B1G (7/1/2014 - 6/30/2015). Payouts for our second year (ending tomorrow) have not taken place and I'd be surprised if any numbers have been released prior to the end of the fiscal year.

In Mid-May, USAToday came out with an article about Big Ten revenues increasing by 33% for FY2015 (FY ending on 6/30/2015). The numbers reported in the article match up with the payments above.

"Nebraska, Maryland and Rutgers are each on separately negotiated paths to full shares of Big Ten revenue. In fiscal 2015, Nebraska received $19.8 million, Maryland $24.1 million and Rutgers nearly $10.5 million"

Your assumption appears to be correct.

 

[koleszar]

I guess you can look at Nebraska as the model. In their 4 years in the Big Ten, their payout has increased from $14.3 MM (58% of established B1G schools), to $15.4MM (59%), $16.5MM (60%), and $19.8MM (61%).

But those percentages are going to be way skewed on the downside for RU once this new TV deal hits. We're talking like 20% of what other B1G teams make the 1st year of the new deal. This isn't like Nebraska's buy in at all percentage or money wise.

 

[eceres]

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.

Yes exactly, the Power 5 replaced the Automatic Qualifiers as the top conferences. We were in an AQ conference (Big East / AAC was one). When the Power 5 came we were in a Power 5 Conference (Big Ten).

People make it sound on here like we were in a lower conference and got pulled up to the big leagues. That is not much more true for us than the Maryland or Nebraska at the time we each left our previous conference.

I did have a wrong term at the end when I said AQ/BCS, correcting to AQ/Power5.

 

[Scarlet_Scourge]

Yes exactly, the Power 5 replaced the Automatic Qualifiers as the top conferences. We were in an AQ conference (Big East / AAC was one). When the Power 5 came we were in a Power 5 Conference (Big Ten).

People make it sound on here like we were in a lower conference and got pulled up to the big leagues. That is not much more true for us than the Maryland or Nebraska at the time we each left our previous conference.

I did have a wrong term at the end when I said AQ/BCS, correcting to AQ/Power5.

When people say that it is just hyperbole, it is not meant as a knock on Rutgers. Rather making fun of the Big East and their crappy TV contract we had.

 

[RU-AGK]

If Rutgers can somehow play its way into that tier just below the truly elite (OSU,UM) and be competitive with those on that 2nd tier while still collecting only meager checks compared to everyone else, imagine what it will be like in year 2 of full payouts. We become one of those "rich get richer" bastards we've always had to play second (and third and fourth) fiddle to with the benefit of a literal mountain of "F-U" money to throw at becoming a truly elite program.

While everyone else is putting a new deck on their mansion we'll be building the Death Star on the most prime piece of real estate in the country (if we are winning of course).

Wrap your mind around that. It's glorious!

 

[eceres]

When people say that it is just hyperbole, it is not meant as a knock on Rutgers. Rather making fun of the Big East and their crappy TV contract we had.

Maybe your right, but I think where some people use it as hyperbole, others have a bad memory, over exagerate history, or are knocking Rutgers.

We were no more in that position than Louisville, Syracuse, and Pittsburgh. We can all now laugh (except UCONN and Cincy fans) at how bad the Big East was managed and the number of mistakes made.

When Nebraska left the Big12 there conference looked to be on the verge of collapse too.

 

[Upstream]

But those percentages are going to be way skewed on the downside for RU once this new TV deal hits. We're talking like 20% of what other B1G teams make the 1st year of the new deal. This isn't like Nebraska's buy in at all percentage or money wise.

The actual numbers and percentages are different for Rutgers. But seeing that Nebraska has had only a slight ramp-up, it is not unreasonable to assume that Rutgers also has a slight ramp-up. I wouldn't assume Rutgers has a ramp that looks like 30%, 40%, 50% 70%, 80%, 90%.

But there is another way to look at this. Nebraska has paid approximately $10MM per year (the difference between what they received and what they would have received had the Big Ten given them a full share). Over the 6 year period their total buy-in will probably be about $60MM. So one can assume that if Rutgers has the same amount as a buy-in (or marginally more, since the value of the BTN had increased between the time Nebraska joined and when Rutgers/Maryland joined), then the total amount of our buy in will be somewhere between $60MM and $80MM. If this is the case, and we've already paid $19MM, we should see steeper increases going forward.

 

[jorand]

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.

I didn't make it sound like anything.

Considering we're talking about a 155m+ facility, it's pretty obvious that Kevin Plank (25m) isn't the ONLY private donor.....which is why I said "private donations."

 

[koleszar]

The actual numbers and percentages are different for Rutgers. But seeing that Nebraska has had only a slight ramp-up, it is not unreasonable to assume that Rutgers also has a slight ramp-up. I wouldn't assume Rutgers has a ramp that looks like 30%, 40%, 50% 70%, 80%, 90%.

But there is another way to look at this. Nebraska has paid approximately $10MM per year (the difference between what they received and what they would have received had the Big Ten given them a full share). Over the 6 year period their total buy-in will probably be about $60MM. So one can assume that if Rutgers has the same amount as a buy-in (or marginally more, since the value of the BTN had increased between the time Nebraska joined and when Rutgers/Maryland joined), then the total amount of our buy in will be somewhere between $60MM and $80MM. If this is the case, and we've already paid $19MM, we should see steeper increases going forward.

Upstream, I seriously hope your right. But from what info I gathered our payouts that we agreed to three years ago are going to stay the same. Meaning yr. 1 we start off at $10 mil. by year 6 we ramp up to $19.4 mil. and that's it no increase from the new TV deal. We pay sustainably more to enter the B1G. Meaning by the final year of the buy in we receive roughly 34% of what our B1G brethren make.

 

[Upstream]

Upstream, I seriously hope your right.

I'm certain to be right, since I presented two ways to look at this which drive different conclusions. One way will be right and the other wrong.