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B10 $$$.759 Mill in Revenue in 2018.RU and Terps get Loan$

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https://www.usatoday.com/story/spor...it-nearly-759-million-fiscal-2018/3686089002/


The Big Ten Conference has established a new benchmark in the how-high-is-up world of college sports finance: It recorded nearly $759 million in revenue during its 2018 fiscal year.

The figure, which far exceeds any comparable annual figure for a college sports conference, was revealed in a new federal tax return that the conference provided Wednesday in response to a request from USA TODAY. It is a year-over-year revenue increase of 48 percent, with the conference reaching $512.9 million in fiscal 2017.

The return also showed that commissioner Jim Delany was credited was just over $5.5 million in total compensation for the 2017 calendar year. That, too, is a single-year record for a conference.

The revenue total was driven by new TV agreements that took effect at the start of the 2017-18 school year and resulted in payments of roughly $54 million to each of the 14-team conference’s 12 longest-standing members. Maryland and Rutgers received smaller revenue-share amounts, but both schools also received loans from the conference against future revenue shares.



In February, the Southeastern Conference reported just under $660 million in revenue for fiscal 2018, resulting in an average of $43.7 million being distributed to the 13 member schools that received full shares. Mississippi did not get a full share because its football team was banned from postseason play.
 
Maryland and Rutgers received smaller revenue-share amounts, but both schools also received loans from the conference against future revenue shares.

anyone know how much of Loan RU took and how it impacts future
revenue???
 
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"The Big Ten’s new basic per-school share means that those programs received more money from one revenue source than the vast majority of Division I athletics departments had in total. More than 170 of the 213 public-school athletics programs outside the Big Ten reported less than $54 million in operating revenue for fiscal 2017"

That's the news. The loan/reduced share is a temporary blip.Good company to be in.
 
"The Big Ten’s new basic per-school share means that those programs received more money from one revenue source than the vast majority of Division I athletics departments had in total. More than 170 of the 213 public-school athletics programs outside the Big Ten reported less than $54 million in operating revenue for fiscal 2017"

That's the news. The loan/reduced share is a temporary blip.Good company to be in.
Boo ya!
 
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Maryland and Rutgers received smaller revenue-share amounts, but both schools also received loans from the conference against future revenue shares.

anyone know how much of Loan RU took and how it impacts future
revenue???

$14 mil per the article. Received $11.7 plus the loan so about $26 total.
 
ok..my bad,stupid page didnt fully load due to Ad block at start. See it now.
Thanks.
Maryland’s loan from the Big Ten in fiscal 2018 was just under $31 million. When added to its revenue share of $26.1 million, this means Maryland received more money from the Big Ten in 2018 than any school. But it also means Maryland has been loaned more than $66 million during its first four years in the conference, and its future revenue shares will be adjusted accordingly.

Rutgers’ loan from the conference -- $14 million -- is its first. Rutgers’ revenue share for 2018 was $11.7 million
 
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Roughly $54M TV Revenue per school with Rutgers and Maryland taking in smaller revenue. Wow! This Conference is loaded.
 
Why is our revenue share so much lower than Maryland? and when exactly do we receive our full share minus whatever we borrowed?
 
Maryland and Rutgers received smaller revenue-share amounts, but both schools also received loans from the conference against future revenue shares.

anyone know how much of Loan RU took and how it impacts future
revenue???

Here are the figures.
Rutgers distributions from Big Ten:
2015 $8,645,986
2016 $9,043,606
2017 $9,442,178
2018 $23,841,721 ($9,841,721 + $14,000,000 loan)
2019 $26,242,246 ($10,242,246 + $13,000,000 loan + $3,000,000 advance)
2020 $28,643,801 [FY 2020 starts on July 1, 2019]
2021 $43,705,600
2022 $46,029,566
2023 $48,941,204
2024 $50,970,215
2025 $53,055,193
2026 $56,178,379
2027 $65,238,659 [First year of full share; all loans and advances paid off]
2028 $67,195,819
2029 $69,211,694
 
there is zero financial excuse NOT to can Ash after this season and Hire a real HC,or even go 'cheaper' with the Camps in charge thru 2021.
at that point RU will be getting 43$ mill,and the candidate pool, $$ wise for a proven power five HC will be large.
 
unbelievable numbers---uconn,shu,wvu , miami or bc--man are we so better off--the paltry big east numbers then, or now or acc numbers can't compare
Yes, who were the folks again, few but misguided, that thought we should have gone ACC? Its weird that wasn't an option, but some really thought that was the way to go?
 
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there is zero financial excuse NOT to can Ash after this season and Hire a real HC,or even go 'cheaper' with the Camps in charge thru 2021.
at that point RU will be getting 43$ mill,and the candidate pool, $$ wise for a proven power five HC will be large.

Time for RU to get serious about Football and stop the BS
 
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When I was at a recent Rutgers baseball game, I was looking at all the Big Ten logos and sometimes I still can’t believe we got the last lifeboat and WE ARE IN THE BIG TEN !!! I can’t imagine if we were still playing Tulane,Temple,SMU, UConnetc.
 
When I was at a recent Rutgers baseball game, I was looking at all the Big Ten logos and sometimes I still can’t believe we got the last lifeboat and WE ARE IN THE BIG TEN !!! I can’t imagine if we were still playing Tulane,Temple,SMU, UConnetc.
Exactly, as bad as things are here, go visit the Boneyard sometime.
 
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Big jump in 2021. We should be able to compete at that level of funding.
Yep. It's all about $$$$. Money gets good coaches. Good Coaches get good assistants. They all can recruit. We get good players.Good players win more games than not good players. Fans are good and happy. Happy fans donate more money. Good things keep happening. And the Beat goes on.
 
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Nobody gives away money like that in a capitalistic society. Nobody.
What we should have done up front is to negotiate a price to join.. a buy in price.

Lets say that price was $100M.. "paying" $10M a year for 10 years.. That means the payout to Rutgers would have been equal to all the Big Ten teams.. and $10M of that taken away to pay off the membership fee. I doubt Nebraska lost out on $100M revenue from the Big Ten when it joined.

This year we would have received $44.7M with only 3 years of payments left.

Even if they had said, well, Nebraska brings a more attractive name.. they buy in price is $50M.. Maryland's is $100M, Rutgers is $150M.. even then we would have been better off. I think in the first or second year the difference between the full share and Rutgers share was over $20M.

It would have been a fair deal.. a more fair deal.. setting an actual price to membership.. and allowed Rutgers to enjoy the growth in revenues of the Big Ten.. as it is, that growth just makes it more difficult for us to compete in this conference. The revenue gap gets larger every season.

But as is so often said, beggars can't be choosers... still, I bet we could have come up with a number that would have been agreed to. It would seem outrageous at the time.. but would have worked out in our favor.
 
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Nobody gives away money like that in a capitalistic society. Nobody.
Ok. Rich people and businesses never give money away to support need. [eyeroll]

In all seriousness, even with leverage I've never seen Rutgers EVER negotiate a good contract or deal, like a bonus for delivering x amount more equity to the league than estimated.
 
..even with leverage I've never seen Rutgers EVER negotiate a good contract or deal, like a bonus for delivering x amount more equity to the league than estimated.
Right? How hard is it to get a bonus deal defined that the other side thinks they will never have to pay? iirc, The Big Ten predicted the $30M+ payouts.. but not the $40M+ and $50M+.. not when we made the deal to join. Imagine we got a clause in there that, if within 10 years the average payout was over $50M that we would then be a full member. Maybe they get nervous and then say $55M or $60M to push back.. we'd still be better off.

btw.. I was wrong earlier.. when we joined the Big Ten had projected $44.5M payout for 2017-2018 which was pretty close.. so is it a good prediction or they saw they had more than that and said, hey, lets give $20M to Delany as a bonus..

So.. if they projected 44.5 and delivered 51.1 (not sure how to look that up properly.. getting weird search results)... but that's an extra $6.6M per team never factored into Rutgers "buy-in" price. There were gaps like that practically every season.

They project X per season and give Rutgers set amounts.. 9, 10, etc. lets call that R. So the projected buy-in price was X-R per year for.. what was it, 7 years to 2021? But every year it was (X+Y)-R.. X being the projected number, Y being the addition OVER the projected number.. and R sticks to its schedule... though I think there may have been small increases recently.
 
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Here are the figures.
Rutgers distributions from Big Ten:
2015 $8,645,986
2016 $9,043,606
2017 $9,442,178
2018 $23,841,721 ($9,841,721 + $14,000,000 loan)
2019 $26,242,246 ($10,242,246 + $13,000,000 loan + $3,000,000 advance)
2020 $28,643,801 [FY 2020 starts on July 1, 2019]
2021 $43,705,600
2022 $46,029,566
2023 $48,941,204
2024 $50,970,215
2025 $53,055,193
2026 $56,178,379
2027 $65,238,659 [First year of full share; all loans and advances paid off]
2028 $67,195,819
2029 $69,211,694

Amazing numbers...Rutgers goes from $8.6 million in 2015 in Year 1 to $53 million in 2025 in Year 10.
 
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What we should have done up front is to negotiate a price to join.. a buy in price.

Lets say that price was $100M.. "paying" $10M a year for 10 years.. That means the payout to Rutgers would have been equal to all the Big Ten teams.. and $10M of that taken away to pay off the membership fee. I doubt Nebraska lost out on $100M revenue from the Big Ten when it joined.

This year we would have received $44.7M with only 3 years of payments left.

Even if they had said, well, Nebraska brings a more attractive name.. they buy in price is $50M.. Maryland's is $100M, Rutgers is $150M.. even then we would have been better off. I think in the first or second year the difference between the full share and Rutgers share was over $20M.

It would have been a fair deal.. a more fair deal.. setting an actual price to membership.. and allowed Rutgers to enjoy the growth in revenues of the Big Ten.. as it is, that growth just makes it more difficult for us to compete in this conference. The revenue gap gets larger every season.

But as is so often said, beggars can't be choosers... still, I bet we could have come up with a number that would have been agreed to. It would seem outrageous at the time.. but would have worked out in our favor.
Beggers can't be choosy. The Titanic was sinking and this was the last spot in the lifeboat (but what a lifeboat it is).
 
Anyone know how the $ is disbursed?

It says fiscal year starts on July 1 each year.

Is there a lump sum payment at that time, or a lump sum payment at the end of a fiscal year, or weekly “checks” throughout the fiscal year, or some other increment?
 
The conference is charging us interest? If true that's ridiculous.
I believe the loans are interest free. I know Maryland's are, I can't see them making us pay interest but who knows. They said we were all buying equal equity but it's going to cost us over 34% more than Nebraska to enter the B1G.

The only one charging us interest is Rutgers at a whopping 5.75%. That $10mil. loan is going to cost athletics roughly $20 mil. by time it's paid back. And here's the kicker that loan was reported as subsidy although athletics will actually make the school money. That in a nutshell explains the RU administrations apathy towards athletics.
 
Right? How hard is it to get a bonus deal defined that the other side thinks they will never have to pay? iirc, The Big Ten predicted the $30M+ payouts.. but not the $40M+ and $50M+.. not when we made the deal to join. Imagine we got a clause in there that, if within 10 years the average payout was over $50M that we would then be a full member. Maybe they get nervous and then say $55M or $60M to push back.. we'd still be better off.

btw.. I was wrong earlier.. when we joined the Big Ten had projected $44.5M payout for 2017-2018 which was pretty close.. so is it a good prediction or they saw they had more than that and said, hey, lets give $20M to Delany as a bonus..

So.. if they projected 44.5 and delivered 51.1 (not sure how to look that up properly.. getting weird search results)... but that's an extra $6.6M per team never factored into Rutgers "buy-in" price. There were gaps like that practically every season.

They project X per season and give Rutgers set amounts.. 9, 10, etc. lets call that R. So the projected buy-in price was X-R per year for.. what was it, 7 years to 2021? But every year it was (X+Y)-R.. X being the projected number, Y being the addition OVER the projected number.. and R sticks to its schedule... though I think there may have been small increases recently.

Hindsight is 20/20. We had no leverage. Zero. We cannot forget that. And I think we negotiated a very fair deal. Sure it hurts that we have been getting a whole lot less than full members. But that is the cost. And that cost was structured where we increased our take every year. Did you not expect to pay something to get into the most profitable conference in history? And again, remember, we had no leverage.

Like Choppin posted we go from $8.6 to $53m in 10 years. How many athletic departments can say that?
 
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These conf numbers are insane. Wonder how much higher it can go without blowing a tire.

I really hope RU got its money’s worth on the loans. For football, kinda hard to tell. It would have been nice to be even with our conf mates by 21.
 
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