Money from the B1G: questions, questions

[RUTGERZ_R00LZ]

As I understand it, RU will not get a full share until (2021? or something like that).

In the meantime what does RU get from the B1G? As I read these forums it sounds like RU gets nothing. Nothing. This can't be, can it? Is there a graduated return from the B1G until a full share is reached? I keep reading that RU has to rely on donations at a time when we really need some bucks that the B1G isn't supplying. Please don't tell me that UCONN is receiving more from the AAC than RU is getting from the B1G.

Also, what about Maryland? Didn't they get a big bundle from the B1G to help with the buyout from the ACC.
Sounds like RU is the redheaded step-child.

Can anybody shed some (knowledgeable) light on the B1G financing of RU. Afterall, the B1G gets a good return from RU and Maryland vis-a-vis the BTN.

Thanks.

 

[wcfan10]

I I recall correctly, we got about $11M from the Big Ten last year and probably get the same for the next few years. RU president Barchi mentioned it on the interview with RU student newspaper a few months ago. It was written in the daily targum.

 

[Scarlet Knut]

I thought it was gradually increasing until we get a full share. ! would hope we are getting more than $11 million,

 

[JPhoboken]

I thought it was gradually increasing until we get a full share. ! would hope we are getting more than $11 million,

I know we had to take any deal to get in, but it seems like the other teams are getting about 4 times what we get. This makes competing extremely difficult.

I have asked this question on the board, and have never gotten a clear answer.

How much is Rutgers getting each year until we get a full share? Is it a set amount? If so, how much for each year? If its a formula, what is the formula?

Isn't this public information?

 

[RURM85]

Ok let's go back to the AAC where each school is getting less than $2M per year with their TV contract and splitting $15M for their participation under the new CFP. Seriously, is there anything to complain about compared to the alternative, as if the school had a choice? Rutgers is being phased in until 2021 (full payout) and conference revenue will grow each year albeit I'm unaware that the phase in revenue details were announced and/or public information. The full payout due to the potential of the new TV contract in 2 years will be mind blowing.

 

[OldTownPepe]

I think $11 million is correct for this year. Seems like the B1G has a bit of a puckered sphincter over initial revenue sharing, but it must go up minimally because Nebraska got $15 million this year. There is also a fat new BTN TV contract to be negotiated next year since Rutgers and Maryland expanded the conference, which Rutgers will benefit from. Nebraska becomes a full member in 2017, and is projected to get $40 - $50 million a year, so when Rutgers has full membership in 2021, it should be a pretty good payout. I guess you have to look ahead and consider what the alternatives would have been.

 

[Knight Shift]

Totally inadequate . Our request upon the invite should have been:

 

[RURM85]

Because we had so much negotiation leverage as we were attempting to flee a rat infested crack house of a conference

 

[OldTownPepe]

Don't forget. The Big Ten wanted Rutgers, too. You could see the $ signs in Delany's eyes.

 

[PhilaPhans]

Maryland wasn't just given all that money for nothing. It was essentially an interest free loan taking money off the back end of the conference dollars.

 

[OldTownPepe]

Totally inadequate . Our request upon the invite should have been:

View embedded media

Great video. Fun to watch. Loved it.

 

[Nit777]

Several pieces of information.

#1 - The money to Maryland was a loan. Has to be paid back.

#2 - The reason Rutgers, Maryland and Nebraska do not get full shares is because the BIG is making them pay for their pro rata share in ownership of the Big Ten Network which is valued at about $1.5 billion.

Fox owns half of it and the Big owns the other half. Thus, the Big 's share is worth $750,000,000 or so. Divide $750,000,000 by 14 and a 1/14th share is about $53 million.

I think you guys are forfeiting about $8.5 million per year for six years, which is $51 million and very close to the $53 million estimate.

#3 - Each Big school received about $26 million last year with 12 teams. The 2015 payouts (your first full year) have not been released but are estimated to be similar.

I think the $11 million you are talking about is only the TV money which is about 70% of Big revenue. The other 30% is the Big championship game, bowl revenue, championship series payouts and basketball revenue. The bowl/championship revenue alone was about $5 million per team with OSU getting to the final game. I think Rutgers probably will get about $17.5 million total from all sources. ($11 m/TV; $5m/bowl, $1.5m/hoops)

#4 - The revenue is projected to get to $44.5 million per team by the 2017 - 2018 academic year when the Big signs its new TV deal (the 70% part of the revenue). Rutgers will get a big jump then.

#5 - The network buy in lasts six years. You entered in the 2014-2015 season. Your payment runs through 2019-2020.

#6 - Starting in 2020-2021, you get a full share of perhaps $44.5 or more and own 1/14 of the Big Ten Network, valued at about $53 million for you share.

#7 - From a money standpoint, joining the Big was a grand slam home run.

 

[RUnumber1]

Several pieces of information.

#1 - The money to Maryland was a loan. Has to be paid back.

#2 - The reason Rutgers, Maryland and Nebraska do not get full shares is because the BIG is making them pay for their pro rata share in ownership of the Big Ten Network which is valued at about $1.5 billion.

Fox owns half of it and the Big owns the other half. Thus, the Big 's share is worth $750,000,000 or so. Divide $750,000,000 by 14 and a 1/14th share is about $53 million.

I think you guys are forfeiting about $8.5 million per year for six years, which is $51 million and very close to the $53 million estimate.

#3 - Each Big school received about $26 million last year with 12 teams. The 2015 payouts (your first full year) have not been released but are estimated to be similar.

I think the $11 million you are talking about is only the TV money which is about 70% of Big revenue. The other 30% is the Big championship game, bowl revenue, championship series payouts and basketball revenue. The bowl/championship revenue alone was about $5 million per team with OSU getting to the final game. I think Rutgers probably will get about $17.5 million total from all sources. ($11 m/TV; $5m/bowl, $1.5m/hoops)

#4 - The revenue is projected to get to $44.5 million per team by the 2017 - 2018 academic year when the Big signs its new TV deal (the 70% part of the revenue). Rutgers will get a big jump then.

#5 - The network buy in lasts six years. You entered in the 2014-2015 season. Your payment runs through 2019-2020.

#6 - Starting in 2020-2021, you get a full share of perhaps $44.5 or more and own 1/14 of the Big Ten Network, valued at about $53 million for you share.

#7 - From a money standpoint, joining the Big was a grand slam home run.

This is very accurate. Thank you for posting this information. Please remember that even with buying into the B1G we are receiving much more money per year than we ever would have in the big east or the AAC. We are definitely way ahead already. Rutgers will use any additional money from the B1G to reduce the athletic subsidy and will not have extra money for facility improvements until we receive our full share in the 2020-2021 academic year.

 

[GoodOl'Rutgers]

I think the problem here is that we had to pay the AAC some big bucks and not get our share from the AAC. So we have a deficit that the current Big Ten share doesn't help with.

If we had managed the exit from the AAC better and paid them nothing and gotten what they owed us, the current Big Ten share would be putting us in a much better position than ever before.

My thought on the Big East / AAC was that they actually cost us (and all the football-playing schools) money over the long term through gross neglect and mismanagement. The idea that we had to pay them to leave.. just insane.

The old Big Ten members earned larger shares than new members because they built a great conference. Furthermore, not until the Big Ten gets to renegotiate its TV contracts can it see revenue boosts it needs to fully fund the new members. If that renegotiation goes really well, perhaps they can be approached to rethink Rutgers shares.

 

[RURM85]

Don't forget. The Big Ten wanted Rutgers, too. You could see the $ signs in Delany's eyes.

Yes, the B1G wanted us but don't forget they could have just as easily waited for us until we were rotting in AAC hell making pennies. We got lucky here with Maryland coming on board as a partner. Historically the B1G will wait decades before making a move and they timed this expansion perfectly with the new Playoff system and a few years to integrate us before the new TV contract. However, we had no leverage in negotiations. Where were we going as an alternative? The B1G could have waited this out and they would still have been fine, even though their revenue would not have been maximized. Our options, taking into account our subsidy, were much more dire.

 

[derleider]

GOR - LOL. We cost ourselves through neglect and mismanagement (and by we I mean Rutgers and the FB schools as a whole). We could have left at any time with adequate notice for free if we were so competent and valuable. In fact one of te main reason the Big East ultimately failed was that its number 1 asset - Rutgers - failed to live up to its potential.

As for RU - the article about the cost of the new buildings says that we will be getting $19.3 million in 2020 - the year before we get the full payout - so basically we will get very modest increases from now (when we are making basically what we made right before the Big East fell apart) until 2020 - the a ENORMOUS bump up to somewhere in the $40-50 million range in 2021.

 

[OldTownPepe]

Several pieces of information.

#1 - The money to Maryland was a loan. Has to be paid back.

#2 - The reason Rutgers, Maryland and Nebraska do not get full shares is because the BIG is making them pay for their pro rata share in ownership of the Big Ten Network which is valued at about $1.5 billion.

Fox owns half of it and the Big owns the other half. Thus, the Big 's share is worth $750,000,000 or so. Divide $750,000,000 by 14 and a 1/14th share is about $53 million.

I think you guys are forfeiting about $8.5 million per year for six years, which is $51 million and very close to the $53 million estimate.

#3 - Each Big school received about $26 million last year with 12 teams. The 2015 payouts (your first full year) have not been released but are estimated to be similar.

I think the $11 million you are talking about is only the TV money which is about 70% of Big revenue. The other 30% is the Big championship game, bowl revenue, championship series payouts and basketball revenue. The bowl/championship revenue alone was about $5 million per team with OSU getting to the final game. I think Rutgers probably will get about $17.5 million total from all sources. ($11 m/TV; $5m/bowl, $1.5m/hoops)

#4 - The revenue is projected to get to $44.5 million per team by the 2017 - 2018 academic year when the Big signs its new TV deal (the 70% part of the revenue). Rutgers will get a big jump then.

#5 - The network buy in lasts six years. You entered in the 2014-2015 season. Your payment runs through 2019-2020.

#6 - Starting in 2020-2021, you get a full share of perhaps $44.5 or more and own 1/14 of the Big Ten Network, valued at about $53 million for you share.

#7 - From a money standpoint, joining the Big was a grand slam home run.

Thanks for clarifying it. It's kind of like paying dues to get in to a country club, but I can't imagine anything better for Rutgers than landing in the Big Ten. Where else could be better? Rutgers will be a prominent, and recognized, member of the conference, and will eventually share in all the wealth. I'm glad you joined The Big Ten, Rutgers. I could see a rivalry when we play.

 

[Knight_Light]

As I read these forums it sounds like RU gets nothing. Nothing.

What the heck are you reading? (What board? What posts?)

If you really, really thought that after reading a few posts (while obviously ignoring others), just spend a few secs on google and then you won't spend time thinking RU gets nothing. Nothing.

 

[Scarlet_Scourge]

The Big Ten got a boost when Rutgers joined since we locked up BTN fees in NJ and NYC in record breaking time.

I am not sure how far they have gotten with Maryland.

Another big boost came for the new post season; bowls, playoffs and NCG.

There are two more boosts that are coming.

The men's basketball contract for tier 1 tv rigjt is set to end after the 2016/2017 season. It currently does not include Nebraska, Rutgers and more importantly Maryland.

The motherload will be the tier 1 football contract which is set to end after the 2016 season. The current one does not include the 3 schools above. It could be double or even worth more than double what the current one is worth.

So once Rutgers gets the full shares in 2021 it will be a game changer to put it mildly.

 

[pd125]

It's very simple! We get a percentage of what the B1G distributes to the conf. schools. If the amount goes up then our $ go up.

For example, this year (2015) they give out $20M and we receive 60% so our take is $12M. However, in 2017 they give out $40M and our take is 80% so our take is $32M. It just gets better each year.

 

[Upstream]

For example, this year (2015) they give out $20M and we receive 60% so our take is $12M. However, in 2017 they give out $40M and our take is 80% so our take is $32M. It just gets better each year.

Are those numbers just examples, or are they the actual percentages?

 

[pd125]

Just example numbers. Let's see how close I get? LOL

 

[RUfinal4]

Rutgers will be in an athletics financial bind until around 2023-2024 because we have to pay back the subsidy and fund some of the improvements. Until then we will need to pick a couple of sports to invest in to be competitive. We can't be like Michigan or Ohio St that can spend big on all sports.

I think the following should be the ones to focus on:
- football (easiest way to get good PR and donations)
- Mens and Ladies hoops (similar to football plus NJ has incredible HS talent)
- Mens and Ladies soccer (NJ is a soccer hot bed)
- Wrestling (NJ has good HS talent)
- Men's and Ladies Lacrosse (we have a chance to be top half in the B10 with a lot of local talent)

Sports like swimming, tennis, gymnastics, volleyball, baseball, field hockey, and softball will be tougher for us to move up without spending big money. For them we should try to stay ahead of the other local schools (SHU, Monmouth, Rider, Nova, St Johns, FDU, etc...)

Even schools like Northwestern, Illinois, and Indiana are not competing across the board but are leaders in just a few sports.

 

[Scarlet_Scourge]

Every conference is different.

Football and Men's basketball make money in all of them.

After that it depends on the conference.

For the Big Ten it is the two above plus Wrestling, Ice Hockey, and Women's Volleyball.

Moving wrestling to the RAC was a great move and Rutgers was one of the top ticket sellers for wrestling in the nation. It is part of the new practice/training building to build them a new training facilities. Any upgrades to the RAC will help them as well. Wrestling should be really good for Rutgers.

We don't have Ice Hockey...

Women's Volleyball... we currently have the worst program in the Big Ten. We would need to get it fully funded and hire an elite coaching staff from an non- Big Ten Volleyball powerhouse.
I don't know how much that would cost. The support may not be there so this would be one of those after 2021 deals.

 

[BIGRUBIGDBIGredmachine]

Rutgers will be in an athletics financial bind until around 2023-2024 because we have to pay back the subsidy and fund some of the improvements. Until then we will need to pick a couple of sports to invest in to be competitive. We can't be like Michigan or Ohio St that can spend big on all sports.

I think the following should be the ones to focus on:
- football (easiest way to get good PR and donations)
- Mens and Ladies hoops (similar to football plus NJ has incredible HS talent)
- Mens and Ladies soccer (NJ is a soccer hot bed)
- Wrestling (NJ has good HS talent)
- Men's and Ladies Lacrosse (we have a chance to be top half in the B10 with a lot of local talent)

Sports like swimming, tennis, gymnastics, volleyball, baseball, field hockey, and softball will be tougher for us to move up without spending big money. For them we should try to stay ahead of the other local schools (SHU, Monmouth, Rider, Nova, St Johns, FDU, etc...)

Even schools like Northwestern, Illinois, and Indiana are not competing across the board but are leaders in just a few sports.

Agreed-but we cannot let the "subsidy" hype block investments especially in the high-profile sports. The subsidy comes to about $250/student each semester, RU Athletics pays RU Food Services for concessions and the students get free game tickets, so there is real value and a built-in payback that comes to RU as a community with that "subsidy". Investing in winning programs is the top priority here. Students can elect to go to TCNJ, Montclair St., Rider etc if they object to the incremental cost of our Big10 athletics until we're fully vested.

 

[Scarlet_Scourge]

Student fees were never part of the reduction plans. They are not going away for that the student fee and subtract that from the subsidy we currently get and that is what is going away.

 

[RUfinal4]

the subsidy was $36 mil in 2014. What percent of that was the student fees? The rest is probably what they are looking to reduce.

 

[jmc11201]

I recall Jim Delaney saying at the time Rutgers and Maryland were added that the amount the universities get is dependent on where they come from. What he was implying is that because Maryland was in a better conference, that the Big Ten needed to incentivize them more to move to the Big Ten than they did Rutgers, who we all know were desperate to leave whatever conference we were in at the time. Therefore, my impression is that Maryland got a better deal than we did, but considering our alternatives, we should never complain.

 

[JPhoboken]

It's very simple! We get a percentage of what the B1G distributes to the conf. schools. If the amount goes up then our $ go up.

For example, this year (2015) they give out $20M and we receive 60% so our take is $12M. However, in 2017 they give out $40M and our take is 80% so our take is $32M. It just gets better each year.

Thanks, You have seen this in writing? Been told this by Hermann?

 

[derleider]

the subsidy was $36 mil in 2014. What percent of that was the student fees? The rest is probably what they are looking to reduce.

Studnet fees, if I remember are in the $9 million range. We arent going to get rid of them. But the rest should go away. If nothing else, its gives anti-athletics advocates a pretty useful cudgel to bludgeon the school with. If its all athletics related spending then their complaints are basically meaningless.

 

[NickyNewark51]

Several pieces of information.

#1 - The money to Maryland was a loan. Has to be paid back.

#2 - The reason Rutgers, Maryland and Nebraska do not get full shares is because the BIG is making them pay for their pro rata share in ownership of the Big Ten Network which is valued at about $1.5 billion.

Fox owns half of it and the Big owns the other half. Thus, the Big 's share is worth $750,000,000 or so. Divide $750,000,000 by 14 and a 1/14th share is about $53 million.

I think you guys are forfeiting about $8.5 million per year for six years, which is $51 million and very close to the $53 million estimate.

#3 - Each Big school received about $26 million last year with 12 teams. The 2015 payouts (your first full year) have not been released but are estimated to be similar.

I think the $11 million you are talking about is only the TV money which is about 70% of Big revenue. The other 30% is the Big championship game, bowl revenue, championship series payouts and basketball revenue. The bowl/championship revenue alone was about $5 million per team with OSU getting to the final game. I think Rutgers probably will get about $17.5 million total from all sources. ($11 m/TV; $5m/bowl, $1.5m/hoops)
Finally the right answer on yearly amounts...I read a few month's back the BTN decided to see we got 17M a yr for 6 yrs or until we get the full share 6/7 years down the line when we are on our feet dollars wise.
#4 - The revenue is projected to get to $44.5 million per team by the 2017 - 2018 academic year when the Big signs its new TV deal (the 70% part of the revenue). Rutgers will get a big jump then.

#5 - The network buy in lasts six years. You entered in the 2014-2015 season. Your payment runs through 2019-2020.

#6 - Starting in 2020-2021, you get a full share of perhaps $44.5 or more and own 1/14 of the Big Ten Network, valued at about $53 million for you share.

#7 - From a money standpoint, joining the Big was a grand slam home run.

 

[pd125]

Barchi said that Rutgers' share of the annual payouts from participation in the Big Ten "could amount" to $43M by '18

 

[Nit777]

It's very simple! We get a percentage of what the B1G distributes to the conf. schools. If the amount goes up then our $ go up.

For example, this year (2015) they give out $20M and we receive 60% so our take is $12M. However, in 2017 they give out $40M and our take is 80% so our take is $32M. It just gets better each year.

__________________________________________________________________________________________________________________

I do not think this is correct.

What you are not receiving is your payment for the share of the Big Ten network which is a six year buy in.

This is a payment like a six year fixed amortized loan and the payment is about $8.5M per year. How much money you make has nothing to do with the loan repayment/buy in expense. If you only were due to receive $10M, you would only get $1.5M after the payment.

You do not get 60% of something in 2015 and 80% of something in 2017.

You get your pro rata 1/14 share and then you subtract $8.5 M until paid in full in 2019-2020 school year.

If the Big Ten network makes more money, and/or the Big gets more bowl revenue, that you may get more because the overall pot is larger, but you still pay $8.5 as opposed to some pro rata number.

__________________________________________________________________________________________________________________
Also, I doubt that any sports make money other than football and men's hoops with maybe a few exceptions, such as Iowa wrestling.

PSU women's volleyball, arguably as good a program as there is in the country based on winning NCAA championships, loses well over $500,000 per year after you factor in the cost of scholarships (12 @ $25,000 = $300,000, coaches salaries (About $1,000,000), travel, supplies, etc even when you attract maybe 4,000 per match x $10.00 a head average with students diluting the average x 20 matches = $800,000 plus some small share of concessions.

It is almost impossible to make money on Olympic sports as the student ticket prices are very low.

 

[RUSK97]

So if these numbers are anywhere near accurate the takeaway message is this: In the first year as a member of the B1G, Rutgers netted (after AAC exit fees) about 1.25 what it would have gotten had it stayed in the AAC.

So we paid a league that didn't exist when we signed agreements to get away from it, yet still made more than if we had stayed in it. So technically, all else equal, there should be a massive percentage drop in University subsidies next year??

 

[Scarlet_Scourge]

Student fees were $10.3 million for 2014
The rest was $26 million
The idea is to reduce the $26 million every year until it reaches zero.

 

[RUSK97]

Student fees were $10.3 million for 2014
The rest was $26 million
The idea is to reduce the $26 million every year until it reaches zero.

Suppose expenditures don't go up and other revenues stay the same. That 26 million subsidy should theoretically decrease by 7 million instantly next year due to the fact that we don't have to pay the AAC anything? I know the AAC exit fee is 11.5, not 7, but I remembered somewhere that 7 is what had to be paid after monies previously withheld.

 

[Cruising Route 66]

Several pieces of information.

#1 - The money to Maryland was a loan. Has to be paid back.

#2 - The reason Rutgers, Maryland and Nebraska do not get full shares is because the BIG is making them pay for their pro rata share in ownership of the Big Ten Network which is valued at about $1.5 billion.

Fox owns half of it and the Big owns the other half. Thus, the Big 's share is worth $750,000,000 or so. Divide $750,000,000 by 14 and a 1/14th share is about $53 million.

I think you guys are forfeiting about $8.5 million per year for six years, which is $51 million and very close to the $53 million estimate.

#3 - Each Big school received about $26 million last year with 12 teams. The 2015 payouts (your first full year) have not been released but are estimated to be similar.

I think the $11 million you are talking about is only the TV money which is about 70% of Big revenue. The other 30% is the Big championship game, bowl revenue, championship series payouts and basketball revenue. The bowl/championship revenue alone was about $5 million per team with OSU getting to the final game. I think Rutgers probably will get about $17.5 million total from all sources. ($11 m/TV; $5m/bowl, $1.5m/hoops)

#4 - The revenue is projected to get to $44.5 million per team by the 2017 - 2018 academic year when the Big signs its new TV deal (the 70% part of the revenue). Rutgers will get a big jump then.

#5 - The network buy in lasts six years. You entered in the 2014-2015 season. Your payment runs through 2019-2020.

#6 - Starting in 2020-2021, you get a full share of perhaps $44.5 or more and own 1/14 of the Big Ten Network, valued at about $53 million for you share.

#7 - From a money standpoint, joining the Big was a grand slam home run.

The BTN (Network) is 51% owned by an affiliate of Fox Sports Net Inc (Fox) and 49% owned by Big Ten Network Holdings, LLC (Holdings). Holdings and Fox have a 29.71% and 65.3% profit interest in the network respectively. Comcast holds the remaining 4.99% profit interest in the Network.

In addition to its profit sharing interest in Network, Holdings receives increasing annual broadcast rights fees from the Network through 2028. Through 2019 the annual rights fees were to be as follows:

2015 - $105,395,896
2016 - $108,557,773
2017 - $111,814,505
2018 - $115,168,941
2019 - $118,624,009

In recognition of the addition of RU and MD in 2014, Holdings negotiated an increase in the rights fee beginning in 2015. The fee for 2015 increased to $121,128,545 and will ratchet upward 3% yearly to $136,331,224 by 2019. The conference takes around a 4% cut of all rights fees to help fund operations.

Holdings recorded allocable earnings from the Network in 2014 of $18,630,259 and $22,356,504 in 2013. Network in 2014 had revenue of $244,363,000 and Net Income of $76,170,000

For fiscal 2012, Nebraska earned $14,311,124 of which $14,016,000 was for TV rights fees and $295,124 from NCAA supplemental revenue. For fiscal 2013, Nebraska earned $15,379,845 of which $15,033,000 was for TV rights and $337,845 from NCAA supplemental revenue. In 2014, Nebraska was paid $16,455,629 of which $16,034,000 for TV rights ( $3.9M less than each other school received), $401,629 from NCAA supplemental revenue, and $20,000 for the NCAA Tournament. Nebraska had yet to earn anything for Bowl games, B1G football championship game, B1G's BB tournament, NCAA Broad based fund, and the NCAA Royalty tribunal.

Curious how you arrived at a value of $1.5B for the Network considering it generates considerably less than than $100M/yr in free cash flow and with the cable industry about to moving to a la carte offerings. Also the conference is not loaning MD $50M.

 

[RUnumber1]

I recall Jim Delaney saying at the time Rutgers and Maryland were added that the amount the universities get is dependent on where they come from. What he was implying is that because Maryland was in a better conference, that the Big Ten needed to incentivize them more to move to the Big Ten than they did Rutgers, who we all know were desperate to leave whatever conference we were in at the time. Therefore, my impression is that Maryland got a better deal than we did, but considering our alternatives, we should never complain.

Maryland did NOT get a "better deal." They received an upfront loan from The B1G that is to be paid back with revenue from subsequent years. This deal had nothing to do with "where they came from" from an athletic standpoint and more from where we came from from a financial standpoint. Believe it or not, but Maryland was in much worst financial shape than Rutgers was and therefore needed the loan (money) now.

 

[derleider]

Heres the main thing.

No one here knows what they are talking about (including me). No one really seems to know how much we owed the AAC and how long we had to pay it off. No one knows what we made from the Big Ten this year (that wont come out until the tax filings come out sometime next year). No one knows what we will make from the Big Ten in the future. All we know is that in 2021 we will make the full share, which will be a very large number relative to what we are making now.

heres the closest thing to a quote

From the Rutgers mailbag article about how much the planned athletic expansion will cost.

"Both funding options, I was told, are on the table with Rutgers expected to rake in $19.3 million in Big Ten revenue in 2020 and perhaps more than twice that amount by the time it becomes a full-share partner in 2021."

I dont know where this number comes from - $19.3 million - but for right now, I would accept that as the closest thing we have to a firm number. Its a safe assumption that RU will not make MORE than that number in any of the intervening years.

Also - to the poster above - I dont think MD was in worse shape financially. I think its more fair to say - their political climate wouldnt allow them to run deficits in the tens of millions for years on end like ours would. Like most BCS schools they expect to come somewhat close to breaking even on sports, and if they dont its a major issue to be rectified.

 

[R1776U]

Maryland wasn't just given all that money for nothing. It was essentially an interest free loan taking money off the back end of the conference dollars.

exactly negotiating your way out of a 50 mil buyout ain't easy