Big 12 Revenue Update

[Gary's Shirtless Revenge]

Also, for those interested, here's the breakdown of TCU's Athletic Budget for 2016-2017.

Link To Data Here

Total Revenue: $105 million (includes unallocated revenue items by TCU, items unaffiliated with any particular sport)
Operating Revenue: $93 million
Operating Expenses: $83 million

Revenue Breakdown
Operating Revenue: $27.1 million
Donations: $31.9 million
Conference Distribution: $34.2 million
Other: $11.9 million

Football was the only sport that made a profit, $23 million in the black. Basketball and Baseball saw substantial jumps in expenditures, and losses. Other sports saw their budgets shrink.

 

[LeagueCityFrog]

Shouldn't Texas have made more? Like the average payoff of $37.40 Million plus around $14.9 Million for the awesome Longhorn network. My math says they should be laughing all the way to the bank at Nebraska and A&M by depositing around $52.3 million per their 20 year deal with ESPN making them, by far, the most lucrative TV money makers in College Sports despite no recent Big 3 sport national championships.

I'm digging Gary's Shirtless Reveneges inside knowledge on this topic which is a very important topic for TCU and Big XII future stability and growth.

 

[lowfrog]

So we’re stuck posting about weed, Baylor, and one dude’s kid who didn’t get accepted to TCU all spring/summer?

Don't forget the TCU Construction Updates thread. Lot's of good internet fighting in there with Deep and others. And what about Specialty Plates?

 

[Gary's Shirtless Revenge]

Shouldn't Texas have made more? Like the average payoff of $37.40 Million plus around $14.9 Million for the awesome Longhorn network. My math says they should be laughing all the way to the bank at Nebraska and A&M by depositing around $52.3 million per their 20 year deal with ESPN making them, by far, the most lucrative TV money makers in College Sports despite no recent Big 3 sport national championships.

I'm digging Gary's Shirtless Reveneges inside knowledge on this topic which is a very important topic for TCU and Big XII future stability and growth.

Their Longhorn Network contract pays a minimum rights fee, growing at 3% per year. There is a tab in the sheet I linked that gives you the breakdown of what they are expecting to make per year.

The original thought was that the network would turn profitable (and pay back the original investment) and that UT would get a cut of the annual profits... That hasn't turned out so good yet.

 

[LeagueCityFrog]

My vote poach Arizona and Arizona State or go recheck the temperature of Colorado, now making less money and loss their chief rivals of Oklahoma and Nebraska to be replaced with Utah. Then I would check the temperature of Nebraska, Big Red Machine no more, garbage recruiting now, they are now the fifth recruiting option for high school kids in Ohio is their new hot spot, no more solid Texas pipeline, and their big rivals now are Minnesota and Iowa vs the whole Big 12 group of rivals south of them, and half their alums live in Kansas City not Rutgers, NJ or Baltimore, Maryland. Their travel fees for their fans has to be old by now. I'm a big advocate for the Big XII to go back to 12 and TCU and the rest of the conference is set.

 

[Casey T]

I would love to travel to ASU for away games/women

 

[Gary's Shirtless Revenge]

I'm not going to say that adding teams to the Big 12 is NEVER going to happen, but I can tell you that I've heard very clearly from industry people that the Big 12 Presidents are NOT focused on adding teams. They think (and it's true) that they can generate good value as 10 teams, and that the growth in conferences has proven that bigger is not better, and that a 10 team league is actually better in a number of ways.

The only way adding teams makes us better is if we can add a large state school in one of our existing time zones, IMHO. So far as I can see, Arizona/Az ST just don't move the needle enough. Neither does Colorado.

 

[Wexahu]

I'm not going to say that adding teams to the Big 12 is NEVER going to happen, but I can tell you that I've heard very clearly from industry people that the Big 12 Presidents are NOT focused on adding teams. They think (and it's true) that they can generate good value as 10 teams, and that the growth in conferences has proven that bigger is not better, and that a 10 team league is actually better in a number of ways.

The only way adding teams makes us better is if we can add a large state school in one of our existing time zones, IMHO. So far as I can see, Arizona/Az ST just don't move the needle enough. Neither does Colorado.

Agree with everything except this. I think if those two schools could be added it would be a huge positive for the league. Two large state schools (and I believe the only D1 schools) from one of the fastest growing states in the country, it would be a great move IMO.

No idea if it has even the slightest chance of happening though. On the surface it'd seem like it would make a lot of sense for both the AZ schools and B12 but haven't heard anyone seriously talking about it so maybe it will never happen.

 

[LeagueCityFrog]

Gary's Shirtless Revenge... What do you think is more likely to happen come 2024, Texas and OU bolting or the Big XII add two power 5 program teams. I know you'll probably say status quo. And are you Bob Bowlsby?

 

[Hoosierfrog]

I'm not going to say that adding teams to the Big 12 is NEVER going to happen, but I can tell you that I've heard very clearly from industry people that the Big 12 Presidents are NOT focused on adding teams. They think (and it's true) that they can generate good value as 10 teams, and that the growth in conferences has proven that bigger is not better, and that a 10 team league is actually better in a number of ways.

The only way adding teams makes us better is if we can add a large state school in one of our existing time zones, IMHO. So far as I can see, Arizona/Az ST just don't move the needle enough. Neither does Colorado.

 

[Hoosierfrog]

Kind of makes me think of Einstein’s quote about doing the same thing and expecting different results.

 

[LeagueCityFrog]

I'm not going to say that adding teams to the Big 12 is NEVER going to happen, but I can tell you that I've heard very clearly from industry people that the Big 12 Presidents are NOT focused on adding teams. They think (and it's true) that they can generate good value as 10 teams, and that the growth in conferences has proven that bigger is not better, and that a 10 team league is actually better in a number of ways.

The only way adding teams makes us better is if we can add a large state school in one of our existing time zones, IMHO. So far as I can see, Arizona/Az ST just don't move the needle enough. Neither does Colorado.

Why does it have to be teams for our time zone? So Nebraska plus one more, say Arkansas or no one? With West Virginia in the east time zone, the rest of the current conference members in the central, and add two more out west in a different time zone, wouldn't that allow the Big XII to be potentially on TV all day Saturday with reasonable game start times for all fans of the conference?

 

[Wexahu]

Why does it have to be teams for our time zone? So Nebraska plus one more, say Arkansas or no one? With West Virginia in the east time zone, the rest of the current conference members in the central, and add two more out west in a different time zone, wouldn't that allow the Big XII to be potentially on TV all day Saturday with reasonable game start times for all fans of the conference?

I think the chances of Nebraska coming back are probably zero, and the chance of getting Arkansas isn't much better. I imagine any chances of adding a couple good programs is going to have to come from another direction, so it's probably the Arizona schools or nobody.

I don't get the time zone thing either though. Not sure that matters.

 

[Gary's Shirtless Revenge]

Gary's Shirtless Revenge... What do you think is more likely to happen come 2024, Texas and OU bolting or the Big XII add two power 5 program teams. I know you'll probably say status quo. And are you Bob Bowlsby?

I can only represent what the media rights / content owners / TV producer's think, so don't assume I know what the University presidents will do. I hear things second hand from negotiators & relationship managers who meet with the league and the board (presidents), and I try to interpret meaning from the rights contracts, which I've read or have had them represented to me (most of them).

If you gave me those options, I'd say:

Texas Leaving: 5%
OU Leaving: 10%
Add One/Two Teams: 5%
Status Quo: 80%

 

[Gary's Shirtless Revenge]

Why does it have to be teams for our time zone? So Nebraska plus one more, say Arkansas or no one? With West Virginia in the east time zone, the rest of the current conference members in the central, and add two more out west in a different time zone, wouldn't that allow the Big XII to be potentially on TV all day Saturday with reasonable game start times for all fans of the conference?

Without getting too specific, the rights holders have to plan their schedules based on a number of factors: ONE of those factors is guarantees to the leagues of game time/slot inclusions. The Big 12 being only EST and CST makes it easier for us to be scheduled, if we went "three wide" it would only further complicate our rights.

When the Big 12 was doing its due-diligence (via a rights consulting firm), one of the factors that came up was that adding teams, especially those in the PST zone, would almost certainly mean the Big 12 would have to guarantee a Thursday/Friday game during each week of the season, whereas today's contract has a much lower cap on those slots. There were more factors than just time zone leading to this, but it was a big one.

The fewer teams and time zones, the easier it is for the rights holders and leagues to do a deal. It is specifically MORE valuable to the Big 12 to be easy to work with. And, if the Big 12 wanted to expand, it would have as-good options in the CST/EST zones IMHO.

 

[Gary's Shirtless Revenge]

I think the chances of Nebraska coming back are probably zero, and the chance of getting Arkansas isn't much better. I imagine any chances of adding a couple good programs is going to have to come from another direction, so it's probably the Arizona schools or nobody.

I don't get the time zone thing either though. Not sure that matters.

I used to think Arkansas/Missouri could happen. I've grown more pessimistic over time.

 

[LeagueCityFrog]

I would be down with the Missouri and Arkansas expansion option. Thanks Gary's Shirtless Revenge for sharing this important information. Hopefully TCU finishing up the east side football expansion and then doubling down the recruiting for football, basketball, and doing whatever we need to do to get baseball back on track will be good enough for us Frogs to enjoy the game day atmospheres at TCU all sports season long after the 2024 season. One wonders how important the TCU Athletics Committee of 100 was back in 1995 and 1996 that laid the ground work to what all of us Frogs are enjoying today. I hope TCU never goes back to that 30 year dark era of sports from about mid 1960s to mid 1990s.

 

[Frog-in-law1995]

 

[LeagueCityFrog]

Paging Arizona and Arizona State. COME ON DOWN....You are the next contestants in THE BIG XII IS RIGHT! That would be great and easy flight trips for TCU fans out of DFW and Houston.

Seriously, Big XII can go back to 12, Pac 10 can go back to being 10 and TCU is good for damn near ever! The two Arizona schools can join their fellow conservative state institutions in Texas to form the Big 12's Southwest division, the others form the north division and we are GOOD! Future will be secured. Then all TCU has to do is keep winning on the field and keep up in the building arms race, which I think both are definite.

Option 2, Gary wins a national championship this coming season and we are also good for a long time.

 

[MAcFroggy]

I think this tweet is a little extreme. I do not really think the PAC-12 is going to no longer be a power conference. They are only slightly behind the ACC and Big 12 in terms of revenue.

I also do not really see any programs leaving the PAC 12 because it is more than just athletics to a lot of those schools. They all have massive alumni bases in CA and have tons of students attend their schools out of CA (particularly southern CA). On top of that they get to associate with Cal, UCLA, USC, and Stanford which are some of the premier universities in the world. I do not any of the PAC-12 schools would give all that up for an additional $5M-$10M for athletics.