Big Ten Big Revenue
BIG Ten revenue jumps…
May 20, 2016
Business is booming for the Big Ten or should we say CHA-CHING$$$
According to tax records obtained by USA Today, the Big Ten had a significant revenue increase – nearly $110 million – during the fiscal year that ended June 30, 2015 – WHEW! Overall, the conference brought in $448.8 million in total revenue, which divvies up to “roughly $32.4 million to each of its longest-standing 11 members.”
Not too shabby. By comparison, during the same time frame, the SEC brought in $527.4 million to distribute to its 14 members.
The introduction of the College Football Playoff also undoubtedly played a role in the increased revenue.
From USA Today:
The Big Ten annually provides a figure for what it terms “Sports Revenue.” Based on the way the conference categorizes other revenue streams, “Sports Revenue” includes — but is not exclusively comprised of — TV revenue and revenue from football bowl games.
The conference reported about $317 million in “Sports Revenue” in fiscal 2014 and almost $397 million in 2015 — an $80 million difference. Based on reports from other conferences that approximate their bowl revenue increases from the CFP, it is likely that $50 million to $60 million of the Big Ten’s “Sports Revenue” increase is attributable to the TV rights fee increases that resulted from adding Maryland and Rutgers.
In addition, the Big Ten is working toward a new TV deal. SportsBusiness Journal reported last month that the conference is nearing a $250 million per year agreement with Fox (which owns 51% of Big Ten Network) that would span six years.
The reported deal with Fox, which is said to have outbid ESPN by a significant margin, would cover just half of the league’s overall package. Whether ESPN gets back in the mix for the Big Ten’s remaining media rights (as John Skipper says it wants to) remains to be seen.
For more visit SportsBusiness Journal.
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