Wednesday, July 16, 2014

Power Five's College Football Playoff revenues will double what BCS paid

Still not sure how far the ACC is on their Orange Bowl deal vs the SEC and the Sugar Bowl deal.  It may not matter that much.....I don't know.

Great news it sounds like.  I am stunned the playoff team only gets $6 million for the conference.....doesn't really equal a unreal amount of money for any conference getting 2 teams.  It is nice, don't get me wrong, but it isn't insane.

Expect for TV Contracts/Conference network, which is a BIG exception, the revenue news for the ACC has been very positive.  I hope I am writing that in 5 years after some of these complicated changes are occurring.


Power Five's College Football Playoff revenues will double what BCS paid


"The Power Five conferences will almost double their financial haul in the College Football Playoff's first season as compared to the final year of the Bowl Championship Series, according to official estimates provided to USA TODAY Sports.
The ACC, Big 12, Big Ten, Pac-12 and SEC each will draw a baseline amount of approximately $50 million in the first year of a 12-year contract. The other five FBS-level leagues will split $75 million – but that's more than five times greater than their combined payday in 2013.
"It's good for everybody," Bill Hancock, the College Football Playoff's executive director, told USA TODAY Sports. "There's more money for everybody."
The total TV revenue from ESPN hasn't been disclosed, and Hancock declined comment, but USA TODAY Sports has previously reported it will average at least $470 million annually over the life of the contract. Ticket and merchandising sales and sponsorship deals could add $40-50 million annually, on average.
Hancock provided USA TODAY Sports with estimates of the revenue distribution for the 2014 season.
In the final year of the BCS, the baseline distribution to the ACC, Big Ten, Big 12, Pac-12, SEC and American was $27.897 million. Conference USA, the Mid-American, Mountain West and Sun Belt split $13.168 million. In 2014-15, the base share for the Power Five is $50 million. The so-called Group of Five (including the American) will divide $75 million.
Other revenues include:
— As part of the base payout, each conference will receive $300,000 for each school that meets the NCAA's required APR for participation in a bowl game. (For example, if 10 teams met the requirement, a conference would receive $3 million.)
— Conferences will receive $6 million for each team selected as one of the four playoff participants. (There won't be additional funds for the teams that advance to the championship game.)
— Conferences will receive $4 million for every team selected for a non-playoff bowl (in 2014, the Cotton, Fiesta and Peach bowls).
— Each conference will receive $2 million to cover expenses for each participant in a semifinal, and for the championship game.
— Notre Dame will receive $2.3 million in 2014; the other three independents will split $922,658. (Notre Dame and other independents would receive $6 million for participation in the playoff or $4 million for participation in the Cotton, Fiesta or Peach bowls.)
Revenue from the playoff does not include individual contracts conferences have with the bowls.
For example, in the 2014 season, in addition to its $50 million base payout, the ACC would receive approximately $27.5 million from its contract with the Orange Bowl.
The Rose and Sugar Bowls – tied to the Big Ten and Pac-12 and Big 12 and SEC, respectively – will serve as semifinals for the playoff this season. But in 2015, when the Rose and Sugar aren't semifinals, those four leagues would each receive approximately $40 million (above the $50 million base payout from the College Football Playoff) from their contracts with those bowls."

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