Pac-12 commissioner Larry Scott addresses the revenue gap with Big Ten, SEC

Everyone gets there is a huge revenue gap here and it is growing, here is just more definition around that.  The goal isn't to be close to the bottom three, it is to be within striking distance of the #1.

Sadly, this suggests the ACC can't do that and it will be this way for a long time.  Again, there is NO WAY FSU can sign a GOR extension and lock in these disparities.  And don't forget, media/fans/etc will instantly suggests/hint/assume that the creation of an ACCNetwork will change this.....do NOT FALL FOR THAT.  It is highly unlikely, even with a network (a network doesn't equal revenue automatically....especially significant revenue).




http://blogs.mercurynews.com/collegesports/2016/06/23/pac-12-commissioner-larry-scott-addresses-the-revenue-gap-with-big-ten-sec/

"First, let’s address the exact nature of the revenue gap. Since the discussion, there have been two relevant developments:
1) The Big 12 announced its latest distribution: $30.4 million per school, which was higher than anticipated. (No specifics were given, but my understanding is the increase can be traced to the terms of the Tier 1 contract.)


2) The second piece of the Big Ten’s new deal came into focus with the SportsBusiness Daily reporting that ESPN would purchase the B1G’s remaining rights for $190 million annually. Add $240 million from Fox, another $10 million from CBS, and the conference’s TV revenue is astronomical.
The double-whammy of news from the Big 12 and Big Ten will place the Pac-12 in worse shape a few years from now (relative to its peers) than it has been at any point since the start of its $3 billion Tier 1 deal with ESPN and Fox.
Here are expected distributions per-school for TV rights in 2017-18, when the Big Ten deal kicks in.
Note I: Figures do not include revenue from College Football Playoff, March Madness, etc. This is only TV rights.
Note II: Figures are estimated, largely because of uncertainty regarding the exact income amounts from conference TV networks.
Big Ten: $41 million per school(Includes Tier 1 deal, annual Big Ten Network distributions and BTN profit sharing)
SEC: $34 million per school(Includes Tier 1 and SEC Network revenue)
Big 12: $23 million(Includes Tier 1 deal and rights fee for football championship game but not Tier 3 rights, which are owned by the schools and vary greatly)
Pac-12: $22.5 million(Includes Tier 1 deal and $2.5 million per school in Pac-12 Networks distributions)"


"How does the situation stand now? When the Big Ten’s new deal kicks in, the Pac-12 schools will received approximately 55 percent as much TV revenue as their peers.
Again, the cyclical nature of the deals must be considered — for the six-year span from the start of the Pac-12’s new deal through the end of the B1G’s current deal, the gap was much smaller.
But at the same time, the disparities estimated in the figures above … $12 million per school with the SEC, $17 million per school with the B1G … are likely to exist for six-to-eight more years.
*** In general, and not surprisingly, Scott’s view of the revenue gap is no different than his view of the state of the Pac-12 Networks:
He takes the long view.
“The most important thing,” he said at the outset of the conversation about the revenue gap, “is to optimize the long-term value of our rights.”
Agree or disagree, the situation is what it is. Scott’s approach isn’t likely to change, nor is the gap itself."

http://accfootballrx.blogspot.com/2016/06/mind-gap-tv-revenue-2017-2023.html


"The Mercury News wanted to estimate the "revenue gap" between power conferences once the Big Ten's new TV contract kicks in. This is what they came up with:

Here are expected distributions per-school for TV rights in 2017-18, when the Big Ten deal kicks in (Note: Figures include all conference TV revenues but NOT revenues from the College Football Playoff, March Madness, etc; also, these figures are only estimates because of uncertainty regarding the exact income amounts from conference TV networks, etc.):

Average payout per year over life of TV contracts:
Big Ten: $41 million per school
SEC: $34 million per school
Big 12: $23 million
Pac-12: $22.5 million
ACC: $22 million (my estimate - see below)

What stands out in my mind from this analysis is (a) how far ahead the Big Ten is - even compared to the SEC - and (b) how close the Big 12, Pac-12 and ACC are."