Friday, February 1, 2019

ACC revenue gap grows






https://accfootballrx.blogspot.com/2019/02/sec-2018-financials.html

That said, USA Today says this is the year that the SEC gets passed by Big Ten in per school distribution.
The SEC had just under $660 million in revenue during its 2018 fiscal year, according to a federal tax return that the conference provided Friday. That resulted in an average of $43.7 million being distributed to the 13 member schools that received full shares. Mississippi did not get a full share because of its football team was banned from postseason play.

The Big Ten Conference likely distributed a little more than $50 million to each of its 12 schools that got full revenue shares in fiscal 2018, according to schools' recent financial disclosures.

The Big Ten, which began new television agreements during the 2018 fiscal year, generally does not file its federal tax return until the spring. So, its revenue total for fiscal 2018 has not yet been made public. However, through open-records requests, USA TODAY Sports has obtained fiscal 2018 financial reports to the NCAA for six of the 12 schools receiving full shares. A seventh school announced the amount of its share last June. Maryland and Rutgers, the conference's two most recent additions, still are moving toward full shares... Nebraska received a full share for the first time in fiscal 2018.
BOTTOM LINE: I expect 2018 to be the biggest financial gap year - over $20 million per school. Why 2018? Because the SEC and Big Ten both get their contract bowl money, but the ACC didn't, and the ACC Network hasn't launched yet either, so that money isn't coming in yet. It's a perfect storm, financially speaking. However, if all goes according to plan, the gap should close considerably in 2019 and even more in 2020... but only time will tell.

6 comments:

  1. As it stands (and not knowing how future TV contracts will grow for any conference), it looks like the closest the ACC will get is about 85% in 2021-2023, when the gap should be less than $10M. I don't like it, but I don't see a way out of it in the short term. I used to consider 85% to be the minimum acceptable ratio, but for the next 4 years it looks like that's the best case...

    ReplyDelete
    Replies
    1. I have one way out. Change leadership. Why does failing give you a job for life in ACC leadership? We all know the answer though, we just aren't supposed to say it.

      Delete
    2. Isn't it time for Swofford to retire anyway?

      Delete
    3. Yes, but if they replace him with the same leadership.....what changes? If it is still Tobacco Road insiders....the face changes, but nothing else.

      Delete
    4. I'd like to see someone representing the expansion schools: FSU, Miami, VT, BC, Syracuse, Pitt, Louisville. Not GT - they've been in the ACC too long. Not Notre Dame either. I could live with a Clemson guy because they seem to get it.

      Delete
    5. If new leaderships FIRST priority is revenue and not enriching local North Carolina connected people, I am in. It is WEIRD how the ACC insiders dont' seem to give a damn about low revenue. And even more bizarre, they find it odd FSU fans (some of them) are very concerned about being dead last with the gap growing. Can't fix a problem if you don't identify it.

      Delete