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12.15 announcement on Big Ten expansion

Re: 12.15 announcement on Big Ten expansion

I love how Notre Dame's AD comments that its not about money, coupled with the citation that ND makes $9 million per year, vs. the Big Ten's $20 million per year. Ummm.... that's $20 million split 11 (12?) ways.

So yes, its not at all about the $9 million vs. < $2 million per year. Not at all.... :rolleyes:
 
Re: 12.15 announcement on Big Ten expansion

I'm not really saying Notre Dame should join or not, but I think if they pass it up this time and somebody else does join the Big Ten, their only option will be as an independent for a long time. Unless the Big East all of the sudden becomes a huge football conference, I'm guessing they don't want to go there, and everything else will basically be full except the Pac-10, and I guess I don't see them going there.

Of course once I say this, the SEC will probably go to 14 for some reason, but you get the point. I wonder if at that time the Big East will say, join football, or look for another place for the rest of your teams?
 
Re: 12.15 announcement on Big Ten expansion

schiegs said:
Notre Dame and Mizzou issue statements:

http://sports.espn.go.com/ncf/news/story?id=4750901
Click to expand...

I like the principled quotes by Notre Dame Jack Swarbrick:

"Our $trong preference is to remain the way we are," Swarbrick said, according to the report. "Independence is a big part of the tradition of the program and our identity. We'd $ure like to try to maintain it."

"All of thi$ has a lot more to do with our prioritie$ than it does with busine$$ i$$ue$," Swarbrick said, according to the Tribune. "Our independence is tied up in a lot of the rivalrie$ we have. We play Navy every year and have the tradition of U$C weekends. Frankly, it work$ pretty well to play U$C in October at home and in November at their place."
 
Re: 12.15 announcement on Big Ten expansion

schiegs said:
I love how Notre Dame's AD comments that its not about money, coupled with the citation that ND makes $9 million per year, vs. the Big Ten's $20 million per year. Ummm.... that's $20 million split 11 (12?) ways.

So yes, its not at all about the $9 million vs. < $2 million per year. Not at all.... :rolleyes:
Click to expand...

Actually, it's about $20 million per school. The entire conference brings in something like $250 million in revenue from ESPN/ABC.
 
Re: 12.15 announcement on Big Ten expansion

ExileOnDaytonStreet said:
Link?
Click to expand...

http://sportsillustrated.cnn.com/2009/writers/stewart_mandel/12/15/bigten-expansion/index.html

Contrary to what many assume, a Big Ten championship game would not necessarily be a cash cow. The SEC's event -- by far the most successful of its kind -- generated $14.3 million in shared revenue last season ($1.2 million per team). The ACC's, which has been a disappointing disaster, hovers closer to $5 million. Even if we assume the Big Ten's loot comes in closer to the SEC's, that's still a drop in the bucket compared to the league's two biggest revenue generators: regular-season television deals and BCS/bowl payouts.

The Big Ten does not publicly release revenue-sharing figures, but it's been reported that its rights deals with ABC/ESPN and the Big Ten Network generate about $212 million annually. (That's in addition to the league's direct profits from its jointly owned network.) Add in this season's two BCS berths ($22.3 million) and five other bowl berths (about $14 million), and we're talking a minimally estimated $248.3 million in shared revenue, or $22.6 million per team.

Therefore, any potential 12th team would have to add $22.6 million in "value" to renegotiated TV and bowl deals to prevent the others from losing money. With all due respect to Missouri, Pittsburgh, Syracuse and Rutgers (the most commonly discussed candidates), there's only one viable school that could guarantee that kind of gold mine: Notre Dame. The Irish rejected the Big Ten's last invitation in 1999, and the school has given no indication it's willing to reconsider.
Click to expand...

And that's only from the rights deals, not from any direct profit. Each school is guaranteed 6 million a year from the BTN, plus whatever other gravy comes in.
 
Re: 12.15 announcement on Big Ten expansion

schiegs said:
Notre Dame and Mizzou issue statements:

http://sports.espn.go.com/ncf/news/story?id=4750901
Click to expand...
Interesting that the AD didn't immediately rule it out. To me that sounds like the money may be too much for Notre Dame to pass up.

They just took an $18 million hit with Charlie Weis. If the Big Ten takes another school, there might not be room for Notre Dame in the future.

It sure going to be a crazy couple of years. What happens if ESPN, Fox or ABC comes in and offers a gold mine to the Big Ten & Notre Dame?
 
Re: 12.15 announcement on Big Ten expansion

schiegs said:
I love how Notre Dame's AD comments that its not about money, coupled with the citation that ND makes $9 million per year, vs. the Big Ten's $20 million per year. Ummm.... that's $20 million split 11 (12?) ways.

So yes, its not at all about the $9 million vs. < $2 million per year. Not at all.... :rolleyes:
Click to expand...

Some quotes from Hawkeye Nation

If you average out the contracts, the ABC/ESPN deal comes out to $9 million per year while the Big Ten Network revenues average out to just over $10 million per school over the duration of the contract. It wasn’t $10 million last year, it was closer to $7 million, but again, it’s based on profitability and the equity disbursement.

Also, add in the equity value of the 51% ownership of the Big Ten Network by the member schools, which could be around $30 to $40 million per school right now and could double within a few years. This doesn’t count the $2 million per year the league gets from CBS for the basketball contract, which was a ten-year deal.

I think you get the point; Notre Dame’s deal with NBC, while a good deal for a private and stand alone school, isn’t really special and every Big Ten school trumps it.

Next comes the bowl payout aspects. Notre Dame keeps its bowl revenues right now while the Big Ten puts its revenues into a pot and shares it equally, no matter if you make a bowl game or not.

Before the recent BCS contract was renegotiated, Notre Dame received $17 million dollars when it made the BCS. It did so three times under that contract, so the Irish made out like bandits. But that deal was changed, and now Notre Dame will make around $4.5 million per BCS bowl, the same that Boise State and TCU will make this year for their appearance in the Fiesta

Economically, it no longer makes sense for Notre Dame to say no to the Big Ten. It’s actually costing them money in the television and bowl revenue genres.
Click to expand...
 
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Re: 12.15 announcement on Big Ten expansion

dggoddard said:
Interesting that the AD didn't immediately rule it out. To me that sounds like the money may be too much for Notre Dame to pass up.

They just took an $18 million hit with Charlie Weis. If the Big Ten takes another school, there might not be room for Notre Dame in the future.

It sure going to be a crazy couple of years. What happens if ESPN, Fox or ABC comes in and offers a gold mine to the Big Ten & Notre Dame?
Click to expand...

Man, those are some excellent points. This may indeed be Notre Dame's last chance.

Depends. What will it cost ND/Big Tweleveten to get out of the NBC contract and how much are they going to get in return from the other network.

If notre dame continues down this path of 6-6, 7-5 they're going to see exactly what it means to be independent and mediocre. What the Big Ten offers is something an independent could never hope to receive: Financial security despite mediocrity. Notre Dame may see the writing on the wall and opt for the insurance rather than this "tradition" *cough* bull**** *cough* of independence.
 
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