Re: The new Super League is going down the tubes.
the Big Ten shares ALL Bowl revenues...the question is how much more does Notre Dame make from other deals...its not apples to apples when you say Notre Dame got $9 from NBC (just football), and the Big Ten got $20 mil from everything.
You're right SG. As was mentioned, Notre Dame's current contract with NBC which was renegotiated in 2010 and expires in 2015 is $15M/yr. The question is not only how much Notre Dame made from other deals, but what did their balance sheet indicate in net football income compared to other Big Ten teams?
According to financial reports filed by Notre Dame and Big Ten schools with the U.S. Department of Education for July 1, 2009 to June 30, 2010, only Penn State recorded a higher revenue than Notre Dame from their football programs in 2009. Revenue consists of gate receipts, broadcast revenues, appearance guarantees and options, concessions, and advertising. Expenses consisted of grants-in-aid, salaries, travel, equipment, and supplies. There is variance in how each institution categorizes revenue and expenses with the federal government, nevertheless the income revenue and expenses I'm documenting here retrieved from the US Dept. of Education are valid and reliable.
A 2009 net profit comparison of all 11 Big Ten teams to Notre Dame indicates that only Michigan ($44,861,184.00) registered a higher net profit than Notre Dame ($34,672,275.00) with Penn St. ($33,445,548.00) trailing close behind. By comparison, the University of Minnesota received a total of approximately $22M in broadcast revenue sharing from the Big Ten ($8M BTN, $14M ABC/ESPN) and in addition to other football related revenue, the Gopher football program generated $32,322,688.00 in total revenue in 2009, 7th overall in the Big Ten. However, their expenses of $17,433,699.00 also ranked 7th overall, resulting in $14,888,989.00 in net profit which is less than half of Notre Dame's profit margin as an independent. Now what was that about "lowly Minnesota" making more money in the B1G than Notre Dame?
What does this indicate? Notre Dame as an independent does not necessarily need Big Ten revenue. In fact, Notre Dame's history of rejecting offers to join the Big Ten indicates that it values it's socio-religious agenda, academic consortium and independence more than money and they're not afraid to boldly proclaim it.
Those who insist that Notre Dame will inevitably join the Big Ten because it will provide a financial windfall for ND simply don't understand the ND polity, worldview and strength of their brand recognition: 1) their powerful alumni assn. and 55 person board of trustees have continually refused to relinquish their independence after repeated invitations by the Big Ten in 1994 and 1999, 2) Notre Dame's stoic faith based/organizational mantra for decades has been: Catholic, private and independent and 3) From a marketing standpoint, Notre Dame football, which commands a nationwide fan base, reflects one of the most unique brands in all of college football.
Moreover, Notre Dame's value added brand has not nor will it EVER be shut out of the BCS bowl selection scheme. Anyone who thinks Notre Dame's independent status may shut them out of the BCS system because of conference realignment does not understand the BCS or macroeconomics. The Fiesta Bowls in 2005-06 and 2000-01 have the two of the three highest, non-national championship TV ratings in history. The 2007 Sugar Bowl has one of the highest ratings in history as well.
2006-07: 56.0 rating, Sugar Bowl — ND vs. LSU
2005-06: 55.9 rating, Fiesta Bowl — ND vs. Ohio State
2000-01: 55.5 rating, Fiesta Bowl — ND vs. Oregon State
Why does the BCS like Notre Dame regardless of their independence? According to BCS rules, Notre Dame will always earn less money after conference bowl distributions than BCS teams. However, Notre Dame's national brand recognition typically: 1) increases BCS TV ratings and revenue, 2) makes the BCS more attractive, 3) sells more tickets and 4) floods additional revenue streams in host cities more than some BCS conference champions.
In essence, there are a lot of concessions that Notre Dame's multi-level executive constituencies need to make in order to make joining the Big Ten more than just a talking point. In my view, this is the elephant in the room. Once the smoke clears, I would not be at all surprised to learn that the ND alumni, university officers and trustees determined once again it is NOT in their overall best interests philosophically and in terms of surrendering their marketing brand as an independent to join the Big Ten despite ominous threats of major conference realignments.
