Blog Entry

SEC paying out record $19.5 million to members

Posted on: February 17, 2012 1:40 pm
Edited on: February 17, 2012 2:23 pm
 

Posted by Jerry Hinnen

The SEC is richer than it's ever been--but is it rich enough?

The Birmingham News reported Friday that according to the league's tax documents, the SEC distributed a conference record $19.5 million to each of its member schools for the 2010-2011 season, an increase of $1.2 million on both its 2009-2010 payout and its initial 2011 estimates. Thanks to the new(ish) CBS Sports/ESPN television contracts fueling the increase, those revenues also represent a whopping $6.5 million per-school bump -- a 50 percent increase -- over the league's distribution numbers just two seasons before. 

That's the great news for the SEC. The less-great news is that those figures still leave them a bit behind the Joneses Mike Slive is looking to keep up with in the Big Ten and Pac-12; the Sports Business Journal recently estimated those conferences' per-member distributions* at "close to $21 million," with the growth from their respective networks expected to push those numbers even higher in the coming years. The SEC, meanwhile, is locked into its current contracts until 2023, with TV revenue only increasing 3 percent in the second year of the league's new deals. 

That those revenues will be divided 14 ways rather than 12 following the additions of Texas A&M and Missouri would be another headache for Slive if those additions didn't also open up the possibility for a renegotiation of those television contracts. The ACC's ongoing expansion-triggered renegotiation is expected to net the league an additional $1 to $2 million per team per year--hardly chump change, but likely not the sort of numbers that would keep the SEC even with the Big Ten and Pac-12 come 2017 or '18, much less the tail end of its current contract (which could also be extended as part of the renegotiation).

Make no mistake: the SEC is currently swimming in money, will continue to swim in money, and has the kind of advantages that have nothing to do with money -- overwhelming fan interest, proximity to recruiting hotbeds, a firmly cemented reputation as college football's gold standard -- that will keep it at or near the top of the college football heap. Slive is hardly in crisis management mode. But "or near" may not be good enough for the SEC after its recent run, and a potential $4 or $5 million gap per-school between the league and its Midwestern/West Coast "rivals" -- sustained over a period of years -- could (or would?) eventually even (or even tilt) the playing field. 

Times are no doubt very, very good for the SEC both on the field and in its checkbook. But the upcoming negotiations between the league and its TV partners will likely play a huge role in whether future times are as very good or not.

*The SBJ also estimated the SEC's distribution figure at only $17 million, which could be either a good sign or a bad one from an SEC perspective; if that figure was simply wrong while the Big Ten's and Pac-12's was accurate, then the gap isn't as wide as believed. But if the SBJ was simply being conservative across the board and the B1G's/P12's numbers are also underestimated, it would mean those leagues' networks and TV deals have established a substantial financial edge even before they really get rolling.    

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Comments

Since: Jun 30, 2009
Posted on: February 21, 2012 10:40 pm
 

SEC paying out record $19.5 million to members

Thanks. I couldn't have said it better. Market size means little.....if anything. If that were the case then every conference would want to to add the University of Tokyo.

This is not true.  The B10 has in their TV contract where the money is related to number of viewers.  And to me that is market size.  Bigger = more money



Since: Feb 21, 2012
Posted on: February 21, 2012 9:45 pm
 

SEC paying out record $19.5 million to members

St. Louis is definitely a Mizzou market.  The east side (Illinois) is dominated population-wise by the Missouri side which is decidely Mizzou territory. There might be an argument in Kansas City with KU being so close and with lots of Nebraska fans not too far away, but there is no argument in St. Louis.



Since: May 14, 2007
Posted on: February 21, 2012 1:39 am
 

SEC paying out record $19.5 million to members

To the victor goes the spoils. When you have the SEC dominating college football, and all the stadiums are always sold out for the most part, you are going to earn a boat load of money from television, ticket sales, jerseys, etc.

That's why other programs like Missouri and Texas A&M are itching to be a part of it. A BCS Bowl win is valued at $20 million and has gone to the SEC for the last several years.  And the trend should continue until the PAC 12 or teh Big 10 can break through with their tv deals and have some teams challenge the SEC for BCS titles.



Since: Mar 6, 2011
Posted on: February 20, 2012 11:18 am
 

SEC paying out record $19.5 million to members

SEC Fan,

Thanks. I couldn't have said it better. Market size means little.....if anything. If that were the case then every conference would want to to add the University of Tokyo.



Since: Feb 11, 2009
Posted on: February 19, 2012 6:37 am
 

SEC paying out record $19.5 million to members

Why are we looking at tax records for the season before last and treating it as a headline story?  This gets almost as ridiculous as the current political nonsense about who released their tax records when and for how many years.  Who cares what the estimates were and whether the estimates were that close to reality?  We get it - the major conferences make a lot of money.  It's not as though you haven't covered that subject before. 



Since: Apr 7, 2009
Posted on: February 18, 2012 7:36 pm
 

SEC paying out record $19.5 million to members

That make two men's opinions ebonyrod. 

vranger = hypocritical, lying moron who can't come up with any comments other than "troll and ROTFLMAO!"  Meanwhile he prides himself in endlessly searching CBSsports for people to insult.  By the way vranger, here's a clue, a person is hardly trolling when they make a comment on a page that involves a person's team and/or conference.  You might notice that the article has several tags including the  Big 10, Pac 12, etc.  You need to get a life and lay off all your paTROLLING...such a Barney Pfeif. 


Oh and I'm looking forward to your reply, I'm sure it will entail something to the effect of calling one's intellegience into question then followed up by a troll comment with a ROTLFLMAO.  (Yawn)  




Since: Jan 2, 2012
Posted on: February 18, 2012 5:34 pm
 

SEC paying out record $19.5 million to members

Well, I sure hope this tranlates into a few non-conference victories for the Ole Miss Rebels. It would be nice to get back into beating Vandy, Kentucky and Mississippi State on a regular basis too.



Since: Aug 4, 2008
Posted on: February 18, 2012 4:19 pm
 

SEC paying out record $19.5 million to members

@vranger

What a shock to come here and find another barely literate rant full of misstatements from the ebonyrod idiot troll. ROFLMAO

You know you have reached the pinnacle of life on the boards and threads when Vranger make a remark about your comments you have made.

I want to take this opportunity to thank you for your kind remarks about being a troll. You keep rolling on the floor laughing your A$$ off, I know it take little or nothing to amuse you and for you to be entertained.


“ONE MAN’S OPINION”
 





Since: Oct 5, 2006
Posted on: February 18, 2012 12:57 pm
 

SEC paying out record $19.5 million to members

I agree with what you're saying but you don't have to use Western Kentucky as your bottom rung on the football ladder. WKU went 6-5 last season and were bowl eligible and should have recieved a bowl invite over some teams with even or losing records, and they even scored a TD on the mighty LSU. But that's just another way the BCS has it's head up it's Gee hole. Duke would have been a better example, they went 3-9 in the mighty ACC and their basketball program ain't gonna bring in any extra dough to save them this year so any donations to help out that program would be needed and I'm sure greatly appreciated. Just sayin'. Cool



OK, change out WKU and insert Louisiana Monroe.  For the comparison I made, team B had to be a non BSC school, and WKU is close to home, so they were the first that came to mind, BUT the statement IS valid.



Since: Jan 3, 2007
Posted on: February 18, 2012 11:04 am
 

SEC paying out record $19.5 million to members

What a shock to come here and find another barely literate rant full of misstatements from the ebonyrod idiot troll. ROFLMAO


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