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.    

Keep up with the latest college football news from around the country. From the opening kick of the year all the way through the offseason, CBSSports.com has you covered with this daily newsletter. View a preview.

Get CBSSports.com College Football updates on Facebook   

Comments

Since: Feb 4, 2008
Posted on: February 17, 2012 2:59 pm
 

SEC paying out record $19.5 million to members

If the BCS wasn't rigged , the payout would not be that high



Since: Sep 22, 2009
Posted on: February 17, 2012 2:53 pm
 

SEC paying out record $19.5 million to members

Hahah TigerJohn, SEC haters are quick to the punch today.



Since: Jul 24, 2010
Posted on: February 17, 2012 2:23 pm
This comment has been removed.

Post Deleted by Administrator



The views expressed in this blog are solely those of the author and do not reflect the views of CBS Sports or CBSSports.com