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Big 12 was $9M per team behind SEC in '14-15
The Big 12's average payout to its full-sharing members in 2014-15 was $23.3 million, which was $9.4 million less than what SEC schools received from their conference.
The latest Big 12 tax return provided Wednesday to CBS Sports reflects the growing gap between the SEC and Big Ten compared to every other major conference. Not long ago, the SEC and Big 12 provided nearly identical payouts to their schools, past tax records show.
In 2012-13, the Big 12 distributed about $20.9 million to full-sharing members compared to the SEC's $20.8 million payout. The Big 12 distributed slightly more money in 2013-14 ($21.2 million) than the SEC ($21 million). But the first year of the SEC Network and new College Football Playoff deals shows the significant difference between the SEC and Big 12. (The Big Ten's latest financial records won't be released until the spring.)
While the Big 12 had no teams in the inaugural playoff, the SEC had one that was worth $6 million to the conference. In addition, the SEC put two teams into contracted CFP bowls that provided additional revenue.
Also, the SEC Network started printing millions of dollars for the SEC -- a revenue source that the Big 12 as a whole doesn't have. Individual Big 12 schools make additional money through third-tier media rights that aren't reflected in the Big 12 tax form. For instance, Texas reportedly received about $15 million from the Longhorn Network, and Kansas got more than $6 million and Kansas State about $4 million from their third-tier rights.
Even when factoring in these rights, most Big 12 schools are seeing a growing gap with SEC schools in revenue. The SEC pools third-tier TV rights together for the SEC Network. But SEC schools still have their own multi-media rights contracts not factored into their conference payout. For instance, Kentucky gets approximately $14 million per year from JMI Sports, and Alabama receives about $15 to $16 million annually from Learfield Sports.
“We're going to do everything we can to compete,” Big 12 commissioner Bob Bowlsby said about the growing gap. “That would certainly include financially.”
The Big 12 has been exploring expansion, a football conference championship game and a TV network potential bundled together with the Longhorn Network in an effort to generate more money. But the big question is what schools are available that would substantially increase the league's television rights value. Oklahoma president David Boren, who is pushing for expansion, told The Oklahoman this week that Big 12 presidents have agreed they need to decide by this summer whether to expand, create a championship game and/or start a network.
The 10-member Big 12 reported its annual revenue was $267.8 million for the most recent fiscal year that ended June 30, 2015. That's up 19 percent from a year earlier.
Big 12 bowl revenue skyrocketed by 75 percent to $74.5 million in the first year of the playoff and new bowl contracts. The Big 12 and SEC teamed up to create and sell the lucrative "Champions Bowl" to the Sugar Bowl. Television revenue for the Big 12 was up 6 percent to $147.6 million.
Every Big 12 school received approximately $23 million last year except for TCU and West Virginia, which didn't start collecting a full share until 2015-16. TCU received $20.4 million and West Virginia took in $20.3 million.
This isn't the first time there was a big gap in payouts between the Big 12 and SEC. In 2011-12, after Texas A&M and Missouri opted to leave the Big 12 for the SEC, the SEC distributed about $6.1 million more per school than the Big 12. The Big 12 closed the gap but it's resurfacing again in a major way.
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The Big 12's average payout to its full-sharing members in 2014-15 was $23.3 million, which was $9.4 million less than what SEC schools received from their conference.
The latest Big 12 tax return provided Wednesday to CBS Sports reflects the growing gap between the SEC and Big Ten compared to every other major conference. Not long ago, the SEC and Big 12 provided nearly identical payouts to their schools, past tax records show.
In 2012-13, the Big 12 distributed about $20.9 million to full-sharing members compared to the SEC's $20.8 million payout. The Big 12 distributed slightly more money in 2013-14 ($21.2 million) than the SEC ($21 million). But the first year of the SEC Network and new College Football Playoff deals shows the significant difference between the SEC and Big 12. (The Big Ten's latest financial records won't be released until the spring.)
While the Big 12 had no teams in the inaugural playoff, the SEC had one that was worth $6 million to the conference. In addition, the SEC put two teams into contracted CFP bowls that provided additional revenue.
Also, the SEC Network started printing millions of dollars for the SEC -- a revenue source that the Big 12 as a whole doesn't have. Individual Big 12 schools make additional money through third-tier media rights that aren't reflected in the Big 12 tax form. For instance, Texas reportedly received about $15 million from the Longhorn Network, and Kansas got more than $6 million and Kansas State about $4 million from their third-tier rights.
Even when factoring in these rights, most Big 12 schools are seeing a growing gap with SEC schools in revenue. The SEC pools third-tier TV rights together for the SEC Network. But SEC schools still have their own multi-media rights contracts not factored into their conference payout. For instance, Kentucky gets approximately $14 million per year from JMI Sports, and Alabama receives about $15 to $16 million annually from Learfield Sports.
“We're going to do everything we can to compete,” Big 12 commissioner Bob Bowlsby said about the growing gap. “That would certainly include financially.”
The Big 12 has been exploring expansion, a football conference championship game and a TV network potential bundled together with the Longhorn Network in an effort to generate more money. But the big question is what schools are available that would substantially increase the league's television rights value. Oklahoma president David Boren, who is pushing for expansion, told The Oklahoman this week that Big 12 presidents have agreed they need to decide by this summer whether to expand, create a championship game and/or start a network.
The 10-member Big 12 reported its annual revenue was $267.8 million for the most recent fiscal year that ended June 30, 2015. That's up 19 percent from a year earlier.
Big 12 bowl revenue skyrocketed by 75 percent to $74.5 million in the first year of the playoff and new bowl contracts. The Big 12 and SEC teamed up to create and sell the lucrative "Champions Bowl" to the Sugar Bowl. Television revenue for the Big 12 was up 6 percent to $147.6 million.
Every Big 12 school received approximately $23 million last year except for TCU and West Virginia, which didn't start collecting a full share until 2015-16. TCU received $20.4 million and West Virginia took in $20.3 million.
This isn't the first time there was a big gap in payouts between the Big 12 and SEC. In 2011-12, after Texas A&M and Missouri opted to leave the Big 12 for the SEC, the SEC distributed about $6.1 million more per school than the Big 12. The Big 12 closed the gap but it's resurfacing again in a major way.
Continue reading...
