CONFERENCE PAYOUT IDEA/MERGER

[Bullmastiff 1]

By the time I finish writing this we may end up having a resolution with litigation/mediation but here's what I would propose as a payout structure for a media rights deal.

ADs will want to know what their base line spending would be every year. Impossible to budget if your baseline always fluctuates. We all know every school doesn't bring the same value to media partners. And this is part of the reason Boise and SDSU wanted out.

This is a super rough draft and the numbers are all hypothetical for ease of math. Yes I realize there would be more mouths to feed in a merged conference. But it's more about the structure than actual numbers and is performance driven 🙂

10 Team league. Media deal nets you 90 million per year.

FOOTBALL gets 60 million to divide up.

Where you finish in standings determines your payout.
1-3 receive 9 million each
4-7 receive 6 million each
8-10 receive 3 million each

BASKETBALL gets 25 million to divide up.
1-3 receive 3 million each
4-7 receive 2.6 million each
8-10 receive 1.8 million each

We still have 5 million from media deal money to disperse. Conference Champ in both football and basketball receive 1 million each.

We now have 3 million left over. This will go to all other sports which will use a point system for tabulation of payouts. Every top three finish is worth 3 points 4-7 finish worth 2 points an 8-10 finish 1 point. If your school doesn't have a particular sport default of 1 point.

Olympic sports (Including Baseball/softball/ W basketball/golf etc) payouts.

1-3 Get 400k
4-10 Get 250k

So if you finished top 3 in everything for a year your payout would be 12.4 million. Bottom 3 in everything a shade over 5 mil. There's also the 2 million for conference champs in football and basketball. I didn't include those into max payout. That 2 million could also be divided up across all sports as well.

Meaning every AD knows they have a minimum of 5 million to work with.

I know there are some holes in it that would need to get patched up but big picture anybody like the idea? Hate it?

Again speculative hypothetical ease of math numbers..

 

[LVRebel2000]

By the time I finish writing this we may end up having a resolution with litigation/mediation but here's what I would propose as a payout structure for a media rights deal.

ADs will want to know what their base line spending would be every year. Impossible to budget if your baseline always fluctuates. We all know every school doesn't bring the same value to media partners. And this is part of the reason Boise and SDSU wanted out.

This is a super rough draft and the numbers are all hypothetical for ease of math. Yes I realize there would be more mouths to feed in a merged conference. But it's more about the structure than actual numbers and is performance driven 🙂

10 Team league. Media deal nets you 90 million per year.

FOOTBALL gets 60 million to divide up.

Where you finish in standings determines your payout.
1-3 receive 9 million each
4-7 receive 6 million each
8-10 receive 3 million each

BASKETBALL gets 25 million to divide up.
1-3 receive 3 million each
4-7 receive 2.6 million each
8-10 receive 1.8 million each

We still have 5 million from media deal money to disperse. Conference Champ in both football and basketball receive 1 million each.

We now have 3 million left over. This will go to all other sports which will use a point system for tabulation of payouts. Every top three finish is worth 3 points 4-7 finish worth 2 points an 8-10 finish 1 point. If your school doesn't have a particular sport default of 1 point.

Olympic sports (Including Baseball/softball/ W basketball/golf etc) payouts.

1-3 Get 400k
4-10 Get 250k

So if you finished top 3 in everything for a year your payout would be 12.4 million. Bottom 3 in everything a shade over 5 mil. There's also the 2 million for conference champs in football and basketball. I didn't include those into max payout. That 2 million could also be divided up across all sports as well.

Meaning every AD knows they have a minimum of 5 million to work with.

I know there are some holes in it that would need to get patched up but big picture anybody like the idea? Hate it?

Again speculative hypothetical ease of math numbers..

I like it in concept, but it would be really hard for schools to manage the athletic budget with a variance of up to 7.4 million dollars each year. You make one bad hire and you're losing a bunch of money instead of making money, or even breaking even.

I think something more reasonable would be $7M annually per school, then giving a percentage of the remaining in a similar fashion to what you noted above.

 

[Bullmastiff 1]

I like it in concept, but it would be really hard for schools to manage the athletic budget with a variance of up to 7.4 million dollars each year. You make one bad hire and you're losing a bunch of money instead of making money, or even breaking even.

I think something more reasonable would be $7M annually per school, then giving a percentage of the remaining in a similar fashion to what you noted above.

Actually you may be on to something. Higher minimum payout smaller gaps based on performance?

I don't feel like doing all the math again but something more like this?

7 million payout minimum plus incentive money.

Football

Top third - 1 million
Mid third - 750k
Bottom third - 250k

Basketball

Top 3rd - 750k
Mid 3rd - 500k
Bottom 3rd - 250k

ALL other sports on combined point system.
Top 3rd - 500k
Mid 3rd - 300k
Bottom 3rd - 100k

Again hypothetical numbers more about breakdown. So MAX deal 9.25 million Minimum 7.6 million?

I think I'd want to see a slightly bigger gap between MAX and MIN..Like full 2 million.

But yeah that looks pretty solid actually.

A more stable base line but enough cheddar to entice ADs / schools to invest into programs.

 

[LocoRebel]

Im sorry. I haven't read the whole post, Bull. Or any comments. But.

It would have to be on a multi-year aggregate IMO. IE, you in 2025, whatever the baseline/origin point is, it is that payout for all schools through 2028. Then the exact formula you brought to light is used on a 3 year term. After the 2028 season you have new numbers to work with, effectively 2029. And youd be able to assess the likelihood of possibilities after year 2. Maybe its every 5 years so by year 4 you have a really good sense that no matter what happens you know youre in the top 2 groups or whatever.

Hopefully that makes sense 🤷‍♂️

 

[Bullmastiff 1]

Im sorry. I haven't read the whole post, Bull. Or any comments. But.

It would have to be on a multi-year aggregate IMO. IE, you in 2025, whatever the baseline/origin point is, it is that payout for all schools through 2028. Then the exact formula you brought to light is used on a 3 year term. After the 2028 season you have new numbers to work with, effectively 2029. And youd be able to assess the likelihood of possibilities after year 2. Maybe its every 5 years so by year 4 you have a really good sense that no matter what happens you know youre in the top 2 groups or whatever.

Hopefully that makes sense 🤷‍♂️

Yeah @LVRebel2000 said something similiar.

Maybe more along the lines of the 2nd idea where there is a base minimum every body startes with.

Call it 7 mil.

Then smaller bonus payouts based on performance divided into thirds for Football, basketball and then combined all other sports.

That way gap between top and bottom schools is smaller but still a nice chunk of change for good performance.

If Im reading your post right you'd do it over multiple year windows vs yearly?