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New Deals: SEC Schools Projected To Make $30-35 Million (As We’ve Been Saying Since The Fall)

counting-moneyLast fall, we quoted an industry source with in-depth knowledge of media rights contracts who predicted  SEC teams would receive between $30 and $35 million dollars once the league renegotiated its new deals with CBS and ESPN, launched its own network, kicked off the new Sugar (Champions) Bowl, and began collecting revenue from college football’s new playoffs.  We wrote the same thing again last month when Mike Slive spoke briefly of the SEC’s television plans.

Now, a USA Today Sports analysis shows that SEC schools are indeed in line to earn about — wait for it — $34 million per season beginning in 2014-15.  That would represent a $10-$14 million jump, which would be at least a 50% increase for the league’s schools.

The SEC is still in negotiations with CBS and ESPN.  Also, with more bowls expected to go the way of the Sugar Bowl — which will be co-owned by the SEC and Big XII — there’s a chance Mike Slive and company could increase their even revenue further, depending on how the league’s new bowl deals are cut in 2014.

The coming boost in cash is expected to propel the SEC back to the top of the revenue chart for conferences… at least for a little while.  According to Forbes Magazine today, the SEC ranked fourth this year in terms of revenue behind the Big Ten, the Pac-12 and the ACC.  But it’s important to remember that the SEC raised the bar with its own television negotiations in Summer 2008.  Since then — as is usually the case — other leagues have used the SEC’s deal to negotiate healthier bumps for themselves.  The SEC will now do the same as television revenues continue to skyrocket with no end in sight.

Bottom line: SEC schools are going to be making at least as much and probably more than the majority of conferences.  As a result, SEC schools will continue to have more money to spend on coaches, facilities, recruiting budgets, and athletes.  When our next prediction comes to fruition and a super-division of 65-80 schools create their own super-division at the top of the FBS in order to provide full-cost-of-tuition scholarships, expect 14 to 18 of those big money school to be SEC members.

 


6 comments
AGator
AGator

Here are the numbers as I understand them based on the current numbers in Forbes and then adding an average $12 million jump per school for the new contract. 

 

Current (per Forbes)

Big Ten - $310 million

Pacific 12 - $303 million

ACC - $293 million

SEC -  $270 million

 

New Contract (add $12 million x14 to the SEC)

SEC - $438 million

Big Ten - $310 million

Pacific 12 - $303 million

ACC - $293 million

 

Is my math correct? Are these totals accurate? Am I comparing apples to apples? Won't the Big Ten have a new contract too since they added two teams? Will the ACC numbers change when they replace Maryland with Louisville?

Seanbo
Seanbo

USA Today article can't be right.  Why would the University of Florida be for a SEC Network paying them 1.5 million when they get 10 million right now from Sun Sports for their 3rd teir.  The SEC Network figure will have to be higher than 1.5, the Gators are not going to take a 8.5 million dollar loss.

buddha22
buddha22

And boom goes the dynamite as Slive blasts into the gold mine!

mowens75
mowens75

is the 1.5 million for tier 3 rights just early numbers like the B1G went thru early under the B1G network? Seems like the B1G network $'s continue to grow larger every year.

Seanbo
Seanbo

Could not help but notice that you closed with 14 to18 SEC schools.  Do you know something?  UNC, Duke, Virginia, VPI?  UNC, Duke, Virginia, FSU?  That would certainly block the B1G invasion of the south.

Jerry Mathers
Jerry Mathers

1.5 million per school for tier 3 rights can't be right. That would be an unmitigated disaster.

Trackbacks

  1. [...] Now, a USA Today Sports analysis shows that SEC schools are indeed in line to earn about $34 million per season beginning in 2014-15. That would represent a $10-$14 million jump, which would be at least a 50% increase for the league’s schools. The SEC is still in negotiations with CBS and ESPN. Also, with more bowls expected to go the way of the Sugar Bowl — which will be co-owned by the SEC and Big XII — there’s a chance Mike Slive and company could increase their even revenue further, depending on how the league’s new bowl deals are cut in 2014. [More] [...]

  2. [...] January, USA Today conducted a study and they arrived at darn near the exact same numbers.  Their analysis projected that league [...]



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