(05-07-2015 01:07 AM)perimeterpost Wrote: (05-06-2015 09:45 PM)quo vadis Wrote: (05-06-2015 07:27 PM)gassman Wrote: (05-06-2015 06:01 PM)quo vadis Wrote: (05-06-2015 05:20 PM)perimeterpost Wrote: In 2014 the total revenue College Football Playoff revenue was $402,939,299. Rather than split the revenue equally amongst the 10 members of FBS it was decided that 5 conferences would receive 80% of the revenue, and the other 5 wold receive 20%. That means the P5 received $321,867,698 and the G5 received $81,071,601.
At this rate, over the 12 year lifespan of the CFP contract the P5 are on pace to earn $2,889,553,164 MORE than the G5. That's $2.9 Billion. with a "B". Remember that the next time the P5 complains about the G5 holding them back from offering additional financial benefits to student athletes.
This contract insures that the rich stays rich, but more importantly, it insures that the poor stays poor.
Since the P5 conferences generate probably 90% of the revenue and interest in college football, the CFP contract is actually rather socialistic, redistributes revenue from the Haves to the Have Nots (G5), so the G5 should be grateful.
I think the point is that the perceived higher value of the P5 is contributed to greatly by them being able to pick up relatively easy wins against the G5. They do not create all that revenue in a vacuum. This unfair distribution ...
The perceived higher value of the P5 has nothing to do with wins versus G5. That value has been built up over decades, in many cases more than a century. Teams like Notre Dame and Michigan and Alabama and USC could lose all their G5 games and they would still have far more massive fan bases and TV interest than any G5 schools.
For that reason the CFP distribution is not at all unfair, it just reflects who is generating the revenue. If anything it gives the G5 more than they earn.
and the Yankees generate substantially more revenue compared to the Marlins, or the Cowboys compared to the Bengals, or the Lakers compared to the Pelicans... and yet all of those sports leagues understand that sharing league revenue on a 80/20 destroys competitiveness and any sense of fair sportsmanship. But keep telling yourself that 60 teams in a league don't deserve a chance to be competitive with the other 60 or even sniff an opportunity to play for that league's championship. Because that's what's best for amateur student-athletes, right?
A few salient differences:
1) The leagues that share revenue do so because they are all creations of their leagues. E.g., the Dallas Cowboys and Miami Dolphins exist only because their leagues, the NFL and AFL, created those franchises. They don't exist independent of the league.
In contrast, schools like Alabama and Notre Dame are not creations of the NCAA, to the contrary they created their governing body, the NCAA, and while they may not have created their conferences (some, like Alabama, did, others like FSU did not), they all exist independent of those conferences as well.
A lot of sharing DOES take place, it just takes place at the conference level (Alabama shares with Ole Miss; UNC shares with Wake Forest), not the FBS level, which makes sense since the CFP is a creation of the 10 FBS conferences, it is not a creation of the NCAA and is not the NCAA FBS championship.
2) To the extent that those leagues do share revenue, it's because the richer teams do recognize that it is in their interest to do so. That is, the Lakers know that if small market teams like the Bucks are so poor that they can't field competitive teams, than that will eventually hurt Lakers revenue because while Lakers fans want to see their team win, they also want to see competitive basketball. Importantly, there are only 30 other franchises so you can't have a bunch of them be relatively impoverished.
In contrast, it doesn't matter to Alabama if a bunch of G5 schools like Temple or Marshall have no chance of competing with them, they don't care because there will always be enough that are competitive - in the SEC and outside - for them to build schedules that hold fan interest and make winning their conference and the national title meaningful.
3) "Sportsmanship" is a term you are invoking to mean "Haves giving to Have-Nots" for no good economic reason. It's economically laughable.
Most important, the lion's share of the revenue gap between the Haves and Have-Nots is NOT the result of a failure to share CFP and media revenue. It is a product of revenue generated in-conference and on-campus.
For example, this year, LSU will receive about $5 million from the CFP, while ECU will receive about $1 million from the CFP. That's a $4 million gap.
But LSU will also get about $25 million from the SEC for its share of its media deal and bowl games, while ECU will maybe get $4 million from the AAC. That's a $22 million gap.
But most hugely, LSU will get about $75 million from on-campus revenues - ticket sales, donations, parking - while East Carolina might make $20 million from that. That's a $55 million gap.
So of the enormous $85 million gap between LSU's $120m athletic budget and ECU's $35m athletic budget, only the slightest fraction is from that 80/20 CFP revenue disparity that you refer to.
Bottom line: If ECU wants to close that $$$ gap, it will have to build its brand and fan base.