For the really stupid out there here is the way to double book revenue and fool your friends.

1. Obtain a new media deal
2. Take the value of the new media deal and add it to the existing value of all distributions
3. Allow someone outside your office to write a story using the added amounts
4. Do not correct anyone speaking in error
5. Take the future calculated value of a shared item but allocate it only to yourself and not those who share it
6. Call the Florida State BOT and and watch them run with it.

ESPN's new TV deal with the SEC was trumpeted at $300 M for 10 years. Without taking out anything for the league office that's $21.42 million per year from the ESPN deal per team. The SECN which makes about 7 million per year per SEC school did not go away. That means the total TV is starting at 2024 at about $29 million for the SEC. Now with the addition of Texas and OU, did you hear of a specific bump for Texas and OU. No unless I missed it. But the Longhorn network goes away and the state of Oklahoma is added to the SECN in state rate. That's 4 million people and probably 1 million ESPN accounts. That nets the SEC schools about 750K each.

That's $30 million for TV in 2024 under the new contract and expansion without any boost.

Somehow this number inflates to $50 and $75, and $100 million how is that?

Hmm.

Hmm.

To answer the above question you plug in expected future football playoff appearance shares.

Not TV contract money - playoff money.

What is an appearance worth to a conference? Today it's 6 million a school. Let's say it goes to $20 m a school. How much does the conference keep and how much does the school keep?

Let's estimate a 50/50 split. Bama, UGa, and LSU make the playoff - the SEC gets $60 million for that. The SEC keeps $30 and the three schools keep $10 each. That's $1.875 M per SEC school. Let's say the SEC keeps 2/3 of the money - that's 2.5 m per SEC school.

Maybe we have to give out $10 M per win after making the field. Let's say the SEC win all three first games and three more games for 6 wins - another 60 M. Using the above 2/3 distribution that's another 2.5 M for each SEC school.

That's the SEC school making $5 m each off a good playoff year. Three of the schools make some REALLY good money, but the rest get $5 m each.

I invite anyone with a mote of accounting skill to look at these numbers because the ACC distributed about $29 million in TV money last year - 2022.

Here's another way to see the situation.

Molly the prostitute works higher end stuff and goes on 4 dates a week at 5-600 a date. She works 42 weeks a year she grosses $92,000 a year.
Mary the waitress at the local nice restaurant makes $3 an hour and works 30 hours a week she makes $750 in tips a week working 45 weeks a year. She grosses $37,800 a year.
Meredith the paralegal works a straight job for the City of Bumfoozle. Her salary is $45,000 a year.

Now who makes the most money? Money is the cash you keep.

Molly pays no taxes on her $92K
Mary pays the bottom rate on here hourly wage and only reports half her tips so she pays $2,200 a year in income taxes and about 2,000 for fica. She keeps a little over $33K but pays no withholding.
Meredith brings home 69% of her gross as 6% goes to her retirement by law, and the other taxes to fica and ss. She keeps $31,050

All three have very different financial structures but Molly always has more cash on hand.

Mary and Meredith know Molly from high school and thinks she has the life because they know she makes about $550 a "date". They are jealous as Hell but they don't really know how often she dates, and her accounting of revenue does not include an accounting of cost - medical visits, beauty shop spending, wardrobe upkeep, stripper shoes, or the cost of wasted time and opportunity cost. They also don't take into account how much longer Molly's looks can hold out. If she is a brunette she's okay, if she is a natural redhead, short shelf life. Molly also has to fund her own retirement and is not eligible for unemployment. She is not "building a resume" so to speak. She also has to pay for legal entanglements and needs an attorney with whom she is "close". That's part of her "overhead" - figuratively and perhaps literally.

You set up the allegory quite well.

The absurdity of this is incomprehensible. The SEC didn't get just 300 million for the T1 rights. I got a bid exceeding the 307 million CBS offered and was rejected. The SEC's T2 and T3 (SECN) were 732 million without the CBS money and that was for 2022. That contract was worked in with the new deal but the numbers, while not released, did not go down. The most conservative estimate one could make is that the new T1 deal was 308 million, Jack Thompson who is an advertising CEO who handles the Coca-Cola and Disney account said the final deal for the T1 with other details worked out would be closer to 375 million than 350 million. I'm not going there other than to say that would reflect the most optimistic view.

CBS was paying the SEC 55 million for T1. ESPN at the lowest will be paying 308 and I don't care that the Sports Business Journal which leans Big 10 is the source of the rounded down 300 million so often quoted. 308 million minus the 55 CBS was paying comes to a $253 million increase just for T1 rights. Under the old T2 and T3 contracts the SEC was earning 787 million minus the 55 million of CBS so 732 millon for T2 and T3 rights. To which 308 minimally will be added beginning with the first payout in 2025. 737 (that's minus the CBS money) million plus 308 million equals $1,045,000,000 minimally. Divided 15 ways equals $69.7 million and was actually the first billion dollar contract, though the SEC didn't tout it in the press like the Big 10 did. And that's minimally. If Jack Thompson's estimates discussed on Finebaum are correct it will be $1,100,000,000 which divided 15 ways would be 73.3 million per school. And those figures will not be impacted except in the equivalent math of adding Texas and Oklahoma at pro rata. In the SEC the office always gets 1 conference share of media revenue upon which to operate.

Also unaccounted for in this projection are the annual escalators.

JR, I realize you are the SEC's biggest booster, but you are asserting that the SEC is falsifying their form 990.

For 22 they reported TV contract income of 540 M for the group. That 787 m figure you mention is not listed as their TV money but all money, including bowls, NCAA funds, post season. That's $36 m of your 50 m distribution. This is not SBJ or me, this is the SEC's tax forms.

So in trading 55 M for your 308 that is a "raise" of 253 M. Let's cut that 15 ways then - that's $16.8 m.

That's total TV of 53.8 m. Let's round that up to $55 m. With the addition of in state rates for Oklahoma.

So when the 2024 distribution happens, your conferences TV will be 55 a school. That's a good chunk of money. The ACC's 22 distribution of TV money was only $29.5 by comparison. Like the ACC our contract ratchets and the distribution will have the final extension of the ACCN.

So when your new contract kicks in with your new schools you will paying $55 M in TV. That's good, that's certainly more than the ACC's $32.5 M at the same point in time.

But in your posting you did the same thing that is done so often, you take the current all inclusive distribution and add a new TV contract as if it is new TV money and not supplanting of the old contract. "Under the old T2 and T3 contracts the SEC was earning 787 million minus the 55 million of CBS so 732 millon for T2 and T3 rights. To which 308 minimally will be added beginning with the first payout in 2025. 737 (that's minus the CBS money) million plus 308 million equals $1,045,000,000 minimally".

It's the usage of the phrase "under the old contract" that fools some folks.

Anyway here is a link to the SEC's 990's https://projects.propublica.org/nonprofi.../630377461


I encourage everyone to look at them and avoid some of these low quality media outlets.

(08-05-2023 10:06 AM)SouthernConfBoy Wrote:  JR, I realize you are the SEC's biggest booster, but you are asserting that the SEC is falsifying their form 990.

For 22 they reported TV contract income of 540 M for the group. That 787 m figure you mention is not listed as their TV money but all money, including bowls, NCAA funds, post season. That's $36 m of your 50 m distribution. This is not SBJ or me, this is the SEC's tax forms.

So in trading 55 M for your 308 that is a "raise" of 253 M. Let's cut that 15 ways then - that's $16.8 m.

That's total TV of 53.8 m. Let's round that up to $55 m. With the addition of in state rates for Oklahoma.

So when the 2024 distribution happens, your conferences TV will be 55 a school. That's a good chunk of money. The ACC's 22 distribution of TV money was only $29.5 by comparison. Like the ACC our contract ratchets and the distribution will have the final extension of the ACCN.

So when your new contract kicks in with your new schools you will paying $55 M in TV. That's good, that's certainly more than the ACC's $32.5 M at the same point in time.

But in your posting you did the same thing that is done so often, you take the current all inclusive distribution and add a new TV contract as if it is new TV money and not supplanting of the old contract. "Under the old T2 and T3 contracts the SEC was earning 787 million minus the 55 million of CBS so 732 millon for T2 and T3 rights. To which 308 minimally will be added beginning with the first payout in 2025. 737 (that's minus the CBS money) million plus 308 million equals $1,045,000,000 minimally".

It's not all money, it's all money from playoffs, bowls, and tournament credits. So the same increment that is in everyone else's numbers. Apples to apples. The deficit will be real. You can cut and paste and assume, but I know the numbers projected and trust the source who gave them. And I am hardly the SEC's biggest booster, I just call out what's false or misleading. It's like the Big 10's claim about being the leader in revenue, when they are the leader in TV media revenue. Well there are many more lines in that ledger listing profits from athletics. In total revenue they trail the SEC in average revenue generated per school by 6.6 million which makes up for and passes the 9.9 million dollar revenue lead they had in 2022, which will likely duplicate this year and then be caught up with in 2024's distributions in 2025. By the best calculations I can make, and the most conservative, the SEC will trail the Big 10 by 3 million in 2025. After that the trajectory and escalators on the SEC's contract take the SEC past the Big 10 over the next 7 years following eventually eclipsing them by 10 million. Of course all bets are off if the dollar is replaced by the a gold backed (10%) renminbi and our inflation hits 35% as a result of it, and that is a possible outcome now. China and Russian are being backed by the BRICS and the BRICS are backing them. Toss in the Saudis and it gets a bit troublesome. So everyone needs to remember the caveat that football revenue projections are subject to change without notice due to global financial conditions.

Let's see if I can post this without deformating it from form 990 https://projects.propublica.org/nonprofi...0848/full:




Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 8,218,472 9,210,661
9 Program service revenue (Part VIII, line 2g) ......... 815,902,537 782,472,158
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... 1,095,096 1,078,615
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 8,167,169 9,260,533
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12) 833,383,274 802,021,967



Business Code
2a TV/RADIO RIGHT FEES 515100 540,122,670 540,122,670
b POST SEASON EVENTS 711210 242,349,488 242,349,488
c
d

(08-05-2023 10:10 AM)SouthernConfBoy Wrote:  It's the usage of the phrase "under the old contract" that fools some folks.

Anyway here is a link to the SEC's 990's https://projects.propublica.org/nonprofi.../630377461


I encourage everyone to look at them and avoid some of these low quality media outlets.

Caught again.

You really have to watch out for silver tongued devils, you can get hoodwinked in the blink of an eye.