http://www.orlandosentinel.com/sports/co...story.html
The American Athletic Conference’s latest financial snapshot illustrates how important the next round of television and multimedia contract negotiations will be for the growing league.
The conference reported $74.47 million in total revenue for the 2016-17 fiscal year, the most recent documents available and obtained by the Orlando Sentinel.
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In 2016-17, South Florida received $8.877 million from the AAC, followed by UConn ($8.088 million), Cincinnati ($7.659 million), Houston ($5.410 million), Tulsa ($4.937 million) and Temple ($4.920 million). USF, UConn and Cincinnati are still receiving payments as part of the $70 million in exit fees for being former members of the Big East Conference, according to the Hartford Courant.
Memphis ($4.684 million), UCF ($4.042 million) East Carolina ($3.737 million), SMU ($3.701 million), Tulane ($3.587 million) and Navy ($2.623 million) account for the rest of the league’s revenue breakdown.
UCF saw an increase of 13 percent ($528,837) from the previous year.
Commissioner Mike Aresco made $1.79 million in salary in 2016-17, up slightly from the previous year of $1.724 million.
The AAC revenue figures are bound to look radically different for the 2017-18 fiscal year with the strong showing by UCF in the Chick-fil-A Peach Bowl, one of the six access bowl games in the College Football Playoff, as well as the addition of Wichita State in basketball.
Best wishes. Hope your teams get paid.
So, if I understand, the figures correctly, UConn/Cincinnati/USF will need to hope the next AAC TV deal will be $7, $8, $9 million annually in order to continue receiving baseline payments as in prior years when they were receiving Big East war chest funds?
If it is anything lower than the $7-9 million figure, they would be making less revenue than before. And, if it is in that range, that would mean the AAC TV contract would have been increased by - at a minimum - 400%.
I'm not saying that is not possible, but it would be quite the jump - as no other conference has ever experienced that type of jump in television revenue. Then again, the American is unlike any other conference due to the unique history the current membership has shared. It will be interesting for sure to see what becomes of their next deal in the coming months.
(06-11-2018 02:11 PM)GoldenWarrior11 Wrote: [ -> ]So, if I understand, the figures correctly, UConn/Cincinnati/USF will need to hope the next AAC TV deal will be $7, $8, $9 million annually in order to continue receiving baseline payments as in prior years when they were receiving Big East war chest funds?
That's about the gist of it. It's clear that the legacy payments have been worth an extra $4m to $5m a year for USF/UConn/Cincy, so our current deal, which is about $2.2m per year, has to go up to about $7m for us to break even.
(06-11-2018 02:11 PM)GoldenWarrior11 Wrote: [ -> ]So, if I understand, the figures correctly, UConn/Cincinnati/USF will need to hope the next AAC TV deal will be $7, $8, $9 million annually in order to continue receiving baseline payments as in prior years when they were receiving Big East war chest funds?
If it is anything lower than the $7-9 million figure, they would be making less revenue than before. And, if it is in that range, that would mean the AAC TV contract would have been increased by - at a minimum - 400%.
I'm not saying that is not possible, but it would be quite the jump - as no other conference has ever experienced that type of jump in television revenue. Then again, the American is unlike any other conference due to the unique history the current membership has shared. It will be interesting for sure to see what becomes of their next deal in the coming months.
Well, the 9M we are now getting, includes all sources of revenue, not just TV money.
But your basic premise is correct. We need an increase in TV revenue, or else we will take a pay cut the next go around from what we are currently getting. The TV portion of the next deal needs to hit at least 5-6M in order for us to break even, unless we increase other revenue streams as well.
(06-11-2018 02:16 PM)quo vadis Wrote: [ -> ] (06-11-2018 02:11 PM)GoldenWarrior11 Wrote: [ -> ]So, if I understand, the figures correctly, UConn/Cincinnati/USF will need to hope the next AAC TV deal will be $7, $8, $9 million annually in order to continue receiving baseline payments as in prior years when they were receiving Big East war chest funds?
That's about the gist of it. It's clear that the legacy payments have been worth an extra $4m to $5m a year for USF/UConn/Cincy, so our current deal, which is about $2.2m per year, has to go up to about $7m for us to break even.
Not quite correct. The 9 M we are now getting (believe we actually got 10M last year) also included other revenue sources such as bowl and CFP monies. However, your basic understanding is correct. TV dollars need to go up, otherwise we'll be taking a pay cut.
(06-11-2018 01:53 PM)Hokie Mark Wrote: [ -> ]Best wishes. Hope your teams get paid.
Sure do also. I don't begrudge anyone from getting dollars, whether SEC, ACC, etc. I just also want the AAC to get a piece of the pie. Just a slice. For one, it will bring more stability, which is what we need.
(06-11-2018 02:20 PM)BullsFanInTX Wrote: [ -> ] (06-11-2018 02:16 PM)quo vadis Wrote: [ -> ] (06-11-2018 02:11 PM)GoldenWarrior11 Wrote: [ -> ]So, if I understand, the figures correctly, UConn/Cincinnati/USF will need to hope the next AAC TV deal will be $7, $8, $9 million annually in order to continue receiving baseline payments as in prior years when they were receiving Big East war chest funds?
That's about the gist of it. It's clear that the legacy payments have been worth an extra $4m to $5m a year for USF/UConn/Cincy, so our current deal, which is about $2.2m per year, has to go up to about $7m for us to break even.
Not quite correct. The 9 M we are now getting (believe we actually got 10M last year) also included other revenue sources such as bowl and CFP monies. However, your basic understanding is correct. TV dollars need to go up, otherwise we'll be taking a pay cut.
FWIW, when i made that statement, I wasn't looking at our overall revenues, i was comparing our revenue to other AAC schools that currently aren't getting the Big East payments.
Eyeballing it, that gap seems to be about $4m - $5m, so that's why i said that, because media is a base revenue everyone gets, whereas if the AAC gives schools more or less money based on bowls, that can fluctuate from year to year.
Also, it looks like the NY6 bid is worth about $5m extra to the conference, as the article said that 2016 revenues were about $5m less than 2015, and in 2015 we got the NY6 bid but in 2016 we didn't.
(06-11-2018 02:30 PM)quo vadis Wrote: [ -> ] (06-11-2018 02:20 PM)BullsFanInTX Wrote: [ -> ] (06-11-2018 02:16 PM)quo vadis Wrote: [ -> ] (06-11-2018 02:11 PM)GoldenWarrior11 Wrote: [ -> ]So, if I understand, the figures correctly, UConn/Cincinnati/USF will need to hope the next AAC TV deal will be $7, $8, $9 million annually in order to continue receiving baseline payments as in prior years when they were receiving Big East war chest funds?
That's about the gist of it. It's clear that the legacy payments have been worth an extra $4m to $5m a year for USF/UConn/Cincy, so our current deal, which is about $2.2m per year, has to go up to about $7m for us to break even.
Not quite correct. The 9 M we are now getting (believe we actually got 10M last year) also included other revenue sources such as bowl and CFP monies. However, your basic understanding is correct. TV dollars need to go up, otherwise we'll be taking a pay cut.
FWIW, when i made that statement, I wasn't looking at our overall revenues, i was comparing our revenue to other AAC schools that currently aren't getting the Big East payments.
Eyeballing it, that gap seems to be about $4m - $5m, so that's why i said that, because media is a base revenue everyone gets, whereas if the AAC gives schools more or less money based on bowls, that can fluctuate from year to year.
Also, it looks like the NY6 bid is worth about $5m extra to the conference, as the article said that 2016 revenues were about $5m less than 2015, and in 2015 we got the NY6 bid but in 2016 we didn't.
OK, I understand what you are saying. Yes, I agree it does seem most schools are getting around the 4-5M range.
(06-11-2018 02:20 PM)BullsFanInTX Wrote: [ -> ] (06-11-2018 02:16 PM)quo vadis Wrote: [ -> ] (06-11-2018 02:11 PM)GoldenWarrior11 Wrote: [ -> ]So, if I understand, the figures correctly, UConn/Cincinnati/USF will need to hope the next AAC TV deal will be $7, $8, $9 million annually in order to continue receiving baseline payments as in prior years when they were receiving Big East war chest funds?
That's about the gist of it. It's clear that the legacy payments have been worth an extra $4m to $5m a year for USF/UConn/Cincy, so our current deal, which is about $2.2m per year, has to go up to about $7m for us to break even.
Not quite correct. The 9 M we are now getting (believe we actually got 10M last year) also included other revenue sources such as bowl and CFP monies. However, your basic understanding is correct. TV dollars need to go up, otherwise we'll be taking a pay cut.
Yeah---I noticed that drop off. I also noted Houston's figures (as well as most of the other newer members) are higher than last time. So, either the realignment fund is playing out and thats why the payout is falling or (more likely) I suspect the conference toyed with the realignment fund distributions and tweaked the split a bit to close the differential between new and legacy members. It wont matter much either way because the balance of funds in that account has to be close to being exhausted. The differential will largely disappear at that point.
So if ESPN offers $4-$5 million per year per team for the next TV deal, does the American accept it or go to the open market? Would that be enough to keep the UConn/Cincinnati/USF contingent happy?
(06-11-2018 03:02 PM)GoldenWarrior11 Wrote: [ -> ]So if ESPN offers $4-$5 million per year per team for the next TV deal, does the American accept it or go to the open market? Would that be enough to keep the UConn/Cincinnati/USF contingent happy?
Would probably be wise for the AAC to take it, but truth is, USF et al do not just want to break even, we want a raise.
There's a big chance in the power dynamic about to become apparent. Six years ago, USF/Cincy/UConn were the schools inviting the Houstons and UCFs to the conference. But now, we are just three schools among 12, we don't have out-sized influence any more.
(06-11-2018 03:02 PM)GoldenWarrior11 Wrote: [ -> ]So if ESPN offers $4-$5 million per year per team for the next TV deal, does the American accept it or go to the open market? Would that be enough to keep the UConn/Cincinnati/USF contingent happy?
Ive been adamant that the "low ball" strategy by ESPN would not work this time for precisely this reason. The only way the AAC doesnt go to the open market is if ESPN offers enough money that there is real fear by enough AAC presidents that they might not make that much in open bidding. Since I anticipate a 6-8 million per team deal---5 million a team MIGHT be getting near that point where you could scare some presidents into taking the bird in the hand (especially given how things worked out the last time some of these teams rejected a very reasonable ESPN deal in April of 2011). I dont think 4 million is enough. I see 4 million as almost the floor. The AAC can pretty much make that by just regaining thier second tier rights, getting a small raise from ESPN and then selling second tier content to CBS-Network on their own.
I suspect they could get the upper end of my range on the open market---but university presidents arent really the riverboat gambler types. I bet they'd take 6 million each with the current level of exposure. One place where I think ESPN can play a really strong trump card. Bowl negotiations for the next cycle are happening now---and likely will still be in progress when the AAC is nearing the open market window (early 2019). If ESPN can promise the AAC a guaranteed slot in a high/mid-tier bowl against a #3-#5 pick from a P5----that 5 to 6 million per team bid is infinitely more attractive.
(06-11-2018 03:07 PM)Attackcoog Wrote: [ -> ] (06-11-2018 03:02 PM)GoldenWarrior11 Wrote: [ -> ]So if ESPN offers $4-$5 million per year per team for the next TV deal, does the American accept it or go to the open market? Would that be enough to keep the UConn/Cincinnati/USF contingent happy?
Ive been adamant that the "low ball" strategy by ESPN would not work this time for precisely this reason. The only way the AAC doesnt go to the open market is if ESPN offers enough money that there is real fear by enough AAC presidents that they might not make that much in open bidding. Since I anticipate a 6-8 million per team deal---5 million a team MIGHT be getting near that point where you could scare some presidents into taking the bird in the hand (especially given how things worked out the last time some of these teams rejected a very reasonable ESPN deal in April of 2011). I dont think 4 million is enough. I see 4 million as almost the floor. The AAC can pretty much make that by just regaining thier second tier rights, getting a small raise from ESPN and then selling second tier content to CBS-Network on their own.
I suspect they could get the upper end of my range on the open market---but university presidents arent really the riverboat gambler types. I bet they'd take 6 million each with the current level of exposure. One place where I think ESPN can play a really strong trump card. Bowl negotiations for the next cycle are happening now---and likely will still be in progress when the AAC is nearing the open market window (early 2019). If ESPN can promise the AAC a guaranteed slot in a high/mid-tier bowl against a #3-#5 pick from a P5----that 5 to 6 million per team bid is infinitely more attractive.
Suspect if they are offered 6-8M in TV dollars...they'd take it without going to market without hesitation.
Remember the time when the Big East was offered 13M per school, and turned it down. Then Pitt, which led the BE in turning down the ESPN deal, secretly negotiated with the ACC for an exit, stabbing everyone in the back. The deal would have saved the BE football league for years to come.
Suspect if anything like that happens this time around, the presidents will say "where do we sign and how fast can we sign".
(06-11-2018 04:41 PM)BullsFanInTX Wrote: [ -> ] (06-11-2018 03:07 PM)Attackcoog Wrote: [ -> ] (06-11-2018 03:02 PM)GoldenWarrior11 Wrote: [ -> ]So if ESPN offers $4-$5 million per year per team for the next TV deal, does the American accept it or go to the open market? Would that be enough to keep the UConn/Cincinnati/USF contingent happy?
Ive been adamant that the "low ball" strategy by ESPN would not work this time for precisely this reason. The only way the AAC doesnt go to the open market is if ESPN offers enough money that there is real fear by enough AAC presidents that they might not make that much in open bidding. Since I anticipate a 6-8 million per team deal---5 million a team MIGHT be getting near that point where you could scare some presidents into taking the bird in the hand (especially given how things worked out the last time some of these teams rejected a very reasonable ESPN deal in April of 2011). I dont think 4 million is enough. I see 4 million as almost the floor. The AAC can pretty much make that by just regaining thier second tier rights, getting a small raise from ESPN and then selling second tier content to CBS-Network on their own.
I suspect they could get the upper end of my range on the open market---but university presidents arent really the riverboat gambler types. I bet they'd take 6 million each with the current level of exposure. One place where I think ESPN can play a really strong trump card. Bowl negotiations for the next cycle are happening now---and likely will still be in progress when the AAC is nearing the open market window (early 2019). If ESPN can promise the AAC a guaranteed slot in a high/mid-tier bowl against a #3-#5 pick from a P5----that 5 to 6 million per team bid is infinitely more attractive.
Suspect if they are offered 6-8M in TV dollars...they'd take it without going to market without hesitation.
Remember the time when the Big East was offered 13M per school, and turned it down. Then Pitt, which led the BE in turning down the ESPN deal, secretly negotiated with the ACC for an exit, stabbing everyone in the back. The deal would have saved the BE football league for years to come.
Suspect if anything like that happens this time around, the presidents will say "where do we sign and how fast can we sign".
I know Aresco has talked about much bigger dollars, and more power to him if he can get them, but $7m or so sounds good to me.
Big difference between now and the 2011 Big East rebuff of ESPN is nobody in the current AAC has the chance to jump to the ACC or Big 12.
Even if Aresco returns with disappointing money, nobody in the AAC has any better option, save a very slight chance of UConn dallying with the Big East.
(06-11-2018 09:26 PM)quo vadis Wrote: [ -> ] (06-11-2018 04:41 PM)BullsFanInTX Wrote: [ -> ] (06-11-2018 03:07 PM)Attackcoog Wrote: [ -> ] (06-11-2018 03:02 PM)GoldenWarrior11 Wrote: [ -> ]So if ESPN offers $4-$5 million per year per team for the next TV deal, does the American accept it or go to the open market? Would that be enough to keep the UConn/Cincinnati/USF contingent happy?
Ive been adamant that the "low ball" strategy by ESPN would not work this time for precisely this reason. The only way the AAC doesnt go to the open market is if ESPN offers enough money that there is real fear by enough AAC presidents that they might not make that much in open bidding. Since I anticipate a 6-8 million per team deal---5 million a team MIGHT be getting near that point where you could scare some presidents into taking the bird in the hand (especially given how things worked out the last time some of these teams rejected a very reasonable ESPN deal in April of 2011). I dont think 4 million is enough. I see 4 million as almost the floor. The AAC can pretty much make that by just regaining thier second tier rights, getting a small raise from ESPN and then selling second tier content to CBS-Network on their own.
I suspect they could get the upper end of my range on the open market---but university presidents arent really the riverboat gambler types. I bet they'd take 6 million each with the current level of exposure. One place where I think ESPN can play a really strong trump card. Bowl negotiations for the next cycle are happening now---and likely will still be in progress when the AAC is nearing the open market window (early 2019). If ESPN can promise the AAC a guaranteed slot in a high/mid-tier bowl against a #3-#5 pick from a P5----that 5 to 6 million per team bid is infinitely more attractive.
Suspect if they are offered 6-8M in TV dollars...they'd take it without going to market without hesitation.
Remember the time when the Big East was offered 13M per school, and turned it down. Then Pitt, which led the BE in turning down the ESPN deal, secretly negotiated with the ACC for an exit, stabbing everyone in the back. The deal would have saved the BE football league for years to come.
Suspect if anything like that happens this time around, the presidents will say "where do we sign and how fast can we sign".
I know Aresco has talked about much bigger dollars, and more power to him if he can get them, but $7m or so sounds good to me.
Big difference between now and the 2011 Big East rebuff of ESPN is nobody in the current AAC has the chance to jump to the ACC or Big 12.
Even if Aresco returns with disappointing money, nobody in the AAC has any better option, save a very slight chance of UConn dallying with the Big East.
lol...so true. Literally nowhere else to go. Its the college FBS version of the "Voyage Of The Dammed".
Navy ($2.623 million)
This must be the base TV money distribution within the AAC (TV contract & CFP money).
The other league schools are splitting NCAA distributions and in some cases still getting paid on BE exit fees.
The 400% increase some are suggesting on here I think is a possible for the AAC. Didn't the P5 conferences go from about a $10 million per school deal to $40 million dollars?
However if ESPN is paying the MAC & MWC about 875k from their linear deals while CUSA & SBC are making 500k I doubt the money is going to becoming from them.
(06-11-2018 10:11 PM)Kittonhead Wrote: [ -> ]Navy ($2.623 million)
This must be the base TV money distribution within the AAC (TV contract & CFP money).
The other league schools are splitting NCAA distributions and in some cases still getting paid on BE exit fees.
The 400% increase some are suggesting on here I think is a possible for the AAC. Didn't the P5 conferences go from about a $10 million per school deal to $40 million dollars?
However if ESPN is paying the MAC & MWC about 875k from their linear deals while CUSA & SBC are making 500k I doubt the money is going to becoming from them.
No. The liklihood is that is probably just CFP and bowl money. Navy has had thier own seperate indy TV deal they have been playing out. It just ended. So, I dont think they got any AAC TV money in 2016-2017. There are some descrpencies between teams that are hard to explain. The realignment fund disbursement’s explains some of it. UConn, USF, and Cinci get much bigger shares than everyone else. Additionally, the first group of CUSA defectors got a slightly larger from the realignment fund share than Tulsa, Tulane, and ECU.....but I have zero explanation for why SMU would have a realtively low payout in comparison to the others in the first wave of 2011 teams that committed to the Big East/AAC.
Dr. Rudd (Memphis Pres) said in a radio interview that media $ range from 2.3 to 2.6m. He is on the committee working with consultants on the next deal. The floor he mentions most is $6m. I don't know if this is what his colleagues have agreed on as a bottom goal or what he hears from consultants...though a while back Bowen, the AD, mentioned consultant projections of 8-10m.
(06-11-2018 10:11 PM)Kittonhead Wrote: [ -> ]Navy ($2.623 million)
This must be the base TV money distribution within the AAC (TV contract & CFP money).
The other league schools are splitting NCAA distributions and in some cases still getting paid on BE exit fees.
Yes, that sounds right about Navy. It's the football-only money.
The bulk of the other funds are NCAA tournament credits from the time since the C7 left the conference. So that's not a full basketball payout - NCAA credits are awarded on a 6 year basis, and the 2012 & 2013 credits belong only to UC/UConn/USF. Most AAC teams are only getting basketball payments based on 4 years of credits, so their basketball payout will increase in 2018, and again in 2019.
This breakdown just goes to show that basketball actually does make as much money as football for a lot of schools.