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Financial breakdown of UConn's move to the Big East
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TheBasketBallOpinion Offline
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Post: #1
Financial breakdown of UConn's move to the Big East
https://connecticut.rivals.com/news/fina...e-big-east

Quote:"Production costs

After the possible loss of SNY, this has been the part that has gotten people most up-in-arms. Mainly that a portion of the $7 million guaranteed to each school annually would go directly toward producing games shown on ESPN+. A UConn source estimated that the 25-or-so basketball games relegated to ESPN+ each year would cost the school between $250,000 and half a million dollars. That’s before you even consider the 50 olympic sports streamed per year under the deal. A conservative estimate could put the price tag on annual production costs at between $500,000 and $1,000,000.

Knock another million off the true value of that deal."

Quote:Big East:
Value of Big East deal with FOX: $4.2 million per year, per team
Value of current deal with SNY: About $1 million per year
Expected value of football deal with SNY: About $1 million per year
Potential football buy game: $1 million per year
Bowl game payout: $310,000, based on 2019
Men’s Basketball Fund: $1.6 million
AAC exit fee: $1 million per year, after 2020
TOTAL: $8.1 million

Quote:AAC:
Value of new AAC deal: About $7 million per year, per team
Bowl Game Payout: $2.05 million per team in 2019
Men’s Basketball Fund: $725,000
ESPN+ Production costs: About $1 million per year
Additional travel: About $2 million per year
TOTAL: $6.75 million
08-08-2019 10:59 AM
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1845 Bear Online
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RE: Financial breakdown of UConn's move to the Big East
If UComn isnwilling to sacrifice national exposure in football they can make decent local region tv dollars. Here’s hoping thenreshuffled leagues work out for all involved
08-08-2019 11:24 AM
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Bogg Offline
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RE: Financial breakdown of UConn's move to the Big East
(08-08-2019 11:24 AM)1845 Bear Wrote:  If UComn isnwilling to sacrifice national exposure in football they can make decent local region tv dollars. Here’s hoping thenreshuffled leagues work out for all involved

Basketball gives UConn more national exposure than football ever will. Maximizing basketball and getting them back in the tournament is the best way to maintain UConn's brand.
08-08-2019 11:38 AM
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scoscox Offline
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RE: Financial breakdown of UConn's move to the Big East
(08-08-2019 11:24 AM)1845 Bear Wrote:  If UComn isnwilling to sacrifice national exposure in football they can make decent local region tv dollars. Here’s hoping thenreshuffled leagues work out for all involved

they were getting national exposure in football? could've fooled me
08-08-2019 11:40 AM
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Attackcoog Offline
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RE: Financial breakdown of UConn's move to the Big East
(08-08-2019 10:59 AM)TheBasketBallOpinion Wrote:  https://connecticut.rivals.com/news/fina...e-big-east

Quote:"Production costs

After the possible loss of SNY, this has been the part that has gotten people most up-in-arms. Mainly that a portion of the $7 million guaranteed to each school annually would go directly toward producing games shown on ESPN+. A UConn source estimated that the 25-or-so basketball games relegated to ESPN+ each year would cost the school between $250,000 and half a million dollars. That’s before you even consider the 50 olympic sports streamed per year under the deal. A conservative estimate could put the price tag on annual production costs at between $500,000 and $1,000,000.

Knock another million off the true value of that deal."

Quote:Big East:
Value of Big East deal with FOX: $4.2 million per year, per team
Value of current deal with SNY: About $1 million per year
Expected value of football deal with SNY: About $1 million per year
Potential football buy game: $1 million per year
Bowl game payout: $310,000, based on 2019
Men’s Basketball Fund: $1.6 million
AAC exit fee: $1 million per year, after 2020
TOTAL: $8.1 million

Quote:AAC:
Value of new AAC deal: About $7 million per year, per team
Bowl Game Payout: $2.05 million per team in 2019
Men’s Basketball Fund: $725,000
ESPN+ Production costs: About $1 million per year
Additional travel: About $2 million per year
TOTAL: $6.75 million

Amazes me the writers that dont know facts.

#1) CFP payout has been completely left out.

#2) AAC Basketball fund left out

#3) Most of exit fee not considered (only 6 million of 20.5 million was included).

#4) There is no SNY income--third tier rights were signed over to the Big East, which had already sold them to FOX. If FOX doesnt use them, they revert to the Big East, who acts as the agent and then distributes the money equally to each member of the confernece.

#5) A football "payday game" is not a Big East income stream. Scheduling a one-and-done payday game could have been done in the AAC.

#6) ESPN+ production costs remain unknown---but many FCS and D2 teams with very small budgets under 10 million have been handling these costs (with no offsetting income) for years. If have found at least one article that pegs the cost at around $350K. As for equipment----one D1 school bought the production trailer and equipment needed for ESPN3/+ for $125,000. Akron upgraded its facilities for to handle ESPN3/+ for $350K. These costs are unknown right now---but I suspect they are being badly overestimated. That said, at least this article is more reasonable than the 2 million dollar estimates I have seen elsewhere.

My position is that the Big East likley will pay slightly less---but is a much better fit for UConn and--may become a financial windfall should UConn decide to downgrade or completely eliminate football.
(This post was last modified: 08-08-2019 12:30 PM by Attackcoog.)
08-08-2019 11:42 AM
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CliftonAve Offline
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RE: Financial breakdown of UConn's move to the Big East
(08-08-2019 11:40 AM)scoscox Wrote:  
(08-08-2019 11:24 AM)1845 Bear Wrote:  If UComn isnwilling to sacrifice national exposure in football they can make decent local region tv dollars. Here’s hoping thenreshuffled leagues work out for all involved

they were getting national exposure in football? could've fooled me

The payout sucks but the exposure in the
AAC is pretty good. Most games are on an ESPN 2, ESPN U or ESPN News with the exception of a couple games on CBS Sports. UConn has been bad for a while and is not a FB TV draw so they get more games on the lower tier than UCF, Houston, Memphis and UC.
08-08-2019 11:45 AM
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GoldenWarrior11 Online
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RE: Financial breakdown of UConn's move to the Big East
"UConn men’s basketball just finished its third-straight season of drawing fewer than 10,000 fans per game. Women’s basketball just finished its worst attended season since 2015 and its third-worst since 2010. There’s plenty of room for improvement and bringing in better, more familiar teams, will help."

I think the men's basketball attendance struggles have been repeatedly noted; it can be argued that the program's lack of success was a huge indicator of the lack of fans coming to games (even though fans still come to games when they are rivalry matchups, which UConn had none of in the AAC). However, it should be pretty alarming that UConn's Women's attendances were struggling too (and they are the elite program in the country). Heck, they have made the Final Four every year since 2007.

Even if it's not basketball, look at football: UConn Football's home attendance went down from 2012 to 2013 (from the Big East, to the AAC), and has went on a downward spiral ever since. Yes, the lack of success was definitely part of it, but the conference affiliation also was a part of it as well (which is why it has been argued for so long here that their membership in the AAC was unsustainable).

While forced, the AAC membership for UConn did not help them with fan support or interest, no matter how strongly some fans of those schools want to argue otherwise. A top-15 Houston football team could not even get 30k at UConn (when a top-15 Michigan got over 40k). Who you play and who you are associated with matters.
08-08-2019 11:47 AM
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Mestophalies Offline
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Post: #8
RE: Financial breakdown of UConn's move to the Big East
(08-08-2019 11:38 AM)Bogg Wrote:  
(08-08-2019 11:24 AM)1845 Bear Wrote:  If UComn isnwilling to sacrifice national exposure in football they can make decent local region tv dollars. Here’s hoping thenreshuffled leagues work out for all involved

Basketball gives UConn more national exposure than football ever will. Maximizing basketball and getting them back in the tournament is the best way to maintain UConn's brand.

I don't know about that buddy, The Bottom 10 get a ton of exposure during the season. COGS
08-08-2019 12:39 PM
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loki_the_bubba Offline
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RE: Financial breakdown of UConn's move to the Big East
(08-08-2019 12:39 PM)Mestophalies Wrote:  
(08-08-2019 11:38 AM)Bogg Wrote:  
(08-08-2019 11:24 AM)1845 Bear Wrote:  If UComn isnwilling to sacrifice national exposure in football they can make decent local region tv dollars. Here’s hoping thenreshuffled leagues work out for all involved

Basketball gives UConn more national exposure than football ever will. Maximizing basketball and getting them back in the tournament is the best way to maintain UConn's brand.

I don't know about that buddy, The Bottom 10 get a ton of exposure during the season. COGS

We at Rice count on that.
08-08-2019 12:43 PM
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dbackjon Online
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RE: Financial breakdown of UConn's move to the Big East
UConn will be financially better off in the Big East, by millions per year


Also:

UConn will be financially worse off in the Big East, by millions per year
08-08-2019 12:56 PM
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Billy Bob Bearcat Offline
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Post: #11
RE: Financial breakdown of UConn's move to the Big East
(08-08-2019 11:42 AM)Attackcoog Wrote:  
(08-08-2019 10:59 AM)TheBasketBallOpinion Wrote:  https://connecticut.rivals.com/news/fina...e-big-east

Quote:"Production costs

After the possible loss of SNY, this has been the part that has gotten people most up-in-arms. Mainly that a portion of the $7 million guaranteed to each school annually would go directly toward producing games shown on ESPN+. A UConn source estimated that the 25-or-so basketball games relegated to ESPN+ each year would cost the school between $250,000 and half a million dollars. That’s before you even consider the 50 olympic sports streamed per year under the deal. A conservative estimate could put the price tag on annual production costs at between $500,000 and $1,000,000.

Knock another million off the true value of that deal."

Quote:Big East:
Value of Big East deal with FOX: $4.2 million per year, per team
Value of current deal with SNY: About $1 million per year
Expected value of football deal with SNY: About $1 million per year
Potential football buy game: $1 million per year
Bowl game payout: $310,000, based on 2019
Men’s Basketball Fund: $1.6 million
AAC exit fee: $1 million per year, after 2020
TOTAL: $8.1 million

Quote:AAC:
Value of new AAC deal: About $7 million per year, per team
Bowl Game Payout: $2.05 million per team in 2019
Men’s Basketball Fund: $725,000
ESPN+ Production costs: About $1 million per year
Additional travel: About $2 million per year
TOTAL: $6.75 million

Amazes me the writers that dont know facts.

#1) CFP payout has been completely left out.

#2) AAC Basketball fund left out

#3) Most of exit fee not considered (only 6 million of 20.5 million was included).

#4) There is no SNY income--third tier rights were signed over to the Big East, which had already sold them to FOX. If FOX doesnt use them, they revert to the Big East, who acts as the agent and then distributes the money equally to each member of the confernece.

#5) A football "payday game" is not a Big East income stream. Scheduling a one-and-done payday game could have been done in the AAC.

#6) ESPN+ production costs remain unknown---but many FCS and D2 teams with very small budgets under 10 million have been handling these costs (with no offsetting income) for years. If have found at least one article that pegs the cost at around $350K. As for equipment----one D1 school bought the production trailer and equipment needed for ESPN3/+ for $125,000. Akron upgraded its facilities for to handle ESPN3/+ for $350K. These costs are unknown right now---but I suspect they are being badly overestimated. That said, at least this article is more reasonable than the 2 million dollar estimates I have seen elsewhere.

My position is that the Big East likley will pay slightly less---but is a much better fit for UConn and--may become a financial windfall should UConn decide to downgrade or completely eliminate football.

Great points. You can easily tell the intention of the original post with such thinly veiled BE vs AAC propaganda. Somehow UConn is making $2 million on contracts that simply don't exist and another $1 on a buy game which is not exclusive to the BE (They can do a buy game in the AAC as well).

UConn is going to make less money from the conference. It is fine for them to join the Big East, but at least own it was done for reasons outside of the dollars and cents.
08-08-2019 01:13 PM
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slhNavy91 Offline
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Post: #12
RE: Financial breakdown of UConn's move to the Big East
(08-08-2019 11:42 AM)Attackcoog Wrote:  
(08-08-2019 10:59 AM)TheBasketBallOpinion Wrote:  https://connecticut.rivals.com/news/fina...e-big-east

Quote:"Production costs

After the possible loss of SNY, this has been the part that has gotten people most up-in-arms. Mainly that a portion of the $7 million guaranteed to each school annually would go directly toward producing games shown on ESPN+. A UConn source estimated that the 25-or-so basketball games relegated to ESPN+ each year would cost the school between $250,000 and half a million dollars. That’s before you even consider the 50 olympic sports streamed per year under the deal. A conservative estimate could put the price tag on annual production costs at between $500,000 and $1,000,000.

Knock another million off the true value of that deal."

Quote:Big East:
Value of Big East deal with FOX: $4.2 million per year, per team
Value of current deal with SNY: About $1 million per year
Expected value of football deal with SNY: About $1 million per year
Potential football buy game: $1 million per year
Bowl game payout: $310,000, based on 2019
Men’s Basketball Fund: $1.6 million
AAC exit fee: $1 million per year, after 2020
TOTAL: $8.1 million

Quote:AAC:
Value of new AAC deal: About $7 million per year, per team
Bowl Game Payout: $2.05 million per team in 2019
Men’s Basketball Fund: $725,000
ESPN+ Production costs: About $1 million per year
Additional travel: About $2 million per year
TOTAL: $6.75 million

Amazes me the writers that dont know facts.

#1) CFP payout has been completely left out.

#2) AAC Basketball fund left out

#3) Most of exit fee not considered (only 6 million of 20.5 million was included).

#4) There is no SNY income--third tier rights were signed over to the Big East, which had already sold them to FOX. If FOX doesnt use them, they revert to the Big East, who acts as the agent and then distributes the money equally to each member of the confernece.

#5) A football "payday game" is not a Big East income stream. Scheduling a one-and-done payday game could have been done in the AAC.

#6) ESPN+ production costs remain unknown---but many FCS and D2 teams with very small budgets under 10 million have been handling these costs (with no offsetting income) for years. If have found at least one article that pegs the cost at around $350K. As for equipment----one D1 school bought the production trailer and equipment needed for ESPN3/+ for $125,000. Akron upgraded its facilities for to handle ESPN3/+ for $350K. These costs are unknown right now---but I suspect they are being badly overestimated. That said, at least this article is more reasonable than the 2 million dollar estimates I have seen elsewhere.

Looks like CFP payout is the second item on the AAC side and the fifth item on the Big East side. However, AAC gets another $600k per team from the other bowls.
Agreed that counting only the six years of $1M per year, rather than $17M and omitting completely the $3M entrance fee is...disingenuous at best. Maybe amortize the $20M over the six years the author wants to count?
Agreed on $0 third tier rights from SNY.
Agreed with your number five.
Hilarious - more than one analysis looking at costs other schools have publicized (as opposed to guessing) has come up with around $350k in production costs, but the author says "conservative" estimates are $500k-$1M...and then uses the max in his comp!
Omits the estimates of $2M increased ticket sales - AD Benedict quoted that for an interview, so let's just assume.

Let's see, even giving some benefits of the doubt to his writeup (travel costs, ticket sales, production costs)

Big East:
Value of Big East deal with FOX: $4.2 million per year, per team
Expected value of football deal with SNY: About $1 million per year
Bowl game payout: $310,000, based on 2019
Men’s Basketball Fund: $1.6 million
Increased ticket sales: $2 million
AAC exit fee: $3 million per year, after 2020
TOTAL: $6.11 million

AAC:
Value of new AAC deal: About $7 million per year, per team
Bowl Game Payout: $2.6 million per team in 2019
Men’s Basketball Fund: $725,000
ESPN+ Production costs: About $500,000 per year
Additional travel: About $2 million per year
TOTAL: $7.825 million
08-08-2019 01:21 PM
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CougarRed Offline
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Post: #13
RE: Financial breakdown of UConn's move to the Big East
Football buy game? UConn could have done that in the American if it needed the money. Any calculus that includes that to justify the move is silly.

And I prefer to look at the Form 990s to see what conferences are actually distributing, net of expenses.

American schools were getting about $4.5M per year under the old TV deal. This counts bowls, NCAA hoops tourney distributions, TV etc, less conference expenses.

The Big East schools receive about $3.6M per year.

The American distibution is going up under the new TV. I don't know if it's scaled in or not. On average, even assumig $1M per school TV production costs, the TV money is going from $21M per year to $71M per year. An increase of about $4M per school. Which should be to the bottom line, as the conference won't take much of that as expenses are already being met.

So the American distribution, net of TV production costs, goes to $8.5M per year, about $5M more per year than the Big East.

No way UConn makes up that deficit on travel savings and SNY. Much less pay the $18M in entry and exit fees.

They have to drop football to FCS or drop it entirely for this to make any sense.
(This post was last modified: 08-08-2019 01:35 PM by CougarRed.)
08-08-2019 01:35 PM
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GoldenWarrior11 Online
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RE: Financial breakdown of UConn's move to the Big East
(08-08-2019 01:21 PM)slhNavy91 Wrote:  
(08-08-2019 11:42 AM)Attackcoog Wrote:  
(08-08-2019 10:59 AM)TheBasketBallOpinion Wrote:  https://connecticut.rivals.com/news/fina...e-big-east

Quote:"Production costs

After the possible loss of SNY, this has been the part that has gotten people most up-in-arms. Mainly that a portion of the $7 million guaranteed to each school annually would go directly toward producing games shown on ESPN+. A UConn source estimated that the 25-or-so basketball games relegated to ESPN+ each year would cost the school between $250,000 and half a million dollars. That’s before you even consider the 50 olympic sports streamed per year under the deal. A conservative estimate could put the price tag on annual production costs at between $500,000 and $1,000,000.

Knock another million off the true value of that deal."

Quote:Big East:
Value of Big East deal with FOX: $4.2 million per year, per team
Value of current deal with SNY: About $1 million per year
Expected value of football deal with SNY: About $1 million per year
Potential football buy game: $1 million per year
Bowl game payout: $310,000, based on 2019
Men’s Basketball Fund: $1.6 million
AAC exit fee: $1 million per year, after 2020
TOTAL: $8.1 million

Quote:AAC:
Value of new AAC deal: About $7 million per year, per team
Bowl Game Payout: $2.05 million per team in 2019
Men’s Basketball Fund: $725,000
ESPN+ Production costs: About $1 million per year
Additional travel: About $2 million per year
TOTAL: $6.75 million

Amazes me the writers that dont know facts.

#1) CFP payout has been completely left out.

#2) AAC Basketball fund left out

#3) Most of exit fee not considered (only 6 million of 20.5 million was included).

#4) There is no SNY income--third tier rights were signed over to the Big East, which had already sold them to FOX. If FOX doesnt use them, they revert to the Big East, who acts as the agent and then distributes the money equally to each member of the confernece.

#5) A football "payday game" is not a Big East income stream. Scheduling a one-and-done payday game could have been done in the AAC.

#6) ESPN+ production costs remain unknown---but many FCS and D2 teams with very small budgets under 10 million have been handling these costs (with no offsetting income) for years. If have found at least one article that pegs the cost at around $350K. As for equipment----one D1 school bought the production trailer and equipment needed for ESPN3/+ for $125,000. Akron upgraded its facilities for to handle ESPN3/+ for $350K. These costs are unknown right now---but I suspect they are being badly overestimated. That said, at least this article is more reasonable than the 2 million dollar estimates I have seen elsewhere.

Looks like CFP payout is the second item on the AAC side and the fifth item on the Big East side. However, AAC gets another $600k per team from the other bowls.
Agreed that counting only the six years of $1M per year, rather than $17M and omitting completely the $3M entrance fee is...disingenuous at best. Maybe amortize the $20M over the six years the author wants to count?
Agreed on $0 third tier rights from SNY.
Agreed with your number five.
Hilarious - more than one analysis looking at costs other schools have publicized (as opposed to guessing) has come up with around $350k in production costs, but the author says "conservative" estimates are $500k-$1M...and then uses the max in his comp!
Omits the estimates of $2M increased ticket sales - AD Benedict quoted that for an interview, so let's just assume.

Let's see, even giving some benefits of the doubt to his writeup (travel costs, ticket sales, production costs)

Big East:
Value of Big East deal with FOX: $4.2 million per year, per team
Expected value of football deal with SNY: About $1 million per year
Bowl game payout: $310,000, based on 2019
Men’s Basketball Fund: $1.6 million
Increased ticket sales: $2 million
AAC exit fee: $3 million per year, after 2020
TOTAL: $6.11 million

AAC:
Value of new AAC deal: About $7 million per year, per team
Bowl Game Payout: $2.6 million per team in 2019
Men’s Basketball Fund: $725,000
ESPN+ Production costs: About $500,000 per year
Additional travel: About $2 million per year
TOTAL: $7.825 million

Using these figures, and if reports are accurate that the next Big East TV deal will be extended and increased to $6 million per year, that would mean UConn would be making almost the exact same figure in basketball than it would have in all sports in the AAC (the BE would be making slightly more under your breakdown).
08-08-2019 01:38 PM
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slhNavy91 Offline
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Post: #15
RE: Financial breakdown of UConn's move to the Big East
(08-08-2019 01:26 PM)GoldenWarrior11 Wrote:  
(08-08-2019 11:42 AM)Attackcoog Wrote:  
(08-08-2019 10:59 AM)TheBasketBallOpinion Wrote:  https://connecticut.rivals.com/news/fina...e-big-east

Quote:"Production costs

After the possible loss of SNY, this has been the part that has gotten people most up-in-arms. Mainly that a portion of the $7 million guaranteed to each school annually would go directly toward producing games shown on ESPN+. A UConn source estimated that the 25-or-so basketball games relegated to ESPN+ each year would cost the school between $250,000 and half a million dollars. That’s before you even consider the 50 olympic sports streamed per year under the deal. A conservative estimate could put the price tag on annual production costs at between $500,000 and $1,000,000.

Knock another million off the true value of that deal."

Quote:Big East:
Value of Big East deal with FOX: $4.2 million per year, per team
Value of current deal with SNY: About $1 million per year
Expected value of football deal with SNY: About $1 million per year
Potential football buy game: $1 million per year
Bowl game payout: $310,000, based on 2019
Men’s Basketball Fund: $1.6 million
AAC exit fee: $1 million per year, after 2020
TOTAL: $8.1 million

Quote:AAC:
Value of new AAC deal: About $7 million per year, per team
Bowl Game Payout: $2.05 million per team in 2019
Men’s Basketball Fund: $725,000
ESPN+ Production costs: About $1 million per year
Additional travel: About $2 million per year
TOTAL: $6.75 million

Amazes me the writers that dont know facts.

#1) CFP payout has been completely left out.

#2) AAC Basketball fund left out

#3) Most of exit fee not considered (only 6 million of 20.5 million was included).

#4) There is no SNY income--third tier rights were signed over to the Big East, which had already sold them to FOX. If FOX doesnt use them, they revert to the Big East, who acts as the agent and then distributes the money equally to each member of the confernece.

#5) A football "payday game" is not a Big East income stream. Scheduling a one-and-done payday game could have been done in the AAC.

#6) ESPN+ production costs remain unknown---but many FCS and D2 teams with very small budgets under 10 million have been handling these costs (with no offsetting income) for years. If have found at least one article that pegs the cost at around $350K. As for equipment----one D1 school bought the production trailer and equipment needed for ESPN3/+ for $125,000. Akron upgraded its facilities for to handle ESPN3/+ for $350K. These costs are unknown right now---but I suspect they are being badly overestimated. That said, at least this article is more reasonable than the 2 million dollar estimates I have seen elsewhere.

My position is that the Big East likley will pay slightly less---but is a much better fit for UConn and--may become a financial windfall should UConn decide to downgrade or completely eliminate football.

Some notes about the CFP payouts that were not mentioned:

UConn, as an independent, will still receive the $300k if it meets the APR participation guidelines and makes a bowl game. Additionally, the FBS Independents still receives about a million, collectively, for participation in the CFP (ND makes over $3 million). It is unclear how that will change with Liberty and, now, UConn joining them. The Group of 5 split up $81.32 million for 2018, equally, which amounts to about $16.26 million per conference (which came out to about $1.4 million per AAC member). UCF earned $4 million for their NY6 appearance, but it looks like they kept that amount (and it was not distributed equally).

https://collegefootballplayoff.com/sport...ution.aspx

https://www.forbes.com/sites/kristidosh/...a3f2ec2704

CFP FACTS:
NCAA posts the CFP distribution by conference, as well as non-CFP bowl payouts here:
http://www.ncaa.org/championships/postse...nistration
(note, non-CFP bowl payouts are the bowl's total - divide in half to find each participating conference's share)

Direct to pdf of the payoffs:
https://ncaaorg.s3.amazonaws.com/champio...bution.pdf

You can see that the AAC got $25M last season. The AAC has totaled $105M over the CFP's five years, averaging $21M per year to the conference. Non-Notre Dame independents get $310k. $2.3M net to the AAC.

I've been trying to get people to stop citing Kristi Dosh's article for some time now. She didn't do any better than the 5-year old CFP press release - doesn't even have the total distributions right. Your link to (two-year-old) CFP release doesn't work but likely has the same flaws.
08-08-2019 01:39 PM
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Stugray2 Offline
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Post: #16
RE: Financial breakdown of UConn's move to the Big East
You should adjust the numbers a bit on UConn to reflect the actual distributions of TV revenues 2020-25, the front end of the AAC contract (lower per school than the contract average) and the back end of the Big East contract (higher per school than the contract average), and also factor in the typical $1-2M ESPN production cost in the AAC contract (not part of FS1 Big East contract)

The actual first six years of the AAC (2020-25) is $5,843,303 per school, then subtract somewhere between $1-2M for production fees.
The actual last six years for the Big East (2020-25) is $4,122,897 per school, no production cost passed on to schools

In both cases I removed a factored in a conference share (equal to one school). When you remove the $1M production costs and figure maybe $1.5M from SNY for Football and other content, UConn does appear to be ahead in media revenue.

But they will be behind in distributions, especially football for probably 4-5 years. It's probably a net wash.

The difference will show up in donations. UCOnn donations rand $10-12M per year the last 5 years of the Big East, but have dropped to a $5-6M level in the American. If being in the Big East brings back those donors, the exit fee will be paid for in 3 years, and they will be ahead after that.
08-08-2019 02:06 PM
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slhNavy91 Offline
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Post: #17
RE: Financial breakdown of UConn's move to the Big East
(08-08-2019 02:06 PM)Stugray2 Wrote:  The difference will show up in donations. UCOnn donations rand $10-12M per year the last 5 years of the Big East, but have dropped to a $5-6M level in the American. If being in the Big East brings back those donors, the exit fee will be paid for in 3 years, and they will be ahead after that.

Yes, donations could be the big big win for UConn here. President and AD have mentioned donatins but not put numbers against them, but they have been putting numbers (either Herbst saying "a couple million" or Benedict saying "Two million dollars") with travel costs and ticket sales.

Will there be the same donations in a Big East that is still a basketball power conference but NOT a BCS conference like they were in those days? Probably most of that $5 million bounces back. Fees paid in five-six years, and then ahead thereafter.
08-08-2019 02:19 PM
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Frank the Tank Offline
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Post: #18
RE: Financial breakdown of UConn's move to the Big East
In these types of breakdowns, I feel like the truth is somewhere in the middle: Big East supporters seem to underestimate the drop in football revenue, but AAC supporters seem to underestimate the increase in basketball revenue. UConn isn't going to receive the conference distributions for the CFP and other bowls, which is a significant amount that the Big East-biased OP link glosses over. Those guaranteed annual amounts are almost certainly going to be lower and more variable.

At the same time, though, it drives me up the wall when AAC fans try to compare their new football/basketball TV contract with ESPN to the basketball TV contract with Fox because they're simply not the same. When it comes to basketball revenue, UConn is going to straight up make more money for that particular sport and, on a relative basis, the Big East TV contract for basketball is on par with what the Power Five conferences would assign as the basketball value of their TV contracts.

I keep racking my brain to think of the best analogy, but it's like comparing what's a more valuable housing market. Greenwich, CT has higher median home values than Manhattan, but that doesn't mean that real estate is more valuable in Greenwich per se. That median home in Greenwich is going to be a mansion with a lot of land and space, whereas the median home in Manhattan is a fairly small apartment/condo/co-op with no land at all. Manhattan has a much higher price per square foot, which means that a piece of real estate in that is the size of the median Greenwich home is going to be worth much more in Manhattan. By the same token, a condo in Greenwich is going to be less than the same-sized condo in Manhattan. Yet, Greenwich has a larger inventory of large-sized properties, so that drives the median home price upwards. So, is Greenwich or Manhattan the more valuable real estate market?

In this case, Greenwich = AAC and Manhattan = Big East. The AAC might be getting more overall TV money, but that's also because it's selling additional inventory in the form of football. In contrast, the Big East is getting a significantly higher price for what it's specifically selling (basketball) compared to the AAC.

(I'll grant that this is analogy is one of the weaker ones that I've come up with over the years, but it's hard to get across the concept of where you can have a total bundle package being sold by Company A being priced higher than a competing Company B with the smaller package, but the specific composition of Company B's smaller package is worth more compared to the corresponding sub-component of Company A's larger package. Too many people just look at $X > $Y and then don't break it down to an apples-to-apples comparison.)

As a result, the breakeven point for the UConn athletic department overall doesn't require its football program to replace the entire amount that it would have received from the AAC for football. UConn's basketball revenue is going to be higher just based on the Big East distributions for that sport alone (once again not mixing in the apples-to-oranges comparison of the football/basketball distributions of the AAC), much less any increases from ticket sales and donations at the individual school level. With that in mind, its football program doesn't *have* to make as much as it did in the AAC in order for the UConn athletic department to be better off.
08-08-2019 02:57 PM
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CougarRed Offline
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Post: #19
RE: Financial breakdown of UConn's move to the Big East
UConn has practically no history with Creighton (0 games), Xavier (1) and Butler (1).

Very little history with DePaul (11) and Marquette (9). To put it another way, UConn has more history with Cincy, USF, UCF, Memphis, Temple, SMU & Houston than those schools.

Of the remaining Big East schools, it would be hard to call Seton Hall or Providence "rivals." UConn wins 67% of their games against those two.

So we're really talking about Villanova, Georgetown and St John's as schools that raise the temperature of long time UConn fans.

So god help UConn and their donation level if they lose as many games in the Big East as they did in the American - to a different bunch of schools that they don't consider rivals.
08-08-2019 03:06 PM
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mturn017 Offline
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Post: #20
RE: Financial breakdown of UConn's move to the Big East
(08-08-2019 01:35 PM)CougarRed Wrote:  Football buy game? UConn could have done that in the American if it needed the money. Any calculus that includes that to justify the move is silly.

And I prefer to look at the Form 990s to see what conferences are actually distributing, net of expenses.

American schools were getting about $4.5M per year under the old TV deal. This counts bowls, NCAA hoops tourney distributions, TV etc, less conference expenses.

The Big East schools receive about $3.6M per year.

The American distibution is going up under the new TV. I don't know if it's scaled in or not. On average, even assumig $1M per school TV production costs, the TV money is going from $21M per year to $71M per year. An increase of about $4M per school. Which should be to the bottom line, as the conference won't take much of that as expenses are already being met.

So the American distribution, net of TV production costs, goes to $8.5M per year, about $5M more per year than the Big East.

No way UConn makes up that deficit on travel savings and SNY. Much less pay the $18M in entry and exit fees.

They have to drop football to FCS or drop it entirely for this to make any sense.

Weren't the distributions uneven though in the AAC previously though with the old guard getting more?
08-08-2019 03:07 PM
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