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New CFP estimated value: $2 billion annually
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DuelingDragon Offline
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Post: #1
New CFP estimated value: $2 billion annually
And now we know why this train left the station so quickly....

https://www.usatoday.com/story/sports/nc...657072002/

Remains to be seen how that sort of revenue pot would be divided, but one would imagine it'll be weighted toward the P5s as it has been in all other systems. Still lots to work out but I don't see the schools missing out on this kind of revenue for anything less than the recommended format.
06-11-2021 04:00 PM
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hooverblazer Offline
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RE: New CFP estimated value: $2 billion annually
Wow - that's 3.65x greater than the 2018-2019 payout.

https://footballscoop.com/news/college-f...le%20game.

The article says currently each P5 conference received $67M as a base payment while the G5 conferences split a base payment of $92M. Additional payments are made to conferences for each playoff participant (and the G5 conference that gets the Access Bowl). Those additional payments plus tickets sales and sponsorships took the total CFP value to $550M in 2018-2019.

So currently the G5 is collectively getting 21.54% of the total $427M base payout. Some of the G5 portion is distributed unevenly based on an agreed upon formula to reward on the field success, but that breakdown isn't published. The majority is split evenly. For simplicity, if we split the whole $92M evenly each conference gets $18.4M. With 14 teams, each CUSA school should get about $1.3M/yr in CFP money.

If the new playoff gets $2B and we apply the 3.65 growth multiplier to the base conference payouts the pot for base payments would grow from $427M to $1.56B and if the G5 get the same percentage of the base that would equate to a $335.7M pot or $67.1M per conference. Each CUSA school should then get about $4.8M/yr in CFP money or an increase of 3.5M annually.

That would put the new G5 conference payout at the current P5 conference payout. Meanwhile P5 leagues could see their payouts go from $67M to over $244M. 04-jawdrop

The rich get much richer, but we see a bump as well. I know Mark Ingram would welcome access to a new 3.5M/yr revenue source. I think the G5 could even make an argument to get a greater revenue share now that it will have a team participating in the playoff.
06-11-2021 05:14 PM
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DuelingDragon Offline
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Post: #3
RE: New CFP estimated value: $2 billion annually
Huge. This also didn’t happen in a vacuum. The SEC, ACC and American are locked into long-term TV deals but the rights negotiations for the Big Ten, Pac-12 and Big 12 are coming up.

More playoff access plays into the market value for all 3 of those conferences. They have been hurt by being left out of the 4-team format. And this big playoff pot mitigates some of the hits caused by cord-cutting and erosion of traditional audience. This is the most exciting thing for college football in terms of interest in quite a long time, at a time when a little gas on the fire is needed.

https://www.mercurynews.com/2021/05/11/h...e-football

C-USA has work to do to keep pace in this market.
06-11-2021 05:37 PM
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hooverblazer Offline
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Post: #4
RE: New CFP estimated value: $2 billion annually
The other potential financial implication is we can now sell a path to the playoffs to donors and sponsors. I wonder if that could translate to increased giving.
(This post was last modified: 06-11-2021 06:05 PM by hooverblazer.)
06-11-2021 06:05 PM
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