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SEC announces each school will receive $41 million
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Hokie4Skins Offline
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SEC announces each school will receive $41 million
https://www.saturdaydownsouth.com/sec-fo...enue-2018/

The conference announced on Thursday that $596.9 million in total revenue was distributed to the 14 schools. That totals out to $40.9 million per school.

According to the release, $23.1 million of that came from the schools that participated in bowl games while the other $573 million was from the conference office.
02-01-2018 04:12 PM
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JRsec Offline
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RE: SEC announces each school will receive $41 million
(02-01-2018 04:12 PM)Hokie4Skins Wrote:  https://www.saturdaydownsouth.com/sec-fo...enue-2018/

The conference announced on Thursday that $596.9 million in total revenue was distributed to the 14 schools. That totals out to $40.9 million per school.

According to the release, $23.1 million of that came from the schools that participated in bowl games while the other $573 million was from the conference office.

If that is the final number and there isn't another disbursement adjustment as there has been in years past prior to the Spring Meetings then this will not be up to expectations. The projection this year would have put us between 42 and 43 million. Cord cutting? Yes, it probably has taken a bite out of the expectations. The bowl revenue wasn't significantly higher than last year and all other things being equal that probably accounts for it.

I'll be interested to see how other conference network distributions look. If this becomes a trend then I expect the conference will make a move toward marketing that 9th conference game, or to take a more intentional look at possible expansion.
02-01-2018 04:22 PM
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RE: SEC announces each school will receive $41 million
(02-01-2018 04:22 PM)JRsec Wrote:  
(02-01-2018 04:12 PM)Hokie4Skins Wrote:  https://www.saturdaydownsouth.com/sec-fo...enue-2018/

The conference announced on Thursday that $596.9 million in total revenue was distributed to the 14 schools. That totals out to $40.9 million per school.

According to the release, $23.1 million of that came from the schools that participated in bowl games while the other $573 million was from the conference office.

If that is the final number and there isn't another disbursement adjustment as there has been in years past prior to the Spring Meetings then this will not be up to expectations. The projection this year would have put us between 42 and 43 million. Cord cutting? Yes, it probably has taken a bite out of the expectations. The bowl revenue wasn't significantly higher than last year and all other things being equal that probably accounts for it.

I'll be interested to see how other conference network distributions look. If this becomes a trend then I expect the conference will make a move toward marketing that 9th conference game, or to take a more intentional look at possible expansion.

Not having the Sugar Bowl this year cost the SEC and Big 12 about $40M each. That is about $3M missing from each SEC school this year that has been there in past years and will be there next year. That might be the difference.
02-01-2018 04:27 PM
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JRsec Offline
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RE: SEC announces each school will receive $41 million
(02-01-2018 04:27 PM)MAcFroggy Wrote:  
(02-01-2018 04:22 PM)JRsec Wrote:  
(02-01-2018 04:12 PM)Hokie4Skins Wrote:  https://www.saturdaydownsouth.com/sec-fo...enue-2018/

The conference announced on Thursday that $596.9 million in total revenue was distributed to the 14 schools. That totals out to $40.9 million per school.

According to the release, $23.1 million of that came from the schools that participated in bowl games while the other $573 million was from the conference office.

If that is the final number and there isn't another disbursement adjustment as there has been in years past prior to the Spring Meetings then this will not be up to expectations. The projection this year would have put us between 42 and 43 million. Cord cutting? Yes, it probably has taken a bite out of the expectations. The bowl revenue wasn't significantly higher than last year and all other things being equal that probably accounts for it.

I'll be interested to see how other conference network distributions look. If this becomes a trend then I expect the conference will make a move toward marketing that 9th conference game, or to take a more intentional look at possible expansion.

Not having the Sugar Bowl this year cost the SEC and Big 12 about $40M each. That is about $3M missing from each SEC school this year that has been there in past years and will be there next year. That might be the difference.

That's true, but I'm still wrestling with a Missouri press release last week that said that their conference check was going to be 46.4 million. Saturday Down South is a reputable source, but they have been off before. The early released data has tended to be low balled in past years. The adjusted report the SEC sends in after the Spring meetings has usually been the final amount.

I'm not saying that this won't be the final numbers, as they certainly could be. But the recent history indicates that the commissioner likes to sandbag the initial reports and then deliver a sweetener to get the Spring Conference off the ground. We'll see. Still, I'm not sure why Missouri would release a different number, and quite frankly no SEC school has released an early stated amount before the group announcement in the past. But then I'm not sure there is always somebody at the helm there.
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I think I found the Missouri difference. Each SEC school also received about a 3 million dollar grant from the NCAA and the amount disbursed does not include the amount of bowl revenue retained by the school for expenses. That runs about another 2-3 million depending upon the bowl. So Missouri could easily account for the 4.5 million difference with either or both of those other revenue sources.

Auburn reported a Gross Total revenue for fiscal year 2017 of 147.5 million which is up 7.5 million over last year. That total includes the kept bowl revenue and the grant and also reported the 40.9 million SEC payout. So the 40.9 figure looks to be the final amount for the past year's disbursements.
(This post was last modified: 02-01-2018 04:51 PM by JRsec.)
02-01-2018 04:34 PM
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Wedge Offline
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RE: SEC announces each school will receive $41 million
(02-01-2018 04:27 PM)MAcFroggy Wrote:  
(02-01-2018 04:22 PM)JRsec Wrote:  
(02-01-2018 04:12 PM)Hokie4Skins Wrote:  https://www.saturdaydownsouth.com/sec-fo...enue-2018/

The conference announced on Thursday that $596.9 million in total revenue was distributed to the 14 schools. That totals out to $40.9 million per school.

According to the release, $23.1 million of that came from the schools that participated in bowl games while the other $573 million was from the conference office.

If that is the final number and there isn't another disbursement adjustment as there has been in years past prior to the Spring Meetings then this will not be up to expectations. The projection this year would have put us between 42 and 43 million. Cord cutting? Yes, it probably has taken a bite out of the expectations. The bowl revenue wasn't significantly higher than last year and all other things being equal that probably accounts for it.

I'll be interested to see how other conference network distributions look. If this becomes a trend then I expect the conference will make a move toward marketing that 9th conference game, or to take a more intentional look at possible expansion.

Not having the Sugar Bowl this year cost the SEC and Big 12 about $40M each. That is about $3M missing from each SEC school this year that has been there in past years and will be there next year. That might be the difference.

IIRC, the conferences get that Sugar Bowl money each year regardless of whether the Sugar Bowl is a semifinal game in that season.
02-01-2018 04:35 PM
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quo vadis Offline
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RE: SEC announces each school will receive $41 million
(02-01-2018 04:35 PM)Wedge Wrote:  
(02-01-2018 04:27 PM)MAcFroggy Wrote:  
(02-01-2018 04:22 PM)JRsec Wrote:  
(02-01-2018 04:12 PM)Hokie4Skins Wrote:  https://www.saturdaydownsouth.com/sec-fo...enue-2018/

The conference announced on Thursday that $596.9 million in total revenue was distributed to the 14 schools. That totals out to $40.9 million per school.

According to the release, $23.1 million of that came from the schools that participated in bowl games while the other $573 million was from the conference office.

If that is the final number and there isn't another disbursement adjustment as there has been in years past prior to the Spring Meetings then this will not be up to expectations. The projection this year would have put us between 42 and 43 million. Cord cutting? Yes, it probably has taken a bite out of the expectations. The bowl revenue wasn't significantly higher than last year and all other things being equal that probably accounts for it.

I'll be interested to see how other conference network distributions look. If this becomes a trend then I expect the conference will make a move toward marketing that 9th conference game, or to take a more intentional look at possible expansion.

Not having the Sugar Bowl this year cost the SEC and Big 12 about $40M each. That is about $3M missing from each SEC school this year that has been there in past years and will be there next year. That might be the difference.

IIRC, the conferences get that Sugar Bowl money each year regardless of whether the Sugar Bowl is a semifinal game in that season.

No, as is the case with the Rose Bowl (PAC/B1G), the SEC and Big 12 only get the $40m each from the Sugar Bowl in years when it is not hosting a playoff game, eight of the 12 years of the CFP.
(This post was last modified: 02-01-2018 07:31 PM by quo vadis.)
02-01-2018 07:30 PM
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quo vadis Offline
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RE: SEC announces each school will receive $41 million
(02-01-2018 04:22 PM)JRsec Wrote:  If that is the final number and there isn't another disbursement adjustment as there has been in years past prior to the Spring Meetings then this will not be up to expectations.

Yes, if that is correct, then it will mean revenues for 2017 were essentially flat compared to 2016, when SEC revenue was $639m and disbursements ranged from $39.1m to $41.9m per school.

That won't cut it with B1G revenues coming fully online.
(This post was last modified: 02-01-2018 07:34 PM by quo vadis.)
02-01-2018 07:33 PM
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RE: SEC announces each school will receive $41 million
Notes I have says the SEC distributed $565.9 million ($584.2 counting bowl distributions retained). This year is $596.9 million. That's up $31 million.
02-01-2018 08:17 PM
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JRsec Offline
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RE: SEC announces each school will receive $41 million
(02-01-2018 07:33 PM)quo vadis Wrote:  
(02-01-2018 04:22 PM)JRsec Wrote:  If that is the final number and there isn't another disbursement adjustment as there has been in years past prior to the Spring Meetings then this will not be up to expectations.

Yes, if that is correct, then it will mean revenues for 2017 were essentially flat compared to 2016, when SEC revenue was $639m and disbursements ranged from $39.1m to $41.9m per school.

That won't cut it with B1G revenues coming fully online.

It looks like a about a half million dollar raise on average. But the serious XM money isn't in there yet, nor is the SECN Mexico money although the latter won't be that big of a bump. And I wasn't kidding when I said that we've announced a lowball figure before only to revise.

I'll be watching the BTN valuation after their disbursements this year. If it goes down another 150 million in value then we'll know they have been divesting the original 11 members. We'll also see what their payouts are when made.

But Quo your pet theory has yet to prove to be correct. The most undervalued contract left on the market is the SEC's deal with CBS and that one is coming to an end in 2024 with the bids coming in in 2023.

If the rights money is reaching peak then 2024 will place even more pressure on additions.

I suspect the SEC office will be considering that 9th conference game for a renegotiated payout as well.

The back and forth of this is about to end. And with the contracts being manipulated to essentially end simultaneously I'd say the days of the networks permitting the staggered due dates will end as well. Obviously they don't like having one conference's contract becoming the targeted goal of the next. The ACC is locked up long term, but they are locked up long term with the lowest starting pay.

By the end of the disclosures this year we should know a lot more about how things are playing out. And as MacFroggy pointed out, 3 million in bowl revenue was likely lost on the CFP rotation. I expected the SEC to have between 44 to 45 million this year. That accounts for the disparity. We've been getting about 2 million more per year with the escalation. By 2024 we should be around 53 to 54 million conservatively. If Amazon tosses their hat in the ring we all might see more raises. If FOX remains a silent conspiratorial partner with Disney we might have already peaked.

There's a lot to play out between here and there.
02-01-2018 08:56 PM
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Hokie Mark Offline
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RE: SEC announces each school will receive $41 million
USA Today also reported somewhat flat (but very high) earnings for the SEC:

Quote:After two consecutive years of dramatic increases, the Southeastern Conference’s revenue began leveling out during its 2017 fiscal year — albeit at $650 million.

Revenue couldn't continue to grow at the same pace as recent years anyway.
02-01-2018 09:20 PM
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JRsec Offline
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RE: SEC announces each school will receive $41 million
(02-01-2018 09:20 PM)Hokie Mark Wrote:  USA Today also reported somewhat flat (but very high) earnings for the SEC:

Quote:After two consecutive years of dramatic increases, the Southeastern Conference’s revenue began leveling out during its 2017 fiscal year — albeit at $650 million.

Revenue couldn't continue to grow at the same pace as recent years anyway.

Well with the Sugar Bowl money removed coupled with the fact that this was the first year where cord cutting probably dipped into the subscription fees it's hard to gauge. The bowl money added in would have put this in the projected range. So it's just hard to draw any hard conclusions from this. We'll know more next year. I think there are multiple factors at work here. Some cyclical like the bowl money, and some that will need to be accounted for like the # of subscriptions, but there are some unknown factors that may be in play but which haven't been discerned yet. A few more years will be most illuminating for everyone.
02-01-2018 09:28 PM
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