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Saturday, June 4, 2011

Big 12 giving more money to have-nots

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— The Big 12’s lower-revenue schools walked out of the conference meetings Friday with a multimillion dollar pay raise.

Previously, the Big 12 distributed 57 percent of football and basketball TV dollars equally among its 12 members. But with Colorado and Nebraska gone, the 10-team league has decided to spread 76 percent of the dollars equally. It is one of the biggest changes since the Big 12 was formed in 1996 and was agreed upon unanimously Friday, the final day of conference meetings.

Commissioner Dan Beebe declined to speculate exactly how much this will mean to lower-revenue members such as Kansas, Baylor, Iowa State and Kansas State. But he agreed it will be “millions” given the new $1.17 billion football deal with Fox taking effect in 2012.

“The important thing is we’re dealing with a lot more revenue, so everybody feels good about the contract and giving us the flexibility and resources to be more competitive,” said Missouri chancellor Brady Deaton. “And there’s also the growing recognition that to be a strong conference, we’ve got to have every member be strong and competitive in an ongoing basis in all sports.”

The unanimous vote also underscores the atmosphere of peace and prosperity that has replaced the rancor and uncertainty that threatened to tear the league apart in 2010. Meeting in the same midtown hotel last June, Big 12 members were fighting over whether to remain together at all. Colorado ended up going to the Pac-10 and Nebraska dropped out to join the Big Ten, and nearly fell into litigation with the conference over the financial penalty it would pay for withdrawing.

For several weeks, the league teetered on the brink of extinction. Expansion-minded conferences such as the Pac-10 and Southeastern Conference made moves to pick off the Big 12’s choice schools such as Texas, Oklahoma and Texas A&M.;

Had they split up, Kansas, Iowa State, Baylor, Missouri and Kansas State would have faced the harsh reality of life without membership in any major conference. The “forgotten five” as they came to be called, went so far as to offer Texas a portion of their conference revenue as an incentive to hold the league together.

But with the promise of a much more lucrative television contract, the 10 remaining schools did stick together. Now they agree they’re richer, happier and better off.

“There was some angst,” said Texas A&M; athletic director Bill Byrne. “But I can’t tell you how pleased I am with the way it ended.”

Everybody, except perhaps coaches, also is pleased with having a round-robin football and basketball schedule made possible by a 10-member league.

“We didn’t plan it, exactly, but what we’ve ended up with is probably better than we would have planned,” Texas athletic director DeLoss Dodds said.

Everyone also seems happy to be doing away with the football championship game that pitted the North and South division winners. Now there’ll be no divisions.

“I think it hurt more than it helped. I like where we are not having the game,” Dodds said.

The remaining 24 percent of television money will be distributed according to several criteria, including number of appearances, quality of competition and willingness to move games to accommodate television. The new plan does not affect so-called third-tier rights such Texas’ new Longhorn Network.

Whether the more equitable revenue distribution would have been adopted had Nebraska remained in the Big 12 is impossible to say.

“It’s hard to speculate,” Beebe said. “Nebraska’s point was not to do this as equally as some of the others (wanted). How they would have weighed in, and Colorado, we really don’t know.”

Nevertheless, the huge boost in revenue for all 10 members will be substantial.

“It’s very significant,” Missouri’s Deaton said. “We’re all faced with multiple fiscal challenges. This enables us to make sure we have the right programs in place for all our student-athletes.”

The league is spending part of its new money on polishing its image and brand. After contracting with GSD&M; Idea City in Austin, Texas, the league will launch a media blitz at the start of football season.

“There was a moment of critical decision for our states,” Deaton said. “Because of that, there’s no question the collegiality is (present). Maybe smaller numbers, having two fewer members, helps a bit because you get more interaction among the 10 and everybody’s just working together real well. It’s a good time for the conference.”

Comments

ahpersecoachingexperience 6 years, 4 months ago

Million dollar pay raises are good until you realize the other 5 schools you are competing with get two million dollar raises. Oh well, better to get a raw deal in a big conference when you consider the options.

ahpersecoachingexperience 6 years, 4 months ago

including number of appearances: ut-oh quality of competition: ut-oh willingness to move games: hello Thurs/Fri night games. I mean ut-oh!

Also I'm glad I posted first so those of you that mocked me for calling us a "have-not" and explaining the revenue situation can apologize below...

TwistedFish31 6 years, 4 months ago

You really don't have any clue as to what you are ever talking about do you alphapha? Pathetic little troll...

Patrick Leiker 6 years, 4 months ago

Check the stats bro. We have always been in the upper half in revenue. Even last year when we sucked in football we seemed to get a bunch of games on TV and needless to say, we are always on TV in basketball.

Uneven revenue sharing is not good for us, but if it keeps the conference more stable, then there is a benefit to that. Either way, i'm sure you will spin any news as bad news.

ahpersecoachingexperience 6 years, 4 months ago

Check your reading retention, bro. The article is on KU site, calling us a "have-not," and details how we are in the bottom of revenue in the conference.

Patrick Leiker 6 years, 4 months ago

Since you are aparantly incapabile of doing your own research on the information superhighway, here you go:

2009-2010 year (Total Operating Revenue)

Texas - $143,555,354.00 Oklahoma State - $106,362,128.00 Oklahoma - $98,512,287.00 Texas A&M - $82,774,133.00 Nebraska - $73,483,733.00 Kansas - $70,548,520.00 Texas Tech - $61,974,623.00 Missouri - $61,052,303.00 Kansas State - $53,436,790.00 Colorado - $49,521,517.00 Iowa State - $46,871,554.00 Baylor - Not Reported

2009-2010 year (NCAA/conference distributions including all tournament revenues)

Texas - $14,751,505.00 Oklahoma - $13,548,733.00 Texas A&M - $11,900,472.00 Kansas - $11,895,975.00 Iowa State - $11,712,437.00 Nebraska - $10,978,295.00 Texas Tech - $10,758,224.00 Missouri - $10,681,242.00 Kansas State - $10,568,606.00 Colorado - $9,564,214.00 Oklahoma State - $6,395,000.00

Patrick Leiker 6 years, 4 months ago

2008-2009 year (Total Operating Revenue)

Texas - $138,459,149.00 Texas A&M - $98,121,411.12 Oklahoma - $81,487,835.00 Nebraska - $74,881,383.00 Kansas - $69,998,203.69 Missouri - $63,133,447.00 Oklahoma State - $55,953,397.00 Texas Tech - $55,834,336.00 Colorado - $49,859,693.00 Kansas State - $48,417,050.00 Iowa State - $45,813,189.00 Baylor - Not Reported

2008-2009 year (NCAA/conference distributions including all tournament revenues)

Oklahoma - $16,762,689.00 Texas - $14,325,151.00 Kansas - $12,251,791.00 Texas A&M - $12,004,938.87 Oklahoma State - $11,709,770.00 Missouri - $11,058,243.00 Nebraska - $11,046,145.00 Texas Tech - $10,766,799.00 Iowa State - $10,582,913.00 Colorado - $9,872,426.00 Kansas State - $9,795,022.00

Dirk Medema 6 years, 4 months ago

Follow your own advice - Read the authorship - AP. This article has been posted all over the place. It's not a KU article, and the author is just as ignorant as you are. See Pleiker's post below.

Jeff Coffman 6 years, 4 months ago

Although I agree in principle with you, I would point out. That we will make as much or more than every Big Ten school and I believe more than every PAC 12 school (except USC), and more than every Big East and ACC team. The SEC is the only conference I'm not sure about, but with the split of revenues by 12, I think we make more than them.

Everyone talks about how bad this is for us, and I would argue that it is just better for UT and OU, but all and all, the whole conference comes out way better.

We have gone from about 7-9 MM a year to close to $17-$19 MM per year. All in all it is should be amazing for us.

Karen Mansfield-Stewart 6 years, 4 months ago

I wonder if they will rename the conference. It seems dumb to have a league of 10 called the Big 12. Not that its stopped other leagues. A name like the Big East which doesn't reference a number seems logical.

Jeff Coffman 6 years, 4 months ago

They have already made the decision to keep the name of the Big XII.

Just like the Big Ten is keeping their name (they have 12 teams and have 11 for some time).

Dirk Medema 6 years, 4 months ago

The Big Ten did tweak there logo when the went to 11, with the "11" being a negative image in the letter "T".

http://www.bigten.org/auto_pdf/p_hotos/s_chools/big10/sports/m-footbl/auto_pdf/fb-11-12-schedule-charts

Miles Nease 6 years, 4 months ago

Since when have we become a lower revenue member? Every report that I have read has us listed in the top three or four in the conference. I blame our "leadership" for this misconception. Last summer, when all hell was breaking lose, instead of doing their jobs, Lew was busy trying to stay out of jail and BGL was in England. They did a horrible job of promoting the athletic, financial and academic value of KU to other conferences. Lew and BGL let the media portray KU as an afterthought. It took several weeks for them to finally refute the fact that we were tied to Kansas State in any realignment. This should have been done immediately. Instead, they continued to let the media talk about KU and K-State as a package deal, nearly killing any chance for us to land in another BCS conference.

Clarence Haynes 6 years, 4 months ago

The University has great academic, athletic, and social stories to tell! IMO, KU does have to do a far better job in consistently promoting itself not only within the region, but nationally. I also feel that the media covering KU Sports including LJW, can do a much better job covering both major and secondary sports, especially given the fact that the national media picks up a lot that is written by the local media! This means the University in concert with its sports information team has to reach out to both local and national media with many more positive stories that better depict what KU is!

rob4lb 6 years, 4 months ago

We are a have-not. That shouldn't even be argued. If we were a have, we would have been courted by another major conference last year. The statistics for revenue sharing go back 2-3 years. Believe me, this team will be near the bottom. By the end of the year last year, some of KU's games were not televised. That is what happens when the team is bad. KU does not come close to have the same 1st and 2nd tier revenue as Big 10 and the new Pac-12, but it will be a significant increase starting in 2012.

Ryan Gerstner 6 years, 4 months ago

Konza, you're right on. Our university has done a p*ss poor job of marketing our success. When you're #3 in league revenue distribution, to have your local paper trumpeting our alma mater as a have not is embarrassing.

Rob, you're wrong. KU is up toward the top of the league in revenue. The only reason we weren't courted by another conference is we're a basketball school rather than football. Football is where the money is at. KU is one of less than 10 schools in the country that really rake in money from basketball. However, our value is literally worthless to a league because of the way the NCAA runs basketball. If basketball were run like football, we'd be one of the most coveted schools in the country.

KU had 2 games that weren't televised last year in football, which were the first two games that were not televised the past 4 years.

You're also wrong on KU's revenue. With the Big XII's new TV deal, KU compares favorably to the Big 10 and Pac 10. Big 10 schools give up their tier 3 rights whereas KU gets about $7 million a year for ours (which was #5 in the country last year). You figure you get $14-15 million from the Big XII and another $7 million on our own, we're over $20 million in TV revenue.

Dirk Medema 6 years, 4 months ago

The local paper, not KU, pasted an ignorant AP article

rob4lb 6 years, 4 months ago

Hawkfan- I was not aware that the Big 10 gave up their 3rd tier rights to form the Big Ten Network. You are right that when it comes to 3rd tier rights, KU is among the top schools in generating revenue almost entirely due to basketball. Lew Perkins can be credited for alot of that. Certainly $7M isn't as big as the $15M UT will get with its new network. But when you add $7M to the $12-14 KU can expect to get in the near future, the total does come close to the Big 10 and SEC. Another windfall will come in five years when the 1st tier rights are rebid.

Patrick Leiker 6 years, 4 months ago

Since I spent part of my Saturday doing this, i didn't want it to get hidden in an above thread.

2009-2010 year (Total Operating Revenue)

Texas - $143,555,354.00 Oklahoma State - $106,362,128.00 Oklahoma - $98,512,287.00 Texas A&M - $82,774,133.00 Nebraska - $73,483,733.00 Kansas - $70,548,520.00 Texas Tech - $61,974,623.00 Missouri - $61,052,303.00 Kansas State - $53,436,790.00 Colorado - $49,521,517.00 Iowa State - $46,871,554.00 Baylor - Not Reported

2009-2010 year (NCAA/conference distributions including all tournament revenues)

Texas - $14,751,505.00 Oklahoma - $13,548,733.00 Texas A&M - $11,900,472.00 Kansas - $11,895,975.00 Iowa State - $11,712,437.00 Nebraska - $10,978,295.00 Texas Tech - $10,758,224.00 Missouri - $10,681,242.00 Kansas State - $10,568,606.00 Colorado - $9,564,214.00 Oklahoma State - $6,395,000.00

rob4lb 6 years, 4 months ago

Not much difference between 3rd and 10th for the NCAA revenue distribution. But remember, in 2009, KU was ranked in the Top 20 for the first five games of the year and were competitive through out the year. Given that most of the distribution is football based, I would not expect to see KU in the top half in the next few years. The distribution formula protects some of that potential lost revenue.

Patrick Leiker 6 years, 4 months ago

2008-2009 year (Total Operating Revenue)

Texas - $138,459,149.00 Texas A&M - $98,121,411.12 Oklahoma - $81,487,835.00 Nebraska - $74,881,383.00 Kansas - $69,998,203.69 Missouri - $63,133,447.00 Oklahoma State - $55,953,397.00 Texas Tech - $55,834,336.00 Colorado - $49,859,693.00 Kansas State - $48,417,050.00 Iowa State - $45,813,189.00 Baylor - Not Reported

2008-2009 year (NCAA/conference distributions including all tournament revenues)

Oklahoma - $16,762,689.00 Texas - $14,325,151.00 Kansas - $12,251,791.00 Texas A&M - $12,004,938.87 Oklahoma State - $11,709,770.00 Missouri - $11,058,243.00 Nebraska - $11,046,145.00 Texas Tech - $10,766,799.00 Iowa State - $10,582,913.00 Colorado - $9,872,426.00 Kansas State - $9,795,022.00

Patrick Leiker 6 years, 4 months ago

2008-2009 year (Total Operating Revenue)

Texas - $138,459,149.00 Texas A&M - $98,121,411.12 Oklahoma - $81,487,835.00 Nebraska - $74,881,383.00 Kansas - $69,998,203.69 Missouri - $63,133,447.00 Oklahoma State - $55,953,397.00 Texas Tech - $55,834,336.00 Colorado - $49,859,693.00 Kansas State - $48,417,050.00 Iowa State - $45,813,189.00 Baylor - Not Reported

2008-2009 year (NCAA/conference distributions including all tournament revenues)

Oklahoma - $16,762,689.00 Texas - $14,325,151.00 Kansas - $12,251,791.00 Texas A&M - $12,004,938.87 Oklahoma State - $11,709,770.00 Missouri - $11,058,243.00 Nebraska - $11,046,145.00 Texas Tech - $10,766,799.00 Iowa State - $10,582,913.00 Colorado - $9,872,426.00 Kansas State - $9,795,022.00

ahpersecoachingexperience 6 years, 4 months ago

seeing your enthusiam for finging those numbers (that are posted on this site almost weekly) combined with you ignorance towards last years conference expansion apocalypse, throw in not being able to read between the lines with the revenue numbers i can tell you were born yesterday. so i'll make it simple for you.

1: last year neither the big 10, pac 10, or sec were beating down our door. since you weren't around i will tell you that the lead story on espn at this time was conference expansion followed by powerhouse basketball program may be left out (that was us, forgot about the whole reading between the lines thing!). wonder why nobody wanted us based on your numbers we were printing our own money in lew's basement. Which could be possible based on what eles was down there. Crap, you won't get that joke either.

2: a lot is hidden in total revenue numbers. for example some schools have way more athletic teams than we do. Opperating cost with these teams comes straight off the top. With more teams comes more coaching salaries, trainers, support staff, facilities, and some of the schools that offer the same sports that we do may be paying their coaches more.

3: on the total pay to schools there is one thing that is different. FOOTBALL! based on your numbers there is all kinds of bowl apperences and tv money that we will not be seeing anytime soon. Not to mention the empty seats at the stadium and all the problems that come with an empty football stadium "empty seats don't buy hotdogs"

sorry you wasted a saturday for nothing

Patrick Leiker 6 years, 4 months ago

I don't want to be the guy that responds to your posts and tries to say that everything with KU athletics is peachy keen, because it is not; but at the same time it is not as bad as you make it out to be.

I was just trying to post some numbers about us not necessarily being a "Have Not" in this conference in the timeframe we were talking about.

But: 1: You are right, neither the Big 10 or the Pac 10 were beating down our door. But as others have stated, maybe some of that had to do with the fact that admins have not done such a good job selling what we have and the revenue that we generate. And remember, that the whole Big XII south/Pac 10 merger thing fell apart the day that Pac 10 officials were flying into Lawrence to meet with our athletic department. And if all Hell had broken loose, we would probably be in the Big East right now. 2: You obviously don't understand the difference betwen profit and revenue. 3: They are not my numbers. I didn't make them, I just cut and paste. Maybe we will be terrible in football and our stadium will be completely empty and we won't sell any hot dogs. I hope not, and I hope our fans aren't so fickle as to not attend footall games at this time when there is a lot of exiciting stuff going on in our football program. Time will tell.

Topcitykid10 6 years, 4 months ago

The league is spending part of its new money on polishing its image and brand. After contracting with GSD&M Idea City in Austin, Texas, the league will launch a media blitz at the start of football season.

Shocker that big 12 went with a company in Austin TX, I wonder how much Mack Brown got from this deal.

baldwinjhawk 6 years, 4 months ago

Are you from nebraska? Stop WHINING .... Texas is going to get a portion of everything that has to do with this conference. It's the only reason they stayed with it. GET past that and move on.. it's old news. But we are KANSAS and we can carve out our own piece of the pie.. Just start winning and it will all be taken care of.

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