BigRedBuster
International Man of Mystery
Still, the uneven distribution is BS and it goes against having a really good competitive conference. It does nothing but enrich and empower the teams at the top.
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B1G Investigating $2.4B Private Equity Investment, Uneven Revenue Distribution
- Thread starter Mavric
- Start date
Still, the uneven distribution is BS and it goes against having a really good competitive conference. It does nothing but enrich and empower the teams at the top.
Crusader Husker
All-Conference
I am sorry I am dumb on this stuff. Is this essentially a loan that the schools pay back over 20 years?
Basically
Red Five
Heisman Trophy Winner
They give the B1G $2.4B, but take 10% of future profits.
krc1995
Heisman Trophy Winner
I don’t even understand why it’s being entertained. A complete unfair advantage to the already rich. What if it were equal distribution? Does that change anyone’s mind?
SuperBigFan69
Head Coach
The unequal part makes sense, this weird idea that iowa or NW or MD might be as valuable of a brand as OSU or Nebraska or USC is insane.
Good lord, NW would literally get rid of FB and at one time entertained the idea of that, if they could and still could get the same amount of money.
Is it about greed, maybe, but it is also about common sense.
Maybe I am wrong but when NW gets a badass grant for research do they split it up evenly with the conference? Maybe they do and if they do, then for sure all the sports crap should be divided up equally too.
When NW gets a fat donation check from a rich alum, do they divide that up?
Either everything gets divided up equally OR maybe it is time to discuss things.
Good lord, NW would literally get rid of FB and at one time entertained the idea of that, if they could and still could get the same amount of money.
Is it about greed, maybe, but it is also about common sense.
Maybe I am wrong but when NW gets a badass grant for research do they split it up evenly with the conference? Maybe they do and if they do, then for sure all the sports crap should be divided up equally too.
When NW gets a fat donation check from a rich alum, do they divide that up?
Either everything gets divided up equally OR maybe it is time to discuss things.
Selfishly for NU, I like the deal. If NU were one of the teams getting significantly less than OSU/NU then I'd be against it.
To me this isn't venture capitalism. This is a hedge fund investing in the B1G for a 10% return of media rights money. It doesn't give them the power to dictate policy. And if it were me, I'd take the bird in the hand, invest in my program to profit, and not so much worry about the 10% I might or might not have gotten in future media money. I think its closer to a win-win for each side (if your in NU's position and those numbers are accurate), and thats only if the B1G continues to increase in value. If it doesn't, then its only a win for the B1G programs.
krc1995
Heisman Trophy Winner
I would think it be an unfair advantage. Conference games are now the only path to the NC- or almost. I think a case could be made to invert the pay table. Not that it would happen.
Do academics play a part? I’m not sure. I know that we had to prove ourselves academically fit when we joined the conference. It’s a good point though.
SuperBigFan69
Head Coach
I get the unfair advantage part but isn't kind of unfair to NOT give more to a team that has more fans and more fans that watch their games?
Isn't it unfair when teams like NW and PU and Iowa jack up ticket prices when they are playing teams like NU and OSU and Michigan?
I mean, all of it is unfair in one way or another. Seems like we only complain about it when it is about TV money or whatever this thing is supposed to be.
I don't mean you either, I just mean in general.
I don't care about the money either way. It is not my money and it is not going to me.
Lorewarn
All-Conference
krc1995
Heisman Trophy Winner
I get it, but a bigger school = a bigger donor pool and more fans, does it not? They inherently have a bigger built in revenue stream. I’m looking at it to be an equalizer of the money playing field. But it’s really just to argue something, because I like you, don’t really care
Is the conference stronger if there are only 3-4 viable teams on a national level? Speaking only of football. Or is it better if everyone is at least average? I definitely think it the 3-4 team powerhouse teams make the best football conference. Just wish we were one of them.
RedDenver
Heisman Trophy Winner
No, it's giving 10% of future profits away. There's no paying it back.
Lorewarn
All-Conference
As far as I can understand, this is a terrible idea and terrible deal in general, but also specifically for Nebraska. The fact that we aren't publicly against this is disheartening, weak and greedy.
First of all, we'd be getting paid the same amount as Rutgers. Total BS.
Second, the amount we'd get in cash is barely more than we receive in one year of the media rights deal. Not worth it, total BS.
Third of all, a little over $100mil now in exchange for 10% of the next 20 years of media rights is insane. The B1G's current deal is around $1.1 billion a year, expected to escalate to ~$1.4 billion by the end of it. All signs point to the next one being even more valuable, with projections ranging from $1.75-$3.5 billion a year. That's way more lost money than earned money. Total BS.
Fourth, we're one of like 5-10 schools in the country with no debt and also operating in the black. This deal neuters a huge advantage we have in the spending era, helping and bailing out our competition. Total BS.
Fifth, equal revenue sharing is one of the pillars of strength of the B1G and SEC, which just oh so coincidentally have risen to clearly be the two most powerful conferences in college football. Total BS.
None of that even starts to get into how private equity will find ways to weasel and impact and manipulate change.
First of all, we'd be getting paid the same amount as Rutgers. Total BS.
Second, the amount we'd get in cash is barely more than we receive in one year of the media rights deal. Not worth it, total BS.
Third of all, a little over $100mil now in exchange for 10% of the next 20 years of media rights is insane. The B1G's current deal is around $1.1 billion a year, expected to escalate to ~$1.4 billion by the end of it. All signs point to the next one being even more valuable, with projections ranging from $1.75-$3.5 billion a year. That's way more lost money than earned money. Total BS.
Fourth, we're one of like 5-10 schools in the country with no debt and also operating in the black. This deal neuters a huge advantage we have in the spending era, helping and bailing out our competition. Total BS.
Fifth, equal revenue sharing is one of the pillars of strength of the B1G and SEC, which just oh so coincidentally have risen to clearly be the two most powerful conferences in college football. Total BS.
None of that even starts to get into how private equity will find ways to weasel and impact and manipulate change.
BigRedBuster
International Man of Mystery
I don't mind getting the same amount as Rutgers. It's that neither one of us are getting the same amount as some other schools that I have a problem with. (obviously so do you).
Private Equity groups aren't doing this out love from the bottom of their heart. They demand to make a lot of money from it. As you point out, this is doing nothing but taking away future earnings from all of us to go to people who have no ties to the Big Ten and don't give a flying rip about any of us.