Big XII Bowl Game revenue splitting

[topekahusker]

I went to the BigXIISports.com website and confirmed the following blog posting on the web as factual. It is explained in the by-laws under appendices section IV.

 

 

 

So now the million(s) dollar question. Who gets what? It was always my understanding that the team in that particular bowl game gets 2 shares of the bowl game payout after the money is divided 13 ways (in the case of the Big XII).

 

According to osugrad78 on scout.com, that is not exactly true. It is actually much more complicated than that. For the Big XII, it can be explained like this.

 

There are 3 Tiers of Bowl games:

 

Tier I: which are BCS games.

Tier II: which are bowl games where the payout ranges from $1M to $4.5M per team.

Tier III: any bowl game that pays out less than $1M.

"In Tier I, each teams gets $1.48M right off the top to cover expenses. In Tier II, each teams gets $925,000 off the top for expenses. In Tier III each team gets $600,000 off the top for expenses. Each team then also receives $199 per mile of travel (round-trip) to the bowl game, which includes all three tiers. So the farther away you travel, the more you get. The rest of the money gets split up equally among the 12 teams in the conference and the Big 12 conference gets a share as well.

 

Next is ticket revenue. For each bowl game, the school/conference has to guarantee a certain number of tickets. For the BCS, depending on the game, it ranges from 17,500 -20,000 tickets per school. For Tier II games, it ranges around 12,000-15,000 per school. For a Tier III game it is around 8,000-10,000 per school. The school/conference must guarantee that they will sell at least 50% of their allotment for the game. If they don't, the school/conference must reimburse the bowl game 50% of the price of the tickets. Meaning, last year Texas Tech had an allotment of 12,000 tickets for the Gator Bowl. The tickets were $50. Tech only sold around 5,000 of their 12,000 allotment. So, they and the Big 12 had to pay back to the Gator Bowl $25,000 (1,000 tickets x $50 x 50%).

 

Conversely, every ticket you sell over 50% of your allotment you get to keep 50% of the price. For example, last year Missouri had an allotment of 12,000 tickets for the Cotton Bowl. They sold every one of them. The ticket price was $100. So Missouri made an extra $300,000 (6,000 tickets x $100 x 50%) from the Cotton Bowl.

 

One other thing to remember, is that if a 2nd team from a conference gets into a BCS game, that payout is only $4.5M, not the $17M you get from a BCS game. The same formula applies as to the off the top expenses of $1.48M plus the $199 per mile. The remainder again gets divided up among the Big 12 teams and a share to the Big 12.

 

So a team in a bowl game doesn't get '2 shares'. They get the off top expenses, plus the $199 per mile, plus an equal share of the remainder."

 

Merry Christmas Baylor, Colorado, Iowa State, Kansas State, and Texas A&M.

 

Because Nebraska is receiving the 4th highest bowl payout amongst the Big XII teams, it doesn't necessarily mean that they will receive a dime more than any other Big XII team - bowl game or not. Furthermore, I also see why Texas Tech is being sent to the Cotton Bowl this year instead of across country.

 

There is no question that the Big XII wants to send teams to a bowl game where they can sell their ticket allotment. Nebraska's allotment for the Gator Bowl is 12,750 tickets. Tom Osborne said, "The seats that the Gator Bowl has set aside for the participating schools are in excellent locations, and we want our fans to get a chance to purchase those tickets as soon as possible. Our fans have always supported us very well in past bowl games and we hope there will be outstanding support for our matchup with Clemson in the Gator Bowl."

 

What Osborne's getting at is we want at least 12,750 fans at the game in our seats. If Nebraska sells its allotment of 12,750 tickets at $50 dollars a ticket, the school/conference would earn (6,375 x $50 x 50%) an extra $159,375 from Husker ticket sales alone. As of December 8, Nebraska had only 3,000 tickets remaining.

 

Other payouts worth noting:

 

The Big East pays their teams based on performance. The BCS game is worth 2.4M, the second bowl is worth 1.6M, the third is 1.3M, the fourth is 1.1M, and so on depending on how many teams qualify.

The Big Ten, Pac-10, ACC, and WAC all divide their money evenly after expenses are taken out.

The non-guaranteed leagues - WAC, Sun Belt, Mountain West, Conference-USA, MAC - receive 9% of the projected net BCS revenue, which is around 9M per year. However, if one of their teams makes the BCS such as Utah this year, they receive an additional 9%. The leagues then must negotiate what is fair, which entails the majority going to the conference who sent a team to the BCS. For example, when Boise State played in the Fiesta Bowl two years ago, they received around 3.5M, which was more than half of the WAC's cut after the money was split amongst those 5 conferences.

Notre Dame receives 4.5M per BCS game they appear in.

[clone]

Merry Christmas Baylor, Colorado, Iowa State, Kansas State, and Texas A&M.

 

 

Merry Christmas indeed!!

 

sounds like the whole B12 should be thanking OU and texas for their share of 34 million.

 

 

the other bowls are chump change in comparison.

 

Fiesta Bowl Texas (Big 12) v Ohio State January 5 8 pm ET FOX $17 million

BCS Championship Bowl Oklahoma (#1) v Florida (#2) January 8 8 pm ET FOX $17 million

 

Cotton Bowl Texas Tech (Big 12) v Mississippi (SEC) January 2 2 pm ET FOX $3 million

 

Gator Bowl Clemson (ACC) v Nebraska (Big 12) January 1 1 pm ET CBS $2.5 million

 

Insight Bowl Kansas (Big 12) v Minnesota (Big Ten) December 31 5:30 pm ET NFL Network $1.2 million

 

Holiday Bowl Oregon (Pac-10) v Oklahoma St (Big 12)

 

Alamo Bowl Northwestern (Big Ten) v Missouri (Big 12) December 29 8 pm ET ESPN $2.25 million

 

http://www.football-bowl.com/2008-bowl-games.html

[mwj98]

This "spreading of the wealth" - (obamaism), has been going on for years. It was this way during the Big 8. I personally didn't like the fact the sub-par teams got a piece of the pie. But what do I know.

 

That is why being an independent like Notre Dame was so unique. They kept the entire pot. Bet they wish they were part of some conference now....huh?

[Ohio Pete]

I personally didn't like the fact the sub-par teams got a piece of the pie. But what do I know.

 

That is why being an independent like Notre Dame was so unique. They kept the entire pot. Bet they wish they were part of some conference now....huh?

That is one of the big benefits of being in a conference.

The rest of the money gets split up equally among the 12 teams in the conference and the Big 12 conference gets a share as well.

Thank you Texas and Oklahoma.

[Ohio Pete]

I imagine Nebraska will try not to lose money on the trip like those guys at TT:

Texas Tech aims to recoup $200K lost on Gator Bowl trip

April 15th, 2008 by Alex Ybarra

Source: The Daily Toreador

 

LUBBOCK, Texas — A shortfall in travel allowance given by the Big 12 Conference caused the Texas Tech football team to reach into its financial pockets after the team’s trip to the Konica Minolta Gator Bowl Jan. 1 in Jacksonville, Fla.

 

Bobby Gleason, Tech’s deputy athletic director, said while the numbers still may fluctuate, the athletic department spent $202,240 out of its regular operating budget of $44 million, which goes to show that the public can be misled when it sees the bowl payout numbers.

 

"Most fans read something that says that the Gator Bowl payout is $2.5 million," Gleason said. "Most fans think that goes to us because we’re playing in the Gator Bowl, but they don’t understand that all that money is paid to the conference."

 

Gleason said, in turn, the Big 12 Conference disperses a formula-based travel allowance among the teams attending bowl games.

 

"With (750) people traveling, it gets very expensive very quickly," Gleason said. "So we basically hope to break even on that travel allowance each year. We hope that we spend a little bit less than what it is, but it does take most of that money to travel."

 

Gleason said because the Gator Bowl is a tier-one bowl — a level below a BCS bowl — the formula provided Tech with a bowl appearance fee of $925,000 and a reimbursement policy that gives $199 per mile traveled.

 

According to the bowl’s financial report, the trip to Jacksonville equaled $239,198 in reimbursement money, so Tech received just under $1.1 million.

 

To put it in perspective, Gleason said the appearance fee for a BCS bowl is $1.5 million along with the reimbursement policy.

 

According to the report, Tech subtracted nearly $74,000 after ticket sales did not equal the total price of complimentary tickets used by the university.

 

Gleason said Tech used about half of the 12,000 tickets that were available to sell.

 

The financial report indicated that Tech spent approximately 68 percent of its allowance on transportation, meals and lodging, while roughly 27 percent went toward awards and extra compensation for staff.

 

"If you take away what we paid for the extra work effort, whatever the people devote to the bowl," Gleason said, "then that gets you back closer to a break even point."

 

The remaining five percent was spent on promotion and advertising, media guides, and training room supplies, according to the report.

 

Bob Burda, assistant commissioner of communications for the Big 12, said Tech’s allowance was substantially higher than most because of the distance from Lubbock to Jacksonville, which was calculated on the report as 1,202 miles.

 

"Obviously that reimbursement is going to be considerably higher than it would be if Texas Tech, say, played in the Cotton Bowl," he said, "where they were traveling from Lubbock to Dallas."

 

However, Gleason reiterated the allowance was not enough to expect a profit when the team returned from the Gator Bowl.

 

The same could be said for the Pacific Life Holiday Bowl in San Diego, Gleason said, where the University of Texas played Arizona State.

 

According to the Longhorns’ financial report, they went $68,850 over their travel allowance, which was just short of $1.2 million.

 

"I wouldn’t say it frustrates me," Gleason said, "but I would be supportive — we would be supportive, as a school — I think, of the conference increasing that travel allowance."

 

Burda said while the rise of airfare, the cost of charters and jet fuel has forced the issue of increasing the allowance, the present formulas were created to lessen the likelihood that teams lose money in a bowl game.

 

"There are mechanisms in place for them to minimally recoup the expenses involved," he said, "as well as the opportunity to look at travel party and number of members that traveled, so it’s hoped that teams aren’t losing money playing in bowls."

 

Tech Athletic Director Gerald Myers said a unanimous recommendation was made at an athletic directors’ meeting recently in Kansas City, Mo., for a retroactive expense check that can shoulder some of the financial burden.

 

"Our travel allowance was based on a lot lower cost for transportation," he said. "We did ask for an increase in travel allowance to the bowl games because all the schools face the same problem that the money was not enough to cover travel expenses."

 

Myers said the presidents of the Big 12 universities have the final say in issues that deal with expense budgets, so he said after the athletic directors vote, then the faculty athletic representatives control whether the recommendation reaches the presidents.

 

In this case, Myers said the faculty athletic representatives approved it, which will set up a discussion between the university presidents.

 

"It’s just a one-year deal, just a one-year request," he said. "We’ll have to take a look at it at the spring meeting and see if we can increase that travel allowance, we can’t predict what that cost will be next December, January, when those bowl games are played."

 

Tech president Jon Whitmore said the retroactive expense check was not an item at a separate board meeting between Big 12 university presidents in Kansas City, which he said probably means it will surface at the next meeting, May 23.

 

"Before it comes to the board of the presidents," he said, "the staff of the Big 12 puts together a report or whatever it is and it comes to the board, that’s speculation on my part."

 

Myers said he believes that the presidents would adjust the budget in this particular case.

 

"Normally, they would approve those expenses because of high cost of fuel," he said. "I think when that is finalized that we’ll get an additional expense check that will probably cover the losses of teams that had to travel to out of state games."

 

After everything gets finalized, Gleason said the overall exposure for the university on national television, on ESPN and in newspapers, will make it all worthwhile in an advertising sense.

 

"($200,000) is a lot of money, I guess you could say, but it’s in the big picture," he said. "If you were to purchase that advertising dollar, it’s not a large expense, when you look at it that way."