Lost Revenue

[billdozer15]

I have a question that I havent seen answered yet, maybe someone can help me out. Since we are leaving the conference, the Big12 is going to keep 80% of our T.V. revenue money this year. But during conference that announced us joining the Big10, Dr. Tom said the Big10 has gauranteed we wont make any less than we are now until we are fully vested. Does this mean the Big10 is going to make up our lost revenue this year? Or are we going to have to take an 80% hit on our T.V. revenues and then in 2011 we will receive our regular 8-9 million? If we do indeed lose 80% of our revenue this year without a Big10 subsidy what kind of impact will that have on the dept?

[Coqui]

Interesting read about that:

 

Much of the reporting on the financial conditions required to ensure the survival of the Big 12 has centered on potential buyout penalties to be paid out to remaining members of the conference by Nebraska and Colorado.

 

Multiple outlets have reported that Nebraska and Colorado will be required to pay the league between $6 and $10 million for the privilege of leaving the league. It has also been widely reported that as part of the negotiation to keep the league alive, the Big 12’s five have-not schools agreed to hand over that alleged NU and CU buyout money to Oklahoma, Texas A&M and Texas.

 

Sounds like a plan! If only it wasn’t completely untrue.

 

As noted by Nebraska Chancellor Harvey Perlman this week, there is no existing Big 12 bylaw that states that teams departing from the league must pay out a penalty fee to remaining conference members.

 

Perlman noted on KLIN-AM in Lincoln yesterday that, “there is a liquidated damages provision that purports to make the existing members whole,” but that there is no pre-designated charge for leaving the conference.

 

That doesn’t mean though that there isn’t something in the Big 12 bylaws that will injure NU and CU financially. There is. And it’s the reason both schools are in such a mad dash to escape the league.

 

 

Under Big 12 bylaws, up to 80 percent of league revenue can be withheld from Colorado and Nebraska over the next two years, and conference commish Dan Beebe has stated on the record that he has every intention of garnishing 2011 revenue due the two schools.

 

That is the money that may end up being distributed between OU, UT and A&M. But as Iowa State Athletic Director Jamie Pollard and Missouri Athletic Director Mike Alden noted yesterday, even that cash may not just go to the three schools.

 

Thanks to conference-wide bowl and television revenue generated by Colorado and Nebraska in 2011, Oklahoma, Texas and Texas A&M may not lose any money in eschewing the Pac-10. If that’s the case, per Big 12 Commissioner Dan Beebe, the NU and CU money will go to all 10 remaining conference members.

 

The concession undertaken by the five have-nots in compensating Oklahoma, Texas and A&M only kicks in if the three schools are deemed to have lost money because of not making the move to the Pac-10. How that’s to be determined has not been made clear. But it apparently isn’t a lock that the trio of remaining Big 12 power players will see a dime directly from Colorado of Nebraska.

[billdozer15]

O.K. I understand all of that, but it doesnt tell me if the Big10 is going to subsidize NU for the loss of revenue this next year. In the presser it was stated NU would not make any less than they do now. But did that mean once they enter the Big10 officialy or did that mean the Big10 was going to cover the lost revenue for exiting the conference?

[Coqui]

O.K. I understand all of that, but it doesnt tell me if the Big10 is going to subsidize NU for the loss of revenue this next year. In the presser it was stated NU would not make any less than they do now. But did that mean once they enter the Big10 officialy or did that mean the Big10 was going to cover the lost revenue for exiting the conference?

 

 

That part I haven't been able to find either.

[HuskerTrucker]

My understanding, reading an article where Dr. Tom was speaking on this saying "Some people said, 'Gee, you did this because of the money. You're greedy. You're lousy, low down people.' And actually if we had stayed in the Big 12, certainly in the short term we would've been ahead financially" - that we will not be compensated.

 

Here is the link to the full article: http://www.keloland....4.cfm?Id=101546

 

From what I gather, the university is expecting to take a short term hit financially, but in the long run I think we will be better off. Especially since none of the numbers on this new TV deal for the Big 12 seem to make sense. If the financial gain on a Big 12 television deal was going to be so great for the remaining teams, why is Texass still looking at their own deal? It does not make sense. I think the only team that is going to make out is Texass.

 

I think in ten years from now, after the Big 12, or what is left of it, falls by the wayside we all will be looking back at the job that Beebe has done, and see that he is only looking out for his interests at Texass, not the conference as a whole. I think this so-called "television deal" that they cooked up was nothing more than a ploy to buy Texass more time to put together their television network, and to find a conference that will let them keep the proceeds, or most of them, from that network. Texass is pulling a fast one, with the help of Beebe. I am convinced of that. Texass has no intention of staying in what is left of the Big 12 long term. They think so highly of themselves, that they believe that they can go to another conference where the pickings are greater, and get away with the "We are Texass" mantra, convincing the new conference that they deserve more than anyone else.

[EbylHusker]

What does it mean for the dept? Nothing. Believe me, if money is needed, it will appear. It has before and will do so again.

[WashingtonRed]

Isn't the BigTen Network starting to televise Nebraska games this year?

 

I am sure that will make up some of the revenue windfall that the BigSWC can't touch.

 

 

[bbeerma2]

I wish we could just pull all of our games and put them on BTN to spite them for trying to gash us on the television revenues.

[billdozer15]

I wish we could just pull all of our games and put them on BTN to spite them for trying to gash us on the television revenues.

I wonder if there would be anyway to put all of our home games on PPV. I would pay for that just to stick it to the rest of the league.

[sd'sker]

I wish we could just pull all of our games and put them on BTN to spite them for trying to gash us on the television revenues.

I wonder if there would be anyway to put all of our home games on PPV. I would pay for that just to stick it to the rest of the league.

that, my friend, would be cutting of your nose to spite your face.

[HuskerTrucker]

Isn't the BigTen Network starting to televise Nebraska games this year?

 

I am sure that will make up some of the revenue windfall that the BigSWC can't touch.

 

 

 

I am sure that the BTN will not cover Nebraska's games until 2011. There is probably an agreement with the Big 12 on television rights until we are out of the Big 12.

[husker B-rent]

actually i believe we hold our own media rights according to the big12. that is why texass is going to be able to make their own network...

[esox72]

actually i believe we hold our own media rights according to the big12. that is why texass is going to be able to make their own network...

 

Correct. We own the rights to any game not picked up by ABC/ESPN or FSN. The money from PPV games in the past were all Nebraskas not one dime went to the big 12. The Big 10 said they would air a few NU games starting this year. PPV may be a thing of the past.

[HuskerinLibertyMO]

actually i believe we hold our own media rights according to the big12. that is why texass is going to be able to make their own network...

 

Correct. We own the rights to any game not picked up by ABC/ESPN or FSN. The money from PPV games in the past were all Nebraskas not one dime went to the big 12. The Big 10 said they would air a few NU games starting this year. PPV may be a thing of the past.

 

I saw somewhere that the PPV revenue actually went into the TV revenue pot last year and was split between all the teams in the conference. I think that moved NU down the list on revenue last year. Sorry can't remember where I saw that, maybe someone else saw that too.

[huKSer]

actually i believe we hold our own media rights according to the big12. that is why texass is going to be able to make their own network...

 

Correct. We own the rights to any game not picked up by ABC/ESPN or FSN. The money from PPV games in the past were all Nebraskas not one dime went to the big 12. The Big 10 said they would air a few NU games starting this year. PPV may be a thing of the past.

 

I saw somewhere that the PPV revenue actually went into the TV revenue pot last year and was split between all the teams in the conference. I think that moved NU down the list on revenue last year. Sorry can't remember where I saw that, maybe someone else saw that too.

IIR the Univ. gets the PPV money directly. So the share of the revenue went down, because less games were broadcast. But total revenue went up because they didn't share the PPV