B1G Investigating $2.4B Private Equity Investment, Uneven Revenue Distribution

Exactly. Bishop is correct.



People need to realize that the people who would be funding this, are not our friends and are not fans of our program. And, they will force decisions to be made.
 
Why do this?

For the most prominent brands, they’ll reap the benefits of an uneven distribution structure. Along with Penn State and Michigan (if the Wolverines agree to the deal), Ohio State will earn an immediate infusion of $190 million, compared to around $145 million for the next group, Oregon and USC (if it agrees), and $100-110 million for the other 13 schools.

The upfront money isn’t the only bucket distributed unevenly. Future revenue distribution from the conference is staggered: Ohio State, Michigan and Penn State at 5.5% of league revenues; Oregon and USC at 5%; and all others at 4.9%. UC Investments collects 10%.

On3
 

I get these distribution numbers are based on more than just football winning % (assuming TV ratings are a huge impact), but here is each B1G school's football record since 1993 (I chose that year since its when Penn St joined the B1G, seems like a good cutoff point to me):

Ohio St 350-70-1 83.1%
Oregon 298-114-0 72.3%
Michigan 288-122-0 70.2%
Penn St 282-129-0 68.6%
USC 281-128-2 68.4%
Wisconsin 281-132-4 67.4%
Nebraska 269-144-0 65.1%
Iowa 248-158-1 60.9%
Washington 229-171-1 57.1%
Michigan St 228-173-1 56.7%
UCLA 216-183-0 54.1%
Minnesota 205-193-1 51.4%
Northwestern 196-201-1 49.2%
Maryland 181-208-0 46.5%
Purdue 173-220-3 43.7%
Rutgers 159-232-1 40.6%
Illinois 157-230-1 40.5%
Indiana 153-232-0 39.7%

A few takeaways:
- Ohio St is in a tier by themselves
- The next tier is Oregon, Michigan, Penn St, USC, Wisconsin, and Nebraska (Oregon and Michigan are closer to Nebraska in win % than Ohio St)
- Nebraska royally F'd themselves by not winning post-Pellini (1993-2014 win percentage: 74.6% / 2015-2025 win percentage: 44.2%). If we had just averaged 7-5 the last 11 years we'd be sitting at 70%.
- Iowa still sucks
- Indiana has been god awful at football. Imagine how bad they would look if they didn't win 15 of their last 16 games. Cig should get $50M of their $100M.
 
I'm too stupid to understand all of this. It gives me a headache.

All I know is if this screws up Michigan vs Ohio State - The Game - I'm going to be very pissed off.
 
I mean, it has always been about "the money" but it was just done so differently in the past.

To think, years ago, one or two games would be on TV, ESPN was buying up CFB games just to fill up air time.

It really is crazy to think that what, 40 years ago only, schools just let the old football coach or basketball become AD and he ran the show. That show was drinking and golfing with boosters to get them to give money.
 
So this investment is tied to the California pension system? To be fair, I don't understand any of this, but I don't like the tiered system of pay. Quick and easy money is never quick and easy money.
 
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