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If the Big 12 is distributing $250 million, then does that mean tu gets $25 million plus its $15 million from ESPN for the LHN ($40 million total)?
Nope. It means they divide the $250 Million by 11, as the Big 12 office gets a full share...LOL. That equals $22.72 Million. Then the LHN pays the University of Texas around $12 Million in 2015 per the schedule. Of the $12 Million, about $1.5 Million goes to IMG, which leaves the University with $10.5 Million, which it will split evenly between Academics and Athletics. Therefore, the Texas Athletic Department will get a total of $28 Million from its conference and its tv money.
POOR EFFING TSIPS
Incorrect. ESPN pays Texas $15M every year. $1.5M goes to IMG, $5M goes to the school (for the first 5 years of the deal) and the athletic department takes in $8.5.
I suggest you go read this.
http://texags.com/forums/6/topics/2204274
You do realize that was 3 years ago and those numbers were prorated for that year only?
Then let us fast forward to 2014, shall we?
http://www.forbes.com/sites/chrissmith/2014/03/04/longhorn-network-scores-major-victory-with-dish-network-carriage-deal/
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Securing wider distribution is key for ESPN, particularly because its rights fee increases by 3% annually, which means its LHN investment will only become more expensive. ESPN owes around $11.65 million this year, and its rights fee will surpass the $15 million average payout within the decade.
You won't see $15MM until at least 2020, and that is due to the 3% annual escalation. In order to get to a value of $300MM AT THE END OF THE CONTRACT, (because that is what the $300 is based on), and given a 3% escalation over 20 years, paid quarterly at the beginning of each quarter, the total year 1 revenue has to be around $10.9MM, which is exactly what is stated in the contract.
For the dimwit sips that won't read that, $15MM doesn't happen until at least 2020.