rab79 said:
1st Generation Ag said:
An additional $160 million a year just from those two? Seems far-fetched.
Doesn't the SEC get a share as well? if so that is 170 mil and that isn't counting the base 45 mil tu and ou would each get so revenue would have to go up 260 mil before any additional expenses. That seems an awful lot to expect from adding 2 schools without increasing the number of games. Or will the expanded playoffs bring in enough additional revenue to cover this? If that is the expectation then what is projected playoff revenue without expanding the conference?
I was going to say this,...
Revenue for the entire conference last year was $729 million and they distributed $657 million including bowl game expenses which is about $45.5 million per share.
If they expect to add 2 additional shares AND increase everyone's payout by $10 million, we're talking about an additional $250 million which would require something on the order of $280 million additional dollars of revenue.
ESPN valued the tier 1 and tier 2 rights for a 14 team SEC at $300 million
at the end of last year,... so the whole "things have changed" argument is ridiculous. I just don't see those two teams adding $280 million in revenue when the existing conference averages $52 million in revenue per team. Obviously some teams contribute way more than others, but I just don't think OU and tu are going to both add more than 5x the average per team revenue.
I'm guessing that the UGA fan site that posted this is just pulling numbers out of their ass.