A friend of mine (A.L.) was reading comments on an article about the University of Texas and the Pac-12 and found an explanation, which we both thought was awesome. I think this is very interesting and should be read by all Texas Longhorns fans, Big 12 fans, along with NCAA fans … Randy
Comments | University of Texas & Pac-12
By Bret Cadenhead
The Big-12 has a tier-1 tv contract with ESPN in which half of the contract is divided evenly and the other half is distributed based on tv appearances. (different than other conferences)
They have a tier-2 contact with Fox in which ALL of the revenue is divided evenly. (same as all conferences)
All schools can do with their tier-3 rights as they wish. (same as all conferences with the exception of the new PAC-12 contract)
The half of the $480 million tier-1 contact that is unevenly divided is what EVERYONE is using to claim that Texas is taking advantage of the rest of the conference and the excuse everyone is using to claim the Big-12 if dysfunctional. It has been in place since the beginning of the Big-12 and supported on every vote by both Nebraska and A&M (and everyone else).
The reason the conference gave more money to the teams playing more tier-1 games is because that meant they had fewer tier-3 games to sell. Last year Texas made roughly $370,000 and Oklahoma made even less on tier-3 revenue. Other teams like Kansas made $7.2 million, OK State made $6.3 million, even Nebraska made $4.3 million ($4 million more than Texas!!). Why are you writing about those schools making more money than Texas?
All Texas is doing is packaging their tier-3 marketing rights just like everyone else is already doing, they just got very creative and something other schools will soon follow suit. Texas will make $15 million per year of which $5 million will go to academics leaving the athletic dept with $10 million. That is $1 million less than North Carolina ($11.1 million) is currently making from their tier-3 revenue. Clemson and Florida State make less than $1 million, why aren’t you reporting on the inequality of that?
Even in the Pac-12, Oregon State made over $6 million on tier-3, no one else made close to that. Was any of that money shared in the PAC-12?
The Pac-12 will have the only conference agreement that has true equal sharing. But not until the new contract kicks in. Every conference in the county has the same unequal revenue sharing on tier-3 rights, so quit acting like Texas is doing something no one else is doing. You all scream that Texas has been raping their conference partners to make more tv revenue, when the truth is they have been making less tv revenue when tier-3 rights are added.
The recent announcement of full equal sharing applies only to the tier-1 and tier-2 rights but not the tier-3. That means the Big-12 will be exactly like all conferences except the new Pac-12 contract, but don’t gloat too much because you are just now doing it. Until now your inequality hasn’t been any different than the Big-12.
It would probably help if people reporting on sports actually knew what they are writing about. Hook ‘em!!