Sep 24, 2020
68 Views
0 0

Who’s Making Money In Big 12 Football?

Written by

Image via Wikipedia After writing about the football finances of the SEC  Big Ten ACC and Pac-10 it s the Big 12 s turn. The numbers are drawn from schools reports to the U. S. Department of Education at the state in their athletic departments finances for July 1 2009 to June 30 2010

 

See the note at the end for more details at the data. Texas without a doubt is in a league of its own in terms of football revenue. In fact they lead the nation. They re a whopping $21 million in advance of the very best revenue-generating school we ve covered to date Alabama: Football Revenue
University of Texas $93 942 815

 

00
University of Oklahoma $58 295 888. 00
University of Nebraska $49 928 228. 00
Texas A&M $41 915 428. 00
Oklahoma State $32 787 498. 00
University of Colorado $26 233 929. 00
Texas Tech $26 201 009. 00
University of Missouri $25 378 066. 00
Iowa State $19 974 924. 00
University of Kansas $17 885 176

 

00
Kansas State $17 570 624. 00
Baylor University $14 355 322. 00 For those keeping score between conferences here s where the Big 12 falls: Football Revenue: SEC ($49. 9m) Big Ten ($40. 6m) Big 12 ($35. 4m) Pac-10 ($24. 6m) ACC ($20. 9m) The top teams in the Big 12 lift the whole conference in a fashion I haven t seen in the other conferences I ve covered

 

Check out the mid-point in each conference to determine what I mean: SEC ($57. 4m) Big Ten ($38. 7m) Pac-10 ($24. 4m) Tie: Big 12 ($20. 6m) – ACC ($20. 6) Once you use the mid-point rather than the typical the Big 12 plummets down the list. There are a number of reasons. First the bottom-dweller in terms of revenue is not surprising it s Baylor University at $14

 

4 million. Only four schools in the SEC Big Ten Pac-10 and ACC combined usher in less than Baylor: Vanderbilt Maryland Wake Forest and Washington State. Another factor is that the Big 12 has four teams bringing in less than $20 million in football revenue. Meanwhile the SEC Big Ten Pac-10 and ACC combined have eleven with six of those coming from the ACC who’s tied with the Big 12 in terms of the mid-point

 

At the other end of the spectrum the Big 12 has only two teams bringing in additional than $50 million in football revenue. The SEC and Big Ten combined have ten teams who exceed this mark. However neither the Pac-10 nor the ACC have a team who approaches this level of revenue

 

What about expenses? In the SEC we saw that Georgia who ranked second in football revenue only put 26% in their football revenue back into football. Meanwhile Alabama and Auburn who would go on to win the next two National Championships put 43% and 42% back into their program respectively

 

So who are the big spenders in the Big 12? Football Expenses
University of Texas $25 112 331. 00
University of Oklahoma $20 150 769. 00
University of Nebraska $17 843 849. 00
Texas A&M $16 599 798. 00
University of Kansas $16 270 250. 00
Oklahoma State $15 479 410. 00
Texas Tech $14 688 382

 

00
University of Missouri $13 759 649. 00
Iowa State $13 368 441. 00
University of Colorado $12 558 503. 00
Baylor University $12 462 241. 00
Kansas State $11 157 789. 00 Curious how that stacks up against the other conferences? Football Expenses: SEC ($20m) Big Ten ($17. 9m) Pac-10 ($16. 2m) Big 12 ($15. 8) ACC ($14. 8m) The Big 12 s biggest spender Texas is lagging behind the top spenders in the SEC and Big Ten

 

Ohio State spent $32 million while Alabama spent $31 million. Texas spent $25 million which put it behind even the second one and third highest spenders in the SEC Auburn and LSU. It s worth noting that the three top SEC spenders have won three of the last four national championships. The top spender in the Big Ten? They ve been in two of the last five national championship games

 

Texas the team throwing around the main cash in the Big 12  is spending 27% of what it makes on football which makes it more like Georgia although they still outspend Georgia by about $7 million. Once you re making that much perhaps there s no must spend a better percentage

 

Oklahoma however is putting 35% back in and Nebraska is re-investing 36 percent. Once you get down to a college like Baylor who is barely making $14 million they re having to put 87% back into the program meaning less money to fund other sports. Baylor does be able to stay out of last place in terms of football profit just because it did with expenses: Football Profit
University of Texas $68 830 484

 

00
University of Oklahoma $38 145 119. 00
University of Nebraska $32 084 379. 00
Texas A&M $25 315 630. 00
Oklahoma State $17 308 088. 00
University of Colorado $13 675 426. 00
University of Missouri $11 618 417. 00
Texas Tech $11 512 627. 00
Iowa State $6 606 483. 00
Kansas State $6 412 835. 00
Baylor University $1 893 081

 

00
University of Kansas $1 614 926. 00 Kansas was the large surprise for me in terms of expenditures for football and it s why they become at the bottom of the profit pile. Although they ranked tenth in football revenue they were fifth in expenses. The other interesting thing to notice when looking at the football numbers for the Big 12 is that numbers one through four remain a similar in both revenue and expenses something that hasn t happened in any other conference I ve reviewed

 

According to the football financials and general knowledge it may come as no surprise that Baylor shows no profit in the athletic department. In fact I’d imagine they operate a deficit they fund with other monies in order to show a break-even status. As we ve seen with other conferences schools are reluctant to expose a deficit and instead show that they break-even after pulling from their athletic foundation booster club or other source

 

I called Baylor for touch upon their particular situation and they declined to disclose the information. Athletic Dept Profit
University of Texas $29 603 034. 00
University of Kansas $11 687 378. 00
Kansas State $11 099 094. 00
University of Oklahoma $10 121 904. 00
Oklahoma State $5 402 887. 00
University of Nebraska $5 029 604

 

00
Texas Tech $4 898 394. 00
Texas A&M $2 675 650. 00
University of Missouri $2 505 575. 00
University of Colorado $930 604. 00
Iowa State $215 540. 00
Baylor University $0. 00 Wondering how Kansas ends up second in athletic department profit after nearly depleting their football revenue with football expenses? Basketball of course

 

During this same term Kansas ranked #11 amongst all BCS schools in basketball revenue. Texas followed closely behind in twelfth position. Compared to the other conferences the Big 12 has done fairly well in terms of average athletic department profit: Big Ten ($10. 7m) SEC ($8. 2m) Big 12 ($7. 0m) ACC ($2. 6m) Pac-10 ($1

 

8m) Expect to determine the Big 12 improve their numbers as well. Consistent with the Sports Business Journal the Big 12 is nearing terms on a brand new television contract that would provide $60 million annually to the conference that’s triple what it receives now. In addition all the teams except Texas and Oklahoma are engaged on a Big 12 Network which would provide additional income to the schools

 

However remember that while the conference increases its position relative to other conferences schools like Texas and Oklahoma who remain in the conference will also widen the space between themselves and the other schools in their own conference. The Big 12 has made it clear they will retain their current approach to television revenue distribution which involves half all monies being evenly divided and the other half being distributed based upon appearances (meaning Texas and Oklahoma continue to get richer)

 

You can view my full financial charts for every conference I ve covered here. Keep watching SportsMoney on Forbes for the conferences I haven t covered and an in depth analysis of the way conference realignment affects what s been discussed in this series. NOTE: The info I have is from the U

 

S. Department of Education. Federal statute requires schools to report the financials for his or her athletic department (if they receive the Title IV funding which all ACC schools do). The statute prescribes what should be included in each category at the report. To illustrate when we check out revenue the statute requires that it include gate receipts broadcast revenues appearance guarantees and options concessions and advertising

 

In terms of expenses we re staring at grants-in-aid salaries travel equipment and supplies. It s also important to notice that this data is from July 1 2009 to June 30 2010 so we re talking about the 2009 football season. Additionally while these are the main complete numbers available for all ACC schools (a public records request wouldn t get you financial information for the private schools) there is room for variance

 

An official within an SEC athletic department provided me with here qualifications to the data: Working example some institutions may report debt service linked to their football stadium as direct football expenses while others may show debt service as Other Non-sport specific. A similar goes for game day security parking cleanup etc

 

which some may show as direct football expenses while others may show as facilities costs – not directly attributed to football. I do believe total revenue and expense numbers are comparable but once you break down the numbers into categories there is numerous leeway for variances between institutions. Another variance that came to light in reviewing the SEC and Big Ten financials is that some schools don’t attribute any in their broadcasting revenue to express sports but instead only include it in the Other Non-Sport Specific category

 

This implies the athletic department profit number is the most reliable in terms of direct comparison. Nonetheless it’s the main complete data available which will compare all the schools (public and private). Also while the numbers might not allow for an ideal apples to apples comparison they do reflect what each school chooses to expose the government for purposes of proving their compliance with Title IX

 

Certainly interesting to view the numbers in that light. Follow Kristi on Twitter @SportsBizMiss and visit her website at www. kristidosh. com. This text offers the private observations of Kristi Dosh and does not represent the views of her law firm or its clients. Any information contained herein does not constitute legal advice

 

Consult your own attorney for legal advice on these matters

Article Tags:
· ·
Article Categories:
Make Money

Leave a Reply