forums

Where does the CFB money go?

305_separatist

305_separatist

Threskiornithidae
Premium
Joined
Apr 10, 2017
Messages
2,095
Serious question. In most private enterprises, it would go to the balance sheet to the benefit of shareholders in the form of higher stock prices or dividends. I’m non-profits that doesn’t happen, and instead what typically happens is massive salaries and lots of “business expenses” for top admin.

I have no idea how the NCAA and conferences and play offs are structured and operate besides all being non-profit. So I’m wondering where all this big TV money ends up actually going, besides coaching staffs which are the most visible recipients of course. Who else is getting a big fat pay day from the ongoing realignment and renegotiations? Who’s capturing the value here.
 
Advertisement
305_separatist said:
Serious question. In most private enterprises, it would go to the balance sheet to the benefit of shareholders in the form of higher stock prices or dividends. I’m non-profits that doesn’t happen, and instead what typically happens is massive salaries and lots of “business expenses” for top admin.

I have no idea how the NCAA and conferences and play offs are structured and operate besides all being non-profit. So I’m wondering where all this big TV money ends up actually going, besides coaching staffs which are the most visible recipients of course. Who else is getting a big fat pay day from the ongoing realignment and renegotiations? Who’s capturing the value here.
Click to expand...
Facilities for one. That's how the Clemson's (and soon to be Miami)of the world have football-only state of the art buildings with such necessary items as video game arcades, movie theater film rooms, and a massive slide for the players to use.

I think it also subsidizes all of the non-revenue sports as well as some academic ventures probably. No way the Volleyball team can afford to travel all the way across the country to play OOC games vs California schools and still have enough for equipment, travel, social media, scholarships and coaches.

What I don't know is WHO is getting paid. There's gotta be a lot of inflated salaries at the conference offices and certain university employees
 
20EReedboii said:
Facilities for one. That's how the Clemson's (and soon to be Miami)of the world have football-only state of the art buildings with such necessary items as video game arcades, movie theater film rooms, and a massive slide for the players to use.

I think it also subsidizes all of the non-revenue sports as well as some academic ventures probably. No way the Volleyball team can afford to travel all the way across the country to play OOC games vs California schools and still have enough for equipment, travel, social media, scholarships and coaches.

What I don't know is WHO is getting paid. There's gotta be a lot of inflated salaries at the conference offices and certain university employees
Click to expand...
It’d be great to see a diagram breaking down the funds distribution. For example what you described are all distributions under universities. Obviously non-profits so the money has to go to either salaries (coaching staffs, admin), infrastructure, operations (subsidizing other sports), or just savings.

But how much are the schools getting compared to the conferences and play off org? And where does that money go?
 
305_separatist said:
Serious question. In most private enterprises, it would go to the balance sheet to the benefit of shareholders in the form of higher stock prices or dividends. I’m non-profits that doesn’t happen, and instead what typically happens is massive salaries and lots of “business expenses” for top admin.

I have no idea how the NCAA and conferences and play offs are structured and operate besides all being non-profit. So I’m wondering where all this big TV money ends up actually going, besides coaching staffs which are the most visible recipients of course. Who else is getting a big fat pay day from the ongoing realignment and renegotiations? Who’s capturing the value here.
Click to expand...

ACC revenue is around $36M/yr/school.
SEC revenue is around $55M/yr/school.
B1G revenue is around $45M/yr/school.

Miami's athletic department budget is around $70M/yr last time I checked. Thus, Miami has to make up for the lack of ACC revenue via ticket sales and fundraising.

Some of the top schools have budgets between $150M and $200M/yr.

How that money is spent depends on the school. Just google some of the large public schools for their budgets.

The NCAA is a membership non-profit with all schools being a part of NCAA that want to play under its rules. I'm sure you can pull a 990 for the NCAA, bowls, and other non-profits if you really want to dig into revenue/expenses/who gets paid the most. Heck, you likely can pull some 990s on the booster clubs as well and potentially NIL non-profit organizations once they record 990s for a couple of years.
 
Advertisement
Large public schools have lots of BIG things going for them:
1. Large student and alumni bases. Thus, more ticket sales and long-term fundraising.
2. Large stadiums owned by the schools that can be used for more than just football (graduation, concerts, etc)
3. Large funding from taxpayers to help maintain the facilities including nice dorm rooms, the stadium, weight rooms...

The simple math: 100k seats x7 home games x $150/ticket = $105M/yr of revenue before you even talk concessions, apparel sales, parking...

Thus, Bama spends $170 on $180M of revenue roughly and hardly any of that is spent on facilities. Boosters thus aren't being asked to fund massive facilities as much as massive recruiting and retention budgets... now called NIL.


This is why a Miami stadium with 50,000 seats could be a MASSIVE victory for the U! If Miami makes all the money on gameday with the city funding upkeep for use for non-Football events, Miami could be looking at doubling their budget!
 
Football and basketball are really the only sports that make money. The rest have to be subsidized by those two sports.
 
Last edited:
Advertisement
90scane said:
Large public schools have lots of BIG things going for them:
1. Large student and alumni bases. Thus, more ticket sales and long-term fundraising.
2. Large stadiums owned by the schools that can be used for more than just football (graduation, concerts, etc)
3. Large funding from taxpayers to help maintain the facilities including nice dorm rooms, the stadium, weight rooms...

The simple math: 100k seats x7 home games x $150/ticket = $105M/yr of revenue before you even talk concessions, apparel sales, parking...

Thus, Bama spends $170 on $180M of revenue roughly and hardly any of that is spent on facilities. Boosters thus aren't being asked to fund massive facilities as much as massive recruiting and retention budgets... now called NIL.


This is why a Miami stadium with 50,000 seats could be a MASSIVE victory for the U! If Miami makes all the money on gameday with the city funding upkeep for use for non-Football events, Miami could be looking at doubling their budget!
Click to expand...

The problem is that the County would NEVER agree to such a *** backwards deal. If they are going to be building or adding significant funding for the facility, they will want some of our gameday revenue, because they need to be able to get their money back somehow. With some of the estimates from Ruiz(He's already copped that it will be a BILLION dollar project at minimum), it's obvious that this proposed project will require some County funding.

Having our own stadium in regards to revenue isn't the boon a lot of our fans believe it to be, because it's extremely likely that we won't fully own it. That's where the revenue comes in, and even then, a good chunk of that revenue goes back into the facility, at least, that's what the schools worth a **** do. We would all love to see it happen, but we also have to be realistic in regards to what the impact would be.
 
Advertisement
Back
Top