As most ND fans are aware, Notre Dame agreed to a significant pay cut in the last round of BCS negotiations. A couple of websites have recently pointed out that Notre Dame gets $1.3 Million from the BCS regardless of whether it plays in a bowl game.
Sounds like a sweetheart deal until you realize what ND gave up and how it was forced into the deal by BCS conferences. Previously for ND, it was all or nothing. ND either got the full BCS payout, specific bowl revenue or nothing if it failed to make a bowl game.
In lean times ND didn't receive anything... but when it made the BCS it received a full BCS share. For that risk ND was compensated. The BCS Payout was $17 Million last year, but Notre Dame only received $4.5 million. That's because the Conferences distribute their revenues throughout their conferences and weren't happy with the proposition that ND could gain a big windfall. So the BCS conferences forced ND into a cap and, in exchange, guaranteed ND what would be a conference minimum.
This was not a deal ND faithful were happy about.
So when you read the headline: "Notre Dame gets $1.3 million for nothing," think again. ND receives $1.3 Million for giving up the shot at $17+Million which it would likely have received every 2 out of 3 years on average -- especially given the expanded BCS.
Over nine years here's how the deal would work out assuming a 2 out of 3 year BCS hit ratio and "lesser" bowl.
Old System
6 x 17 = $102 million
1 x 2 = $2 million
--------------------
Total=$104 million
New System
6 x 4.5 = $27 million
3 x 1.3 = $3.9 million
--------------------
Total=$30.9 million
Even if you figure ND makes the BCS 1 out of 3 years... they're still leaving a ton on the table.
$1.3 million is a bargain.
Wednesday, October 31, 2007
A $1.3 Million Bargain
Subscribe to:
Post Comments (Atom)
14 comments:
Let's do the calculation on payout per per Bowl win. Oh wait, indivisible by zero = infinity. How about winning a bowl game or two before crying about $17MM payout?
They may say "Notre Dame gets $1.3 million for nothing", but remind them that so does Minnesota. And Syracuse. And plenty of others.
Lots of teams that have never even BEEN to the BCS get payouts. At least ND's been there before.
One other factor you didn't mention is that the griping is typically from fans of teams in BCS conferences. Minnesota (to name just one team) also did "nothing" but gets a huge chunk of not only BCS money, but money from every other bowl game that a big N school goes to. Not only that, but say Ohio State goes to a BCS game this year. I believe that they will not only get their BCS share, but their share of the bowl games that the other big N schools go to.
It's fine that the schools in a conference decide to all share in all of their bowl receipts, but why should ND have to share with all of the other BCS schools too (which is what it is in effect doing when it receives less than a full BCS share when it is in a BCS game) when those schools don't share with ND?
You make ND sound greedy and all about money. We cannot project an image of being better than other programs when you comment about money as you do.
And please correct me if I am wrong, but don't conference teams not in a bowl game get 'something for nothing' when one of their conference teams gets into a BSC game? If Northwestern and Indiana State continue to get money each year because OSU or Michigan make it in, why are others complaining about ND?
We'll use this as Exhibit A when the "Fire A.D. Kevin White Movement" finally gets legs. The potential revenues Notre Dame forfeits are obscene, and if/when Charlie Weis returns the program to prominence, an immediate push must be made to void this insane deal. No need to make a big fuss now, since we are neither bowl bound nor bowl worthy.
I like the argument and I agree with the logic. However, as many non-ND fans will point out, they should never have gotten the $17M in the first place. If you are dealing with an ND hater, this is an impossible argument to over come because nothing, and I mean nothing, ticks a hater off more than when ND gets attention. I usually choose the juvenile route and explain to my friends that they are just jealous, but thank you for giving me ammo to use over a few beers.
Obviously, all that money has to go somewhere.. Where?
The break-even point is a BCS appearance about 1 out of 11 years. (1 out of 10.615384615, to be exact.)
ND makes it more than 1/11, we're losing money under the new deal.
Since the BCS started in '98, through this year, we have been in it 3 out of 10 years.
3 Out of 10 Old Way: $51 M
3 Out of 10 New Way: $22.6 M
Based on previous performance, this about cuts our pay in half. The better we get, the more the new way hurts us.
This only address BCS apperances, and doesn't include minor bowl payouts.
Wow, at first I thought this had been posted on Oct. 31, 2006 - not 2007. If you think this team even deserves $1.3M for their performance this season, that is the height of entitlement. Also, even though the BCS is rigged to get ND in the mix as often as possible, assuming 66% "hit rate" seems a little generous to me.
But, I'll play along. As it stands now, ND is guaranteed $1.3M per year, bowl or not. Then, ND gets $4.5M if it actually makes the BCS game. Assuming two BCS games and one "lesser" bowl (assuming $2M payout), that would earn ND: $4.5M + $4.5M + $2M = $11M. Say Texas had a similar stretch during that period, and 2 Big XII teams made the BCS one of those three years. If the Big XII had 7-8 teams go to bowls each year, Texas would receive roughly: $2.4M + $2.4M + $2.8M = $7.6M. So, annually ND would average a $1.1M premium over every team in D-I.
Let's say that the old system is in place. ND makes $36M instead of $11M over the three year period. That's an average annual premium of almost $10M over the other schools.
Yeah, ND brings TV ratings and fans to the game. But why would any commissioner from a major conference agree to that when they could just as easily shut ND out of the BCS altogether? Sure, your total revenue might decrease, but I can't imagine that the hit would be enough to justify keeping ND involved at that kind of annual premium.
Take your much-needed $1M annual bonus and quit crying. It's simple dollars-and-cents, something that I'm sure the ND athletic department directors understood when they signed their own exclusive national TV contract.
Easily resolved. Join a conference.
If Notre Dame were in a BCS conference they would never manage a BCS bowl every 3 years. Look what the SEC did to them last year. They are lucky to get the 1.3 million. They would be at the bottom of the SEC and big 10, the middle of the Big East and Big 12. Look at their records against those conferences in their BCS years and they would have never made a BCS bowl if they were members.
I seriously doubt ND was or ever was forced into any BCS deal. If the deal was so bad for ND why did they sign the deal? Financial concerns at ND will never be a concern unless we have many more 1-7 starts.
The argument of the poster referencing Texas is suspet because it assumes the BCS conf commissioners are tired of paying "a premium" to have ND. It's NOT the case that the bowl games paid more to have ND. They paid the same amount to both teams, ND got more because they didn't split it, not because the amount paid was any greater.
The argument of the poster referencing Texas is suspet because it assumes the BCS conf commissioners are tired of paying "a premium" to have ND. It's NOT the case that the bowl games paid more to have ND. They paid the same amount to both teams, ND got more because they didn't split it, not because the amount paid was any greater.
Post a Comment