NCAA is dying but the Pac-12 goes down first
Competitive Disadvantage
The Pac-12 can’t financially compete with the SEC, Big Ten, and probably ACC. Their existing television deals in addition to the anchor that is the Pac-12 Network are dragging them further behind by the year.
It’s only going to get worse. Pac-12 fans have heard ad nauseam that things will change once the conference signs its next set of national television contracts. There are estimates that the new deals could earn the conference $600M annually or $50M per school.
They are being sold a big lie. According to a study done by Navigate, In the year 2028, Pac-12 schools will get approximately $56.5M each. That is slightly above the ACC and Big-12. In contrast, Big Ten members can expect a $94.5M payout and SEC schools will cash checks worth $105.3M. That’s close to double what Pac-12 schools will earn.
A losing proposition
Then there is “the red,” better known as operating deficits.
Athletic departments at two conference schools, Washington State and Oregon State are hemorrhaging money. According to Sportico, WSU lost $25M and OSU lost just north of $21M in 2020-21. Even the big boys can lose money.
For example, Texas lost about $8M but that was 4.9 percent of its operating budget. In contrast, Wazzu’s loss was 38.4 percent of its operating budget. To add to the Cougars’ depression, their $40M revenue is below the University of North Texas, a Conference USA school that brought in $46.7M
How much longer can the University sink money into a failing program? Then how soon will it be before Cal and Stanford decide that their ivory tower notions of the student-athlete won’t work anymore, they cant make money with their model and get out of the fast lane?
College football is the motor, that powers an athletic department. Without the money football brings in, there is no track, rowing, volleyball, swimming, or any of the other so-called Olympic sports.
According to 24/7 Sports, only Washington (19th – $92M), USC (18th – $93M), and Oregon (T15th – 98M) rank among college football’s 25 most valuable programs. The top ten were all SEC, moving to the SEC, or Big Ten schools.
Washington State University faculty members are incensed over a proposal from the college administration to funnel $2 million to $3 million in university funds for the athletics department budget. https://t.co/DOdvyEyeV6
— The Spokesman-Review (@SpokesmanReview) January 29, 2021