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Revenue Share Details Emerging

Tammany Hall

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Dec 10, 2010
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For those interested, more details are coming out on how the rev share will probably work.

Per some people involved with and around IU NIL, of the $20-22M rev share likely to start in 2025-26, half would go to men’s sports, so $10-11M, and the B1G is going to mandate about 75% of that go to football, so $7.5-8M is the current estimate for rev share to football.

This is interesting because it indicates Title IX seems likely to split the rev share 50/50, and the conference will mandate the percentage amount for football (probably want the product good for TV) vs schools/ADs having discretion on how much to allocate to football.

The 50/50 mens/women’s rev share split could go away if conferences/schools argue sports aren’t part of the educational experience, and thus not subject to Title IX. I have no idea if that could happen.

I continue to think this rev share cap could be a positive for IU. Say IU has $4M NIL now and another school has $8M NIL — IU has 50% less. Add $8M rev share cap for both schools and now IU has $12M and the other school has $16M — IU only has 25% less $ available for players, and that is a better position to be in. Who knows how it actually plays out, this is just a guess/example.

Of course the other advantage for IU is it appears TV $ increases can fund the rev share for us. Some schools outside the core B1G and SEC will struggle to fund it, which may compromise their NIL, rev share, and other sports.

It would be interesting to know if schools are quoting 2025 targets with compensation numbers that include the rev share. I would think so.

Others may know more and things could change.
 
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For those interested, more details are coming out on how the rev share will probably work.

Per some people involved with and around IU NIL, of the $20-22M rev share likely to start in 2025-26, half would go to men’s sports, so $10-11M, and the B1G is going to mandate about 75% of that go to football, so $7.5-8M is the current estimate for rev share to football.

This is interesting because it indicates Title IX seems likely to split the rev share 50/50, and the conference will mandate the percentage amount for football (probably want the product good for TV) vs schools/ADs having discretion on how much to allocate to football.

The 50/50 mens/women’s rev share split could go away if conferences/schools argue sports aren’t part of the educational experience, and thus not subject to Title IX. I have no idea if that could happen.

I continue to think this rev share cap could be a positive for IU. Say IU has $4M NIL now and another school has $8M NIL — IU has 50% less. Add $8M rev share cap for both schools and now IU has $12M and the other school has $16M — IU only has 25% less $ available for players, and that is a better position to be in. Who knows how it actually plays out, this is just a guess/example.

Of course the other advantage for IU is it appears TV $ increases can fund the rev share for us. Some schools outside the core B1G and SEC will struggle to fund it, which may compromise their NIL, rev share, and other sports.

It would be interesting to know if schools are quoting 2025 targets with compensation numbers that include the rev share. I would think so.

Others may know more and things could change.
1. I am glad to see the B1G mandate for football. Now we can't screw it up.
2. While I understand the initial position that compensation will be split evenly between men's and women't programs due to Title IX, I bet that interpretation will be challenged in court.
 
1. I am glad to see the B1G mandate for football. Now we can't screw it up.
2. While I understand the initial position that compensation will be split evenly between men's and women't programs due to Title IX, I bet that interpretation will be challenged in court.
2. Seems possible. The 75% of men’s rev share to football is to some extent based off the average fball budget to the total athletic dept budget for all the schools (or some basket of them). I’m not sure on the details but you get the concept. I could see that concept applied to the whole $20-22M rev share, not just half.
 
The mandate shines light on the Big Ten and their thought processes regarding football. The BT is trying to outpace the SEC, and that only happens when football is on the front burner, not the back burner...
 
2. Seems possible. The 75% of men’s rev share to football is to some extent based off the average fball budget to the total athletic dept budget for all the schools (or some basket of them). I’m not sure on the details but you get the concept. I could see that concept applied to the whole $20-22M rev share, not just half.
Speaking of NIL. Outside of football and mens basketball does anyone know how much the other programs have to work with?
 
So absent football, men's sports gets 25% of 1/2? So 1/8? Women's sports absent football, get 1/2?
Women’s sports with football is 1/2.

If it plays out as people are saying:
FB: $8M
Rest of Men’s Sports: $3M
Women’s Sports: $11M
 
So absent football, men's sports gets 25% of 1/2? So 1/8? Women's sports absent football, get 1/2?
I think since there is no corresponding sport for women, they need to take football out of the equation pulling out money they decide for football and divide the rest to the other sports. IE $12m for football and $8m for the other sports. I don't care what ration they come up with and if football gets $8 then $12 is split with the other sports. I would like to see them figure out how many athletes are in the mix and do rations based on that.
 
I think since there is no corresponding sport for women, they need to take football out of the equation pulling out money they decide for football and divide the rest to the other sports. IE $12m for football and $8m for the other sports. I don't care what ration they come up with and if football gets $8 then $12 is split with the other sports. I would like to see them figure out how many athletes are in the mix and do rations based on that.
It feels like this is where it could end up — makes more sense.
 
The mandate shines light on the Big Ten and their thought processes regarding football. The BT is trying to outpace the SEC, and that only happens when football is on the front burner, not the back burner...
It’s actually always been on the front burner. We’re just one of the last ones to arrive st the party.
 
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