BlackNGold
Club Member
After all the euphoria is over on the conference change there are still some big issues and hurdles for CU.
CU basically is betting on the come in the conference change.
First, CU has to negotiate the financial terms of their departure from the Big 12. Mike Bohn has thrown out an amount of $9 million and of course the Texas -Big 12 conglomerate has put the number at $20 million. Nebraska thinks the number should be zero ( I like their thinking). But lets use Bohn's $9 million for the moment.
Second, When does CU go to the PAC-10 and how does that play out revenue wise. If CU goes to the PAC 10 in 2011 there is a big financial challenge. The PAC 10's revenue from television is NOT increasing for 2011. That means that existing conference members will most likely NOT want to share 2011 revenue with CU (Utah has already been told that they will not receive a conference revenue distribution in 2011). If CU goes to the PAC-10 in 2011 and does not receive a conference distribution that could be another financial hit. CU gets about $8 million in conference distribution right now from the Big 12.
Third, presently the PAC-10 has one of the poorer revenue distributions of the BCS conferences. Larry Scott is trying to form a network and at the same time start negotiating a new TV contract for the conference. This is a delicate situation to say the least - he has to artfully carve out programming for both the PAC 10 conference and the Networks. Two major issues on this -market penetration and time zone. The western time zone has never been attractive for football to the Networks. One thing that has made the Big 10 network so successful is market penetration. The proposed 16 team superconference with Texas and OU would of been killer but the 12 team PAC-10 is less so. CU really needs for Larry Scott to cut a fat hog on the TV deal but at the moment that could be a big if.
Fourth, contrary to what many Internet posters were spouting the PAC-10 does not have equal revenue sharing. In fact, the revenue sharing of the PAC-10 is probably more archaic then the Big 12. Revenue sharing will be on the table at the conference meetings but I am not sure that CU even has a vote. It is going to take a lot of politicking to the big schools to agree to an equal revenue distribution to all schools.
So CU could be entering 2012 looking at being in the hole with $17 million of lost revenue over 2 years and if the PAC-10 contracts do not reward CU with something approaching $16 million a year and up then CU could be looking at a financial hole that takes a long time to dig out of.
CU basically is betting on the come in the conference change.
First, CU has to negotiate the financial terms of their departure from the Big 12. Mike Bohn has thrown out an amount of $9 million and of course the Texas -Big 12 conglomerate has put the number at $20 million. Nebraska thinks the number should be zero ( I like their thinking). But lets use Bohn's $9 million for the moment.
Second, When does CU go to the PAC-10 and how does that play out revenue wise. If CU goes to the PAC 10 in 2011 there is a big financial challenge. The PAC 10's revenue from television is NOT increasing for 2011. That means that existing conference members will most likely NOT want to share 2011 revenue with CU (Utah has already been told that they will not receive a conference revenue distribution in 2011). If CU goes to the PAC-10 in 2011 and does not receive a conference distribution that could be another financial hit. CU gets about $8 million in conference distribution right now from the Big 12.
Third, presently the PAC-10 has one of the poorer revenue distributions of the BCS conferences. Larry Scott is trying to form a network and at the same time start negotiating a new TV contract for the conference. This is a delicate situation to say the least - he has to artfully carve out programming for both the PAC 10 conference and the Networks. Two major issues on this -market penetration and time zone. The western time zone has never been attractive for football to the Networks. One thing that has made the Big 10 network so successful is market penetration. The proposed 16 team superconference with Texas and OU would of been killer but the 12 team PAC-10 is less so. CU really needs for Larry Scott to cut a fat hog on the TV deal but at the moment that could be a big if.
Fourth, contrary to what many Internet posters were spouting the PAC-10 does not have equal revenue sharing. In fact, the revenue sharing of the PAC-10 is probably more archaic then the Big 12. Revenue sharing will be on the table at the conference meetings but I am not sure that CU even has a vote. It is going to take a lot of politicking to the big schools to agree to an equal revenue distribution to all schools.
So CU could be entering 2012 looking at being in the hole with $17 million of lost revenue over 2 years and if the PAC-10 contracts do not reward CU with something approaching $16 million a year and up then CU could be looking at a financial hole that takes a long time to dig out of.