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B1G Exploring Private Capital Investment

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B1G Exploring Private Capital Investment

Take away the uneven revenue distribution, whether it be upfront money or the percentages of future revenues, and this looks like a great deal all the way around. IMO.

But what we have right now is OSU flexing and holding their perceived leverage over the rest of the conference. They (OSU) know it’s a great deal, but they’re not gonna let it happen unless they get a little more of it than all/most of their conference partners. “We get more, or you get nothing at all.”

And sadly it seems, most of the B1G are more than happy to let OSU get the biggest cut if that’s what it takes to get the deal done.
 
OTOH, there is value in stability and maybe it’s worth it to pay off those schools one time to get the grant of rights, rather than have them agitate for more of the tv money, which is going to be worth a lot more for the next contract.
But this deal does give them more of the TV money. It's not just that they get more in the one-time payoff.
This is the dealbreaker for me. Big Ten has always evenly distributed its revenues. Now they want to end that tradition and create a permanent advantage for the teams currently at the top.

From the article above:
The upfront money isn’t the only bucket distributed unevenly. Future revenue distribution from the conference is staggered: Ohio State, Michigan and Penn State at 5.5% of league revenues; Oregon and USC at 5%; and all others at 4.9%. UC Investments collects 10%.
 
Did you guys see the comments for the guy in the Michigan BOR that Michigan is fine to go independent in 2037?

We can quibble about the details, but the point of this deal is to make sure all of the schools are protected from being made irrelevant by a super league.

I don’t think we should blindly assume that NU would be part of a super league if it comes to that - we don’t even know many teams would be in it.

We don’t have to like it, but look how the big ten is valuing is in this deal. That might give an indication of where we really are. We will have to fight for our lives if there’s a super league.

If there is no GOR extension, it’s going to become imperative that we make ourselves nationally relevant again.
 
Take away the uneven revenue distribution, whether it be upfront money or the percentages of future revenues, and this looks like a great deal all the way around. IMO.

But what we have right now is OSU flexing and holding their perceived leverage over the rest of the conference. They (OSU) know it’s a great deal, but they’re not gonna let it happen unless they get a little more of it than all/most of their conference partners. “We get more, or you get nothing at all.”

And sadly it seems, most of the B1G are more than happy to let OSU get the biggest cut if that’s what it takes to get the deal done.
Ohio St is going full Texas and look what they did to the Big 12.
 
Did you guys see the comments for the guy in the Michigan BOR that Michigan is fine to go independent in 2037?

We can quibble about the details, but the point of this deal is to make sure all of the schools are protected from being made irrelevant by a super league.

I don’t think we should blindly assume that NU would be part of a super league if it comes to that - we don’t even know many teams would be in it.

We don’t have to like it, but look how the big ten is valuing is in this deal. That might give an indication of where we really are. We will have to fight for our lives if there’s a super league.

If there is no GOR extension, it’s going to become imperative that we make ourselves nationally relevant again.
I think it's a pretty safe assumption that we would be included, personally. Too much money to be made off our fanbase. Plus I don't see it being some small group of teams. In my mind, you are probably talking 30+ teams.
 
It’s hard to say that.
Nebraska tends to over value itself … a lot
There's definitely some truth to that but I still think we're too big of market. And even though our success hasn't lined up for a long ass time, we're still a blue blood program.
 
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There's definitely some truth to that but I still think we're too big of market. And even though our success has lined up for a long ass time, we're still a blue blood program.
Maybe, but do you really want to run the risk of what would happen if your assumption is wrong?
 
I think it's a pretty safe assumption that we would be included, personally. Too much money to be made off our fanbase. Plus I don't see it being some small group of teams. In my mind, you are probably talking 30+ teams.
I agree, honestly. Nebraska is one of the highest revenue football programs in the country and one of the most valuable brands.

I don't think something like AAU membership is going to determine a schools inclusion in a "super league".
 
There's definitely some truth to that but I still think we're too big of market. And even though our success has lined up for a long ass time, we're still a blue blood program.
Best selling point Nebraska has to a “super league” is viewership numbers. Finished 13th last year
 
I agree, honestly. Nebraska is one of the highest revenue football programs in the country and one of the most valuable brands.

I don't think something like AAU membership is going to determine a schools inclusion in a "super league".
Academics won’t even be a consideration since most of the sec would be included
 
Maybe, but do you really want to run the risk of what would happen if your assumption is wrong?
Have you seen our on field performances? I've been clamoring to shut down the football program for years!

But in all seriousness, I think there's risks either way in regards to this. If we had a crystal ball and knew what the CFB landscape looked like in 5-10 years, I think it'd be a lot easier decision.
 
Have you seen our on field performances? I've been clamoring to shut down the football program for years!

But in all seriousness, I think there's risks either way in regards to this. If we had a crystal ball and knew what the CFB landscape looked like in 5-10 years, I think it'd be a lot easier decision.
Also, if the proposed revenue splits under this B1G agreement bother you, wait till you see what they cook up for this new super league…
 
I think he's referring to the immediate up front payouts. From the article:

For the most prominent brands, they’ll reap the benefits of an uneven distribution structure. Along with Penn State and Michigan (if the Wolverines agree to the deal), Ohio State will earn an immediate infusion of $190 million, compared to around $145 million for the next group, Oregon and USC (if it agrees), and $100-110 million for the other 13 schools.
 
Either this guy's lying about the payouts or Ross Dellenger is.

Ross said "Ohio State, Michigan and Penn State at 5.5% of league revenues; Oregon and USC at 5%; and all others at 4.9%," and these splits aren't even close to that.
You're talking about two different things.

The 190-155-110 tiers are the one-time payments from the $2.4 billion dollar equity infusion.

The 5.5%, 5%, 4.9% are for all future payments from league revenues (ie TV contract).

So not only does this deal give more money to the top 3-5 teams in this one-time equity payment, it enshrines that they will continue to get bigger payments for the next 20 years. NU will get screwed now and later! The Big Ten has always divided up league revenues equally. This deal seeks to change that and give a permanent advantage to certain schools, with Nebraska among the schools on the very bottom rung.

The more I learn about this deal, the more I wonder why anyone outside of the top teir would agree to it.
 
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You're talking about two different things.

The 190-155-110 tiers are the one-time payments from the $2.4 billion dollar equity infusion.

The 5.5%, 5%, 4.9% are for all future payments from league revenues (ie TV contract).

So not only does this deal give more money to the top 3-5 teams in this one-time equity payment, it enshrines that they will continue to get bigger payments for the next 20 years. The Big Ten has always divided up league revenues equally. This deal seeks to change that and give a permanent advantage to certain schools, with Nebraska among the schools on the very bottom rung.

The more I learn about this deal, the more I wonder why anyone outside of the top teir would agree to it.
Ahh, crap, I missed that detail. Yeah, that makes it even worse when you seed it with even greater disparity.

Wonder if they're strong-arming the bottom-dwellers that they have to vote for it if they want to get included in future super-conference stuff.
 
 
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