WildUte University: Notre Dame's Financial Doomsday
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- เผยแพร่เมื่อ 3 ก.ค. 2024
- The College Football Mafia Network Presents...
WildUte University: Notre Dame's Financial Doomsday
Join WildUte as he takes a deep dive into the numbers to see just how independent power, #NotreDame, stacks up financially compared to its rivals the #SEC and #bigten . - กีฬา
Good video: The keys to ND’s future are 1: The day when athletes will be paid and how does it affect ND? 2: When and if Clemson and FSU leave the ACC how will that affect ND?
Those will 💯 have major bearings on Notre Dame’s future.
Yep! I never took seriously they'd feel pressure based on not having a bye week. Those two you articulated are the doomsday.
If ESPN doesn't renew and the next offer is significantly lower with the top four brands leaving, that $15 is probably cut in half. I also don't know how they can backfill a schedule without FSU, Clemson, and Miami and still be top 12 worthy based on SOS.
And if revenue sharing will be done at the conference level, that will make them noncompetitive from a talent acquisition and retention standpoint. I think they intentionally signed a 5 year NBC deal because it'll end when the B1G is renegotiating their new one.
I’m still thinking the Big 10 makes the most sense for ND. They have a lot of history with potential natural rivalries in the Big 10. We’ll see.
@@heartbreak25 💯💯💯
The Big10 just locked in for 10 years. Only ND will be renewing their TV deal in 5 years.
Great work as always WildUte!!
Actually, I think a $10-$15M difference doesn't move the needle for ND. The bigger threat is if the ACC completely implodes, and ND can no longer schedule games that their alumni care about. On that point, does the new ND media contract with NBC carry any stipulations about opponent profile? Schedule could be the final arbiter of ND's future alignment, especially if the Big 10 schools won't play ball with ND.
ACC implosion is a huge threat. Still, Notre Dame has historically made more money in football than any B1G school. Now they’re losing ground. That’s tough to compete with.
You are spot on. If push comes to shove, Notre Dame, in my opinion, will join the ACC in football and keep the ACC together. They were blackballed by the Big Ten multiple times. I know that’s ancient history, but I believe those scars are still there by some. One question I have and maybe it can be discussed, is what happens when athletes are paid employees? I guess they don’t go to school? They are just employees? Then there will no doubt need to be contracts just like in professional sports. So then how do colleges presidents and A.D. react to this? Everything in our society today is a money grab. . It will then be a true minor league, which many say it is now anyway.
Another thought I had just a follow up is that I think there will be 2 separate leagues for football. One will be paid athletes, and the other will go back to a traditional original format but I don’t know how the schools will get around that. But what will happen to the schools that can’t afford to play in this high stakes game, which in my opinion would probably be 40 or 50 schools in the NCAA division1 now
@fredlaskowskiAzIrish If you take "student" completely out of "student-athlete", college football is just football, and the whole thing is a farce. I can't see this happening. These contracts will likely include some kind of stipulations around student responsibilities, even if they're shallow.
@@fredlaskowskiAzIrish It's been commonplace for over 100+ years for employees of a school to also be students, attending classes - usually at a sharp discount or entirely free. That's usually one of the perks in working for a school. I went to an Ivy League school and can recall people who were older than most students, everyone from campus police to maintenance workers attending classes.
There is more to the picture than this total revenue figure.
Notre Dame has long employed a three-part strategy to remain independent in football: having a committed broadcast partner, a pathway providing “adequate access” to the College Football Playoff, and a “sensible” home for the school's Olympic sports, particularly relating to travel.
1. The NBC contract has been extended 5 years CHECK
2. The new CFP agreement starting in two years with 14 teams guarantees ND a spot provided they are ranked at least #14 in the CFP poll. CHECK
3. IF the ACC goes down, look for ND to go back to the BIG East, a basketball conference that needs some high-value exposure besides UConn and Villanova. CHECK.
Now consider the following:
1. ND is about to sign either the largest or second-largest athletic apparel and footwear of all schools in the country.
2. The NBC contract was extended for 5 years while the SEC, Big Ten and ACC contracts go to the middle of the next decade. ND will be the only player in the bidding in 5 years when everything in play is better understood.
3. The biggest misunderstanding is the overall size of the institutions. TA&M appears to be the biggest in the SEC with 75,000 students and Mississippi is the smallest public school at 17,000. Vandy has about 7400. In the Big 10, OSU has 60,000, PSU has 89,000. Michigan has 51,000 and Northwestern has 23,000 on the low end. Notre Dame has 8000 undergrads plus 1100 grad students, an endowment fund of $19B+, and a cost of $72,000/student per year. The quality and size of the student body limit the money spent on administers, security, and maintenance when compared to the massive size of the big state school campuses.
4. ND also has something else that is unique, over 350 alumni clubs located in every state and 40 countries. FL, TX, and CA each have 20 or more clubs and the Chicago Club is the largest. These clubs form the backbone of fundraising. They could also be used to entice recruits to SB. Paid trips home and a large money stipend to make an hour speech to the members. Even Kickers and long snappers could partake in the payout. Absolutely legal. Just one example of the potential of these clubs.
5. Scheduling won't be a problem if the ACC goes away. Many schools would like to fill up their stadiums at least once a year and ND will do that. Always has.
6. Finally, most of the top coaching positions are endowed by alumni and/or friends of ND.
ND is awash with money. A lot of that TV money goes to fund scholarships for regular students who are not into sports. That has always been true. All monies go into the general fund.
The only big stumbling block for the future - ND's President has stated the school will not accept players becoming employees of the University under any circumstances.
You Hit Everything. Well Said.
Good video. 1 item most people miss when calculating the number is that the Big10 schools own 39% of the B10 Network..
That is 5-10 M more per school as it is not part of the contract. It depends on yearly revenue.
I found an article from 2010 that the distribution was 6M per school. That was before adding the carriage fee increase from the NY and Wash Market... and now the Los Angeles Market. Now there has been some cord cutting so it probably isn't 15-20M. But easily 5-10M
Great point. There’s another reason! Doomsday.
@@wildute6958 It just means over time the SEC and B10 will have "bigger and nicer" things (whatever that means) . ND fans will need to pony the difference to stay in line on top of NIL.
I for one hope they remain independent as over time they become irrelevant which means they will have to Bend The Knee with no leverage.
As someone with no skin in the game I hope they stay in the ACC and keep it viable after 3-4 schools leave. Not sure that adding Pitt or Lousville actually increase the money for the Big12... so might as well stay in the ACC and let it become a distant 4th conference.
Great presentation. FSU fan here and your work is awesome. Thanks for your open and balanced coverage of tge ACC drama.
Ute, but ND has a MASSIVE endowment 🤔
Oh the massive endowment question. That’s the ole Stanford dilemma.
@wildute6958 Ute, PATC did a live show about ND staying indy. IMO, ND won't win another title as an independent.
I heard reported that SEC schools were receiving 23 million per year. Big Ten conference is getting the same as SEC conference, but has to divide it more because of the 2 additional schools they have (18 schools compared to 16). So that’s why Big Ten is 21 million, while SEC schools are at 23 million.
Good comment, Dr. Dan. That's what was originally thought, but the final figures shook out fairly equal around $21M. If you happen to find something different, then please shoot me the recent article or source.
Man that slumlord espn was Way under paying Sec for years!!!
Right! ESPN and CBS hosed the SEC!
That is why the Big 10 is the only conference without an ESPN deal but the richest conference.
Personally, I don’t think money drives Notre Dame as much as everyone else. They likely get enough endowment money to do whatever they want.
Sounds like a great debate, Couz. 😉
The problem for ND is scheduling, the SEC, B1G won't schedule them with more teams in each league, BiG 12 including, the MAC will be open to them, ND strength of schedule will drop off.
The only team in the BIG that ND cares about is USC and they will always play them.
Great vid, I would only add that a lot of these teams from the big 10 and sec, their expenses can double, almost triple that of Notre Dame
Good comment, very interesting, but am curious why the B1G/SEC expenses are more than Notre Dame. In my mind, conference affiliation would save you money in the long run. Also, media rights dollars are distributed after conference expenses.
Good click bait. Just another angle to try to push them into a conference. They are not like other schools that have to rely on football for their budget. Do you have any idea how much non athletic money pours into that school?
ND finances are so misunderstood in the sports media.
Giving you the best click bait around 😂. To my knowledge, no one else has made something like this before laying out the $$$.
See you soon Notre Dame! I am inevitable.
Sincerely,
The Big Ten
Lolzers! Sooo true.
What your missing is the big ND endowments. They have a lot of money at their disposal.
Endowments are donor funded investments. If your football teams needs endowments to compete, you’re opening at a loss. That’s not ideal for anyone, especially Notre Dame.
@@wildute6958 Tell that to Oregon and Mr Knight. Tell it to the SEC buying players for years, being funded by boosters. It doesn’t matter where the money comes from as long as it arrives. In ND’s case it’s all legit. The ND brand is bigger than ever and growing under Marcus Freeman. If they join a conference, they are like everyone else. What’s the fun in that? For a program that’s so irrelevant and needing a conference, they seem to be the talk of the town. Go Irish-Stay Independent!!!
Notre Dame is not irrelevant, not at all. Just don’t want to see them falling behind mediocre B1G schools. Not just Notre Dame has an endowment. Every school could deploy donor funds. That’s just not good sports business.
49% increase for ND, 61% increase for the Big 10, 78% increase for the SEC. ND also has to think about the quality of their opponents. It’s going to get harder and harder to schedule serious opponents. Why would a team like Ohio State play an independent ND when they can play a better opponent in conference and retain that revenue. ND can stay independent, but it will come at a financial loss and loss to the quality of their football team and their ability to schedule high quality opponents. They might be able to pull this off this cycle, but long-term being independent is no longer sustainable if you want to be elite. Of course, ND hasn’t been elite in over 40 years.
Yep yep yep!
Why do they want to,play ND? Because ND draws ratings. Year in year out. You may not like it but it is true. They have a 20Billion endowment. They don’t need money like Ohio State and Purdue
I am a Notre Dame fan and I agree with you.
Yes, the Irish can remain independent.
Bear in mind there are other revenue streams that Notre Dame far exceeds most schools with too.
Yes, it is. Irish make great money, much more than ACC teams or Big12 teams. But, that B1G money is tough to pass up.
This is really overdramatic. The fact that with the CFP escalator, ND can get to under 10 mil difference between them and the big 2 is actually a pretty solid negotiation for ND. They can live with that gap. Half the donors drop 5 mil out of their pockets just pulling into the parking lot getting out of their car. This is no longer a concern, the ACC crumbling is a more serious threat to Independence than this $ is. I get the ND clickbait, but ND folks are fine with this deal.
NBC is a fool to pay Notre Dame 50 million to play the schedule they been playing at home (Tenn St., Cent Mich, Wake Forest, Pitt, Marshall, Cal, Stanford, Boston College, UNLV, Toledo and Cincy) are teams who been on they schedule the last 3 yrs. If the ACC fall then who will ND ☘️ turn to for a schedule? And NBC raise the payout for those junk games 🤦🏾♂️
Yep! 💯. NBC is not going to keep playing this game with Notre Dame, especially if they have poor home opponents. Irish will bend the knee.
If you are going to do a cash flow to deficit analysis, then why don’t you factor in the millions of dollars each school pays to the conference for being a member? That would give a true financial statement.
Since conference commissioner and staff are on payroll for the conference each school must pay a fee. Is that fee +\- 10 million? Or is it more. Plus the conference pays referee fees and that comes with travel expenses. So do the real math and stop being so naive.
If it costs 10 million per school then the actual difference is much less.
B1G media distributions per school are net conference fees.
LOL!!!!! Thinking 10 million will make or break ND!!!!!
Our endowment is 20 BILLION and growing....keep trying tho.
You really want to fund your football program with investment funds? The means your football program is operating at a net loss.
Naw. The Big 10 is cool with Notre Dame staying over there. We know that they're in Indiana.
For whatever it's worth, the Irish have it baked into their budget that they'd earn at least $15-$20M less than the B1G going back 10 years.
What's not included are their overpriced sponsorships like with Under Armour that also plug the hole. A school like OSU and Michigan may offset the Irish sponsorship dollars, but Rutgers and Indiana do not. Based on your numbers, yes, the Irish are financially competitive.
The biggest issue is the ACC money being reduced and the playoff money being increased for the P2 on the look-in. That plus revenue sharing is the doomsday math.
They probably had it baked that they would make 5-10% less, not 15-20M. 10 years ago that was only 5M. Next year it might be 15M. Eventually it will be 25M+. So yes Rutgers will be making more soon if they aren't already next year.
10 years ago they were probably in top5 if not top10 easy in revenue.
5 years from now they will be outside the top30.
@@xmositoxc147 That's not true. The Irish were asked in 2014 to join the B1G with the new Fox contract and B1G Network. They did the cost-benefit analysis and declined it. Keep in mind the Irish did not have the ACC TV deal until 2022.
B1G schools started averaging over $50M payouts around 2020 once the B1G Network peaked in subscribers. The Irish at best was at $30 million with the ACC ($10M) and NBC ($20M) deal. Everyone shared equally the playoff pot.
So how can you talk about a $15M revenue gap being a problem in the future if it's already existed in the past? Swarbirck said that they're willing to pay a price for independence. They've been paying that price since they declined the B1G invite 10 years ago. So the status quo is simply prevailing now.
@@xmositoxc147 B1G schools started earning over $50M each starting around 2019 when the B1G Network peaked subscribers. The Irish only earned $30M from the ACC and NBC deal. So how is the future different from the past again?
Their AD said they're willing to pay the price for independence. They've been paying it since the B1G Network launched. What's not being factored are their overpriced sponsorship deals that also close the gap.
@@heartbreak25 lol, so you just made my point even better.... so it is 20M now and 40M+ later.... quicker to either become irrelevant or Bend the Knee.
Thanks for that. Makes it more enjoyable
@@xmositoxc147 You're commenting on a video you didn't watch? Got it. You might want to watch the last minute where he compared the future numbers and then edit your comment. 😂
And ND is happy to make less money then Purdue lol 😂 they also would make more money them and the big ten as a whole would make more money if ND joined the big ten ND is nutty I til ya
Right! It’s wild stuff
Cheers, and Happy Easter
If ND doomsday occurs and ND has to join a conference and do have to join the ACC that’ll be brand catastrophic would it not??
That’s a doomsday scenario!
@@wildute6958 How valid is the GOR? How long can ND work at a deficit like the video alludes compared to competition? How valid is ND’s contract with the ACC? That’s really the three big questions that may force doomsday.