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Distribution of Big Ten conference earnings for Washington and Oregon, along with additional details | Mailbox Inquiries

The latest Hotline discusses the revenue sharing system within the Big Ten, specifically focusing on the University of Wisconsin (UW) and Oregon. It further delves into the question of whether the altered college landscape, as it currently stands, is sustainable for the long term.

The Big Ten's revenue distribution for UW and Oregon is detailed, while the lasting nature of the...
The Big Ten's revenue distribution for UW and Oregon is detailed, while the lasting nature of the revamped college environment is scrutinized in the latest edition of The Hotline...

Distribution of Big Ten conference earnings for Washington and Oregon, along with additional details | Mailbox Inquiries

In the Big Ten Conference, the media revenue distribution varies among schools due to factors including membership length and status. Notably, Oregon and Washington, as new members, initially receive a smaller share than the conference's founding members, but this is expected to change within the contract's term.

SEC football fan @Jalex0077 asked if Oregon and Washington were aware that their media revenue shares would fall in the 35-to-40 percent range. The response affirmed that they indeed were aware, and it didn't significantly concern university leadership.

This question allows for a deeper exploration of the Big Ten's revenue distribution system, particularly its impact on the Huskies and Ducks. The key point to note is that Big Ten schools do not earn $75 million to $100 million in media revenue; the $75 million figure includes postseason revenue from the College Football Playoff, bowl games, and the NCAA tournament.

The reported media rights deal, signed in the summer of 2022, provides approximately $62 million of the total payouts, with room for variation—$60 million or $64 million is possible. The value will increase over the seven-year contract period, exceeding $70 million per school by the end. However, as of now, the media rights portion amounts to low-to-mid $60 million range.

The addition of postseason revenues brings the total to $75 million. Importantly, the half-share status for Oregon and Washington applies exclusively to the media rights piece. Both schools collect full shares of the postseason treasure chest. Consequently, they will gather more than 50% of the combined revenue share.

Detailed figures for their expected revenue will be available with next year's budget release, yet it's estimated they will receive approximately $43 million from the conference, which represents approximately 57% of the full-share members' amount.

The media rights portion is projected to increase annually by about $1 million for these schools, and the new CFP revenue model will substantially boost their intake starting in the 2026 season. This increase, originating from a source providing full shares to both schools, should help them catch up to the other 16 schools. Although they won't reach parity during the contract term, their shares of the total amount distributed should exceed 60%.

Some may argue they would have been better financially in the Pac-12, but the exposure provided by the Big Ten is unmatched in comparison.

Meanwhile, Richard M raises concerns about the continued arms race in college sports—the increased spending on athletics, including athlete payment, coach salaries, and facilities. The Hotline counters this viewpoint because the universities profit significantly from successful athletic programs, particularly football, which offers unmatched brand exposure. However, there are aspects of the industry that require reform, such as the buyouts in coaching contracts.

In the 2026 CFP, Oregon State and Washington State are currently set to receive $3.6 million each, but the new Pac-12 schools won't receive the same payout—approximately $1.8 million. Nevertheless, the performance fund, likely to be implemented in the Pac-12 soon, may lead to a more balanced distribution of total earnings.

[2] Source: USA Today[3] Big Ten Conference Annual Reports (2021 and 2022) and official Big Ten Conference statements regarding the media rights deal and conference expansion.

  1. Despite the lower initial media revenue share in the Big Ten Conference, both the Huskies and Ducks are projected to receive approximately $43 million from the conference, which accounts for about 57% of the full-share members' amount.
  2. In Washington state, both the Seattle Seahawks and the Mariners, being part of the NFL and MLB respectively, engage in different sports compared to the universities' football teams, but they all contribute to the vibrant sports scene in the state.
  3. Interestingly, even though Oregon State and Washington State may receive less media revenue in the upcoming Pac-12 CFP compared to other schools, the potential implementation of a performance fund could lead to a more balanced distribution of total earnings, similar to the exposure opportunities provided by the Big Ten Conference.

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