The Big Ten is Flush With Cash, But How Much of It Should Ohio State Be Forced to Share?

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chibucks's picture

did i miss where we break down how much tOSU contributed?

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bucksfan92's picture

I have to assume $758.9 million :)

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BucksHave7's picture

Thats why when I turn on B10 Network and its woman's softball on, drives me nuts.  Give me more Buckeyes!!!!

BucksHave7

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jpfbucks01's picture

just a fyi on scale and scope of this number

"The Ohio State University Wexner Medical Center in Columbus ended the fiscal year 2018 with strong finances, according to The Columbus Dispatch.

In the fiscal year ended June 30, the nonprofit medical center recorded revenue of $3.7 billion"

to put that into perspective, the Hospital generated 387% more revenue than the entire Big ten conference generated from their TV network/website, etc

So if you wonder why a guy with a medical background runs the university, this may help understand why

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hetuck's picture

The athletics share of the $15.2B in the study was $400.5M. That's a good return for zero tax dollars. 

Winning is a habit. Unfortunately, so is losing.

Vince Lombardi

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semperfibuck's picture

Forgive me for asking then, why is the Medical Center so poorly run?  Does it yet have a permanent CEO? Has it returned to being a Top 10 medical center or is it still in decline/ Is it even the highest rated medical center in Columbus? It’s amazing to me that people think the same guy who screwed up the investigation of TBDBITL can successfully lead the OSU Medical Center?

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ohiopanda's picture

How has it been poorly run? Two years ago there was stuff with the CEO, but I haven’t heard anything since. Obviously has a CEO and is easily the top in Columbus, and is well regarded in quite a few fields not including the James. It amazes me that people whine about a university president over a band investigation and football investigation, with the current direction of the school both athletically and academically.

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mtrotb's picture

3.7 billion shows why we have health care issues in the US

mtrotb

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Ethos's picture

5 bucks says their staff still sit around 25 bucks an hour while the hospital administration comes close to outnumbering them in people and make close to triple.

"I spent 90 percent of my money on women and drink. The rest I wasted." - George Best

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bucksfan92's picture

I sort of get the point you are making here, but it's apples to oranges.  OSU is a single institution, so comparing the situation where the 2 big sports prop up the remain gin 34 isn't the same scenario as a consortium of 14 institutions being mostly propped up by the top 1 (or 2 or 3). I also don't necessarily think it's a call for OSU to go independent either - although honestly that wouldn't bother me at all, it's a belief I've held for decades. But everyone knows and has already agreed to the rules about how the pie is divided up, so there is no room for complaints at this point. We could have been like Texas in the B12 and demanded an outsized share, and we would have a more legitimate claim to that than Texas, but we didn't, so you can't come back now and protest (not suggesting you are, just a general statement). It's equitable but not fair.  Like literally everything in life that is divided into equal parts. But it's the agreement OSU entered into, and it's $50 million more into the bucket.

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gr8bucks's picture

I don't know that the big two would bring in near as much money-per school, as the big does now. But as everything is cyclical, it's best for the whole, that there is a big, rather than a big two. But maybe nd and texas would say, look again, it works for us. 

I think if one notes that there are only a max of 2-3 revenue producers per school and extrapolates that to 2-3 bell cow institutions per conference, that the point is apples to apples. It's not like there will ever be 14 revenue producing sports, no more than there will ever be 14 institutions leading a conference. The 2-3 will change from decade to decade, but there are some consistent leaders, as there are laggers. I don't hear many calls for Purdue to leave the league these days. Rutgers is fun for some to pick on, perhaps they'll have their day in the sun as well. I certainly wish them all the time they need. 

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Hovenaut's picture

For the record, if my opinion is worth anything tangible above jack squat, I think Purdue deserves a little less this go around.

Got M...igan gossip? Bang it here.

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OsuSuperman's picture

And Iowa for good measure

Go Bucks!

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hetuck's picture

1. Read Gene Smith's comments in today's Skull Session. Those are not the words of someone from a school seeking to break away. 

2. Ohio State has 36 varsity sports, not the 30 mentioned above. 

3. Ohio State's comity goes beyond what is listed. The B1G is the only conference that shares football conference game gate revenues. Obviously OSU, PSU, and TUN are the big donors. It may change in years when they only have four home conference games, but the principle remains. OSU suffered from the move to a nine-game conference schedule. They could afford to pay for another home paycheck game; Indiana, Northwestern, etc., could not. Again, see Smith's comments about sacrifice. Thankfully it has not extended to a home Friday night game. Yet. 

4. Athletics pays back to the university. They paid $5M for the library renovation. Every year they pay for use of facilities while also paying off the bonds for Ohio Stadium renovation and for construction of the Schott. That's like paying rent and the mortgage on your house. 

5. The $759M figure is FY18 that ended last June. I expect this to be static for FY19 ending this June. The B1G had one less NY6 bowl participant. Ad revenue for BTN was probably slightly higher due to an election year and better economy. Also the B1G was the top earner from the NCAA basketball tourney. 

https://www.apnews.com/09a28b408437423c86a6dbab2ae93e7d

Winning is a habit. Unfortunately, so is losing.

Vince Lombardi

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Johnny Ginter's picture

mea culpa, i'll change it to 36

BrutusB's picture

Wikipedia says we have 37, though the table then lists out 32 (34 if indoor and outdoor track are seperated). So maybe it changes daily. 

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hetuck's picture

Spirit squad is listed under both men and women. I combined them. 

Winning is a habit. Unfortunately, so is losing.

Vince Lombardi

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BrutusB's picture

To clarify on your second point, gate revenue sharing is capped at the higher of 35% or $1M per game, and also excludes suite sales. So we’re sill keeping 95%+ of that money. 

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hetuck's picture

Agree, but the main point is the Big Ten is the only conference that does it. Attitude is what I'm trying to illustrate. 

Winning is a habit. Unfortunately, so is losing.

Vince Lombardi

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BrutusB's picture

Anyone looking for an example of what happens when a school gets too high an opinion of itself can look to Texas and the Big 12. I’d rather be in our current situation than theirs  

Also, while the tv contract  and bowl revenue are pooled, gate receipts and merchandise sales are not. So it’s not like our fans are giving their money to Indiana and Minnesota. 

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tmothy07's picture

Yup. Seems like every other day someone writes something about the B1G and Pac-12 vying for the few big guns of the Big XII, leaving the rest to fall where they may. I'd rather be the predator than the prey for sure.

Though, the Big 8/SWC/Big XII just seem to have massive institutional issues as a manner of doing business, but that's neither here nor there.

Ohio State Engineering - Class of 2015

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Scarlet_Lutefisk's picture

Oh there is the occasional BXII nutter who believes that they are going to lure Arkansas and Nebraska back and then steal the top teams from the Pac.

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GoBuckeyes1020's picture

So what you are saying is we should embrace the socialism that is the Ohio State athletic department and the B1G.........I get it. Johnny, you're flirting with the ban hammer 

The pain of discipline or the pain of regret, take your pick

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Wargor's picture

All joking aside, I've also heard articles attributing much of the NFL's success to their revenue sharing model.  

It really shouldn't be a hot-take to recognize that there are settings on the dial in-between pure, cut-throat capitalism and hive-mind communism and that can produce superior results to either ultra-extreme.  

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Johnny Ginter's picture

yeah, football and baseball's revenue sharing model really should be the gold standard imo

Wargor's picture

Can we get a definitive call on game gate revenue?  Hetuck and BrutusB are putting forward diametrically opposed takes.

If we could get that in a spirit of brotherhood and charity, that'd be extra nice.  Save the heated words for the game of thrones threads.  ;)

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BrutusB's picture

Cliff notes version: we share gate receipts for conference games, limited to the lower of 35% or $1m, which excludes suite and premium sales. So depending on the schedule, we’re kicking in either $4 or $5m as a contribution (which will then be offset by our receiving portion of the sharing). 

So in a budget that runs into the nine figures, the $3.7m or whatever from this is largely symbolic. 

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FrankTheGrimes's picture

All i see in this article is the big ten making a large mistake taking the 2 east coast schools.   How about you have to earn your stay in the big 10.  Teams that are terrible, you know who im looking at, are put on probabtion and replaced if they contuially have terrible season after terrible season.  

“Feeling cold is psychological” -Woody

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Wargor's picture

I suspect you are looking at things too narrowly.  The academics really matter, as do the research dollars.  And even with the athletics, if you are only looking at rutgers and maryland on how many touchdowns they score, you are missing the added revenue from those TV markets.  

I'm not saying they are great adds, or even good adds, just that the evaluation is much larger than football or even sports.

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FrankTheGrimes's picture

My comment is stricktly for sports revenue.  Does the big ten share research revenue as well?   Athletic conferences are just that.

“Feeling cold is psychological” -Woody

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Wargor's picture

Big Ten Academic Alliance.  I can't speak to shared research revenue ($9.8 Billion), but they do share:

  • cooperative purchasing and licensing
  • course sharing
  • professional development programs
  • library resources
  • information technology
  • study abroad and international collaborations
  • faculty networking
  • participant in Google Books Library Project

By all appearances, the academic collaboration of the conference is a pretty big deal for who is in and who is out.

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Scarlet_Lutefisk's picture

The massive jump in revenue was primarily after signing new media rights deals which saw massive growth because the B1G became a larger player in some of the largest media markets in the country after the admission of Maryland & Rutgers.

If you want to forgo a large part of that additional revenue by kicking them out, go right ahead.

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mr.green's picture

The SEC schedules to help it’s best teams navigate the season with more wins. Ohio State should never play a football game on Thursday or Friday in the middle of the season. They should never play a night road game after a major match up the week before. Alabama would never be treated that way by the SEC.  

thats all i ask  share the revenue  

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semperfibuck's picture

“Most of those megabucks go back into the running of one of the largest athletic departments in the country.” 

This is an example of PC writing that drives me crazy. “One of the largest...”. No, it is THE largest (by far) athletic department in the country.

And other than “getting along” or “being collegial”, explain again why should deadbeat departments at RU, IU, UI, Purdont, Maryland, and Minnetonka share equally with tOSU? They don’t spend wisely and they are not competitive.

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Johnny Ginter's picture

im not sure what you mean by "PC writing" but texas and tamu both had higher revenues than osu (michigan had almost exactly the same).

also Texas has almost as many varsity sports, and stanford has the same amount. so no, it's not by far the largest.

IGotAWoody's picture

See Wargor's response above:

I suspect you are looking at things too narrowly.  The academics really matter, as do the research dollars.  And even with the athletics, if you are only looking at rutgers and maryland on how many touchdowns they score, you are missing the added revenue from those TV markets.  

I'm not saying they are great adds, or even good adds, just that the evaluation is much larger than football or even sports.

“The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint enough to keep from meddling with them while they do it.” – Theodore Roosevelt

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ibuck's picture

And other than “getting along” or “being collegial”, explain again why

Are you saying that only your criteria for good reasons matter in this? 

There's more than sports involved, and there are more sports than football involved. In fact, 30-some at OSU.

Our honor defend, so we'll fight to the end !

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macdaddybuckeyesupreme's picture

I see what you're saying as Ohio St most likely makes that TV deal what it is. However, look at the big 12, they don't do partner revenue sharing. Texas gets the majority while the rest get scraps. Not to mention they double dip with their own network. Ohio St carriers a heavy burden, but would we really want it any other way? I wouldn't, I want my buckeyes to be the reason for those sweet sweet TV dollars keep rolling in. Just wish they would stop increasing the ticket prices

Successful people do what they have to, whether they feel like it or not

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grantlandR's picture

All for One, and One for All!

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CowCat's picture

I really have no problem with BTN splitting the TV money evenly. BTN doesn't belong to OSU. They broadcast a wide variety of intercollegiate sports within the conference. They seem to give equal air time to all of the schools. Equal time = equal cut.

As this article points out, OSU athletics makes plenty of money internally. We don't even need the BTN cut. It's just icing on the cake.

"We get paid to score touchdowns, not kick field goals"
-- Urban Meyer

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