This past Saturday night, the Democrats and CBS decided in the midst of some really good college football games being played and Continue reading →
The NCAA Basketball Tournament kicks off in a few days. As America tunes in to watch the games the NCAA will watch their bank coffers fill up. How much does the NCAA make each year during tournament time. According to Andrew Zimbalist, an economics professor at Smith College, hundreds of millions:
- “The institution itself that’s based in Indianapolis, makes money primarily through television rights to the March Madness basketball tournament. They get somewhere in the neighborhood of $770 million dollars a year. That constitutes around 90% of all of the revenue that goes to the NCAA,”
Television stations are more then willing to pay that type of money to the NCAA for rights to air the games. Here is their ad revenue from 2013:
Over the past decade (2004-2013), the NCAA men’s basketball tournament has triggered more than $6.88 billion of national TV ad spending from 269 different marketers. Ad revenue in 2013 was $1.15 billion, up 3.8 percent from the prior year.
It has been years in the making but the much anticipated Floyd Mayweather and Manny Pacquiao fight may happen this year according to the Associated Press.
Floyd Mayweather Jr. says he’s ready to fight Manny Pacquiao next May in a long anticipated bout that would be the richest ever in boxing. In an interview on the Showtime network from a fight card he was promoting in San Antonio, Mayweather for the first time called for the fight to happen and even gave a date – May 2. It would likely gross at least $250 million, and Mayweather’s purse alone would be more than $100 million.
Charity is wonderful feature of economics and free societies. For years the American Red Cross was seen as an American staple of society relating to charity. Unfortunately for several years now it has turned into a very secretive and untrustworthy organization when it comes to money.
Red Cross started to be questioned around the time frame of the 9/11 terrorist attacks. Just that one event, they raised over $530 Million dollars and put $200 Million of that into “administrative & long-term” functions. Multiple media sources started catching onto the story and they finally started paying out to the victims.
Sharyl Attkisson in her new blog post has raised more questions of what the American Red Cross is doing with Hurricane Sandy funds. The following excerpts were taken through her blog from propublica.org:
Just how badly does the American Red Cross want to keep secret how it raised and spent over $300 million after Hurricane Sandy? The charity has hired a fancy law firm to fight a public request we filed with New York state, arguing that information about its Sandy activities is a “trade secret.” The Red Cross’ “trade secret” argument has persuaded the state to redact some material, though it’s not clear yet how much since the documents haven’t yet been released.
And the main reason why the American Red Cross is claiming “Trade Secrets”….
If those details were disclosed, “the American Red Cross would suffer competitive harm because its competitors would be able to mimic the American Red Cross’s business model for an increased competitive advantage,”
I really cannot say what “trade secret” Red Cross would try to be protecting. Yes, organizations like this can protect logos and other identifying marks but people donating to charity is not a trade secret that has to be kept under wraps. Americans can now just sit on their couch and donate from their cell phones and computer devices if they so choose. The charitable donations were also on top of the $60 Billion the government gave to the hurricane stricken area. That money itself will also have to be probably be investigated.
Sharyl Attkisson herself investigated five major non for profits who received charitable contributions to help the Hati people after their major earthquake. This is what she found:
On May 12, 2010 I reported for CBS News on how 5 major nonprofits, including American Red Cross, had spent funds intended for Haiti earthquake victims four months after the disaster. I noted that enough aid had been raised to give each displaced family a check for $37,000 but thousands of Haitians were still going hungry and living under flimsy shelters. I learned that, to a large degree, the charities can’t tell anyone with specificity where exactly all the money goes. They can give general figures such as, ‘we’ve given out 10,000 meals’ or ‘we’ve distributed 10,000 bottles of water,’ but I wondered why there wasn’t a spreadsheet that explains how many bottles or meals were shipped to which refugee camp and when. It seems pretty basic. After all, somebody has to know. A lot of the funds that donors intended for “emergency relief” were, in fact, still sitting in funds unspent. Some charity officials privately acknowledged that many charities receiving a giant influx of donations in the wake of a giant disaster are ill-equipped to produce long term recovery programs. They sometimes find themselves frantically trying to figure out how to spend all the money in a responsible way that serves the mission.
Myself, this is why I have been strictly going with local charities of affected areas or if a national charity, one that does not hesitate to provide data on their sites.
Want to know how much money Big Ten schools rank from football alone? A lot and they are about to become very much wealthier. Before one bashes this money, just remember the next time you see a “softball complex” or an obscure sports facility being built on a Big Ten campus, that funding probably came from Big Ten football itself.
Hat Tip to Mike Carmin and his Big Ten football money article on jconline.com.
As a football enthusiast I remember very distinctly when the Big Ten Network kicked off in September 2007. The idea to air “Big Ten” only sporting events was laughed at by people not grasping the desire to see football games of all kinds. Six years later it is seen in almost 100 million homes in the U.S. and Canada. Financially it has paid its obligations and turned a profit just last year. Here is something else to ponder that Mike Carmin covered:
One year before BTN launched, the Big Ten Conference distributed about $14 million to each of its 11 schools.That was 2006-07. Six years later, that figure has jumped to more than $25 million.
Thats not all…..
According to documents obtained by the Journal & Courier from Purdue, the Big Ten is expected to distribute about $26.4 million per school after 2013-14 — and more than $35 million at the end of the 2016-17 academic year.
The robust payouts, which include a projected $30.1 million in 2014-15 and $33.3 million in 2015-16, will be sent to the core 11 Big Ten schools
Budgets vary greatly in the Big Ten when it comes to athletics. Ohio State currently operates a budget of $132 Million compared to Purdue who runs a budget of $70 Million. Here is the breakdown of revenue payments received:
Schools in the Big Ten share equally in the revenue generated by television contracts, NCAA distributions, bowl games — including Bowl Championship Series and the future College Football Playoff format — along with the gate receipts from the league’s men’s basketball tournament and football championship game.
The Big Ten is about to get a lot wealthier. Many of their TV contracts are due to be re-negotiated in 2016-2017(Minus BTN which is a 25 year contract).
In 2006, the Big Ten signed a 10-year, $1 billion deal with CBS and ABC/ESPN for first-tier rights and a separate 25-year agreement with BTN. The Big Ten’s deal with Fox to broadcast the football championship game started in 2011 and ends in 2015.
Projections are just that, but the aforementioned $35 million per-school figure may pale in comparison to what each school will receive once the league’s next television contract is finalized.
“The ’16-’17 year is an important mark because that coincides with the end of our current television agreement with CBS, Fox and ESPN,” Traviolia said.
Look for many Big Ten schools to enjoy continued financial success well into the mid 2020’s and beyond. The next bigger task will be to break up the NCAA and let the conferences soak in their revenue they stockpile.