Photo courtesy of northwoodsleague.com
I’m not a IPA beer drinker. I drink Miller Lite and that’s about it. With that being said, consumers are drinking up several different brands of beer made locally where they Continue reading →
Buddy emailed me a business article from USA Today (10 retailers take two-thirds of your money). Subject showed that only a few retailers make up a major portion of the market.
Something that caught my eye was that of Walmart and where their revenue comes from. Walmart is a smart company and are more global than what people think. How global? Check this stat out:
It’s true that Wal-Mart has a much larger international presence than other retail giants – as roughly 41% of revenue comes from outside the U.S.
Mark J. Perry of Carpe Diem Blog provides data showing the slow business death of newspaper revenue. Their digital revenue does not add much growth either.
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:
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:
I filed my taxes this past weekend online through H&R Block and stumbled upon the Obamacare tax. The sly government gurus have gave it a warm fuzzy college theory name of “Shared Responsibility Payment”.
Remember, under collectivism, shared responsibility also involves shared misery.
Ball State athletics has an annual budget of over $17 Million a year. After revenue is collected from tickets, teams paying the University, parking, donations, etc it still has a budget shortfall of $11 Million. Enter the students. Fees are tact on to their tuition to make up this shortfall. Students did not realize this like this one:
“Wow, I wasn’t aware of that,” Ball State freshman Macon Shroyer from Selma
All the MAC schools are doing what Ball State is doing.
The vast majority of students in the Mid-American Conference, of which BSU is a member, are “flat-out stunned” to learn how much they pay in athletic subsidies, says David Ridpath, associate professor of sports administration at Ohio University, who surveyed 3,243 MAC students.
You can read the rest of the article here.
Colorado government tax revenue prediction was off for the first six months of legalized pot sales. They were only off by about 70%.
When voters approved recreational marijuana sales the state predicted it would pull in more than $33 million in new taxes in the first six months. The actual revenue came up more than $21 million short.
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.
Hoosier Econ 