Revolutionizing College Football: Proposed Overhaul to Drive $15 Billion Revenue Increase

https://icaro.icaromediagroup.com/system/images/photos/16367280/original/open-uri20241008-57-q4jelu?1728407346
ICARO Media Group
Politics
08/10/2024 17h03

**Proposed Overhaul in College Football Could Bring Major Revenue Boost**

A potential overhaul in college football, as proposed by Dellenger, aims to revamp the structure and scheduling of games, creating significant economic advantages for power conference teams. The initiative suggests eliminating games against Group of Five and FCS opponents, expanding the Playoff field, and arranging for traditional powerhouse programs to compete head-to-head more frequently. This would not only enhance the competitive landscape but also consolidate media rights for the 70 schools under a single agreement, deviating from the current model where each conference and Notre Dame negotiate their own deals.

Currently, the Big Ten earns $1.15 billion annually from television contracts with Fox, CBS, NBC, and the Big Ten Network. The SEC follows with a $740 million annual deal with ESPN/ABC. In contrast, the combined earnings of the Big 12, ACC, and Pac-12 amount to $710 million this season, a figure expected to rise by $160 million with the Big 12's new agreement starting in the 2025-26 season. The future of the Pac-12 remains uncertain, with Oregon State and Washington State as the only remaining members while Boise State, Colorado State, Fresno State, Utah State, and San Diego State are slated to join in 2026. However, their current media rights deal is set to expire this season with no renewal on the horizon.

The proposed changes are projected to generate an increase in media and sponsorship revenue of around $15 billion over a span of 12 years, with an immediate $5.3 billion infusion of private capital from future media revenues. Unlike the current distribution arrangements, this revenue would be divided into three tiers ranging from $130 million per school in year four up to $250 million in year 12 for the top earners. Teams in the second tier would receive between $60 million and $110 million, while those in the third tier could expect $30 million to $60 million. Various methods for tier determination are under consideration, including using past season results or an aggregate model spanning multiple years. Additionally, a relegation and promotion system is proposed, though one model suggests having eight permanent Tier 1 members to appease the sport's biggest brands.

Implementation of this system would require consensus among all stakeholders and involvement of Congress, as the proposed consolidation of media rights deals would necessitate changes to the Sports Broadcasting Act of 1961. An executive from an SEC school expressed confidence that this system will eventually be realized, signaling a significant shift in the college football landscape.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

Related