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Old 06-16-2009, 04:32 PM
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As Notre Dame's TV Money Dwindles, So Too Should Its Independence -- NCAA Football FanHouse
Quote:
As Notre Dame's TV Money Dwindles, So Too Should Its Independence

Posted Jun 15, 2009 11:45PM By Clay Travis

In 1990, Notre Dame signed a glitzy football television contract with NBC. The deal revolutionized college athletics and brought millions into Notre Dame's bank account. It was a huge financial windfall that guaranteed the Fighting Irish would remain independent from other conferences.

Chances are, you still think that Notre Dame is banking major revenue from this agreement in comparison to other teams. Chances are, you're wrong. What do Vanderbilt and Northwestern have in common when it comes to football? Answer: They likely both get more money for their televised football games than Notre Dame does. As does every other team in the Big Ten and the SEC.

Notre Dame doesn't release their finances publicly, but there is zero doubt that a colossal rewriting of collegiate athletics has occurred in the 19 years since the Irish and NBC first became television partners. How has this happened? Television has a voracious appetite and hours of programming to fill. Bundling and selling a major conference to ESPN's network of properties, as the SEC has done, or creating their own network while selling some games to ESPN, as the Big Ten has done, is more valuable now than selling one great property, like Notre Dame football. In college sports, the whole is truly greater than its parts.
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In 2008, NBC ponied up an extension to the Fighting Irish television contract. USA Today reported that the current contract paid Notre Dame in the neighborhood of $9 million per year. The new deal won't begin until 2010, but it's doubtful the rights fees increased very much, since Notre Dame's television ratings have been dwindling for several years. (Last season, the average Notre Dame game on NBC drew less than half the ratings that CBS and ABC averaged for their college football games.)
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The Irish also bring in a share of revenue from the Big East for basketball. But that number is set contractually and isn't particularly large.

For example, Syracuse, a member of the Big East for football and basketball, took in just $4.7 million from the Big East in 2007. Even assuming that Notre Dame gets half of this number (which it likely doesn't, because football floats the boat in college athletics), Notre Dame's television and shared Big East conference revenue in 2009 will be, at best, $11.35 million.

Why's that number important? Because in 2008, every school in the Big Ten will clear north of $15 million from the conference, a number that will only increase in years to come. Every school in the SEC will bank, conservatively, $17 million.
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Let me repeat that, the Big Ten Network alone has almost equaled the payout for Notre Dame's sacrosanct contract with NBC.
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