Sunday, March 21, 2010

AIG has nothing on the big east conference

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the big east conference's basketball division is suffering through a disastrous ncaa tourney season.
the conference pockets huge amounts of money from its post season ncaa tournaments. i am singling out the big east because i've enjoyed their brand of basketball for 30 years, and i know a few more of their facts.

ncaa basketball money is a lot like the bcs. 6 major conferences get most of the money. the ncaa counts revenue units. every game you play up to championship gets you one revenue unit. the award 126 of them every year. they dont give the revenue units to the teams; they are given to the conferences. a unit this year is estimated at about $220,000. the conferences are paid based ona rolling 6 years. they try to smooth this out so that conferences when they are down are paid based on their performance from 2004 to 2009. nest year they will be paid on their performance from 2005 to 2010.
if a conference is down for a year, it doesnt really hurt revenues; if they are down for a long time, that's another matter. i havent found out how teams are reimbursed for travelling expenses(e.g. purdue to seattle). a team making the tournament would seem to have more travel expenses than teams that dont get to play. that seems unfair.

the ncaa owns all of the gate, no matter how many buckeye fans attend tournament games. 95% of their revenue comes from this tournament. they dole the money to the conferences and the conferences to the teams.

the way this works oout is that the big east, acc, big 12, big 10, sec, and the pac10 all have accumulated revenue units of 1.3 to 1.5 million each. the big east has accumulated $23.1 million. divide that by 16 teams, you get $1.4 each.
below the top 6 conferences is a big revenue fall off, with each teem getting about $700,000.

on the big east budgets, the team that spends the most on basketball in the big east is marquette, spending around $10 million with revenues of $13 million. the team that makes the most is louisville with expenses of $8.6 million and revenues of $25 million. georgetown has basketball expenses of $7.4 million, notre dame(4.3 million), depaul(3.2 million), south florida(2.9 million).

as you can see, a checl for $1.5 million is a big deal as you get down the food chain. these number are from 2009 title 9 disclosures. only one team in the big east reports a loss on basketball, notre dame. i dont buy their accounting at all. seton hall, st. johns, and depaul break even, TO THE DOLLAR. what are the odds of one team doing that? it's called allocation. notr dame just counts the face value of the tickets. they dont count the extortion behinf rvery ticket, which goes to the general fund. nebraska was charging a guy 24 gramd for his skybox. he said, 'to he11 with it. they went to far.'

that means all the schools are underreporting revenues and that gets into title 9 revenues and........

revenues are a game in the ncaa. the more you sift through the numbers, the more you shake your head. AIG had nothing on the ncaa and it's big conferences.

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