The Southeastern Conference has mastered the art of financial statement preparation in an impressive and predictable way.
For the Securities and Exchange Commission, the annual revenue release means another striking figure. Think of the conference as a college version of Apple, generating record profits year after year.
The latest staggering number came last week when the Securities and Exchange Commission announced revenue of $777.8 million for the 2020-21 fiscal year. That translates to $54.6 million for each of the 14 member schools, including Texas A&M. The number represents a $9.1 million increase over 2019-20, the first fiscal year affected by the COVID-19 pandemic, and sets the stage for many expensive contract extensions and facility upgrades.
The total amount of the distribution comes from revenue generated from television deals, bowl games, College Football Playoff, the SEC soccer championship game, the SEC men’s basketball, NCAA tournaments, and additional surplus distribution.
Should there ever be any doubt as to why Texas and Oklahoma were so intent on ditching their long-running convention affiliation and established competition to join the Securities and Exchange Commission, you need not be Jack Reacher to find evidence here.
Do you remember Texas President Jay Hartzel’s appearance before a Texas State Senate committee last year to consider this rift?
Harzl told the Senate, according to Texas Tribune “That the SEC might be a better home to university, providing us with greater certainty and lower risk.”
More than anything else, this logic continues to return to dollar signals for both Texas and the OU, although Oklahoma President Joseph Harrows emphasized that it was something bigger last summer when the move occurred.
“This is a move for stability, conservation and reproduction,” Harrose told the Oklahoma State Board of Governors. “Again, my time being, not my pushy time.”
The thing is, stability and cold hard cash are never far apart.
Neither Texas nor Oklahoma is poor. The two schools always rank among the highest revenue-producing sports divisions, with Texas at or near the top, and Oklahoma usually in the top ten.
And college sports are changing as both schools know everything from name/photo/similarity to the new college football match format at the end of the decade.
The pandemic has also shown that even Oklahoma and Texas are at risk.
Texas Sports revenue fell by $48.1 million for the 2020-2021 sports year affected by the pandemic Austin Statesman I mentioned last month. Even with the big belt tightening, it resulted in a $14.6 million loss.
Figures for Oklahoma were not available but were expected to drop significantly in the 20 to 21 year period. Like Texas, Oklahoma has laid off a number of its athletic department employees. The university is in a position to recover from deep financial problems dating back to David Boren’s tenure as president.
Not that Big 12 wasn’t profitable for the long centuries and soon. The conference announced the distribution of $34.5 million to each school for 20-21 students. In May, the Big 12 will likely cross the $40 million per member mark. While the Big 12 has lagged behind the SEC and the Big Ten in revenue per school, it has typically been ahead of the ACC and Pac-12 on a per-school basis.
Remember, this does not include tier three rights, such as the Texas deal with ESPN for the Longhorn Network and Oklahoma’s deal with Bally Sports. There’s a reason BYU, Cincinnati, Houston, and UCF are more willing to accept the Big 12 expansion bid.
The Big 12 is still not the SEC.
While there is uncertainty about Big 12 TV contracts with ESPN and Fox that expire in 2024-25, the SEC is poised to cash in.
Its current $55 million a year deal with CBS is said to expand to more than $300 million in 2023-24, according to Sports Business Daily. Until 16 ways split when Texas and Oklahoma joined, those numbers would be in the range of $16 million to $17 million per school.
Of course, with all that comes sky-high expectations, even by Oklahoma and Texas standards. Look no further than Auburn as head coach Brian Harsin barely survived his first season. While there were serious allegations of player treatment and insensitivity, the final score was 6-7 for the debut, a missed opportunity to beat Alabama and the SEC’s ninth-ranked enlistment class. swallowing.
Nobody knows exactly when Oklahoma and Texas will officially join the Securities and Exchange Commission, whether it’s 2023, 24, or 25.
When they do the money will wait. stability too. and pressure.
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Find more Texas coverage from the Dallas Morning News here.
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