Bob De Carolis is thrilled with the Pac-12 revenue
Oregon State AD Bob De Carolis spoke with reporters Wednesday afternoon in a conference call from Phoenix to give an update from the OSU prospective about the projected annual $21 million expected to receive each year.
Here are the bullet points. A full report is here in the GT on Thursday. De Carolis has full comment and explanation.
- There will be deductions each year, so OSU will not get a full $21 million.
- The Beavers must buy out of its Learfield Communications media contract to do what the Pac-12 wants them to do as a conference. That brings the first year down to $16 million.
- Schools are paying up front Phase II of the contract, which is the conference network, up front. That brings it down to $14.5 million.
- After that there’s $4 million deficit the OSU athletic department runs. That would bring it down to $10 million or so.
- The Beavers then must address the $6-7 million bill for the first phase of Reser Stadium rebuilding. That could be done in one lump sum or over time.
- After that De Carolis wants to sustain the programs he has, and help them be competitive. The operating budgets for any of them teams have not increased in five years.
- De Carolis plans figure out the best way to distribute the money over the years.
- None of the schools will see any of the big money for two years. The 2011-12 season is under the old contract, and then money is paid out in a lump sum at the end of the year.
“It’s a great day to be Beaver,” De Carolis said. “It’s an even better day to be part of Pac-12 Conference going forward. It’s a landmark deal with our partners. We are very excited about the opportunities. And from the commissioner (Larry Scott) we are not done.”
18 comments
PFBeaver says:
May 4, 2011
Looks like Bobby D’s been running the OSU athletic department like our government has been running this country. Now only if those fools in Washington could find a huge TV deal that would unbankrupt this country.
I’m really glad that OSU is getting a huge cash influx! I wasn’t aware that Reser was built with borrowed money. I thought it was built with donations from the rich alumni.
OSU4Life says:
May 5, 2011
Oregon State doesn’t have anymore rich alumni left. OSU really neds to spend much more money on their marketing campaign for athletics! They also need to fund the track & field facility, the Gill Anex, and Reser Stadium Expansion too. Hopefully we will see these projects come to fruitition in the very near future! Regardless, Go Beavs always!
OS_Beaver says:
May 5, 2011
WAZZU not wasting a moment. Already have new drawings for a Martin Stadium “palace” or as close to that as they can get. Wish BDC had the same urgency with facilities and what should be our “crown jewel” of a beautiful and complete 55K Reser.
http://washingtonstate.scout.com/2/1069993.html
BeaverBelieva says:
May 5, 2011
Those from within the AD are so upset with OS alumni right now. They are flat out embarrassed Oregon drew 40,000 fans (not 43,000 liars) and we managed under 5,000 fans for our spring game. They are upset no big donors have stepped up and the 12for12 campaign is a bust. There is a lot of distain right now. Then again, what do they do to market? This money is huge. It basically takes us off a potential life support plan. Now the AD and fans all need to step up. Myself include. Hate to say it, but Oregon has not only passed us by on the field, they have flat out left us in shambles.
phil says:
May 5, 2011
everyone going on and on about how oregon drew so many fans at their scrimmage and the beavs didnt and lets not forget that they are just scrimmages not games .get over it some of us have lives to live and we arent just bums trying to impress the media. like they do at the spring games they do that just because they want to be seen and not heard. after i said all that i am just trying to say it dont matter they are just sping games they dont mean a hole hell of a lot. what matters to these kids is fall. o.k. so lets have a great summer and get ready for the fall football it should be fun
Theriches says:
May 5, 2011
“OSU does not have any rich alumni”.
http://en.wikipedia.org/wiki/Jen-Hsun_Huang
http://en.wikipedia.org/wiki/Bernie_Newcomb
and this guy who only has 3 billion… http://en.wikipedia.org/wiki/H%C3%BCsn%C3%BC_%C3%96zye%C4%9Fin
I think it’s more accurate to say Oregon State does not have rich alumni who devote their money to athletic departments. There aren’t many Boone T Pickens and Phil Knights to go around, does Oregon State really want to pimp out their services?
BeaverDon says:
May 5, 2011
Where are the Alumni who have gone on the play Professional Sports? Several years ago Brent Barry made a comment that he never heard from the Atheletic Department. Each year we hear all the build up about how well Rileys players do in the draft, do they ever give back to the University that gave them the chance to reach that level?
BeaverDon says:
May 5, 2011
Did DeCarolis address the issues with his recieving benefits from the Fiesta Bowl even though he is an employee of the State of Oregon?
Cliff Kirkpatrick says:
May 5, 2011
Didn’t address it. However, it’s the conflict of interest of voting on the bowl’s future. That’s the issue.
BeaverDon says:
May 5, 2011
I realize that is the issue that has been in the press. However, my point is this: Does the State of Oregon have any laws dealing with gratuities the State Employees can accept? If a manager in the Department of Transportation goes to some event sponsored by the Asphalt Manufacturers and has his expenses, including golf outings paid for, is the acceptable? Or is the AD at Oregon State exempt from the rules and laws that apply to State Employees.
Arizbeaver says:
May 5, 2011
Too many engineers on here (just kidding guys). But you never pay cash for anything when you can borrow. Put VERY simply, if we can borrow at 9% and can get a return of, say, 10% or more by investing our money elsewhere (say advertising and promotions leading to a 10% higher price or 10% higher volume sales, or improving the food and services on site), we should carry an amount of debt.
If we have a $6 million debt and are making $21 million per year from the tv contract alone (before costs are removed)…that’s equivalent to a person making $100k per year with a $30k mortgage. If you would pay the $30k rather than investing, you’d need a good reason why.
Cash is ALWAYS good to have, which means it’s better to have a manageable amount of debt at all times.
OS_Beaver says:
May 5, 2011
DeCarolis mentions Reser expansion here but to me it was more of a realization of criticism pointed his way and I still don’t think it is anywhere near as much of a priority for him as it needs to be.
I like Bill Moos thinking. They are going straight at facilities first according to this article. They believe that will get them recruits, and then the wins and then sustained success. Moos explains here:
http://www.cougcenter.com/2011/5/5/2154674/pac-12-tv-contract-revenue-wsu-football-basketball-bill-moos-martin-stadium-renovation
BDC by his own words is trying to give a stimulus to the teams such as a little more money for coaches and some new equipment. That is not how you get recruits though. We are well behind in the strategy to garner the top receruits and BDC’s “game plan” will not have us closing the gap.
OSUprof has the study and the numbers of why expanding Reser should be our top priority. We have to do the things BDC has for his “long-term goals” as some of our earlier moves and not latest. The track and basketball facility will get going but football is the economic engine and visual clue as to the overall strength of your atheltic department. With Cal and UW having the correct gameplans with their major football stadium upgrades and now WSU knowing their best route to success, why does BDC still not get it? Instead of paying coaches more than a very small amount more, they need to get the 6-7 million Reser current debt paid off ASAP so we can look forward and more realistically be ready to move forward with Reser expansion and a cohesive, beautiful stadium that we will need to recruit in the upper half of the conference.
I hope we do not extend this guy come 6-3–2011 that just doesn’t know how to get out of mediocre mode.
stevo says:
May 5, 2011
Cliff,
I thought the Reser Expansions were funded with private donations and bonds. Is the “$6-& million bill for the first phase of Reser Stadium rebuilding” an annual bond payment or additional monies that were borrowed for construction overruns and such?
Cliff Kirkpatrick says:
May 5, 2011
It was mostly, but there was a loan from the foundation.
BeaverFan says:
May 6, 2011
Can you clarify some of the inconsistencies in the numbers you’re throwing out there, Cliff?
You say in the article: “Each school expects to receive about $21 million *each year* starting at the end of the 2012-13 school year…”
But, that’s seemingly not the case – as has been pointed out elsewhere in the press, there are escalators in the contract that ramp the payments up over time and it’s not just a flat $250M/year every year. Per sources I’ve read elsewhere, the first year is expected to pay roughly $180M from Fox and ESPN year one (and it goes up from there) – which obviously isn’t going to yield each school anything close to $21M in year one even if CU and Utah take a partial share their first year.
The Oregonian is reporting 1.5M to get out of the Learfield deal… where does your $5M figure come from? Not that I have total faith in Rachael Bachman, but the Learfield extension signed in ’06 was for such a relatively piddling amount that I have a really hard time believing it’d cost us $5M to get out of it.
Cliff Kirkpatrick says:
May 6, 2011
$21 million is a rough estimate. It could be more or less by 2013 comes around. That’s from conference.
There will be a 3-5 percent increase each year. Again, that’s an estimate from the conference. No one really knows.
The $1.5 to pay out Learfield is incorrect. It’s $5 million according to De Carols. The contract runs through 2019-2020. De Carolis said there’s a long-term contract with them to buy out.
marc says:
May 6, 2011
I just happened in on the meetings while attending a trade convention in Phoenix. DeCarolis pulled off a huge win for the NW schools in the Pac 10 and a couple of the smaller schools outside the NW when he went to bat for equity in payments, The southern division schools wanted a separate deal due to market share and DeCarolis was able to take the lead and get enough folks outside the NW to agree to basically get everyone on a level palying field in terms of the massive payoff from ESPN/ABC/Fox. Not only is it crazy money but the exposure will be light years beyond what we have been subject to with a Pac 12 television network being formed. Radio and internet opportunities are outside of this deal. Beaver nation should be very excited about the deal and that Bobby De is the Oregon State AD. Thanks Bobby!
OS_Beaver says:
May 7, 2011
They agreed to equal revenue sharing last October. Had nothing to do with the Pac-12 megaTV deal announcement in Phoenix. That was one reason I was pushing for the Bay Area schools to the North though. As long as they are split they can’t team up to try anything funny and the politics stay much more balanced. The North is stronger this year in football and with Stanford we may be the smarter division too.