My yearly post.
One of my favorite things is sports business is the NCAA and its payout method for March Madness.
Its partially performance based, so the more teams a conference sends, the more $$$. But also, the more wins you get the more $$$ is sent to the conference. This is done on a six year average. The pool for payouts is about $220M per year.
(Last year) MIZZOU making the dance got the SEC $273,500 per year for 6 years. Thats right, a single appearance is worth $1.6M over 6 years. Double it if MIZZOU would have won their first game. A final four run gets over 8M for the SEC over 6 years (no benefits beyond the F4).
So the SEC got 7 teams in, but how many win shares will this create. How big will the $$$ impact be? Here is the last 6 years of the SEC.
Year - # Teams dance/Total number of win share
2019 - 7/16 (and counting)
2018 - 8/16
2017 - 5/16
2016 - 3/6
2015 - 5/11
2014 - 3/14
2013 - 3/7 (No longer impacts distribution)
2012 - 4/12 (No longer impacts distribution)
What does it all mean? The SEC is dropping a 7 game share (2013) from the average this year. It will be replaced by (at minimum) a 16 game share. That means the NCAA to SEC payout will jump by $2.5M (at least) next year. MIZZOU will get another $160k from that. Better than a poke in the eye.
An interesting note is starting last year, is play in games count as a win share. So a play in game team that goes all the way to the FF, gets 6 shares or $10M over 6 years for his conference.
One of my favorite things is sports business is the NCAA and its payout method for March Madness.
Its partially performance based, so the more teams a conference sends, the more $$$. But also, the more wins you get the more $$$ is sent to the conference. This is done on a six year average. The pool for payouts is about $220M per year.
(Last year) MIZZOU making the dance got the SEC $273,500 per year for 6 years. Thats right, a single appearance is worth $1.6M over 6 years. Double it if MIZZOU would have won their first game. A final four run gets over 8M for the SEC over 6 years (no benefits beyond the F4).
So the SEC got 7 teams in, but how many win shares will this create. How big will the $$$ impact be? Here is the last 6 years of the SEC.
Year - # Teams dance/Total number of win share
2019 - 7/16 (and counting)
2018 - 8/16
2017 - 5/16
2016 - 3/6
2015 - 5/11
2014 - 3/14
2013 - 3/7 (No longer impacts distribution)
2012 - 4/12 (No longer impacts distribution)
What does it all mean? The SEC is dropping a 7 game share (2013) from the average this year. It will be replaced by (at minimum) a 16 game share. That means the NCAA to SEC payout will jump by $2.5M (at least) next year. MIZZOU will get another $160k from that. Better than a poke in the eye.
An interesting note is starting last year, is play in games count as a win share. So a play in game team that goes all the way to the FF, gets 6 shares or $10M over 6 years for his conference.
