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Wilner publishes leaked P12 budget
GrundleStiltzkin
Member Posts: 61,499 
Clearly a photoshop.
Internal budget projections for the Pac-12 Networks obtained by the Hotline (below) show a six percent ($8.1 million) year-over-year decline in total revenue, a 22 percent drop in net advertising revenue and a 30 percent plunge in digital revenue. Net affiliate revenue, the largest bucket, by far, was expected to drop by five percent.
Perhaps most significantly, the Pac-12 Networks aren’t expected to increase the amount they distribute to the campuses: The $33.475 million projected for the schools in the current fiscal year — split 12 ways, that’s $2.8 million per campus — was the same amount pegged for FY18.
All in all, the networks were budgeted to generate $127.4 million in revenue against $92.5 million in total operating expenses in FY19.
“It’s in line with expectations, but given its current structure, it has to figure out a way to cut costs,” said one of three media industry experts asked by the Hotline to analyze the budget.
As a matter of policy, the conference doesn’t comment on financial matters.
The budget was provided to the schools last year — for that reason, the figures should be considered approximations — and it includes budgeted figures for FY18 and FY19, plus a forecast/update for FY19.
It also provides an unprecedented look at the financial underpinnings of the seven-year-old media company, whose revenues and expenses have been closely guarded by the conference.
Perhaps most significantly, the Pac-12 Networks aren’t expected to increase the amount they distribute to the campuses: The $33.475 million projected for the schools in the current fiscal year — split 12 ways, that’s $2.8 million per campus — was the same amount pegged for FY18.
All in all, the networks were budgeted to generate $127.4 million in revenue against $92.5 million in total operating expenses in FY19.
“It’s in line with expectations, but given its current structure, it has to figure out a way to cut costs,” said one of three media industry experts asked by the Hotline to analyze the budget.
As a matter of policy, the conference doesn’t comment on financial matters.
The budget was provided to the schools last year — for that reason, the figures should be considered approximations — and it includes budgeted figures for FY18 and FY19, plus a forecast/update for FY19.
It also provides an unprecedented look at the financial underpinnings of the seven-year-old media company, whose revenues and expenses have been closely guarded by the conference.
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Comments
High end: $7 million-to-$10 million per school per year
Middle range: $5 million-to-$7 million per school per year
Low end: $3 million-to-$5 million per school per year
But....Larry is full of shit and reality has been anything but raining dolla bills y'all during his private jet reign....
Based on information previously collected by the Hotline from campus sources and the FY18/FY19 data in the budget projections, the approximate annual payments to the campuses are as follows:
2013: None
2014: $862,000 per school
2015: $1,677,500 per school
2016: $1,980,250 per school
2017: $2,596,750 per school
2018: $2,789,593 per school
2019: $2,789,593 per school
Average per year (per school): $1,813,669
But... again with the big butts ( | ) ...that ain't really what the schools get because although it's what they get, it doesn't mention how much more they have to pay to get that...so basically, Larry says you all will make some money, but you have to pay for part of that money. Those of us who made it past 2nd grade instantly recognized that we aren't getting what he says we're getting because he's fucking trying to trick us in case we're only half listening.
Here's an example (again, all this info is Wilner's (not mine), I'm simply spoon feeding it for those of you who don't want to read the story)...
Those annual payouts, it should be noted, are effectively gross amounts.
To create the football and men’s basketball inventory for the Pac-12 Networks, the schools had to repurchase their local TV rights from multimedia partners like Learfield and IMG.
Over a four-year period, for example, UCLA had $5.6 million withheld from a larger sponsorship deal with IMG in order to compensate IMG for the loss of its TV rights. Back that figure out of the total amount sent to UCLA over seven years, and the Bruins have received an average of $1.01 million per year in net revenue from the networks.
So...begs the question...what does Larry need to do to fix this disaster? Wilner interviewed someone who said:
“Given current distribution challenges,” an analyst said, referring to the networks’ limited reach, “meaningful cost reduction is the only way to increase payouts to the universities.”
In Halfbrain-speak that means that there is zero chance he can grow revenue so he has to cut costs...we all know that cutting costs is finite but then you get to a point where you can't keep the lights on so really you can't cut all costs.
So, all in all, millions of fans and tens of journalists have been screaming fire fire! FIRE!! for years and years and yet there is nothing that will solve this problem short of firing Larry or letting Larry borrow another 2-3 years worth of money from some other sucker. Not likely if you ask me.
Get ready to kiss the Pac12 goodbye folks.
Taft!@GrundleStiltzkin