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New Story: Money Game: Did Clemson's trip to CFP generate a financial windfall?
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New Story: Money Game: Did Clemson's trip to CFP generate a financial windfall?


Mar 16, 2016, 8:04 AM

 
Money Game: Did Clemson's trip to CFP generate a financial windfall?

There is no doubt that the College Football Playoff generates a windfall for the networks and for the affiliated conferences, but how much of that money do the schools see? The answer…….not as much as you might think.
Full Story »


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Re: New Story: Money Game: Did Clemson's trip to CFP generate a financial windfall?


Mar 16, 2016, 8:23 AM

Interesting note:
While discussing the results during last night's primaries, Bill Hemmer of Fox News, when trying to decided what to call the color used for one of the candidates results, said Clemson orange.

The long-term ROI is indeed the windfall

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This. ...


Mar 16, 2016, 11:04 AM

Many new Clemson fans buying more Clemson gear.

Larger iptay donations


More iptay donations

The playoff PAYS WELL

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Geville Tiger on Clemson football , "Dabo's only problem is he has to deal with turd fans questioning every move he makes.”


Re: New Story: Money Game: Did Clemson's trip to CFP generate a financial windfall?


Mar 16, 2016, 8:29 AM

I'm still a student, so my IPTAY dues are next to nothing at the moment, but after graduation I would gladly pay more to IPTAY if that's what it took to cover that $3 million deficit. If you asked me to pay more to IPTAY to see us have a season like last year every year or every couple years vs. paying less and going 8-4 every season the answer would be obvious, and I know 99% of Clemson fans would agree.

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Don't forget the pay raises subsequently given....


Mar 16, 2016, 8:40 AM

And these new raises will result in much much higher annual expense on salaries that will become the new "base" from which the "market" will be defined. I love our coaches and WANT to see them paid the market rate (and 5% more for good measure), I just bemoan the costs, and "losses" that success seems to bring with it.

Go Tigers, another year like last year and I may go straight to heaven.

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Yadda yadda yadda ..


Mar 16, 2016, 8:54 AM

Notre Dame will receive a payment of $2.58 million if it meets the APR standard;.... Yadda yadda yadda


I really dislike notre dame.

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Geville Tiger on Clemson football , "Dabo's only problem is he has to deal with turd fans questioning every move he makes.”


I immediately thought about this too....the college football


Mar 16, 2016, 11:27 AM

play-off system is basically underwriting Notre Dame athletics by giving it a conference share rather than an individual school's share...and the folks in South Bend will continue to sit back quietly and take their check until the other schools demand payments be equal

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I think the math comes out in favor of the conferences


Mar 16, 2016, 12:29 PM

Money wise.

I just hate that everytime anything happens in football nd has to be written I with separate rules.

They should be treated like the rest of the independents.

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Geville Tiger on Clemson football , "Dabo's only problem is he has to deal with turd fans questioning every move he makes.”


ND gets money from the ACC for the sports they participate


Mar 16, 2016, 2:17 PM

in....they get a conference share from the play-off folks AND they have their own tv football deal with NBC that they don't split with anyone......they're making out like Irish banditi regardless of how their football team does during the regular season


Message was edited by: tigrjm76®


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Re: Yadda yadda yadda ..


Mar 16, 2016, 11:45 AM [ in reply to Yadda yadda yadda .. ]

Just another reason I will never pull for Notre Dame (except if they play USuC). The special treatment that Notre Dame receives by the NCAA is ridiculous.

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Teams in the P5 receive about $3.9M. Notre Dame only $2.58


Mar 16, 2016, 12:55 PM

Notre Dame is a big part of NCAA football.

Love them or hate them, they generate interest and the resulting TV $$$!

ND should be paid too.

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Hey -- Isn't this the model Bernie Sanders is using?***


Mar 16, 2016, 9:02 AM



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No, this is crony capitalism...


Mar 16, 2016, 9:49 AM

Those with power make the rules and make sure they make the most money off of everything they can.

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Beat me to it.


Mar 16, 2016, 10:38 AM [ in reply to Hey -- Isn't this the model Bernie Sanders is using?*** ]

+1

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"Dabo crushed my soul." --- Classof09


Nothing really new


Mar 16, 2016, 9:14 AM

But am surprised by the size of the deficit.

Anyway, schools like Clemson invest a ton of money into football and as a reward for performance we get to split our bonuses with all the chumps in the conference. I wonder how much of Coach K's contract is paid from our football program. Can you picture BC being handed a $3M check after losing every conference game? "Thanks for showing up to all your games. Here's your cut of Clemson's bowl money. Carry on."

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Re: Nothing really new


Mar 16, 2016, 9:19 AM

HEY, WE GIVE KIDS TROPHIES JUST FOR SHOWING UP THESE DAYS. PLUS THEY MUST PLAY IN GAMES WHETHER THEY ARE GOOD ENOUGH OR NOT. WHY SHOULD THIS SURPRISE ANYONE.

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Yep. The weaker schools that dont make even a crappy


Mar 16, 2016, 10:02 AM [ in reply to Nothing really new ]

bowl game would really reap in the benefits. The crappy bowl games are good for the football team to extend practice times and for exposure, but are expensive for the Universities because of the diminished payouts from them....they usually pay out a lot more than they bring in from them. If you miss a bowl all together (but your conference cousins bring in the dough), you have $$$ for staff changes, facility improvements, etc.

I would love to see the comparison of what $$$$ we get from being the weaker cousin from basketball. I can't imagine that it is really that much. I would love to be shown that it really is ### for tat.

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Clemson Football, the glory days are here!


True, but keep in mind that WE'RE the welfare


Mar 16, 2016, 10:04 AM [ in reply to Nothing really new ]

recipients in basketball -- benefiting from Duke, Carolina, Virginia, et al in the NCAA Tournament.

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Aspiring member of the TigerNet Sewer Dwellers


Re: Nothing really new


Mar 16, 2016, 10:30 AM [ in reply to Nothing really new ]

I do not really have an issue with the conference benefiting from the individual bowl team, but said team should receive a larger percentage for actually doing the work.

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Agreed. Should not lose money.***


Mar 16, 2016, 12:11 PM

GO TIGERS!!

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"It is not part of a true culture to tame tigers any more than it is to make sheep ferocious."
--Henry David Thoreau


In the words of NBA Great Patrick Ewing, " WE make a Lot but


Mar 16, 2016, 9:30 AM

we spend a LOT"

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Re: New Story: Money Game: Did Clemson's trip to CFP generate a financial windfall?


Mar 16, 2016, 9:38 AM

Not really enough detail here to see where the money actually came from (e.g. there is no description of where the conference money went - this implies the conference kept the 57 million plus money for non-playoff bowls it received but I've always been told there is a formula for its distribution to schools) and where it actually went (what does a charter to Phoenix cost anyway - other than "not cheap."
I'm on the side - "Let's go every year" no matter what - but if you write this article then tell us something we don't already know.

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sorry but this paints a BS picture-- The conference turns


Mar 16, 2016, 9:56 AM

around and distributes the shared revenue at the end of the year. The article doesn't match revenue against the expenses. This is the same picture painted in a national article every year about how the bowl teams end up losing money. It's propaganda.

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Still though, it's odd that the team who makes it to the championship benefits the least.***


Mar 16, 2016, 10:02 AM



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more hogwash- free ads for over a month, increased licensed


Mar 16, 2016, 2:41 PM

product sales, etc. etc. We benefit more than anybody.

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With regards to financial payouts vs cost directly related


Mar 16, 2016, 3:03 PM

to conference affiliation and bowl payouts minus expenses, we lost more money than anyone else.

So the associated benefits you speak of were paid for with millions of dollars. We should receive a bonus specifically from our conference instead of being happy with the fact that you spend more money having a better season.

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Agreed, to lose money after a season like that is tough***


Mar 16, 2016, 7:55 PM



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Re: New Story: Money Game: Did Clemson's trip to CFP generate a financial windfall?


Mar 16, 2016, 9:57 AM

To me we are paying Dabo below market value with incentives to bring him to market value. That's how his original contract was written to get him the chance and Dabo was confident enough in his ability to know he would earn it. Not a true picture to include it as a bowl expense.

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Re: New Story: Money Game: Did Clemson's trip to CFP generate a financial windfall?


Mar 16, 2016, 10:01 AM

The conference model we've been working under (for at least my whole life) is severely broken. Not to get political, but it is a VERY good example of how socialism works and how redistribution of wealth works within a purely socialistic system. It literally is a Robin Hood type of approach to money and wealth, and the biggest losers are the ones who worked the hardest, had the success, and are most deserving.

As for the money itself, these are contracted amounts that are determined before the football season even begins. I agree with David here...wait to see who plays where, take the teams' distances and travel expenses for THEIR PARTICULAR GAMES into account, and then determine a fair stipend for those TEAMS...not their conference. The fact that the money is paid to the conferences first is insane. Clemson SUCKS in basketball, and we don't deserve to make a dime when we fail to make the NCAA Tournament year after year, but we come out smelling like a rose. Why? Because we're a member of the big bad ACC...the best hoops conference in college basketball. So where's the incentive to do better? Where's the drive to improve? Minimize expenses, maximize profits. Rob Peter to pay Paul. There is nothing fair about this in any universe.

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so it should foster parity.


Mar 16, 2016, 10:26 AM

like the worst team getting the first draft pick and the best team getting the last pick. spread the wealth around. plus with the salary cap, at some point you have enough good players.

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"Anybody that says Coach Brownell is the best coach to come through Clemson is going to start an argument." -JP Hall


Not to make it politcal, but I disagree


Mar 16, 2016, 5:35 PM [ in reply to Re: New Story: Money Game: Did Clemson's trip to CFP generate a financial windfall? ]

And I'm someone whose family thinks is to the right of Attila the Hun, and will scream to anyone listening that socialism is evil in so many ways.

But in considering team sports, there are some factors that make it such that it actually improves profits for both teams and individuals if there is a level playing field (pun intended) and not too much "income inequality".

What is sports actually selling? Entertainment!

We must realize that for team sports to profit, they must entertain their customers. Even the most fervent customers will not be entertained by an unending series of blowouts. Think about what would likely happen if Clemson quit the ACC and joined the Southern Conference [not the SEC]: how long would people keep giving money, how long would the stadium stay full, and how long would the TV rights stay as large as they have been? Once the money stops flowing and exposure drops, coaches and players will seek greener pastures.

So good teams need other good teams to play against! Good match-up games get on prime-time TV and sell lots of ads. Money flows. One way to make for Clemson to be sure it has a reasonably compelling schedule of game every year is to be in a conference with similar teams, or at least enough in the same ball park (pun intended) that there will be enough good games to bring in the bucks year in and year out. Think Boise State in the Mountain West.

In other words, Clemson benefits quite a lot from playing in a strong ACC. For the ACC to be strong, it needs a good number of good teams year in and year out. No team is great every year, but in terms of numbers there is a pretty good chance of having 4-7 teams crack the top 25 at some point in the season. In up years, Clemson and other "on"-year schools are paying in to the conference coffers, which get spread back out to help the "off"-year schools stay competitive.

What would MLB looks like--how much money could they make overall, per team, and per player--if the Yankees hired the 25 best players in baseball, regardless of caps, etc. After the initial fun of seeing them trounce all opponents wore off, consider the prospects. After their 87th win in a row by a score of more than 20 runs, after their third consecutive sweep in playoffs and World Series victory, with each of those seasons being better than 140-22. Is MLB fun to watch anymore? How much TV revenue is there?

In the pros, they have salary caps, profit sharing between small- and large-market teams, inverted draft systems so that bad teams get first crack at the best new players. All of these are mechanisms to ensure that they can put on compelling and entertaining games on the field more often than not. That garners the most money for the NFL, the NBA, MLB, etc. as a whole, which then helps individual teams make more, which helps individual players make more.

In the NCAA, the parity comes from the limits on scholarships, expenses, etc. No one team can "hire" all the best players year in and year out. Conference profit sharing is like the small- and large-market profit sharing.

Economically, in sports it is counter-productive for the competitions to be unbalanced as a regular state of affairs. There is positive incentive to help other teams be good enough to make playing the games sell tickets.

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Re: From a line item standpoint...


Mar 16, 2016, 10:27 AM

Yes we lost money as it directly relates to immediate funds associated with the team's participation in the CFP. However the revenues driven in by the conference are a separate line item and are not directly reported to these particular expenses. As stated, we receive funds from all conf sports - that's what a conf is for. When you look at the math, and this is rough, total receivables from the Football postseason was almost $12MM. While Clemson did incur an immediate $3MM deficit in related expenses, it's overall profitably has never been stronger - and the shared revenues for the conference are at an all time high. In short, Clemsons own revenues from postseason didn't cover the expense, but the shared revenue (of which Clemson was the biggest contributor) did. It's certainly not a windfall as described.

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hmm


Mar 16, 2016, 11:34 AM

Seems like coaches bonuses should come from a different budget, in my opinion. If the school is going to offer these huge contracts, then have the cash to back it up. Don't rely on a different source, especially knowing you'll take a hit.
Notre Dame is the biggest winner (even if they're losers) for having the power to pick and choose when they're ACC and when they're not. Pretty good for only ~13,000 total students enrolled.

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The exposure Clemson got could not be bought for 10 mil


Mar 16, 2016, 11:36 AM

Natty week, you could not watch a sports broadcast on any network for 10 minutes without seeing Clemson.

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Coots will never have this problem!***


Mar 16, 2016, 11:57 AM



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TL;DR


Mar 16, 2016, 11:59 AM

Nm....

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I believe that


Mar 16, 2016, 12:20 PM

The basketball tournament is the largest money making event of the college seasons. More so than all the football bowls etc. do you know if this is correct??

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The National Championship Game is worthless without


Mar 16, 2016, 12:49 PM

The National Championship Game is worthless without the work of the other 64 teams in the P5.

Who the hell would care to tune in to watch Clemson play Bama if they were the only two teams in the USA? If the season was a one game winner take all?

The SEC has a nice TV contract, but that contract benefits from having the ACC, Big Ten, Big XII, etc. to compete against in OCC and more importantly in the CFP.

If the SEC was the only conference in America would there be nearly as much interest?

In the big picture, Bama received a much larger TV payout than did Clemson for the 2015 season. Yet Bama could not have raised this money without Clemson and many others in the P5.

It really is amazing that despite the money difference, Clemson almost beat those guys.

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Re: New Story: Money Game: Did Clemson's trip to CFP generate a financial windfall?


Mar 16, 2016, 12:52 PM

So basically all the money went to pad Swoffords pockets? Also its total BS that Wake Forest, BC, etc recieves $$ for something we accomplish.

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Re: New Story: Money Game: Did Clemson's trip to CFP generate a financial windfall?


Mar 16, 2016, 1:55 PM

Is Bernie Sanders in charge of the College Football Playoff financial payouts?

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We should do like South Carolina and boycott the playoff


Mar 16, 2016, 7:12 PM

forever.

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In truth, some things just don't come down to money.***


Mar 16, 2016, 7:13 PM



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Why not cover the schools expenses that are bringing


Mar 17, 2016, 10:54 AM

in the money first. Im ok with splitting the left overs, but why would the school that has to travel more because they are in the playoffs be at a loss like this?

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