How SEC earnings provide context for predictions

College sports revenue season began last week as the SEC released its fiscal year 2023 financial data.

All involved were definitely satisfied. According to USA Today, the conference's revenue was $853 million, up 6% from the previous year, with more than $50 million distributed to each campus.

The results will add context to the Pac-12's financial picture when it reveals fiscal year 2023 revenue and campus distribution in the coming months. They also highlight irresponsible spending that has put the Pac-12 on a low path to extinction.

For example, SEC commissioner Greg Sankey, perhaps the most influential and respected figure in college sports, received $3.6 million in compensation.

That's $500,000 less than former Pac-12 commissioner Larry Scott makes. in 2015 And it's nearly $2 million less than at the peak of Scott's exorbitant salary. In total, Scott received approximately $50 million in compensation over the course of his 13-year contract, all of which was approved by his Pac-12 chairman.

(Current Pac-12 Commissioner George Kryavkov's annual compensation is expected to be made public this spring and is expected to match Sankey's salary.)

Meanwhile, the SEC distributed an average of $51.3 million per campus in fiscal year 2023, according to a report in USA Today.

The Pac-12's fiscal year 2023 financial statements, to be released this spring, are expected to distribute about $36 million to campuses. This is a hotline estimate based on data currently available from campus.

The Pac-12 has three main sources of revenue. That sum will go to the school after conference fees and the $72 million withheld by Comcast in the aftermath of the overpayment scandal.

The three revenue buckets are:

— Media rights through Tier I agreements (ESPN and Fox) and Pac-12 Network distribution agreements.

— College Football Postseason (Bowls and Playoffs)

— NCAA Tournament

Each school receives a different breakdown of revenue depending on which of three documents are released: NCAA Consensus Procedures Report. NCAA Revenue and Expense Statement. or Fairness Disclosure in Athletics Act filings.

The issue is complex. Distributions from the Pac-12 to campuses are not the same due to various withholdings that vary from year to year.

For example, Cal's fiscal year 2023 income statement shows:

Media rights: $25.5 million
NCAA distribution: $2.7 million
Conference distribution: 6 million dollars
total: $34.2 million

Utah's income statement includes the same categories, but with different amounts.

Media rights: $21.8 million
NCAA distribution: $3.6 million
Pac-12 distribution: $12.7 million
total: $38.1 million

Meanwhile, Washington State's website features the NCAA's Consensus Procedures Report, which itemizes revenue as follows:

Media rights: $25.5 million
NCAA distribution: $1.6 million
Conference Broadcast (Media and Non-Football Bowl): $8.8 million
Distribution of Football Bowl revenue to conferences: $0
total: $35.9 million

When the Pac-12's fiscal year 2023 tax returns are released this spring, distributions that incorporate the aforementioned revenue buckets (after expenses) will appear in a single line item.

If we average the total revenue of the three schools mentioned above, the distribution to the conference per campus is $36.1 million.

The numbers on Pac-12 tax returns may be a notch higher or lower, but they should be close to that number.

And those numbers won't even come close to the SEC's numbers.