3-2 Journal SPT 620
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3-2 Journal: Economic Choices and Viability
SEC Being the Dominant Conference
Kashawn Hernandez
2
Economic Choices
After, reading the article “The SEC makes more money than every other conference, and it’s not close” there is a notice of the economic choices the SEC makes to become the dominant conference. One of these choices is the renovation of school fields. Specifically, Texas A&M as in the article the writer states, “the distance between Texas A&M’s revenue and profits and everyone else’s. This is likely due to an influx of donations related to the renovation of Kyle Field…” (Peter Berkes). Another economic choice the SEC conducts is attracting more subscribers to their streaming platforms compared to other conferences. For example, “The Pac-
12 Network only has 11 million subscribers entering its fourth year, compared to the 66 million SEC Network (which charges a larger fee) had in its first year of operation” (Berkes, The SEC makes more money than every other conference, and it’s not close). In other words, the SEC had to do a lot of advertising to obtain all those subscribers throughout that period. Sources of expenses and capital Funding
Next, the SEC brought in high numbers for revenue and profit. As mentioned before the main source of their expenses and capital funding came from the donations presented to renovate
the Kyle Field for Texas A&M to gain a competitive edge on Oregon. Peter Berkes writes, “This is likely due to an influx of donations related to the renovation of Kyle Field and will subside in the same way Oregon’s did after getting a massive donation from Phil Knight last year.” SEC relied on donations and money from their subscribers as the main source of their revenue, expenses, and capital funding.
Revenue, Expenses, and Profit numbers
Breaking down the average revenue, average expenses, and average profit numbers for each conference displays the differences within each conference. According to the article, the
3
SEC has an average revenue of $122,517,029, an average expense of $105,609,195, and an average profit of $16,907,834 (Berkes). SEC has the highest out of all conferences. Next, the Big
Ten has an average revenue of $108,498,429, an average expense of $106,604,255, and an average profit of $1,894,174. The Big 12 has an average revenue of $103,336,579, an average expense of $98,491,826, and an average profit of $4,844,753. Also, the ACC has an average revenue of $90,416,823, an average expense of $87,753,344, and an average profit of $2,663,479. Finally, the Pac-12 (last) has an average revenue of $81,255,208, an average expense
of $82,774,493, and an average profit loss of $1,519,285. According to the article Berkes writes, “As one would expect, the SEC is bringing in more revenue and profit than any other conference in the country… particularly close.” Overall, the numbers are not even close. The SEC is the most dominant conference when it comes to finances.
Economic Viability
When it comes to economic viability for each conference all of them will have to invest or gain a donation so they can profit in the long run. The SEC invested by having Texas A&M gain a donation into a field and by gaining more subscribers for their network. Additionally, the Big Ten has their media rights which will help them generate more revenue. The rest of the conferences must figure out an investment that will result in more revenue and profit in the long run.
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Reference
Berkes, P. (2016, April 26).
The SEC is making so much more than other leagues
. SBNation.com. https://www.sbnation.com/college-football/2016/4/26/11456612/athletic-
department-finances-sec-big-ten-pac-12-acc
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