Mitchell Blog: Where's all the $ coming from?

Brace yourself, non-SEC fans. As the saying goes, follow the money

Email Russ.


Tennessee is paying its staff $3.8M in 2009. It’s STAFF! Head Coach Lane Kiffin will make an additional $2M per.

Blink.

It’s becoming commonplace to see special teams coaches making $200K.

Blink.

The SEC accounts for four of the nation’s top ten highest paid Head Coaches. Six of the top 12 – 50%.

Blink.

And this is just the start of things to come. Hold onto your hat, Myrtle, thanks chiefly to…


ESPN/CBS CONTRACTS

True, the Southeastern (Football) Conference has always been a leader in the coaching “arms race”. But an explosion in spending the past 12 months can be directly attributed to the new television contracts quietly announced before the start of the 2008 season.

Beginning this year, the Entertainment and Sports Programming Network takes over for Raycom Sports – which is a bit like saying Nick Saban took over for Mike Shula.

And the network has agreed to pay $2.25B for the rights to 15 years of SEC sports broadcasting. That’s about double what Raycom was paying.

ESPN will write a check for $150M in 2009; roughly $12.5M per school. Per year. For 15 years.

But it doesn’t stop there… Not to be outdone, CBS has stepped up its contribution. The Black Rock boys will now pay $55M per annum, for 15 years.

Anyone have a calculator?

That’s ~$205M per season; roughly $17M per school. It means SEC institutions in 2009 will have an extra $6M per school – about a 50% jump YoY.

And my mama always said you can buy a lot of coaching with an extra $6M.


BOTTOM LINE

The rich get richer.

First, it means that in the decade to come, the SEC will continue to separate itself from the other conferences. It is indeed all about the Benjamins.

The money will translate into better coaches and newer/more expansive facilities. Whatever you think you’ve seen with respect to coaching salaries, check those at the door. SEC schools can’t regulate their enthusiasm - it’s going to get simply outrageous. And if recent events are any indication, this will happen sooner rather than later.

Moreover, considering the revenue football is generating, it’ll be hard to stop this trend. (And yes Virginia, (and Miami), with all due respect to roundball, this contract is chiefly about the gridiron.)

Second, for those of you tired of hearing about how great the SEC is, we recommend these. If you just paid $2.25B for something, and just happened to have a stable of broadcasting stations at your avail, what would you do with your shiny new toy?

Exactly.

This season ESPN will likely broadcast every SEC football game, every weekend, on one station or another. Who needs a Big 10 Network? After that, we can expect to see more “classics”, Gameday visits, highlights and promotions...

All of which increases the conference’s exposure, which leads to more merchandising (See: $$$), and…

Recruits.

The SEC has averaged about 3-4 top ten recruiting classes every year this decade. In 2007, it had five of the top seven. With better coaches, newer facilities and increased exposure, expect this advantage to continue for the foreseeable future.

And better recruits leads to a better product... Which likely begets a new, better TV contract.

And the wheel turns… Southern style.