Big Ten’s Financial Powerhouse: Revenue Surge and Expanding Horizons

The Big Ten Conference continues its reign as a financial giant in college athletics, fueled by lucrative television deals and strategic expansion. New federal tax records reveal the conference generated over $928 million in total revenue during its 2024 fiscal year, distributing approximately $63.2 million to each of its 12 longest-standing member institutions. This reflects a noteworthy 5.5% increase in total revenue and a 4.5% rise in per-school payouts compared to the previous fiscal year, attributed to the commencement of new television agreements.

However, the disclosed financial data, coupled with information released by several Big Ten member schools, paints an even more promising picture for the conference’s financial future. Projections indicate a substantial revenue surge for the ongoing 2025 fiscal year, estimating a range between $1.2 billion and $1.4 billion. This anticipated growth stems from the full implementation of the new television contracts and the addition of four prominent universities: UCLA, Southern California, Oregon, and Washington, expanding the conference’s membership to 18 schools.

The per-school distributions for fiscal 2025 are projected to reach approximately $75 million for most member institutions. However, Oregon and Washington will experience a phased-in approach to their revenue shares over a seven-year period. Despite this staggered integration, the Big Ten’s financial prowess solidifies its position as the leading conference in terms of both total revenue and per-school payouts, surpassing the Southeastern Conference (SEC).

In February, the SEC released its tax records, showcasing $840 million in total revenue and average per-school distributions of approximately $52.5 million to its 14 existing members, excluding newcomers Oklahoma and Texas. While the SEC is also projected to surpass $1 billion in total revenue for its 2024-25 fiscal year, the Big Ten maintains a significant financial advantage.

For context, the NCAA reported $1.38 billion in total revenue for fiscal 2024 in its most recent audited financial statement, highlighting the Big Ten’s significant contribution to the overall financial landscape of college athletics.

Leadership Compensation and Strategic Decisions

The Big Ten’s tax return also shed light on the compensation of its former commissioner, Kevin Warren. During the 2023 calendar year, Warren received a $5.75 million bonus, awarded by the Big Ten Council of Presidents and Chancellors for his accomplishments throughout his tenure, including his pivotal role in securing the new television rights deal. Warren departed in mid-April 2023 to assume the position of president and CEO of the Chicago Bears.

Warren’s total compensation for 2023 amounted to just over $6.8 million, including nearly $1.1 million in base compensation, which translates to an annualized total of approximately $2.9 million. The bonus stands as one of the largest such payments in college sports since USA TODAY Sports began tracking the compensation of coaches and administrators in 2006, excluding retention payments.

Warren’s tenure as commissioner was marked by several significant events, including:

• The COVID-19 pandemic, which profoundly impacted the 2020-21 academic year. Warren faced controversy when the conference initially decided to cancel the fall 2020 football season but subsequently reversed its decision after other conferences opted to play.
• The conference’s announcement in the summer of 2022 regarding the addition of UCLA and USC, effective July 2024.
• The negotiation of seven-year television contracts with CBS, Fox, and NBC, announced in August 2022, valued at over $7 billion. (Agreements to add Oregon and Washington were finalized in August 2023.)

Prior to Warren, Jim Delany, former Big Ten commissioner, became eligible for over $20 million in bonus payments (estimated present value) in July 2015, starting to receive these payments in 2018. In 2023, Delany received approximately $3.05 million, representing the sixth year of these payments, which will continue for a total of 10 years, ending in 2027. To date, Delany has received about $18 million. His company, Delany Advisory Inc., received $400,000 for consulting services during the 2023-24 fiscal year.

Tony Petitti commenced his role as the conference’s commissioner in May 2023. During his eight months on the payroll, he received a total compensation of $2.65 million, including a $500,000 bonus and pro-rated base pay that annualized to approximately $3.2 million.

Impact of New Television Agreements and Expansion

While the Big Ten initiated the new television agreements during the fiscal year ending June 30, 2024, the full revenue impact was not immediately realized, as CBS remained committed to broadcasting SEC games during the 2023 football season. This situation changed this past season, coinciding with the expansion of the Big Ten’s membership. Consequently, the conference anticipates a dramatic increase in revenue for its fiscal year 2025.

Budget documents from the Iowa state board of regents indicate that the University of Iowa is projecting $75.2 million in "Athletic Conference" revenue for fiscal 2025. Similarly, a University of Wisconsin athletics department budget presentation projected "Conference" revenue of $74.7 million for fiscal 2025 and just under $82.6 million for fiscal 2026.

The Big Ten generally provides its longest-standing members with equal distributions. When Nebraska, Maryland, and Rutgers joined the conference, their shares were scaled up over several years. In contrast, UCLA and Southern California are slated to receive full shares immediately. Oregon projects $54 million in "NCAA/Big Ten" revenue for fiscal 2025. (An Oregon document indicated that the Big Ten’s media deal with Fox, NBC, and CBS would pay UO and University of Washington an average of $32.5 million annually for the first six years, with that amount expected to more than double when the two schools receive a full share of Big Ten media rights revenues beginning in the 7th year.)

Even utilizing conservative estimates of $70 million per school for 16 members and $50 million each for Oregon and Washington, total Big Ten distributions for fiscal 2025 would exceed $1.2 billion. Given that the conference typically passes on approximately 95% of total revenue to its member schools, total revenue for fiscal 2025 is projected to reach just under $1.3 billion.

The Big Ten’s strategic moves, including its lucrative television deals and expansion to include prominent institutions, underscore its commitment to maintaining its position as a financial leader in college athletics. The conference’s revenue projections for fiscal 2025 solidify its dominance and position it for continued success in the ever-evolving landscape of collegiate sports.