The “West Coast 4” — Washington, Oregon, USC, and UCLA — will join the Big Ten on August 2. Washington officials recently presented their proposed budget for the 2024-25 fiscal year to the university’s Board of Regents, shedding light on the financial benefits of the move.
According to The Seattle Times, Washington’s projected revenues ($165 million) and expenses ($167 million) for the upcoming fiscal year are similar to those of their final year in the Pac-12. However, one key figure stands out: $42 million in revenue from Big Ten and NCAA distributions.
This $42 million revenue projection provides insight into the financial landscape for Washington and its fellow newcomers. The majority of conference and NCAA revenue distributions come from three main sources:
- NCAA Tournament Units: Payments based on the number of games played by a conference over a six-year period, distributed to schools through the respective conferences.
- Postseason Football Payouts: Primarily from the College Football Playoff and New Year’s Six bowls.
- Media-Rights Agreements: For regular-season and conference championship broadcasts of football and men’s basketball.
Washington and Oregon will join the Big Ten as half-share members in terms of media rights revenue, each expected to receive about $30 million from the conference in 2024-25. This half-share status will last through the rest of the decade. This suggests that a full share of media rights next year, through deals with Fox, CBS, and NBC, would be worth about $60 million.
Washington’s $42 million in projected revenue from the Big Ten includes this half-share of media rights revenue. If we add the $30 million they won’t receive as half-share members, it implies that schools receiving full shares, like USC and UCLA, will collect approximately $72 million from the conference. This represents a 20% increase over the most recent distribution figure of $60.5 million for the 2022-23 fiscal year.
The exact figures for 2023-24 distributions, based on the new media agreements, won’t be available until the Big Ten releases its fiscal year 2024 tax documents next spring. The payouts for the 2024-25 competition season, including the West Coast schools, won’t be known until spring 2026.
The Big Ten’s media contracts include an escalator clause, meaning payments will increase annually, potentially by 4% to 5%. Since the first year of the Big Ten’s new agreements was in 2023-24, before the West Coast schools joined, the full-share payment of $60.5 million may be lower than typical for the final year of the agreement.
Another significant factor is the College Football Playoff (CFP). The current deal with ESPN, paying each power conference school about $6 million, will end in two years. Starting in fall 2026, a new contract with ESPN is expected to provide approximately $21 million to each Big Ten school.
Given these variables and the insights from Washington’s budget presentation, it appears that full-share Big Ten schools could receive over $90 million in conference distributions in the latter half of the decade. For Washington and Oregon, this likely translates to paychecks in the $60 million to $65 million range.
Comparing these Big Ten revenues to potential Pac-12 distributions is challenging. The new CFP payout model, giving $21 million to each Big Ten school from 2026, would be different if the Pac-12 remained intact. Additionally, the potential success of the Pac-12’s $25 million per school Apple media deal, contingent on subscription goals, remains uncertain.
Overall, while exact figures are difficult to pin down, the financial benefits for Washington and Oregon in the Big Ten are substantial, even as half-share members.
Additional Data Available:
- Revenue and Expense Details:
- Projected Revenues for Washington (2024-25): $165 million
- Projected Expenses for Washington (2024-25): $167 million
- One-time expenses before the Big Ten move: $30 million
- Media Rights Agreements:
- Fox, CBS, and NBC deals set a full share at about $60 million.
- Washington and Oregon to receive half-shares ($30 million) until the end of the decade.
- Big Ten Financial Projections:
- Full-share Big Ten schools expected to receive over $90 million in conference distributions in the latter half of the decade.
- Washington and Oregon projected to receive $60 million to $65 million as half-share members.
- Escalator Clause:
- Payments will increase annually, potentially by 4% to 5%.
- College Football Playoff (CFP) Changes:
- Current CFP deal pays about $6 million per power conference school.
- New CFP deal (starting in fall 2026) expected to provide approximately $21 million per Big Ten school.
- Impact on Existing Pac-12 Distributions:
- Uncertain future for Pac-12 revenues without Washington and Oregon.
- Potential but unclear revenue from Pac-12’s Apple media deal if subscription goals were met.
- Historical Context:
- In the 2022-23 fiscal year, Big Ten distributions averaged $60.5 million per school under the old media rights deal.
The combination of new media rights deals, CFP revenue changes, and the move to the Big Ten provides a significantly enhanced financial landscape for Washington, Oregon, USC, and UCLA compared to remaining in the Pac-12.
