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When Gonzaga's executives sought to soften the pot for their basketball team in exchange for their presence at the West Coast conference, they knew exactly where the money could come from.
NCAA Tournament Payments.
Sports Director Mike Roth has always tried to convince the WCC teams, including his team, to get paid to win in the tournament and move away from the income distribution of the tournament, which was the most balanced. conferences prefer, no matter who wins.
"It was a unique situation," Roth said. "We had a conference that wanted us and a conference that wanted to keep us. So, welcome to America. "
In fact, the revenue-sharing agreements of many conferences are not so "American" in themselves, as they do not respect one of the main concepts of capitalism: you gain the value of your product on the market.
Instead, Power Five conferences and many small and mid-sized companies divide funds equally, regardless of the performance of their teams.
This means that a team's march in March Madness is beneficial for everyone at the conference, but it can also lead to wild divergences.
For example, Northwestern, who has already participated in the tournament once, received $ 28 million more than it has poured into Big Ten coffers through the tournament since 1997, according to an analysis of more than $ 3 billion. paid via the tournament. the system.
Oregon State, another infrequent participant in March Madness, raised nearly $ 23 million more than his contribution.
This is not so big a problem for big boys, as basketball money does not account for more than 10% of the total revenue generated by Power Five conferences each year. Football contracts with television, income from football games and university football matches represent a significant part of the revenue, which represents more than $ 600 million a year for the biggest leagues.
But in the West Coast conference, and in many other smaller majors that do not have big TV contracts for football, the NCAA money for basketball is a much bigger item. The idea that teams in the lower half of the conference make money from the winners' success is not going so well.
Gonzaga had been in this position for a long time.
According to statistics compiled by the AP, the Zags have grossed more than $ 51 million from the WCC since 1999 on the basis of their success: 21 consecutive appearances in the NCAA, one final and four last trips to the Sweet 16.
The NCAA suggests that the conferences be spread equally among all members, which would bring $ 9.1 million to Gonzaga, but the Zags have negotiated a new deal to reap a larger share, starting with the money earned at of this year's tournament.
Under the terms of the compromise, the conference will divide the first revenue unit of the tournament equally among the 10 teams, but will give the teams a larger slice of any additional units generated by winning games.
This year, one unit of the NCAA is worth at least $ 1.68 million, which is likely to increase in six years of payments. Each conference with an automatic offer allows a unit to disperse as it sees fit. Gonzaga produced 50 units over the period 1997-2018 studied by The AP. The nine other WCC teams combined for 40.
"We all have the same luck at the beginning of the year," Roth said. "And we thought anyone ahead should be rewarded more than in the past."
What seems to be a big problem at the WCC is a bit more like a change of pocket at major conferences.
In the last fiscal year, for example, the Southeast Conference distributed $ 43.7 million to each of its 14 teams. The SEC added Texas A & M and Missouri in 2011, an initiative that only strengthened a conference that already had eternal powers in football (Alabama) and basketball (Kentucky).
"Winning is a big problem," said SEC Commissioner Greg Sankey. "Whether it's baseball, basketball or football, we try to succeed."
While maintaining a successful conference is, of course, a product ranging from offering NCAA tournaments to the size of TV contracts, winning in March Madness has virtually no impact on the revenue distribution of these NCAA tournaments. large conferences.
The SEC distributes its shares equally, which means that Auburn, Kentucky, LSU and Tennessee – all headed for the Sweet 16 – will earn as much for their success this season as Vanderbilt, who scored 0 at 18 at the conference and fired his president. coach.
"The rules of engagement are what they are and you are doing your best to navigate it," said Allen Greene, Auburn Sports Director, whose department generated revenues of 147, $ 5 million during the 2017 fiscal year. "Other than that, I do not really have an opinion on it. "
Gonzaga did it. In recent years, he has continually looked for ways to improve his situation, and many of these searches have led to flirtations with other conferences.
The WCC, however, was reluctant to lose its star.
And so, they made a deal.
"We just think the more you go, the more the amount should go up," Roth said, "because at this point it's not about the conference, it's the school that wins."
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