Tuesday, December 30, 2014

Michigan Spend Big To Attract Harbaugh. Is Football That Important? Fans And Boosters Believe So!




Mickey Mouse Will Pay For Jim Harbaugh's $48 Million Michigan Contract


Former San Francisco 49ers head coach Jim Harbaugh is about to take the same position at the University of Michigan. ESPN  reportedyesterday that Harbaugh will sign a record six-year contract with the Wolverines worth at least $48 million.
Expect the usual outcry from those who think that is too much to spend on a football coach. But the reality is that football is a big moneymaker for Michigan that funds academics and other sports that do not make money. And don’t think for a second that Harbaugh won’t have the funds to sign high-priced assistants or to continue to spend more on scholarships than any team in the country.
Image credit: Grant Halverson/Getty Images
Image credit: Grant Halverson/Getty Images
The Big Ten Conference’s television deals are coming up for renewal soon, which means Michigan will soon have a lot more money to invest in its football program.
The Big Ten has its own national cable network and also has television contracts withWalt Disney's DIS -0.2% ABC/ESPN, BTN, CBS CBS -0.34% and Fox . Disney, which has first-tier rights, is paying $1 billion for 10 years through the 2016-17 season. The Big 10 Network (51% owned by Fox and 49% owned by the conference), which has second-tier rights, is paying $2.8 billion through 2031-32 (excluding profit distributions). Fox is paying $145 million over six seasons for the Football Championship Game through 2016. And CBS is ponying up $72 million over six years for select basketball telecasts. The math works out to a per-year average of $248 million.
In April, the Lafayette Journal and Courier obtained a document that showed that the Big Ten is anticipating 12 of the 14 schools are projected to receive $44.5 million each through the league’s distribution plan, or about $14 million more than they will receive this season.
The bulk of the money is expected to come from Disney as it holds on to its first-tier rights. Who said college sports isn’t a Mickey Mouse operation?
Also on Forbes:

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