NCAA sports commissioners weigh revenue models, private equity

University sports leaders are breaking numbers for players as they move towards payments and new ways for the increase in income.

Speaking at the CNBC Sport and Boardroom Game Plan conference on Tuesday, Big East Commissioner Val Ackerman, Atlantic Coast Conference Commissioner Jim Phillips and Big 12 Commissioner Brett Yormark, NCAA’s direct payment players and player revenue sharing took over the $ 2.8 billion settlement.

“Revenues have never been so big, Phillip Phillips said. “The expenses for our schools continue to rise. Is it sustainable, really a question.”

Phillips said that each Acc School has chosen the revenue sharing model and initially limited to $ 20.5 million per school to pay to players. However, this border will continue to gradually rise for the next decade.

“In the league office, we are trying to find new revenue streams to help balance some of these costs. [of paying student-athletes]”Phillips said.

Ackerman reiterated this uncertainty and emphasized his struggle to allocate dollars between sports and men and women’s programs.

Ackerman, “Football directs the story of income. Men’s basketball is second… So the question is that half of this income should be shared, no matter what, who produces,” said Ackerman. He continued: “Frankly, I believe it will go to the courts unless the congress is included.”

Yormark rejected the idea that college sports were in the “financial crisis” and warnings were “overcoming”. However, he stressed that schools doubled because it became the center of athletics brands.

“Our presidents, boards, athletic departments, athletes understand that all these universities are sitting in the preliminary porch. Now they know that they direct everything in the ecosystem.” He said. “[The schools] Understand that investing in Athletics is the right thing. “

This investment may soon contain private capital. Yormark said that despite the fact that Big 12 rejected the sale of equity directly, he examined external partnerships. Phillips and Ackerman said that each of the conferences were offers from Wall Street.

“We will not sell a share at this conference.” He said. “However, we are partnership with someone who provides strategically different types of resources, capital, strategic resources? This can be potentially.”

Conferences also rethink how to create television money. ACC has shifted to a incentive -based model that distributes media rights revenue partly with TV audience and post -season performance.

“What you kill you can hunt, Phillips said Phillips. “If you are 4-8 or 12-2 in football and if you do playoff, you will receive a larger slice.”

Considering the integration of Big 12’s eight new schools, Big 12 may think of similar changes, but not immediately.

When it comes to bringing the television rights together between conferences – a movement in which some can reflect the NFL – rejected the idea of ​​tiring.

“Increasing the demand for famine. Demand creates value,” he said. “Hope is not a strategy … It works in theory, but the devil is in detail.”

In spite of cost pressure, all three commission members saw the potential to grow in new sports, especially record TV viewers and women who attracted crowds.

“I think Volleyball is a safe bet,” he said.