[ColumbusHawk]

Athletics costs climb with new facilities at Iowa | TheGazette

[treychase]

Most interesting part of that is the B1G is now a MINORITY owner of its own network.

[AHawk1]

May as well get this out there now, so everyone in the fire KF threads has accurate figures in the future

Coach Kirk Ferentz renegotiated his contract in February 2010. His salary, benefits and bonuses totaled more than $4.33 million for the 2011 fiscal year that ended June 30.

[Chickenlounge]

Originally Posted by treychase

Most interesting part of that is the B1G is now a MINORITY owner of its own network.

I noticed that too. I wonder why they would do that?

[Billso]

Originally Posted by treychase

Most interesting part of that is the B1G is now a MINORITY owner of its own network.

Happened a couple years ago: MediaPost Publications Fox Moves to Majority Position in Big Ten Network 08/30/2011

[BQuastU]

Originally Posted by Chickenlounge

I noticed that too. I wonder why they would do that?

Its not surprising at all. That's how deals like this are structured all the time. They don't want to be in the business of OPERATING a network. They want to make $ off of their product and intellectual property while somebody else is doing the work (i.e., Fox). Its basically a licensing deal. The Big Ten is a well run company.

[ICHawk24]

It was an option included in the original contract to make it attractive to Fox to sign the deal and make the network successful. I'm glad it worked out in a way that Fox wanted to exercise the option, its a GOOD sign, not a bad one.

[JHHawk]

The price attached to 2% of BTN is roughly 19.2 million(1.6 million x 11 teams plus Big Ten headquarters). So total book value based on this would be 50 x 19.2 = 960 million. This was determined a couple of years ago. Business Week had an article that projected BTN to be worth 1-2 billion by 2013 a couple of years ago. I suspect that Fox was given a bit of a discount on that price,but still indicates value of BTN to be worth 50-100 million to Iowa. Not bad,considering no real investment initially.

Delany's greatest achievement is creation of BTN,imo.

[ColumbusHawk]

Another point, comparing salary to revenue, Ferentz probably makes about the same as Rhoads.