SEC sends each school $23M for COVID-19 financial losses

[MSOrange]

SEC says it sent each school $23M to make up for financial losses related to COVID-19

The SEC said it sent $23 million to each of its 14 member institutions to make up for COVID-19-related financial losses.

www.espn.com

 

[OrangeXtreme]

It's good to be the king.

 

[sufandu]

I couldn't get the article to pull up for some reason. How did the conference have an extra $330 million laying around? Isn't that money supposed to be distributed to the members anyway? Is this like when you grab a bucket, sponge, soap, and a hose and are in the middle of spraying the car with water when your wife comes out and asks you to wash the car?

 

[OrangeXtreme]

I couldn't get the article to pull up for some reason. How did the conference have an extra $330 million laying around? Isn't that money supposed to be distributed to the members anyway? Is this like when you grab a bucket, sponge, soap, and a hose and are in the middle of spraying the car with water when your wife comes out and asks you to wash the car?

Took out a loan against future earnings?

The $322 million distribution will be paid for from future revenues generated through media rights, beginning in 2025. The SEC said it expects its annual distributions in 2025 and beyond to continue to increase even after a portion is used to fund the one-time payment.

 

[Chip]

Took out a loan against future earnings?

The $322 million distribution will be paid for from future revenues generated through media rights, beginning in 2025. The SEC said it expects its annual distributions in 2025 and beyond to continue to increase even after a portion is used to fund the one-time payment.

They can just print money now, or print money later.

Or both.

 

[Orijinal]

Would be sweet if the SEC doesn't win another championship for another 10 years. Hey, it's a long shot, but you never know

I love it when schools sink a ton of money into programs and it doesn't make a difference in on field performance. Love that Auburn built a 90 million dollar practice facility, and everyone talks about Alabama in the SEC. Keep the exorbitant spending up, big boys, and keep your fanbases irritated when your school isn't in the national championship conversation

 

[hoopsupstate]

They gave their members and early bag advance.

 

[Orangepace]

Took out a loan against future earnings?

The $322 million distribution will be paid for from future revenues generated through media rights, beginning in 2025. The SEC said it expects its annual distributions in 2025 and beyond to continue to increase even after a portion is used to fund the one-time payment.

This is exactly what they did. Given the guaranteed earnings stream, they borrowed against future earnings, which would be a very easy deal to consummate with a lender. I'm not sure when their current TV deal expires, but they're banking on a massive increase so that the first few years the distributions remain the same while paying off the obligation.

 

[gbo]

I'm sure the ACC is trying to borrow money from the member schools...

 

[All4SU]

I'm sure the ACC is trying to borrow money from the member schools...

The ACC is holding a bake sale.

 

[Geode]

The ACC is holding a bake sale.

It's Bo Time... $14 chicken biscuits, $1 for each team.