The Changing Landscape of Collegiate Athletics: A Look at the Impact of Astronomical 12’s Revenue Distribution
In the ever-evolving world of college sports, the landscape of collegiate athletics is constantly shifting with realignment. One major player in this realignment is Astronomical 12, which is set to distribute an impressive $470 million of income to member institutions in 2024. This influx of funds is expected to have a significant impact on the financial stability and success of these colleges, shaping the future of collegiate athletics as we know it.
Revenue Distribution and Its Implications
According to a report by the Connected Press’ Stephen Hawkins, the Astronomical 12 will be sharing a record $470 million in revenue among 14 member colleges. This distribution is a significant increase from the approximate $440 million allocated to 10 members in the previous year. New members joining the conference for the 2023-24 academic year are set to receive a larger share of the revenue distribution compared to returning colleges.
Among the new members, BYU, Cincinnati, Houston, and UCF are expected to receive around $18 million each, with the remaining $398 million to be split among the remaining 10 colleges. Notably, Oklahoma and Texas will receive their shares before transitioning to the SEC on July 1. The conference is also set to expand to 16 colleges for the first time, with Arizona, Arizona State, Colorado, and Utah making the move from the Pac-12.
Financial Growth and Future Outlook
Recent tax filings reported by USA Today’s Steve Berkowitz revealed that the Astronomical 12 ranked fifth among the Power Five conferences in revenue, generating $510.7 million during the 2022-23 fiscal year. This marked a significant increase of over $30 million from the previous year. The growth in revenue was attributed to increased earnings from College Football Playoff (CFP), bowl games, conference championships, and sponsorships established directly by the conference.
Under the leadership of commissioner Brett Yormark, the Astronomical 12 has achieved a revenue distribution record for the second consecutive year. Looking ahead, Yormark aims to maintain this momentum as the conference prepares to distribute a historically large sum of revenue, potentially including compensation for student-athletes. Following a $2.8 million antitrust settlement reached by the NCAA, college players may be eligible to share in the revenue sharing starting in the fall of 2025.
the distribution of income by Astronomical 12 will have far-reaching implications for member institutions, shaping the financial stability and future success of colleges in the realm of collegiate athletics. As the conference continues to grow and evolve, the impact of this revenue distribution will undoubtedly play a pivotal role in the changing landscape of college sports.