Comcast liabilities about $72 million, Pac-12 reserve fund exhausted

[425cougfan]

I think it's been discussed, but maybe buried in another thread ... it turns out that according to Wilner in a recent piece, the amount the Pac-12 had to eat to make Comcast whole was about $72 million, which included exhausting the conference's reserve fund entirely. The source said there is "nothing left." I don't know whether that was the only reserve fund, whether there's any belief incoming payments due to media rights or other payment streams would leave anything there after liabilities are accounted for, etc., but this is all consistent with my suspicion that there really may not be much left in the Pac-12 in terms of assets if and when it ever all is sorted out.

 

[BleedCrimsonandGray]

I think it's been discussed, but maybe buried in another thread ... it turns out that according to Wilner in a recent piece, the amount the Pac-12 had to eat to make Comcast whole was about $72 million, which included exhausting the conference's reserve fund entirely. The source said there is "nothing left." I don't know whether that was the only reserve fund, whether there's any belief incoming payments due to media rights or other payment streams would leave anything there after liabilities are accounted for, etc., but this is all consistent with my suspicion that there really may not be much left in the Pac-12 in terms of assets if and when it ever all is sorted out.

Wow, the timing of 8 teams leaving the conference is just such a big coincidence...

Wonder where Utah's pres and prof were when these numbers were being added up?

 

[BSpike76]

I think it's been discussed, but maybe buried in another thread ... it turns out that according to Wilner in a recent piece, the amount the Pac-12 had to eat to make Comcast whole was about $72 million, which included exhausting the conference's reserve fund entirely. The source said there is "nothing left." I don't know whether that was the only reserve fund, whether there's any belief incoming payments due to media rights or other payment streams would leave anything there after liabilities are accounted for, etc., but this is all consistent with my suspicion that there really may not be much left in the Pac-12 in terms of assets if and when it ever all is sorted out.

I’ve heard it would be charged back to the teams out of this year’s revenue. 🤷🏻

 

[425cougfan]

I’ve heard it would be charged back to the teams out of this year’s revenue. 🤷🏻

Yeah, here's the pertinent portion, which isn't that easy to parse, but which I think is consistent with it coming out of revenues this year.

Under penalty of perjury, Kliavkoff stated “the Pac-12 will (have) distributed more than $72 million less than previously budgeted … to our member institutions.”

The decrease comes in two forms, according to a source:

— Distributions withheld by Comcast to offset 10 years of overpayments (2013-22) based on the company’s flawed tracking of Pac-12 Networks subscribers. That total is $58 million.

— Reductions in distributions in the 2023-24 fiscal years to account for a correction in the subscriber figures. That total is $14 million.

“It typifies 12 years of neglect,” a source said.

The withholding and reduction of $72 million (or $6 million per school) is already underway and expected to be finalized before the end of the current fiscal year.

In other words, the liability should be off the books if Washington State and Oregon State attempt to rebuild the conference next summer, after the other 10 schools depart for their new conferences.

In order to offset the reduction in revenue, the Pac-12 trimmed its expenses and tapped its emergency reserve fund.

Multiple sources said the emergency reserves — a potential asset for the Cougars and Beavers if they attempt to rebuild — are fully exhausted.

“There’s nothing left,” one source said.

 

[dgibbons]

I think it's been discussed, but maybe buried in another thread ... it turns out that according to Wilner in a recent piece, the amount the Pac-12 had to eat to make Comcast whole was about $72 million, which included exhausting the conference's reserve fund entirely. The source said there is "nothing left." I don't know whether that was the only reserve fund, whether there's any belief incoming payments due to media rights or other payment streams would leave anything there after liabilities are accounted for, etc., but this is all consistent with my suspicion that there really may not be much left in the Pac-12 in terms of assets if and when it ever all is sorted out.

"There's nothing left" was referring to the cash reserve.

 

[425cougfan]

"There's nothing left" was referring to the cash reserve.

Yeah, that part is clear. I'm still not sure there's much else that will be left, though.

 

[Loyal Coug1]

I think it's been discussed, but maybe buried in another thread ... it turns out that according to Wilner in a recent piece, the amount the Pac-12 had to eat to make Comcast whole was about $72 million, which included exhausting the conference's reserve fund entirely. The source said there is "nothing left." I don't know whether that was the only reserve fund, whether there's any belief incoming payments due to media rights or other payment streams would leave anything there after liabilities are accounted for, etc., but this is all consistent with my suspicion that there really may not be much left in the Pac-12 in terms of assets if and when it ever all is sorted out.

If this is even remotely true, then what are we suing and fighting about. Did the schools (esp. OSU and WSU) know there wasn't much to fight over? Future revenue streams (NCAAB?) may be in the mix and most likely to come our way 'cuz they'll be long gone. Am I right that sweet 16 monies get paid over 6 years?