Exactly my point:
If Bo Pelini costs you $3 mil a year but throws off a bottom line of $35 mil, that's pretty good.
But if Nick Saban costs you $10 mil but throws off a bottom line of $50 mil...
Which coach is the most expensive?
Im not a mathematician but the answer is pretty obvious.
Maybe the NU athletics admin should attend a freshman economics class before semester break. Oh wait too late.
Perhaps they're thinking there's not that much upside. I don't see how hiring the "Saban"-type coach could possibly bump profit from $35 to $50 million. The stadium is already sold out, so there's no more money to be made there. Bowl revenue is split among the Big Ten pretty equally--same with TV money (that's why we left the Big 12). So, if we go from winning 9 games a year to winning 11-12 and playing in a couple BCS games or even winning a title, how much extra money would the program receive? Even if we become a powerhouse again, I doubt merchandise sales would increase dramatically. Every NU fan already buys a lot of merchandise and unlike Miami/FSU/Alabama, I don't think random kids in other states are going to buy our merch if we start winning (a lot of factors there--conservative image, tradition, remoteness, low population, etc.)
ND makes a lot of money because of a national brand and is independent. All its extra money stays with it. Texas has its own network and thus its own growable revenue stream. Aside from contributing to a growing Big Ten pie, I don't see how hiring a "better" coach could contribute much directly to NU's bottom line, and that makes a big assumption: that there's a coach would would definitely move NU to the next level on a regular and/or permanent basis. I don't think there is.
A large part of why Michigan and Ohio State are worth more than NU financially is because their stadiums hold significantly more people. 8 home games x 10-20,000 more people at $100+ per in ticket and concession sales per is like $12,000,000 a year. Give them each a 90,000 seat stadium and I bet we'd all be equal. I'd love to know the breakdown, but I bet that's true. PSU only went down dramatically because of losing ticket sales, donations, etc. and paying settlements related to Sandusky.
Bottom line, the Big Ten is a family (or a socialist system if you prefer). I think that is great for NU. But it means that there is nothing we can do (short of adding 15,000 seats) that would dramatically increase the "value" of our team (if that even matters). If the Big Ten as a whole gets better and TV and bowl money increases, all the Big Ten teams benefit together. The benefit is, even if NU slipped, it would be shielded from potentially disastrous financial side effects. And if we're all sharing revenue, stadium income is the only differentiator.
