SBJ/Dec. 6-12, 2010/SBJ In-Depth

How it works

The University of Alabama has a 10-year agreement with Learfield Sports and ISP Sports that guarantees the Crimson Tide more than $75 million, plus a revenue-share piece that will drive that number even higher. Learfield hired the staff of what's now called Crimson Tide Sports Marketing to run Alabama's program. Here's a breakdown of how the deal works:
Joint venture
Learfield is a 75 percent partner in Crimson Tide Sports Marketing, while ISP is a 25 percent partner, which gives Learfield the controlling interest and decision-making power. Learfield and ISP have similar joint ventures at several other schools, including Texas A&M, Clemson, South Carolina and Auburn, with Learfield taking the lead on some and ISP on others.

The guarantees

The joint venture pays Alabama an annual rights fee that is guaranteed,
regardless of how well Crimson Tide Sports Marketing performs

The revenue share
If the joint venture's total revenue tops certain thresholds, it will pay Alabama a 50 percent share of what it makes above those thresholds. Those thresholds are shown below.

The rights
The rights conveyed to Learfield in the 10-year contract:

Radio broadcast, live events

Television shows, coaches shows

Select television broadcasts, live events and delayed broadcasts

Internet rights,

Print, game programs

Endorsement rights for coaches, including appearances, commercials and use of images

Signs at the school's stadiums and arenas

Pouring rights

Concession rights, food and beverages

Source: Contract between Learfield,
ISP and Alabama

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