Scott said the conference's expected distribution from the NCAA this spring would be reduced by two-thirdsGETTY IMAGES
Pac-12 Commissioner Larry Scott said the conference is discussing executive salary adjustments while competition is at a halt, and the temporary pay reductions would come even though Scott said the conference's revenue for the '19-20 school year is secure. On total annual revenue of roughly $500M, the Pac-12 will take a hit of around 3-5%. Scott said, "We've got several ways to mitigate some of that that we're going to be working on. We'll be talking to our members about business-interruption insurance that we have and what kind of expense savings we can capture. We're fortunate we've got reserves; we've got other cash-flow cushions if we want to use them." The conference lost about $4M after ticket refunds were applied to the Pac-12 men's basketball tournament. With the conference's wholly-owned networks not producing live events and studio shows, it will look for savings. Scott: "We are trying to tell stories, do PSAs that show what student-athletes and coaches are doing in their communities, things like that." Without spring championships to put on, Scott said, "We're not going to have some of the same operational expenses in the office. We're looking at everything, top to bottom, to mitigate any shortfall our members might see from this year's revenue" (Michael Smith, SBJ Unpacks).
MURKY WATERS: In San Jose, Jon Wilner noted the Pac-12 is facing a revenue hit of at least $1M per school from the "cancellation of its men's basketball tournament and March Madness, although the full extent of the damage won't be known for weeks." Scott said that the conference's expected distribution of $17.5M from the NCAA this spring "would be reduced by two-thirds," or about $11.5M. The total maximum loss of about $15.5M for the conference equates to approximately 3% of the Pac-12's revenue for FY '20, which should fall in the $500M range. Scott said, "I don't expect a significant financial impact on the members. Because of the fact that we got through the football season and the championship game and the bowl games and the (College Football Playoff) and the basketball regular season, the financial impact for the conference and schools won't be as significant relatively as if we had not played football." He added, "The bigger issue is if the crisis is prolonged and it impacts football" (San Jose MERCURY NEWS, 3/31).
