Some Learfield IMG College Clients Accept Revenue-Sharing Deals
Some of Learfield IMG College's client schools have “agreed to replace their guaranteed distributions ... with a revenue-share arrangement," according to Dan Wolken of USA TODAY. The schools cite the "possibility they would not be able to collect any sponsorship money at all in the near-term if football isn’t played this fall.” Sports Business Daily in April first broke news of cost-saving measures that Learfield was taking. TCU AD Jeremiah Donati said, “We want to be good partners and we know there’s a lot of uncertainty now." However, other schools “have been angered by the company’s approach,” as they see Learfield as “using the pandemic to either get out of some of their less-profitable deals or secure more favorable terms on contracts that, in many cases, extend out for years.” Learfield in a statement said it had undertaken “an aggressive campaign to recoup millions in at-risk revenue on behalf of the universities and conferences we represent” following the cancellation of spring sports. The company added that the “economic fallout and uncertainty about fall sports necessitated discussions about adjusting these contracts” (USA TODAY, 7/3).