Earlier today, the Athletic revealed the Big Ten’s fiscal 2024–25 year. Word is, the conference brought in $1.47 billion. Of all, Ohio State received the biggest share ($91 million). Second comes Penn State with about $89 million. However, what caught folks off guard is the lopsided payout for these newcomers.

Oregon and Washington are getting half shares. Meanwhile, USC’s payout has nearly doubled since leaving its old conference. Since they all came from the PAC-12, how much disparity is there in their shares?

Back in 2022, USC and UCLA were the ultimate ‘first movers’ who basically blew up the old system. Because they left the Pac-12 while it was still relevant, they had big leverage. The Big Ten was desperate to plant its flag in the Los Angeles TV market, the second-biggest goldmine in the country, to juice up its next media deal.

Because USC and UCLA were in Hollywood, it helped the Big 10 to land a $7 billion contract with Fox, CBS, and NBC. The Big Ten gave them “full-share” status from day one. That means they’re currently hauling in somewhere between $60 million and $75 million a year.

Now, Oregon and Washington were in a much more frantic “save our souls” situation. When they decided to make a jump to the Big 10 a year later, in 2023, the Pac-12 was in its final breath, and their TV options had basically evaporated.

Unlike USC, which was a “luxury” add that made the conference richer, the Ducks and Huskies were seen more like “refugees” in this context.

Since the Big Ten had already signed that $7 billion check and “locked in” the budget, they couldn’t just give the new program a full slice without taking money away from the original schools.

So, Oregon and Washington had no choice but to only say “yes” to a “half-off” entry fee that starts at just $30 million a year, basically a 50% pay cut just to get through the door.

The reason the Big Ten got so stingy comes down to some cold, hard math. The $7 billion deal was calculated for 16 teams. Since they added two more mouths to feed, it kind of “diluted” the pot here.

If the conference had paid Oregon and Washington at full price, schools like Ohio State or Michigan would have seen their own checks shrink.

To make this move work for everyone, the newcomers agreed to a deal in which their pay would only increase by $1 million each year through 2030. It’s a bit of a “hazing” period where they’ll end up roughly $200 million behind their rivals over the next seven years.

But it’s still a win for the Oregon Ducks.

Why it’s a blessing in disguise for the Oregon Ducks

First, Oregon has money to spend to oblivion, all thanks to Phil Knight, otherwise known as college football’s very own Scrooge Duck. Even if you put this completely out of context, it’s still a win.

The $30 million feels “low” compared to USC; it’s still way better than the roughly $20 million they were scraping together in the dying Pac-12. Plus, there’s a sneaky silver lining: the half-off discount only applies to the TV money.

For things like the College Football Playoff and March Madness, Oregon and Washington actually get full shares.

Last year, Oregon’s football team took home about $50 million. They can even “borrow” up to $10 million a year against their future earnings just to help pay for all those expensive flights to the East Coast.

The good news for the Ducks and Huskies is that this “budget” lifestyle isn’t forever. They’re basically betting on themselves, knowing that, when the next Big Ten TV deal kicks in around about 2030, they’d finally graduate to the big leagues.

Most of the experts reckon the “full” payout could skyrocket to $90 million or even $100 million per school. However, if the Big 10 decides to go with the UC investment ( private equity), then they’d take home maybe more than $170 million (take it with a grain of salt, it’s a mere estimation). End of the day, it’s more like, ‘if you can’t beat ’em, join ’em, then you beat ’em or be them’ situation.