When the University of Michigan hired Jim Harbaugh to be its Head Football Coach this week, the millions in salary announced along with the hire shocked those who don’t follow the businesses of media and sports closely. But the reason why he and other football coaches outlearn many business CEOs is on display on your your flat screen TV today.
If you’re watching college football today and/or tonight, you’re watching TV differently from how so many will watch TV in 2015 and it’s the fuel for bigger money and bigger stakes in big time college sports. That’s because you’re watching commercials too, rather than fast-forwarding through them on your DVR.
College football is America’s second most popular TV sport, second only to pro football. And it’s just about DVR proof, as virtually all fans prefer to watch games live, whenever possible. That means advertisers are virtually guaranteed the maximum value for their commercials and they will pay a premium for them. That translates into rising rights fees paid from the TV networks to the colleges that are members of the “Power 5” athletic conferences. That “football money” gives them more to do whatever they feel like they need to do to have a competitive football team that wins games and the prestige that comes along with that. That is the money that makes even assistant coaches millionaires.
It’s a chain that starts with getting you in front of the TV to watch commercials, along with football.