Tag: Longhorn Network

Shake it Off: Random Thoughts about the College Football Playoffs, Big 12 Expansion and TV Contracts

On By Frank the TankIn Sports709 Comments

I know that it’s been a loooooong time since my last post. Let’s get right to some random thoughts:

(1) College Football Playoffs – We have seen two iterations of the College Football Playoff rankings and my mind comes back to the same question that I had when the powers that be first announced that the system would use a committee: Why is this any better than just using the AP Poll (or old Harris Poll)? (To be sure, the Coaches’ Poll is a worthless self-serving steaming pile of garbage.) The former BCS rankings were much maligned, but they were at least a little progressive in attempting to incorporate some objective computer rankings. All that I see with the new CFP rankings is a 12-person poll, which isn’t necessarily any better than other polls with much larger sample sizes. The NCAA Tournament Committee serves an important purpose for basketball since they are vetting at-large teams that much of the general public hasn’t seen before. However, a 4-team college football playoff is much more suited to a “Wisdom of Crowds” determination: the public has a fairly good sense of who it believes to be the very top teams in any given season, so a decision from a small committee isn’t necessarily going to be any better.

Having said that, I do enjoy seeing the broader array of games that matter at a national level this season. The expansion from a 2-team championship race to a 4-team playoff has a pushdown effect where there are more impact games involving many more potential postseason participants. Unfortunately, very few of those impact games have involved the Big Ten over the past couple of months. I don’t believe that this is some type of long-term permanent situation, but it’s an early indicator of issues down the road for the playoff system overall. A 4-team playoff structurally means that at least one power conference champion is going to be left out every year, and when a league like the SEC looks as if though it can garner multiple playoff sports, that means that 2 or more power conference champs can be left on the outside. A consolation Rose Bowl or BCS bowl berth was seen as a worthy prize back in the 2-team BCS championship world, but this season has already shown that 100% of the oxygen in the sport is being taken up by the 4-team playoff race.

So, I’ve spent quite a bit of time once again contemplating the next (and probably final) phase of playoff expansion: the 8-team playoff with all 5 power conference champs receiving auto-bids. If it were up to me, we would just use the traditional bowl arrangements to slot the teams:

Rose Bowl: Big Ten champ vs. Pac-12 champ
Sugar Bowl: SEC champ vs. at-large
Fiesta Bowl: Big 12 champ vs. at-large
Orange Bowl: ACC champ vs. at-large

I expanded quite a bit more on this proposal last year as a mind meld between the progressive (expanded playoff) and the traditional (old school bowl tie-ins). Believe me – if there’s one proposal that I’ve had on this blog that I’d want to see implemented, it would be that one by far.

(2) Big 12 Expansion – Big 12 commissioner Bob Bowlsby was asked last week about Big 12 expansion and he had some comments that we can over-analyze here (as not much has been happening on the conference realignment front lately). Here was his response to a question about whether further conference realignment was coming (via The Oklahoman):

There are several of us that are numerically challenged. I don’t know that anybody could’ve anticipated that the Big 12 would have 10 and the Big Ten would have 14. … In our case, I don’t know that there are a lot of obvious candidates out there. We’re distributing about $25 million per school through our distributable revenue, so anybody that would be considered for expansion in our league would have to bring at least pro-rata value. … But the opportunity to move from one high-visibility conference to another is pretty slim right now. I don’t see much movement in the near- to mid-term. As we get near the end of some of these TV contracts, which would be 10 or 12 years down the road, there may be some renewed conversations. The only movement that is possible right now is from some of the secondary-level conferences that might move people into one of the five high profiles.

The super-conferences concept … has largely been a media fabrication. I have heard no serious conversation among people who do this for a living that the super-conference concept has got any traction. It’s always dangerous when the media starts to interview the rest of the media, and I think that’s where the super-conference thing came from.

Nothing too new here, although Bowlsby does seem to give some hope to non-power conference schools looking to move up to the power ranks (such as BYU, Cincinnati and UConn) in stating that the only possible movement is from the “secondary-level conferences” to one of the power leagues. Seeing that the Big 12 is the most likely conference to expand in the near future (meaning the next 3 to 5 years), anything that Bowlsby says that suggests some possible movement is something to watch. Nothing has changed from my viewpoint a year ago that the Big 12 is demographically challenged long-term (other than the state of Texas) and would benefit from a 2-team expansion (specifically with Cincinnati and BYU under my Big 12 Expansion Index). I’ve never bought the notion that the Big 12 is truly happy being at 10 schools – their leaders will always publicly state that they’re happy with their TV revenue and round-robin scheduling, but deep down, they’re dying for two obvious non-power schools to rise up (similar to TCU and Utah in the past) that they can add on.

(3) TV Contracts – Bowlsby also had some interesting comments about the impact of the Longhorn Network on the Big 12 (once again via The Oklahoman):

The Longhorn Network is a boulder in the road. It really is. They did something that almost no other institution in the country could do because of the population in the state, and we’re looking at some way to try and morph that around a little bit. … It really begs the question about, how are we going to get our sports in the years ahead? If technology changes in the next five years as much as it’s changed in the last five years, we’re not going to be getting our sports by cable TV. I don’t know what it’ll be. But increasingly, we’re using mobile devices … Google Network and Apple TV and things like that are coming into play. … I’m not sure the world needs another exclusive college cable network. Rather than trying to do what everybody else has done, I would much rather try to figure out what tomorrow’s technology is and get on the front side of that and be a part of what happens going forward and monetize that.

I think Bowlsby is trying to spin a nice tale that the Big 12 can somehow take advantage of new technologies in the way that’s different than the Big Ten Network or SEC Network. However, the Big 12 can’t sell rights to games that it doesn’t have the rights to. If anything, the best properties to leverage for digital platforms in the future are conference networks themselves – see the BTN2Go streaming capabilities and the SEC Network’s integration into WatchESPN. The most powerful conferences in the cable world are going to continue to be the most powerful conferences in the digital world.

Separately, the NBA’s record-breaking new TV deal portends some incredible cash on the horizon for the Big Ten, which is the last major sports property (college or pro) that will be on the open TV rights market for the rest of this decade once its current ESPN deal expires in 2016. I wouldn’t be surprised at all if the Big Ten ends up extending with its current first tier rights TV partner ESPN sooner rather than later in the same way that the NBA extended its deals with ESPN and Turner. While there is some fan sentiment out there that the Big Ten ought to separate itself from ESPN, that’s (1) unbelievably short-sighted from an exposure perspective and (2) very likely to be a poor decision financially. (Mark Hasty of Midwest Sports Fans had a great critique of Big Ten fans complaining about supposed ESPN bias against the conference. I wholeheartedly agree with his analysis – our media coverage off-the-field is honestly miles ahead of our performance on-the-field.) It is also a common fan misnomer that the Big Ten is somehow more aligned with Fox. While the BTN is a Big Ten/Fox partnership, remember that the Big Ten actually provides the top picks of college football games for ABC and ESPN every week, which is of immense importance to both the B1G and Disney. (If you live in a cave, SEC sends its top game of the week to CBS.) Ultimately, ESPN has the most cash by far and they have shown to be willing to pay up to ensure that competitors like Fox and Comcast/NBC don’t get their hands on prime sports properties. Meanwhile, there is the risk that cable TV money might not last forever with the increase of chord cutting, so waiting a few years for the open market isn’t necessarily the guarantee of greater riches that it appears a couple of years ago. The NBA made the calculation that it was better to take the cash now rather than later and I’d trust the media savvy of Adam Silver over any other commissioner in sports. I would expect the Big Ten to do the same thing.

(Image from God and Sports)

Someday Love Will Find You: The Longhorn Network, BlogPoll Ballot, Parlay Picks and Classic Music Video of the Week

On By Frank the TankIn Big Ten, College Football, Illinois Fighting Illini, Sports273 Comments

There’s a post-Labor Day rush of thoughts on football of all stripes and types.  Let’s get to it:

(1) Longhorn Network Carriage – Anyone that has followed conference realignment over the past couple of years understands the importance of the ESPN-owned Longhorn Network.  In my opinion, it’s the single greatest factor that is keeping Texas in the Big 12, and in turn, Texas has the ability to cause a greatest earthquake out of any school on the college sports landscape (even more than Notre Dame) if it ever chooses to move.  Therefore, it’s key to keep an eye on Longhorn Network carriage in the State of Texas and its environs.

Last week, the Longhorn Network finally signed up AT&T U-Verse as its first of what would considered to be “major” cable carriers after a year of being on the air.  From those who recollect the carriage disputes in the Midwest when the Big Ten Network was formed, it took about a year for the top cable carriers such as Comcast to add the channel (with the one major difference being that DirecTV had the BTN from day one).  Getting AT&T on board is an important step for the LHN, but there’s still a lot work to be done in order to get the network onto what I would consider to be the most critical ones for its long-term survival: Comcast, Time Warner Cable and DirecTV.  With each week that goes by during the football season, the leverage that ESPN has in negotiating with carriers diminishes.  If ESPN can’t strike more deals by the time that the LHN airs its next football game, the chances of anything else occurring before next football season drop precipitously, which is where the long-term viability of the LHN starts truly coming into question.

My impression is that ESPN’s asking price for LHN is too high for the market to bear, but the problem is that the asking price is effectively what ESPN has to have in order to make only a minimal amount of profit (or even just to break even) after taking away all of the expenses of running the network.  If ESPN lowered the asking price much further, then it would be locking in long-term losses that would send Mickey Mouse and his shareholders into a bloody rage.  As a result, ESPN is likely going to have to go back to Texas to renegotiate its rights fees if these carriage disputes continue much further.  While Texas could theoretically sit back and tell ESPN, “F**k you, pay me” (which is effectively what the Longhorn Network contract states), the LHN is still an extension of the program’s brand even if it technically doesn’t own the channel.  The university ultimately doesn’t want irate alums and donors calling every week about why the LHN isn’t on their cable systems (as many of them actually mistkanely believe that the school owns the channel as opposed to ESPN), so it behooves the school to bend on rights payments if it can translate into greater carriage down the road.  Plus, if you look at the linked LHN contract, the real potential financial windfall for Texas comes from when the LHN hits profitability targets and a lucrative revenue sharing arrangement kicks in.  That windfall is realistically only possible if the LHN gets broad distribution across the State of Texas.

(2) BlogPoll Ballot

The clear lesson of the first week of the college football season is that Alabama is a holy terror of a scary team.  It looks like Alabama-LSU in November will be yet another national championship elimination game that might not end up being an elimination game.

Note that I got onto this week’s BlogPoll “Straight Bangin’ Award”  list for those biased against their favorite schools since there were actually some poor souls out there that put Illinois on their ballots.

(3) College Football Parlay Picks (odds from Yahoo! and home teams in CAPS)

Purdue (+14.5) over NOTRE DAME – The Boilermakers are going to sneak up on some teams this year.

Nebraska (-5) over UCLA – I have a feeling that enough Husker fans are going to head out to Pasadena to make this a fairly hospitable atmosphere for the road team.

Illinois (+4) over ARIZONA STATE – The Illini offense (particularly the offensive line) was pretty shaky last week, but the defense is impressive and can keep this game close.

(4) NFL Parlay Picks (odds from Yahoo! and home teams in CAPS)

Bills (+2.5) over JETS – Unfortunately, I think the Tebow Starter Watch is going to begin immediately.

PACKERS (-4.5) over 49ers – There’s a lot of interesting analysis out there suggesting that the 49ers are going to come back to Earth this season and I’m starting to buy it.  As a Bears fan, I have seen the great defense/untrustworthy quarterback combo rear its head for most of my lifetime and can easily see a drop off for the 49ers similar to what Chicago experienced from 2001 to 2002 and 2006 to 2007.

Colts (+9.5) over BEARS – I’m not that concerned that the Bears are going to lose this game outright, but as long as the team’s offensive line has more holes than the Soldier Field sod, there are going to be a lot of close calls.

(5) Classic Music Video of the Week: “Separate Ways” by Journey

Back in 2005, my Chicago White Sox adopted “Don’t Stop Believin'” as a corny theme song for the season and rode all the way to a World Series Championship (the first that either Chicago baseball franchise had seen since 1917).  Journey front man and self-described San Francisco Giants fan Steve Perry had enough time on his hands to show up to both the White Sox World Series clincher in Houston and the team’s ticker tape parade despite having no previous connection to the team.

“Don’t Stop Believin'” has enjoyed a fairly stunning renaissance since that time that was supercharged by its prominence in the closing moment in The Sopranos finale* and then the pilot episode of the shrill Glee.  It is now the most downloaded song of all time and has been ensconced in the top 100 list on iTunes every week for several years (which is remarkable for a 30 year old song).

(* If you haven’t already spent a couple of hours going through the legendary “Definitive Explanation” and second-by-second analysis of the final scene of The Sopranos, it’s well worth the time.)

One would think that this would be Journey’s greatest achievement, but the reality is that it’s not even close.  Please see the following:

It always slays me that Steve Perry and company are dead serious in this video.  There’s not a hint of irony or self-deprecation (or self-awareness, for that matter).  This is nothing less than the Citizen Kane of all music videos (or Vertigo, if you prefer).

Enjoy a wall-to-wall football weekend!

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

The Rasputin 12 (Minus 1 Minus 1 Minus 1)

On By Frank the TankIn Big East, Big Ten, College Football, Sports1,239 Comments

As most of you all know by now, THE BIG 12 WON’T DIE.  Let’s get right to it:

(1) Pac-12 grants a stay of execution to Big 12 – Last year, I wrote the following about the Big 12:  “While the Big 12 isn’t safe in a warm and fuzzy family way, it looks like it’s safe in a maximum security prison way.  No one’s getting out of there even if they want to very badly.”

Texas A&M looks like it’s pulled off an Andy Dufresne escape (although they’re not quite out of the sewer yet as a result of Ken Starr), but Oklahoma is still stuck in Shawshank.  I’m not surprised that the Pac-12 ultimately didn’t agree to taking on the Longhorn Network with Texas, but for Oklahoma to not end up moving west is a shocker and an instructive note on how there’s still a fair bit of inertia in college sports (despite all of us here going through scenarios of how everything is supposed to blow up).

Back in January, I noted that the Longhorn Network was actually going to save the Big 12.  That looked like that was going to be a very wrong prediction for the last month (and A&M is obviously out the door), but what we’ve seen is that Texas now has golden handcuffs to the Big 12 as a result of the LHN, thereby giving it prison-like stability.  No other conference that could conceivably be attractive to Texas (Pac-12, ACC and Big Ten) was willing to budge on the LHN and equal revenue sharing issues, which meant that saving the Big 12 was always the end goal for the Longhorns.

One Oklahoma source claims that the school was simply using the Pac-12 to obtain more leverage in the Big 12.  If that’s the case, it failed spectacularly.  The latest developments have effectively provided Texas even more of a hammer than it did previously.  The Oklahoma demand to fire Big 12 commissioner Dan Beebe looks like it will be fulfilled, but that was probably going to happen no matter what considering the breakdown of the league over the past year.  (All that I ask is that the @DanBeebe Twitter account continue to live on.  It’s my favorite fake Twitter feed outside of the now-dormant @MayorEmanuel.)  Other schools such as BYU, Louisville, West Virginia, Air Force and/or even TCU (which was the school that the Big 12 seemed to avoid as if it were though Patient Zero for the past 20 years) may be added to provide some more stability.

(2) My Partial Revenue Sharing Plan for the Big 12 – Now, let’s say that Texas actually decides that it wants to work in good faith to keep the rest of the Big 12 relatively happy (as it certainly has a large self-interest in keeping the league alive).  Equal revenue sharing for the national first and second tier TV rights is certainly a nice start to get some goodwill in the league, but that’s obviously ignoring the real source of contention of the LHN.  That being said, it has to acknowledged that the thought of Texas sharing all of its LHN revenue with the rest of the Big 12 is completely unrealistic.

So, what I’d propose is a local TV revenue sharing system based upon what Major League Baseball does today.  In MLB, all teams pay 31% of their local revenue into a pot that is then split up equally among all franchises.  As a result, the Yankees keep the lion’s share of their YES Network revenue (which is really where the team gets its financial power over the rest of baseball), but the Devil Rays get at least a little bit of benefit from the YES cash.  Just as the Yankees will always have an advantage in TV revenue in MLB due to its location in the New York City market, Texas has the same advantage within the Big 12.  No one can fault either the Yankees or Longhorns for maximizing that advantage, yet they also have to acknowledge that the fact that no one else can do the same (even successful programs like Oklahoma) is going to engender a ton of acrimony.  That might be fine for a school like Texas to say, “So what?!” in a pure free market business setting, but in a sports league (whether pro or college), the wealthy teams still need the plebeians to be competitive or else such wealthy teams aren’t going to be able to offer a very compelling product (interesting games) in the long run, which ultimately hurts revenue down the line.

Once again, it’s unrealistic to think that Texas is going to submit to equal revenue sharing for the LHN and third tier TV rights in the Big 12.  However, a partial revenue sharing plan for those third tier rights where all Big 12 members put in 31% (or some other agreed upon figure) of their local TV revenue which would then be split equally could go a long way in creating stability in the league and may actually make the league attractive to expansion candidates (outside of those that would take an AQ invite anywhere at anytime).  Regardless, the Big 12 lives, whether it deserves to or not.  BYU could logically be plugged in and the league could move along merrily, except…

(3) Remember the SEC: Realignment chaos isn’t over – Much of the media would have you believe that conference realignment has halted as result of the Pac-12 announcement, but there are the small matters of the SEC standing at an uneven 13 schools along with a possible collapse of the Big East that could put Notre Dame into play (which I’ll get to later on).

With respect to the SEC, Missouri was reportedly given an invite on Tuesday that was conditional upon the breakup of the Big 12.  What’s unclear is whether the SEC will still try to get Missouri into the league now that the Big 12 has survived or if the Baylor lawsuit brigade has given Mike Slive a reason to keep it on the down-low for awhile.  My impression over the past year is that the Missouri fan base had the most vitriolic collective anger toward the Big 12 besides Texas A&M, so if Mizzou effectively turned down an invite to the stable and wealthy SEC in favor of staying in the Big 12 prison (which I would personally characterize as the dumbest business decision in the history of college sports if that’s the case), I’d expect a whole lot of pitchforks in Columbia.  Missouri alums may very well push the school over the coming months to approach the SEC again just like the Aggies just did and we’ll go through realignment chaos all over again.

As long as the SEC is at 13 schools, there’s inherent instability in the same manner that the Big Ten having 11 schools always had other conferences on edge.  I thought the ACC was safe long before it added Syracuse and Pitt, but I’ve stated previously that Florida State is the one school from that league that I could see taking an SEC invite.  (Forget about Virginia Tech and NC State for political reasons.)  West Virginia from the Big East may also end up being a target again after being supposedly rejected by both the SEC and ACC (which happened before the Big 12 got its reprieve, meaning that Mizzou might not move).  Speaking of the Big East…

(4) Service academies in the Big East? – A list of targets for the Big East to replace Syracuse and Pitt is reportedly topped by Navy and Air Force as football-only members with the hope that Army could be convinced to join, as well.

With football-only members being the primary targets, this means that the Big East football members (at least for now) want to maintain the hybrid format with non-football playing Catholic schools.  The Big East would be looking for all-sports members if the schools really wanted to split.  In turn, this makes Notre Dame extremely happy as it looks like the Big East will continue to be a viable home for its basketball and other non-football programs and allow the Irish to maintain football independence.

I’ve seen a number of comments on Twitter and elsewhere openly wondering whether the Big East ought to keep its BCS AQ status if it ends up adding some combo of Navy, Air Force and/or Army.  What those commenters need to do is look at the big picture (AKA the entire BCS system).  The Big East is going to have its AQ status through 2013 as long as it still exists.  The published “AQ criteria” for ranking conferences does NOT apply to the 6 AQ leagues, who all have their status due to a combination of bowl and TV contracts.  Thus, that criteria is SOLELY a mechanism to see if there could be a 7th AQ conference and NOT to kick out any current AQ league.  This means the Big East can’t be yanked of its AQ status prior to 2013 unless it actually dissolves.

What’s important is what happens to that AQ status after 2013.  Let’s assume that the Big East has added all 3 service academies as football-only members.  Considering all of the constant political scrutiny with respect to the BCS, if you were a BCS commissioner, would you feel very comfortable going into a Congressional hearing and trying to explain why you just screwed over a league that has Navy, Air Force and Army?  I certainly wouldn’t want to be in that position.  See where I’m going here?  Adding all of the service academies would provide a ton of political protection for the Big East when its AQ status is reviewed in 2013.  That’s worth more than any other expansion candidates the Big East could possibly consider.  The other BCS leagues are likely going to end up continuing granting the Big East an AQ auto-bid as the cost of doing business to keep massive political heat of them.  It’s chump change compared to putting the entire tiered BCS system at risk.

So, don’t worry if you’re hooked on realignment crack.  There’s still plenty to come over the next few weeks.

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

(Image from Alexander Palace)

The Jump to Conclusions Game: Why Angry Aggies Aren’t Enough to Move Texas A&M to the SEC

On By Frank the TankIn Big East, Big Ten, Sports1,022 Comments

Nature abhors a vacuum and with a month to go until football season starts, conference realignment talk is back at a fever pitch even though there’s nothing really going on. The latest scuttlebutt is that Texas A&M is dancing with the SEC again with the rest of the Big 12 getting all hot and bothered about their high school recruiting targets getting TV time on the Longhorn Network (which has been placated… for now).

Believe me – I loooove conference realignment talk. It’s the reason why 99% of you are reading this blog in the first place. However, the “Texas A&M to the SEC” rumors are driving me up the wall, not necessarily because it would never happen (even though that’s what I personally believe), but that so many commentators on this subject simply argue that “Angry Aggies = SEC Move” without any further analysis. (For the purposes of this blog post, I will focus on Texas A&M, but the same principles can be applied to rumors involving angry Oklahoma and Missouri fans.) I went through a fairly detailed look at why I didn’t believe that A&M could go to the SEC several months ago and think that all of those arguments still hold true.

To be clear, I believe Texas A&M is an extremely valuable school and if the SEC could add them with no conference realignment repercussions elsewhere, then I could see it happening. A&M has a lot more value than the average UT fan would likely admit. The problem is there could be major conference realignment repercussions that the SEC will not want to witness happen (i.e. its main competitors getting even stronger with the Pac-12 adding Texas and/or the Big Ten adding Notre Dame) – the SEC wanting to add A&M as a reactionary move in 2010 is much different than pulling the trigger and causing the dominoes to fall in 2011. At the same time, A&M’s value is exactly why UT won’t just let them walk away.

Regardless, there’s a segment of the college football fan population that’s simply always going to believe that Texas A&M is heading to SEC just because the Aggies are pissed off. (Remember Missouri was pissed off at the Big 12 last year, too. Also look at all those Big East schools that are supposedly pissed that the conference won’t split. Tons of options for all of them, right?) That’s fair enough, but all I ask of this segment of the population is to address the following roadblocks to that ever happening:

1. The SEC can’t just rip up its TV contracts simply because it expands – A decent number of columnists/bloggers have taken SEC Commissioner Mike Slive’s comment that there are periodic “look-ins” for its contracts with CBS and ESPN and came to conclusion that the conference could set fire to those deals in the event of expansion. While the terms of the SEC TV deal are not public (and that’s the case for any conference), this is a dangerous assumption that I would wager is 99.99% incorrect. (The .01% allows for the slight chance that Slive has compromising pictures of various CBS and ESPN executives with Casey Anthony.) ESPN certainly doesn’t believe that the SEC’s “look-ins” can reopen the TV deal:

The agreement with ESPN calls for a “look-in” review after the first five years but can occur sooner, said Burke Magnus, ESPN senior vice pres ident of college sports programming.

“We knew when we made a 15-year deal that time was not going to stand still so we purposely built in these look-ins,” Magnus said. “They don’t reopen the deal. There’s no outs. It’s an opportunity for both of us to really take stock of where we are and see what we could be doing better.”

It is standard operating procedure that these types of contracts have provisions that protect the network, NOT the conference, in the event of membership changes. In a post by the excellent college TV sports blogger mattsarz about the C-USA/ESPN lawsuit, he attached the underlying TV contract that was made public as part of the complaint that was filed. Here’s the language about regarding membership changes:

10. CONFERENCE COMPOSITION

(a) Essential Institutions. The participation and availability for televised play of the following academic institutions shall be deemed to be of the essence of this Agreement: University of Texas El Paso, Rice University, University of Alabama-Birmingham, University of Tulsa, University of Southern Mississippi, Memphis University, Tulane University, University of Houston, Marshall University, University of Central Florida, East Carolina University and Southern Methodist University.

(b) Unavailability. If any Conference team leaves the Conference or is otherwise unavailable for televised play as authorized by this Agreement (in either case, “Unavailable”) for any Season during the Term then ESPN and Conference will negotiate in good faith after such Unavailability comes to ESPN’s attention to determine appropriate adjustments to this Agreement. In such negotiations, the parties shall take into account, among all other relevant factors, any new members that are added to the Conference in replacement of the Unavailable members. If the parties cannot agree on the appropriate adjustments, then ESPN will have the right in its sole discretion to elect by the May 1 prior to the affected Season (unless such Unavailability occurs thereafter, in which case ESPN will have the right to make its election within 30 days after it is notified by Conference of the Unavailability) to reduce the rights fees hereunder in the same proportion as the number of Unavailable teams bears to 12. ESPN will also have the right at any such time to terminate this Agreement if the Conference has in any season fewer than ten member institutions that are NCAA Division I-A members and that are available for televised play as provided above. In addition, if additional institutions join the Conference (i.e., bringing the number of member institutions to 13 or more), then within 30 days after ESPN is notified by the Conference to that effect, ESPN and Conference will engage in good-faith negotiations regarding potential increases to the rights fees due hereunder.

As you can see, ESPN was able to get a concrete reduction in fees or even completely terminate the agreement if C-USA lost enough members, but if C-USA added any members, all that the parties would be obligated to do was to engage in “good-faith negotiations”, which as an attorney I can say is Kumbaya B.S. with no real meaning. ESPN was the only entity with a legitimate stick here. A conference would only have power if it actually had concrete termination rights in the event of an expansion, which wasn’t the case in the C-USA contract.

Even though C-USA is relatively small player, we can deduce that the power conferences also have a similar clause. The Big Ten, for instance, gained a new marquee member in Nebraska last year and even added a brand new conference championship game (which wouldn’t happen in the case of SEC expansion). If the Big Ten had a termination right that some are assuming that the SEC somehow has, then Jim Delany would’ve called ESPN ten seconds after the new Pac-12 monster contract was announced and said “I’m out!” That obviously hasn’t happened – the Big Ten still has to wait until its current TV deals are done in 2016. It’s also instructive that both the ACC in 2003 and the then-Pac-10 in 2010 performed their respective expansions only a few months prior to their respective TV rights going back up for open bid. That shows that those conferences needed to time their expansions to coincide with their new TV deals (as opposed to the other way around, as the A&M-to-the-SEC believers are arguing) because that’s the only way that they could receive the financial benefits from expansion immediately.

Frankly, this all makes sense. Networks would never reasonably agree to tearing up TV contracts based on expansion because they want to know who the conferences are expanding with (not just expansion in and of itself), and even then, it’s almost impossible to assign a value to any prospective expansion candidates ahead of time. In turn, networks can definitely assign a value to a conference as presently constituted, so they have leverage to get out of deals (or receive relief) in the event that such conference loses members.

So, unless Mike Slive can produce some Casey Anthony photos, we should assume that the SEC has terms just like everyone else: the SEC is stuck with its deals until 2024 unless its TV partners willingly give it more money prior to that. This brings us to the next point…

2. ESPN isn’t going to willingly hand the SEC more money for expansion – Let’s take a quick look at where ESPN stands right now. First, ESPN worked extremely hard to keep the Big 12 together last year in order to block the formation of superconferences by going so far as to give that league the same amount of money even though it had just lost its most populous non-Texas state (Colorado), a marquee national name (Nebraska) and a conference championship game. Second, ESPN has just invested a ton of capital in the Longhorn Network, which essentially depends upon the Big 12 surviving as none of the other BCS conferences besides maybe the Big East would let that monstrosity live.

Call me crazy, but when considering those two points, it seems quite far-fetched that ESPN would actually provide an incentive to the SEC to expand with Texas A&M (and/or Oklahoma and/or Missouri and/or whoever else you want to throw in) that would directly kill off the Big 12 that ESPN has every incentive to save. Plus, with the amount that ESPN is paying the Pac-12 now and with the Big Ten contract going up for bid in a couple of years, it doesn’t make any sense that the network would give the SEC any ability to increase its rights fees prior to 2024. If the SEC’s contract was up in a couple of years like the Big Ten’s deal, then maybe I could see ESPN throwing more dollars in order to lock in an extension, but there’s no business logic for the network to re-open a deal that’s locked in for the next 13 years that the SEC can’t do anything about.

3. Objectors to high school games on the Longhorn Network are arguing semantics (and that’s ultimately a losing argument) – There’s a massive public flagship university located in one of the top football recruiting states in the nation that has entered into a multi-year multi-million dollar third tier rights deal with a regional sports network that is wholly-owned by a large multimedia conglomerate. There are some football and basketball games along with coaches’ shows and other promotions showing the university. The RSN also telecasts high school football games that potentially showcase that university’s recruits. Such public flagship university does not own any part of such RSN.

I’ve just described the contract that the University of Florida has with Sun Sports. It also describes the deal between the University of Texas and ESPN for the Longhorn Network. Structurally, the two deals are virtually exactly the same. ESPN completely owns the LHN, and therefore, controls its programming decisions, just like Fox owns and controls Sun Sports. The main difference is branding, where Florida is part of a network that also shows the Miami Cheat (among other teams) while Texas has its Longhorn moniker in the ESPN’s network’s name. So, does the NCAA come down on the LHN for a branding decision but doesn’t care about Sun Sports? If the LHN simply changed its name to “ESPN Austin”, would it make a difference? Is a network that has 10% UF content acceptable, but another with 90% UT content unacceptable?

Note that this is different than the BTN and Pac-12 Network situations, where the schools in the Big Ten and Pac-12 have actual equity interests in those channels. This makes it much easier for the NCAA to regulate those types of setups or, more importantly, regulate them in a way where the NCAA doesn’t lose in a court challenge. The Texas relationship with the LHN, on the other hand, is really just a straight-up traditional rights fees deal that Florida and a whole host of other schools have with various regional sports networks. As a result, the NCAA, the Big 12 and any other challengers to the LHN would largely have to rely on semantics (the name “Longhorn Network”) with subjective benefits as opposed to the ownership structure of the network itself that can objectively measured, and courts hate arguments about semantics. If ESPN thought the fight was worth it (and that’s a business question as to whether it would spend millions of dollars in legal fees in order to show high school games on TV), it would likely flatten the NCAA (quite possibly the most blatant example of an antitrust violation that we currently have in America, which is a subject for another blog post at some point) in court, just as the University of Oklahoma did in its landmark lawsuit where the Supreme Court struck down the NCAA’s control of TV rights (thereby opening up the ability for conferences and schools to freely enter into contracts with TV networks directly as we see today). The NCAA telling a network that isn’t actually owned by a member school what it can and cannot show on TV could be construed as an overstepping of its authority and, considering the inherently collusive nature of the organization (hundreds of schools making collective decisions that affect students, agents and media personnel that aren’t even employed by such schools), it needs to be careful on how it phrases its regulations.

When the LHN deal was first announced, I was initially puzzled when UT didn’t take an equity interest in the channel, but we now see one of the main benefits. Is showing high school games on the LHN shady? Absolutely! Can the NCAA or Big 12 regulate it? It could try, but at face value, I doubt it would withstand a court challenge. The Big 12 athletic directors themselves have put the kabosh on high school games on the Longhorn Network for this year, yet I’m sure we’ll see this issue come up again next summer and the conference could face the same legal scrutiny as the NCAA would. If ESPN believes the fight is worth it, the NCAA is a fairly easy lawsuit target.

4. People that keep ignoring Texas politicians will get fooled again – Fool me once, shame on you. Fool me twice, shame on me. Fool me thrice, I’m in fucking denial. In the three major conference realignments since the 1990s, two have been heavily shaped by the whims of Texas politicians. The third was shaped by the Virginia legislature. I’ll point back to my “You Can’t Always Get What You Want, Aggies” post that goes through why it’s critical to take into account the irrational nature of Texas politicians with respect to anything regarding football. At the very least, it would be nice to see some other commentators on conference realignment that this is a very real impediment to change. Gov. Rick Perry might be a former Aggie Yell Leader, but if he wants to run for president, he’ll need to raise a lot of money from UT alums (and Texas Tech and Baylor alums), which brings us to the next point…

5. UT needs A&M in the same conference together – Many UT alums likely won’t admit it, but as I’ve stated before, Texas A&M is an extremely valuable school. That’s why UT simply isn’t going to let them walk away, and if it means making some financial concessions or telling ESPN to not show high school games on the LHN to keep the peace (along with applying their own political pressure plus the support of Tech and Baylor), then they’ll do it. There were a number of factors that went into play in the Pac-16 deal collapsing last year, but the threat of A&M heading to the SEC at that time was extremely high on the list. It’s instructive that the Pac-16 deal could’ve easily moved forward if UT was fine with only moving with Tech (and maybe having Utah or Kansas replace A&M in the Pac proposal) while A&M went to the SEC, yet it didn’t happen. I’ll always remember one of the first comments from a connected UT alum on this blog when the Big Ten first announced that it was exploring expansion almost 2 years ago and how he described that UT, in no uncertain terms, would not let A&M head off to the SEC as the Longhorns knew that opening up the state of Texas to that conference for TV and recruiting purposes would be a killer for their own program.

At the same time, count me in as someone that will always believe that the prospect of UT going independent is an empty threat. Money is important, but many commentators are ignoring how important institutional culture is in making decisions, too. Ultimately, UT needs an entourage like a Hollywood starlet. The school’s actions time and time again have shown that having power over others is how it gets it rocks off. It wants to have schools like Texas Tech and Baylor dependent upon it and it certainly doesn’t want A&M be in a separate higher profile league. UT doesn’t just want to make the most money – it wants to control college football in the state of Texas completely, and that requires A&M to be in the fold. Notre Dame is a J.D. Salinger-type recluse that doesn’t want any attachments to anyone, which is why they have chosen to be independent as an institution (even though they’d actually make substantially more television money in the Big Ten). UT simply isn’t like that – it has always positioned itself as the proverbial sun for a bunch of other schools.

UT and A&M have come very close to separating two times before over the last two decades, yet the leaders of both schools have never been able to pull the trigger (even if some their respective fans would love to use a machine gun on the relationship). A combination of politics, institutional culture and uniquely shared endowment money that makes football TV revenue look like pocket change (see the Permanent University Fund) has always kept them together.

Could Texas A&M end up in the SEC? I guess anything is possible, but let’s be clear that just because Aggies are angry doesn’t mean that they’ll move to the SEC. Any rational analysis needs to address (1) why the SEC would expand when it has no leverage to renegotiate its current TV contracts (meaning that the current SEC schools would be subsidizing any expansion until 2024), (2) why ESPN would help out the SEC on that front when it has direct interests in keeping the Big 12 alive, (3) how a court challenge to any restrictions on showing high school games on the Longhorn Network would turn out, (4) why Texas politicians would suddenly be wallflowers on conference realignment when history clearly indicates that they are not only not wallflowers, but completely interventionist and (5) why UT would just roll over and let A&M walk away. I would love to entertain arguments that address all of those massive roadblocks. “Aggies are steaming mad”, however, isn’t a valid argument.

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

(Image from ThinkGeek)

West Coast Represent: Pac-12 TV Talks and What it Means for Other Conferences

On By Frank the TankIn Big East, Big Ten, College Basketball, College Football, Sports1,303 Comments

There were a couple of separate articles today regarding Pac-12 television rights that point to some implications for other conferences.  First, Jon Wilner from the San Jose Mercury-News had a fairly in-depth article today regarding the status Pac-12 television contract negotiations.  Second, Percy Allen from the Seattle Times had an interview with Pac-12 commissioner Larry Scott that focused on the conference’s basketball TV rights.  Here are the main points from those articles:

(1) Fox is the most likely long-term TV partner for the Pac-12 with a possibility of some over-the-air football games on the mothership network, while Comcast/NBC is the second option;

(2) ESPN is not willing to pay as much for the Pac-12 as it did for the ACC for a variety of reasons (including lack of time slots and the value of the ACC’s syndicated basketball package);

(3) Larry Scott wants the Pac-12 Network to happen, but Time Warner Cable will be a large obstacle in the Los Angeles market; and

(4) Going forward, all media rights for all Pac-12 members will be controlled by the conference (as opposed to a portion being controlled by the individual schools as it is today).

Let’s examine each of these points from the perspective of the Pac-12 and how they apply to the college sports world at large.

Point #1 about Fox’s involvement isn’t a surprise considering the current relationship that it has with the Pac-12 and the media giant’s increasing focus on obtaining college sports rights over the past several months (including paying $140 million over the next six years solely for the Big Ten Championship Game).  The overarching questions going forward are (a) how serious is Fox about expanding its overall college sports presence and (b) are they willing to use Fox over-the-air for games?  Fox bid on the ACC package last year with an offer that was heavily reliant on FX as the main national platform.  Indeed, David Hill, Chairman of Fox Sports Group, sees an increase in sports programming on FX as a key in making that network competitive with the likes of TNT.  While Fox didn’t win that deal, they did procure a smaller agreement with C-USA plus rights to the Big Ten and Pac-12 championship games.  A hungry Fox can certainly bid up the price of rights for other conferences… as long as ESPN is willing to play, too.  (More on that in a moment.)

As for Comcast/NBC, call me skeptical of them ever becoming a truly major player in college sports.  Comcast-owned Versus certainly is looking for more sports programming, but that’s a fairly unattractive national cable partner compared to ESPN or FX on its face and you’re more likely to see sports move away from NBC as opposed to any events being added.  Sports programs in general are loss leaders for over-the-air networks and the last thing that NBC needs is more losses.  In fact, NBC Universal CEO Steve Burke told Wall Street analysts covering Comcast specifically yesterday that NBC’s current “sports properties lose hundreds of millions of dollars per year.”  NBC lost $220 million on the 2010 Vancouver Winter Olympics and even its gold-plated NFL Sunday Night Football package loses around $100 million per year.  So, it doesn’t exactly sound like the new Comcast ownership is going to be spending very much money on more sports on NBC.  If anything, those quotes from the head of NBCU indicate that they’re preparing to cut back heavily.  Therefore, any conference hoping for Comcast/NBC to come through with some great offer is going to be severely disappointed.

From the Big Ten’s perspective, I see Fox only as a viable option in the conference’s next TV deal if there is essentially a replication of the SEC’s agreement with CBS: the top game of the week gets coast-to-coast over-the-air coverage.  I can’t realistically see the Big Ten considering a deal with Comcast at all.  While much has been made of the Big Ten’s partnership with Fox regarding the Big Ten Network, it must be emphasized that the conference still receives substantially more money from ESPN compared to the BTN.  There are also more Big Ten events on ESPN today than there were prior to the BTN being formed.  From the very beginning, the BTN has always been intended to be a supplement to ESPN coverage as opposed to a replacement.  The Big Ten is smart enough to know that the time slots that it has secured with ABC and ESPN provide incredible exposure and the conference doesn’t want to kill the proverbial long-term golden goose for short-term financial gains.  Any new deal going forward has to provide even more exposure than today’s deal.  Thus, I could see the Big Ten pushing to a movement of the games that are regionalized on ABC right now to national over-the-air Fox coverage.  However, I highly doubt that the Big Ten would ever seriously consider moving ESPN games to FX (and definitely not to the patchwork quilt of Fox Sports Net affiliates).  It’s interesting to note, by the way, that the two conferences that make the most money outside of ESPN (Big Ten with the BTN and SEC with CBS) also make the most money from ESPN. Money certainly talks, but the Big Ten seems to be a property that ESPN will pay up to get them to stay (and the desire to stay on ESPN will be reciprocated by the conference).

That leads to Point #2, where apparently the Pac-12 is a conference that ESPN is not willing to pay up for.  More specifically, ESPN appears to believe that the Pac-12 TV package is worth less than comparable ACC rights.  This doesn’t surprise me at all.  I’ve been fairly consistent on this blog that the ACC is in much better shape than what a lot of sports fans (that have concentrated on the conference’s relative weakness on the football field over the past few years) believe. 

National marquee brand names are extremely important for determining college sports rights and the ACC has 2 big ones for football (Miami and Florida State) and arguably the 2 very biggest ones for basketball (Duke and North Carolina).  The ACC basketball package is also unique in that it draws football-level ratings in several of its markets, which is something that none of the other BCS conferences can claim (even those that might be better on the court in a given year, such as the Big East).  If and when Miami and Florida State get back on track, you’ll see a dramatic turnaround in the football perception (and TV ratings) of the ACC.  In contrast, the Pac-12 is largely reliant on the strength of USC for football and UCLA for basketball in terms of drawing national interest.  Beyond the LA schools and Oregon’s wacky uniforms, the Pac-12 continues to struggle with getting much notoriety in the Eastern 2/3rds of the country.

The Pac-12’s inability to get much of a large bid out of ESPN should be a small warning sign to the Big 12 and a large red flag to the Big East, who are both hoping to receive large TV rights increases from the Worldwide Leader.  Several conferences last summer were under the impression that ESPN paying such a large amount to the ACC meant that the network’s greenback gushers were wide open and they could switch the style up, but if they hate let ’em hate and watch the money pile up.  Instead, it looks like ESPN is going to keep all its money in a big brown bag inside a zoo.  Dan Beebe and the Big 12 members may sweat it out a bit as there were some financial assurances from ABC/ESPN this past summer that aided in keeping the conference from splitting apart.  Personally, I’m a believer that ESPN understands the big picture and seeing that they presently want to avoid the formation of superconferences, they’ll pay enough to the Big 12 so that the conference makes good on its promises to Texas, Oklahoma and Texas A&M.  With ESPN’s investment in the UT network, the Big 12 needs to stay alive and a few extra bucks on the conference contract would be money well-spent.

The Big East is a different matter.  That conference has already bore the brunt of having football games moved by ESPN to Thursday nights initially, and then when the SEC, ACC and Pac-12 saw that Thursday was a great night for exposure, the Big East has been kicked around to several Friday nights and even some Wednesday evenings.  Much of the hope of a Big East TV contract increase rested on leveraging its valuable and massive basketball package into better football exposure.  However, if ESPN isn’t willing to pay the Pac-12 TV rights in line with the ACC, then it stands to reason that they’re going to value the Big East even less.  Unless Fox or Comcast swoop in with competing bids for the Big East, the conference’s schools are going to have a difficult time coaxing the increases that they’re hoping for from ESPN.  I’m sure that you’ll see the Big East get what amounts to an inflationary increase (maybe 150% of what they receive now), but not enough to get on the same tier as the other BCS conferences.

Under Point #3, Larry Scott seems extremely determined to start a Pac-12 network.  However, Jon Wilner pointed out a large potential obstacle: Time Warner Cable.  He noted that TWC is the largest cable provided in the Los Angeles market and they’ve had a habit of getting into carriage fights regarding regional sports networks.  What Wilner neglected to mention (and I find to be even more important) is that TWC just sent a Valentine’s Day present to Jerry Buss of what’s rumored to be around $150 million per year to create two new regional sports networks in the LA market (one English language and the other Spanish language) built around the Lakers.  With 3 Fox Sports networks in that market already, that means that the LA market will be supporting 5 RSNs and making it even more crowded than the New York City market.  This crowded environment in the Pac-12’s most important market has huge implications on whether a conference network can realistically be formed.  The Big Ten Network only had to compete with 1 RSN in each of the markets within its footprint (even in its largest market of Chicago, which only has Comcast SportsNet Chicago).  Thus, it was a more palatable for the cable providers to give in when the BTN was RSN #2 on their systems… and even then, it took over a year of carriage fights for them to get to that point.  It’s a much different value proposition for the Pac-12 attempting to enter into market that already has 5 other RSNs – TWC has a whole lot more leverage to demand lower subscriber rates or refuse basic carriage entirely.  Note that a potential Big East Network would face the same issues in the NYC market with so many RSNs already clogging up cable bills.  This was a factor in the Big Ten ultimately deciding to not go after schools like Rutgers or Syracuse in this last round of expansion, as the BTN absolutely had to get basic carriage in the NYC market in order to financially justify those additions, and they didn’t see that happening anytime soon.

Finally, with respect to Point #4, Larry Scott confirmed that all media rights for all Pac-12 members would be controlled by the conference.  This is important for one massive reason: the University of Texas.  With the Pac-12 taking that position, it has effectively wiped out any reasonable possibility of Texas joining the conference in the future, as the new Longhorn Network would be unable to exist under those conditions (and I don’t see UT giving up in excess of $10 million per year for any reason).  For the fear mongerers (who are all wrong, by the way) that continue to believe that UT’s ultimate goal is to end up independent or in the Pac-12, at the very least, that Pac-12 option is gone.  (I’ve listed a multitude of reasons of why UT wants to stay in the Big 12 in perpetuity and, in fact, needs that league to live, but many people seem to believe what they want to believe on that front.)

Fans of all conferences should keep a close eye on the West Coast since how the Pac-12 proceeds will be a significant indicator of how TV networks will pay for college sports in this next round of contracts.

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

ESPN UT: How it Saves the Big 12 and What’s in it for ESPN

On By Frank the TankIn Big Ten, College Basketball, College Football, Sports847 Comments

One of my Texan friends loves to remind me that Texas is the only state that was also a country.  (He’s an Aggie, by the way.)  Well, the University of Texas Athletic Department will soon have enough cash money to buy up a country or two.  As long-rumored, UT and ESPN have entered a deal to create a new Longhorn TV network that will pay the university $247.5 million over the course of 20 years.  An additional $52.5 million is earmarked for IMG, which is UT’s media licensing partner, which adds up to $300 million overall that ESPN is throwing down for this new property.

Believe it or not, this deal is what’s going to keep the Big 12 together.  UT gets to make more TV money than any other school in the country, play its rivals in all sports and keep the Texas state politicians happy.  As a result, UT is in a perfect spot and as long as they want to stay, the Big 12 will live on.  Could UT make a few more TV dollars down the road by becoming independent?  Sure, but that’s ignoring the fact that UT isn’t in complete control of its affairs in the same way as, say, Notre Dame, who only has to answer to its own alums.  UT’s leadership has to deal with state legislators whose loyalties may lie with Texas A&M, Texas Tech or Baylor.  Drawing the ire of those politicians that hold much greater purse strings beyond athletics, much less giving up its rivals and relegating its non-football sports to secondary status (noting that UT isn’t a one-trick football pony with across-the-board strong programs in basketball, baseball, softball, track and field, etc.), simply isn’t worth the extra money that might be there for independence.  UT has exactly what it wants: a conference that it controls with a TV network that it gets to keep all to itself.  It’s the best of both worlds.  Other schools in the Big 12 can complain, but as I noted last month, the conference is safe in a maximum security prison way.  No one’s getting out of there even if they want to very badly.

What’s ESPN getting out of this deal?  On its face, $15 million per year appears to be a whole lot of money for 1 football game per season, a handful of men’s basketball games and a bunch of Olympic sports.  However, we need to look at the big picture beyond Texas.  Think of the old sports adage that the best offense is a great defense.  For ESPN, the creation of the Big Ten Network was a nightmare.  Conference networks, whether real or imagined, created a viable threat for leagues to use in negotiations to drive up TV rights fees for college sports.  As a result, the last thing that ESPN wants to see is for any of the other BCS conferences to form their own channels with competitors such as Fox and Comcast.  (The Mountain West, on the other hand, can go start up 10 channels for all it cares.)  Well, for a mere $15 million per year in payments to UT and IMG, ESPN has completely destroyed any chance of a Big 12 network EVER forming.  Spending $15 million per year now will likely save ESPN tens of millions of dollars more in rights fees for the overall Big 12 package (assuming that it bids on it) in the long term.

At the same time, ESPN has taken the position that superconferences are bad for its business, as they would also drive up rights fees.  That’s why they were willing to step in and aid in saving the Big 12 by paying the same amount for a 10-team conference without a championship game as a 12-team conference with a championship game.  The new UT network effectively ensures that the school will stay in the Big 12 for at least the next 20 years.  With UT off the market, the Big Ten, Pac-10/12 and SEC are going to have a difficult time to financially justify expanding past 12.  So, ESPN’s $15 million per year for the UT network is insurance against having to spend literally hundreds of millions of dollars in extra fees for superconferences.  The ESPN UT network is likely going to profitable by itself (as with only one mouth to feed, it will take a fairly low basic cable subscriber rate across the state of Texas to make money), but preventing other conference networks and superconferences from forming is where ESPN is getting the most value of all.

Finally, this is a landmark deal for ESPN for a separate reason:

(1) ESPN
(2) ESPN2
(3) ESPN3
(4) ESPNU
(5) ESPN News
(6) ESPN Classic
(7) ESPN Deportes
(8 ) ESPN UT

The Ocho has finally arrived.

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

(Image from Scream Punch)

BlogPoll Ballot Week 11, Mo Money, Mo Texas and Return of the WAC

On By Frank the TankIn Big East, Big Ten, College Basketball, College Football, Illinois Fighting Illini, Sports251 Comments

Some thoughts as we head into the weekend:

(1) Mr. Numb Existence – Somehow, I ended up with the Mr. Numb Existence Award this week in the BlogPoll that’s given to the pollster with the individual ballot closest to the overall result.  This occurred even though I deviated from the overall poll almost immediately by putting TCU at #2 instead of Auburn.  Regardless, and I say this as someone that has long been skeptical about the top-to-bottom quality of the non-AQ conferences, but TCU can and will pretty much kick the crap out of everyone this season.

(2) Mo Money, Mo Texas – Shortly after posting this generally blase post about the initially underwhelming projected financial figures for the Longhorn Sports Network, our good friend Chip Brown from Orangebloods.com reported that ESPN came in with a bid to pay Texas $12 million per year, which is a massive game-changing number on its face.  This swung the pendulum in the public eye from “Why did Texas do this?” to “Texas could almost afford to pay Cam Newton if it wanted to”.  The one reservation people should keep in mind is whether this $12 million per year includes radio and other media rights, as well, which this Austin American-Statesman article intimates.  If that’s the case, then the $12 million figure isn’t necessarily that crazy.  Ohio State’s radio and multimedia rights deal with IMG and RadiOhio is worth an average of $11 million per year, which is all on top what the Buckeyes receive from the Big Ten TV contracts.  It’s unclear how the ESPN arrangement will interplay with the Texas deal with IMG, which is the primary multimedia rights holder for the school and is running the search for the Longhorn Network partner.

A question that I’ve been continuously getting is, “Why would ESPN be willing to pay so much for maybe one Texas football game per year and a handful of non-conference basketball games?”  Well, one has to consider that since the Big Ten Network has been formed, ESPN has been overpaying for college sports in large part to prevent other conference networks from coming to fruition.  Those networks represent extra competition to the Mothership itself along with taking away properties from its ESPN Regional syndication arm.  The Worldwide Leader had to pay both the SEC and ACC hundreds of millions of dollars in Godfather offers in order to keep them bolting to competitors and starting their own networks.  In contrast, ESPN has just destroyed the chances of a Big 12 network ever forming by paying a mere $12 million per year to Texas.  When you look at it that way, $12 million is a complete bargain compared to what ESPN had to ward off potential competition from the SEC and ACC.

(3) Return of the WAC – Oh, poor WAC.  This summer, it looked like it might nab BYU for non-football sports and possibly start a chain reaction where the Mountain West would start crumbling and the WAC could pick up the pieces.  Instead, the MWC embarked on its own smack-down raid by grabbing Nevada and Fresno State on top of conference headliner Boise State and BYU ended up taking its non-football programs to the WCC, which left the WAC wondering if it would even have enough members for a football conference in 2011.  It’s been a rough go-around for a non-AQ conference that has sent its champion to BCS bowls 3 out of the last 4 years.

At least the WAC will receive a reprieve with Nevada and Fresno State agreeing to stay until 2012, which is when replacements Texas State and the University of Texas-San Antonio come in for all sports and hockey/skiing power Denver joins as a non-football member.  Rejection was still in the air for the WAC, though, as Montana declined an invite.  (Note that Texas State, UTSA and Montana are all currently FCS schools, so the new WAC members will be moving up to the FBS level.)

Also, as discussed by a number of commenters, Hawaii is possibly the next most likely school to declare independence with a possible home for non-football sports in the Big West.  I vacillate back-and-forth as to whether it’s a good idea for Hawaii to become an independent.  In theory, it ought to be able to fill out its football schedule because of the extra game exemption provided by the NCAA, but we have already seen the Big Ten schools essentially abandon playing  in Honolulu because of a combo of high costs and the desire to play more home games.  As more BCS leagues go to 9-game conference schedules, Hawaii is going to face more challenges scheduling AQ teams than before.   Finally, who knows whether the Big West schools are really going to be willing to shoulder the costs of sending non-football sports to the Honolulu, which means that Hawaii might need to hold onto its relationship with the WAC.  On the other hand, Hawaii is uniquely attractive to a network like ESPN because its home games fit perfectly into late-night time slots on the mainland.  Thus, it’s possible for Hawaii to get a BYU-type TV deal in place, which would make it more than worth it financially to become independent.

It appears that the conference realignment game will see the most action at the non-AQ level for the next few years besides an addition or two by the Big East… unless it decides to follow one of my “modest proposals” for the league that I’ll present next week.  Until then, have a great weekend with Illini-Gopher football, Illini-Saluki basketball, Derrick Rose vs. John Wall and hopefully Julius Peppers decapitating Brett Favre.