March Madness Big Ten Rundown: Hockey Expansion Talk with Arizona State and New TV Contract

After a long Chicagoland winter that included coaching my twins (and future hopes and saviors for the Illini men’s and women’s basketball programs) in the Naperville YMCA Kindergarten Basketball League, it’s time to get back to blogging. Fortunately, not much has occurred on the conference realignment scene since December when the Big 12 was coming right off of the sting of being left out of the College Football Playoff. After some expansion rumors that included Cincinnati and Memphis, Big 12 commissioner Bob Bowlsby and his conference brethren have a long string of denials about any desire or need to expand. Personally, I don’t believe them – I think the Big 12 is fully aware that they need to expand for the long-term. Whether the Big 12 has any consensus on who they should expand with is an entirely different matter, particularly when those additions will need to come from the pool of non-power schools.

Interestingly enough, the latest expansion scuttlebutt is coming from the Big Ten. Granted, it’s only for hockey, but it’s still an intriguing indicator for the Big Ten’s overall plans (as you’ll see further down in this post). The Minneapolis Star Tribune had an in-depth article last week about how Penn State’s successful start to its hockey program is spurring schools across the Big Ten and the rest of the country to consider adding the sport. Arizona State recently announced that it will be starting a Division I hockey program… and according to the Star Tribune, the Sun Devils have been speaking to the Big Ten about its conference home on the ice:

Arizona State and the Big Ten both confirmed they’ve discussed a hockey future together. An outside school competing in one Big Ten sport already occurs in men’s lacrosse with Johns Hopkins.

Two other conferences with a major presence in the Midwest, the WCHA and the NCHC, are also engaged in conversations with the Sun Devils.

“I think being in a conference with like institutions is important,” [Big Ten Associate Commissioner Jennifer] Heppel said. “[Arizona State] is going to have to think about that from an institutional and sport perspective. The Big Ten and Pac-12 have a historic relationship.”

Heppel oversees men’s hockey for the Big Ten, so her on-the-record quotes directly about Arizona State indicate that this isn’t a fly-by-night rumor.

My knee-jerk reaction: Sounds good to me. Big Ten Commissioner Jim Delany has said before that the Phoenix market is actually home to more Big Ten alums than Pac-12 alums. If you’ve ever visited the Phoenix/Scottsdale area (particularly in the winter and spring), you could certainly believe it with the overwhelming number of Midwestern transplants and retirees (even compared to other Sun Belt locations like Florida). Phoenix/Scottsdale is to Chicago snowbirds as Miami/Ft. Lauderdale is to New York City snowbirds. Arizona State isn’t an AAU institution as of now, but it’s one of the largest universities in the country with respected graduate programs (even with the party school and Girls Gone Wild reputations of its undergrad population). Plus, the fact that Arizona State is in the Big Ten’s brother of the Pac-12 makes a bit easier to envision the Sun Devils as a hockey member compared to, say, Notre Dame.

At the same time, the Big Ten has the opportunity to make this into a broader relationship beyond hockey. For example, imagine if Arizona State commits to playing 1 or 2 Big Ten football teams per year, 2 to 3 non-conference basketball games, and several non-conference baseball games (where the Big Ten legitimately needs help from a powerhouse in that sport like ASU). That’s not a huge commitment from either Arizona State (and they may have wanted to schedule those types of non-conference games on their own, anyway) or the Big Ten, yet it starts building a more in-depth presence in the Phoenix area, which is a key market for Big Ten alums.

A related consideration is if other Big Ten schools will start adding hockey to further grow the league organically. If I had $100 million to spare, I’d start up an Illinois hockey program tomorrow. Alas, I don’t have that type of coin laying around and it doesn’t appear to be coming from other possible benefactors (such as the rumored interest of Jimmy John Liautaud, who is the founder of Jimmy John’s). This is unfortunate since the Illini hockey club has performed well for decades along with having a passionate fan base and that could be supercharged if it turned into the only Division I hockey program in the state of Illinois. Alas, Illinois has everything that it needs from a competition and fan base standpoint to support hockey, but none of the financial support right now.

Instead, from what I’ve heard for at least the past year, Nebraska is by far the closest to jumping up to Division I hockey. The Cornhuskers’ new Pinnacle Bank Arena has icemaking capabilities and the school is also opening a new separate ice arena that can easily be used as a practice facility. Since Nebraska has the expensive physical facilities in place already, they’ve already fought the vast majority of the battle in starting a program. Nebraska has a top tier fundraising operation, as well, so they can get the money into place once they’re given the green light. There have been rumblings about Northwestern, Indiana and Iowa looking at hockey, but if you’re a betting person, you should wager heavily on Nebraska as the next existing Big Ten school to add the sport.

What does this mean for Big Ten fans that don’t care about college hockey? Well, one open question is whether the possibility of Arizona State joining the Big Ten hockey league means that it will blow open the door for more affiliate Big Ten members in hockey or other sports. From my vantage point, not necessarily. Just as Johns Hopkins was a special case as a Big Ten affiliate in being an academic and men’s lacrosse powerhouse, Arizona State hits a lot of metrics for the Big Ten in terms of being in the Phoenix market and a friendly Pac-12 for other sports that don’t exist for other members. Big Ten hockey fans might dream of adding the likes of Boston University, Boston College and Notre Dame if the league were to let in Arizona State, but that doesn’t seem likely (not the least of which is the fact that the Hockey East is a tough nut to crack even with dangling the prestige of the Big Ten). Instead, look at some of the more unique outliers that wouldn’t have the same poaching hurdles. For instance, MIT has Division I men’s and women’s rowing (where just as Johns Hopkins is Division III for all sports except lacrosse, MIT is Division III for all sports except rowing). Could that be leveraged into a relationship between MIT (which would be academic dynamite for the Big Ten presidents) and the Big Ten? What about academically prestigious schools in the Sun Belt that could add firepower to Big Ten baseball, such as Rice or University of California system members? The possibilities are endless, but the Big Ten is also likely to be very conservative in its affiliate member picks.

Separately, the Big Ten is on the precipice of negotiating new TV deals that will start after the 2016-17 season. As Ed Sherman pointed out in the Chicago Tribune last week, the Big Ten is in a great position as the only major pro or college sports property to come onto the market for the rest of this decade. It can expect Fox to bid aggressively for tier 1 rights as well as current rights holder ESPN. In my opinion, the Big Ten will likely end up with a setup similar to the Pac-12, where tier 1 rights are split between ABC/ESPN and Fox while the rest go to its conference network of the BTN. I don’t think there’s much chance of the Big Ten taking all of its rights to Fox even if Rupert Murdoch makes a blood money Godfather offer. The ratings for Big East basketball on FS1 have been depressing beyond belief and, contrary to the rantings of some Big East haters out there, it has nothing to do with the Big East conference itself. Any random game on ESPN and, for that matter, ESPN2, is going to have a massive amount of more exposure compared to the exact same game on FS1. That speaks to a problem with the channel itself – it depresses ratings simply by channel location whereas ESPN boosts ratings.

Believe me – exposure matters greatly to the Big Ten. The money obviously matters, but that money is only there because the Big Ten has had the best TV exposure of any conference for decades. As Sherman noted in his column, the Big Ten had ESPN, CBS and BTN (a partial Fox property) all covering portions of the Big Ten Tournament. That’s akin to the setup that the NFL has – they’re essentially getting paid a lot of money by everybody in the media business. I don’t think the Big Ten is going to step away from that approach – they want as many high profile outlets covering their games as possible. So, I don’t see the Big Ten being willing to move games from ABC and ESPN to FS1 and FS2. Regardless of how Big Ten fans might personally feel about ESPN commentators (and IMHO, Big Ten fans complain too much about them as a whole), it’s horrific for conference exposure to move off of the Worldwide Leader. However, I could certainly see the Big Ten being happy with games that are currently on ESPNU and ESPNEWS being moved to over-the-air Fox and FS1. That points to maximum exposure with a ton of checks being cashed from Disney and Fox with some side basketball money from CBS.

With that, it’s time to fill out my bracket and prepare for watching basketball in the middle of the day. (My Final Four picks: Kentucky, Wisconsin, Villanova and Iowa State, with Kentucky over Villanova in the national championship game.) Enjoy the opening weekend of the NCAA Tournament!

(Image from SI.com)

Conference Threat Levels

Yes, I’m alive and so is this blog.  With the slowdown in conference expansion news, it was a good time to take a summer break after going non-stop for the first 6 months of the year.  However, the start of the football season is only a couple of weeks away, so the activity will be picking up once again (less on expansion and more on actual football).  I’ll be voting in the BlogPoll (which will likely continue to be found on CBS Sports.com) this year, so there will be a weekly post during the season with my selections at the very least, which all of you can rip apart with impunity.  If you want to lobby me on behalf of your favorite team, please feel free to do so, as well.  To keep you occupied until that starts up for the year, here’s my look at where the BCS conferences stand regarding realignment issues using the Department of Homeland Security Advisory System:

OSCAR THE GROUCH THREAT LEVEL

BIG TEN

The Big Ten continues to be in control of any future conference expansion nationwide.  With the addition of Nebraska, the conference now has a championship game and can expect to receive a large uptick in its national TV revenue in the next few years with the popularity of the Huskers.  The East Coast bastion of the Wall Street Journal, which one might have expected to push the Big Ten to grab Rutgers or Syracuse, showered a ton of praise on the conference’s marriage with Nebraska last week and pointed out that this was a significant shift in college football that has flown under the radar with all of the Texas/Big IIX drama.  I believe that I speak for the majority of Big Ten fans in being incredibly excited to see Nebraska start Big Ten play in 2011.

I just hope that the Big Ten doesn’t f**k things up with a wacky divisional alignment.  I’ll repeat what I noted in my post from a few weeks ago: Keep It Simple Stupid (KISS).  Most proponents of a gerrymandered divisional alignment like to point out the dominance of the Big 12 South over the Big 12 North over the past several years as an example of the danger of a pure geographic alignment, yet forget that the Big 12 North was the dominant division for the first few years of that conference’s existence.  I’m exponentially more fearful of the aimless ACC divisional alignment which has no logic and broke off natural rivalries.  Karma has been a bitch for the ACC since it has never ended up its intended result of a Florida State-Miami championship game.  I don’t want to see the Big Ten make the same mistake.

I’m not surprised by the choice of Indianapolis as the site of the first Big Ten Championship Game, although my preference would’ve been Chicago, which is the conference’s marquee market and has a cross-section of alums from all of the Big Ten schools.  Personally, I don’t think cold outdoor weather really should be an issue for Big Ten football from a competitive standpoint, but it does matter to TV interests.  The Big Ten and ABC likely want to place the Big Ten Championship Game in a prime time slot, and while the cold weather is bearable when at least the first half is played in the daylight, it is a rough experience at Soldier Field or Lambeau Field for a typical December night game.  I blame all of this on the choice of the City of Chicago and the State of Illinois to drop a UFO in the middle of the Soldier Field columns instead of building a brand-new domed/retractable-roof stadium for the same cost (or even less) that could’ve been in the rotation for Final Fours and Super Bowls.  (Cost to renovate Soldier Field from 2001-2003, which reduced seating capacity by over 5,000: $625 million.  Cost to build University of Phoenix Stadium from scratch from 2003-2006 with a retractable roof and North America’s first roll-out grass field: $455 million.  Which taxpayer base got its money’s worth?)   It is ridiculous that Indianapolis is consistently beating out Chicago for top-tier sports events – this is the equivalent of Hartford getting marquee properties over New York City.

As for future expansion, the Big Ten would likely be able to grab any school other than Notre Dame and Texas.  The issue, of course, is that it’s doubtful that the Big Ten really wants any school other than Notre Dame and Texas right now.  If Rutgers or Syracuse can go on a run of BCS bowl appearances to generate New York/New Jersey interest in college football again, then that could change things, but all indications right now are that integrating Nebraska is the top priority unless the Irish or Longhorns change their minds.

Notre Dame still remains a Big Ten expansion possibility in the long-term for one major reason: academics.  The leadership at the school has continued to be open to joining the Big Ten because it believes that could aid Notre Dame into gaining membership with the American Association of Universities.  This top-line academic priority for the university directly clashes with the Irish alumni base’s unwavering need to retain independence at all costs.  Notre Dame’s leadership is in a bind since the school arguably grants more power to its alumni base over university affairs than any other BCS school, which means that crossing them results in putting their own heads on the chopping block regardless of whether they believe moving to the Big Ten makes sense academically and financially.  I don’t envy the people in charge of Notre Dame at all – independence is an integral part of the school’s identity, which is why the alumni base fights so hard for it, but it may hold the school back from achieving its ultimate academic goals and, as the Big Ten and SEC continue to expand their revenue advantages over everyone else, will negatively impact the athletic program’s success, as well.  Eventually, there will be a group of leaders at Notre Dame that will be willing to risk career suicide by having the school join the Big Ten, but those people will likely be from the current undergraduate population’s generation that cares more about ND being an academically elite school than its football status.  That group likely won’t come into power for another two decades.

Texas, on the other hand, is going to ride its proposed Bevo TV like Zorro for the foreseeable future.  I’ll get to more about this later on, but suffice to say, there won’t be any marriage between the Big Ten and Texas with the school’s approach to using and abusing conferences.

So, a 12-school Big Ten is going to be the new status quo for awhile.  There will still some long-term demographic challenges as the US population continues to move to the Sun Belt and the coasts, but as the Wall Street Journal pointed out, the addition of Nebraska is one of those rare moves that will make both the financial bean counters in Park Ridge and the fans in the stands and living rooms happy.

SEC

The SEC stands alongside the Big Ten as the most stable and powerful conferences in the country.  Whether the SEC can realistically grow is an open question.  Unlike the Big Ten, which was at an unstable 11 members without a championship game and positioned in the middle of the country where it could conceivably expand anywhere except for the West Coast, the SEC hasn’t had an urgent need to get bigger.  It doesn’t really want to expand unless there’s: (1) a large market added and (2) an upgrade to the conference’s academic profile.  The lingering perception that the SEC wants to tear apart the ACC (or can actually do it) is a ridiculous notion.  The two schools that would add the most to the SEC from the ACC, North Carolina and Virginia Tech, are two of the least likely schools to ever consider an SEC invitation (as I’ll discuss in a bit).  West Virginia has the Big East’s best traveling fan base but its worst TV market, so that doesn’t make very much sense, either.

As a result, the state of Texas is the only potential goldmine left for the SEC, but as we’ve seen with the stunning non-breakup of the Big IIX, pulling off anyone from that conference would entail adding a bloc of schools en masse (and the Pac-10 found out that not even that could work).  The SEC really only cares about Texas, Texas A&M and Oklahoma – virtually everyone else in the Big IIX is worthless filler from a financial perspective.  The conference wants nothing to do with Texas Tech, Baylor and/or Oklahoma State, which may all be political requirements for those that want any of the Big III from the Big IIX.  Missouri is in the same position with the SEC as it is the Big Ten – decent market with a decent sports program, but not revenue accretive enough to justify expanding for.  ESPN’s analysts will continue to slob the knob of the SEC on the field, yet there really isn’t that much that it can (or should) do off the field.  Mike Slive might engage in some saber-rattling about the conference maintaining its power if other conferences expand beyond 12 teams, but realistically, he knows that the SEC has a great set-up today and is never going to expand just for the sake of keeping up in terms of sheer numbers of members.

COOKIE MONSTER THREAT LEVEL

PAC-10/12

The Pac-10 went for the proverbial jugular with its offer to invite half of the Big 12, but ultimately ended up with only Colorado and Utah.  These are decent additions for the Pac-10 as geographic and cultural fits, but they don’t really raise the national profile of the conference in the Eastern and Central Time Zones.  The Pac-10 is obviously performing its due diligence on forming a new TV network with former Big 12 Commissioner and Big Ten Network president Kevin Weiberg in the fold.  However, there is valid skepticism out there that it could ever come close to being as financially successful as the BTN (fan intensity is lower, , which means that the conference might not add that much more TV revenue taking games in-house compared to signing a larger comprehensive deal with ESPN or other established cable networks.

Still, the Pac-10’s main disadvantage from a TV perspective is a great advantage from a conference alignment viewpoint: its West Coast location.  The Big Ten and SEC won’t even think of touching any of the Pac-10 schools, which means that the Western conference is safe from any possible poachers.  The Pac-10 is safe and stable for the foreseeable future, which means that it’s worth any exit fee that Colorado may have to pay to the clusterf**k of the Big IIX.  As with the Big Ten and SEC, the state of Texas is really the main market that actually can move the meter for the Pac-10, and considering the manner in which talks broke down between the Pac-10 and the University of Texas harem, it may forever be an unattainable goal.

BERT THREAT LEVEL

ACC

I’ll repeat what I’ve stated several times on this blog: the ACC is MUCH safer than the general public gives it credit for.  Even though the SEC and Big Ten could theoretically offer more money to any of the ACC members, it may not be enough of a difference to overcome the charter member status of schools such as Maryland, Virginia and North Carolina (who have been mentioned at various times in connection with the Big Ten and/or SEC) or the academic prestige gap between the ACC and SEC.  Note that the ACC is the only conference other than the Big Ten that has an academic consortium and, for lack of a better term, it has “snobby” members and leaders that aren’t very willing to jump to the SEC compared to football-focused fans.  Virginia Tech on paper would seem to be the main school that might have some interest in the SEC, but with the way that the University of Virginia was hamstrung by Virginia politicians to force the Hokies into the ACC back in 2003, VT leaving the ACC and the commonwealth’s flagship university that expended a ton of political capital several years ago for more money in the SEC is not going to work with the Virginia legislature.

The new TV deal that the ACC has in place with ESPN cements the ACC’s stability even further.  Really, the only reason why the ACC is at “Bert Level” is that Maryland could very well fit into the Big Ten and there might be at least a tiny bit of mutual interest, but the Big Ten’s desire in going toward the East Coast appears to be predicated on Notre Dame coming along, too.  There is definitely nothing that the Big East could offer to draw Boston College back – Eastern fans might constantly bemoan the geography, but that school is clearing so much bank compared to what it had before that its leaders don’t care.  Thus, the ACC is in good shape overall.

ERNIE THREAT LEVEL

BIG EAST

Here’s where the conference realignment discussion gets interesting again.  From one perspective, the Big East could be considered extremely vulnerable due to its geographic proximity to the Big Ten and ACC, fairly good academic institutions, large markets on paper and disjointed sports membership.  On the other hand, if none of the individual schools are actually revenue positive to the Big Ten or ACC, then they aren’t going to be expansion targets and the conference is de facto safe as no one has anywhere else to turn.  As I mentioned in connection with Maryland above, the Big Ten’s East Coast strategy is tied in with Notre Dame, so as long as the Irish stay independent, the Big Ten is not likely to expand again in the near future.

As a result, the Big East is somewhat safe, but it’s also stuck.  There isn’t an obvious football expansion candidate east of the Mississippi River (Memphis, UCF, ECU and Temple are usual “meh” suspects) and even if there was, the hybrid football/non-football membership complicates anything getting done.  Villanova moving up from FCS to FBS has been thrown around as an option, yet even if the school decided to upgrade tomorrow, it would take several years to make that transition.  Futhermore, if Villanova somehow completed the upgrade, it’s hard to see why the school could really draw more or perform better at the FBS level than its Philly neighbor of Temple, which got kicked out of the Big East as a football-only member even when the conference was looking for warm bodies in the wake of the 2003 ACC raid.

I’d still recommend that the Big East go after TCU plus one other school to go up to 18 overall members and 10 football members since I believe that TCU is the main school in the country besides BYU that is a true BCS-level program that’s stuck in a non-BCS conference and it’s never going to get an invite from its regionally-friendly Big IIX (as it has no need for yet another Texas-based school).  The other usual suspects for Big East expansion typically use the “If we were in a BCS conference, we’d be SOOOOO much better” argument, which is akin to saying that you’re a no-talent ass clown that can churn out hit records with the aid of a vocoder.  (I’m looking at you, Kei$ha.)  The Big East doesn’t need project programs – it needs greater respect immediately and a material improvement to its national TV contract.  TCU at least provides a chance for the Big East on those fronts.  Unfortunately, I don’t believe that the Big East leadership is forward thinking in that way at all.

A split between the football members and the Catholic schools has long been blog and message board fodder, yet the fact remains that the Big East basketball contract (which is larger than the football contract) depends upon the large markets that those Catholic universities provide.  Therefore, a split won’t happen unless there’s a big-time incentive to do so (i.e. the Big IIX splits apart and a bunch of BCS programs need a new home).

As for the prospects of a Big East TV network, call me EXTREMELY skeptical that it could work.  If the Pac-10 is going to have a tough time making a network pay off financially, and that’s a conference with significantly better market penetration on the West Coast than the Big East on the East Coast, then I don’t know how a Big East network could ever get off the ground.  The Big Ten Network had a perfect storm of a top-level cable partner (Fox) that provided national carriage immediately (Fox had control of DirecTV at BTN’s launch) plus large schools with large alumni bases that REALLY care about college sports located in large markets that don’t have a lot of regional cable network competition.  It’s a different proposition to attempt to get a network onto basic cable in the New York City area, which already pays for YES, SNY and MSG, when the Big East isn’t even the clear dominant conference in that region.  (The most popular conference in the Mid-Atlantic according to a 2007 NCAA study: the Big Ten.)  Without NYC, the Big East network simply won’t come to fruition (and conference helper Paul Tagliabue apparently agreed when he bashed the notion of people on Long Island watching Rutgers after their tennis matches).

So, the Big East is in a stalled car.  Individual members that want to get into the Big Ten (Rutgers, Syracuse, Pitt) might actually wish that things were more fluid again, but until Notre Dame wants something other than independence, the Big East will talk publicly about “exploring” plans for a TV network and expansion and implement absolutely none of them.

ELMO THREAT LEVEL

BIG IIX

Oh, the Big IIX.  The more that I think about how this conference is still alive, the more that I understand how guys like Bernie Madoff can steal millions from otherwise smart people.  Dan Ponzi Beebe sold a handshake deal to academic leaders holding degrees galore with millions of dollars of unwritten promises based on (1) supposed future TV income that won’t be negotiated until a few years from now and (2) exit fees from Nebraska and Colorado that will be tied up in litigation for years and will likely be significantly discounted from the current sticker price.  Not only that, but some Big IIX people have actually deluded themselves into thinking that Arkansas would leave the SEC and Notre Dame would give up its entire identity as an independent to join this “conference” based on future revenue that doesn’t yet exist and isn’t in writing ANYWHERE.  WTF?!

How schools like Texas A&M bought this bullshit (and that’s what it is – complete bullshit) is beyond me.  The Aggies have good reason to get quite restless without ANY paper trail regarding these promises.  Of course, who knows why the heck the school would’ve agreed to all of this without something in writing in the first place, which makes it harder to defend a new “F**k you, pay me” stance.

Outside of A&M, I firmly believe that the University of Texas will rue the day that it spurned the Pac-10’s offer to add half of the current Big 12 (even if Texas A&M went separately to the SEC) – it will NEVER get a better opportunity to be in an upgraded academic conference with larger markets AND bring along a bunch of its regional rivals.  Instead, UT has banked its entire future on its own TV network and has even started making non-conference scheduling decisions based upon it by killing off a series with Minnesota over a video rights dispute.  Texas better be damn sure that this TV network is going to work because I’m still flabbergasted that this is the route that it chose to take when it had virtually every single option (Pac-16, Big Ten, SEC, independence, even the ACC) on the table.  In a few years, when everyone figures out that the TV revenue that Ponzi Beebe promised won’t ever materialize, Texas may not have any choice other than the Big IIX because no other conference is going to turn over the requisite TV rights that would make Bevo TV viable.

Plus, the Texas legislature made sure that everyone respected its authoritah.  For all of the power that UT is supposed to have in the college football world, it was made clear in this realignment process that it will be forever shackled to at least Texas Tech, which is much more problematic than being only paired up with the fairly attractive Texas A&M.  As a lone free agent, Texas is arguably the most valuable program that any conference can get (even above Notre Dame), but when it has to bring along 4 or 5 others, then it’s a completely different value proposition and the school isn’t nearly as enticing.  The Pac-16 deal was the main chance that Texas could break away from at least Baylor and let Texas A&M go its own way, yet now it has foreclosed a whole bunch of long-term options unless things happen outside of its control (i.e. A&M bolts to the SEC by itself).  The Big Ten and SEC aren’t going to offer to add schools en masse like the Pac-10 did and if the Texas legislature freaked out about UT separating from its other in-state brethren to go to another conference, I don’t see how it could ever try to go independent (which is probably the situation the school is best suited for in a perfect world).

Essentially, the Big IIX is held together by Bevo TV, some Texas politicians and a bunch of unwritten promises from Ponzi Beebe.  No wonder why Nebraska and Colorado ran out as quickly as possible and Missouri has been begging for a Big Ten invite for months.  I guarantee you that NU and CU are going to settle for a whole lot less than what the Big IIX is demanding in exit fees since UT will have zero desire to allow what they’ve done behind the scenes over the past several months to be aired out publicly in court.  Big IIX could possibly add some schools from the Mountain West or C-USA if it wanted to, but with the reprieve from ABC/ESPN where it will pay the current level of TV rights fees even with two fewer members and no conference championship game, the financial incentive isn’t there.  With the Longhorns’ first-priority needs to have league leadership control and its TV network above all else, I believe that the only conference other than the Big IIX that they might end up in over the next few years is a brand new one that they create from scratch as opposed to an existing BCS conference.  Therefore, Texas isn’t going to be the first mover in any future conference realignment scenarios (just as it was the case this past summer).  It will be up to a school such as Texas A&M to have the intestinal fortitude to stand up to the legislative powers that be and act in its own interests as a university if it wants to leave the Big IIX.

As of today, all is quiet on the conference realignment front.  That’s not a bad thing as we can watch some actual football again.

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

(Image from flicker)

After the Conference Realignment Maelstrom

A couple of weeks after the frenetic events of this round of conference realignment almost fried my brain and then settled down into fairly modest changes to the college landscape, I’m re-charged enough to collect a few overarching thoughts:

(1) Big Ten is Done Expanding Until Notre Dame Changes Its Mind – For all of the talk about demographics, academics and TV markets, the Big Ten’s expansion process has been about three schools: Texas, Notre Dame and Nebraska.  Those are the only schools that the Big Ten really cared about and anyone else would’ve been coming along for the ride.  Now, adding Nebraska alone doesn’t really do much to address the demographic shift of the the U.S. population toward the Sun Belt.  However, the indications that I’ve received are that the Big Ten’s appetite to add any Eastern-based schools such as Rutgers or Syracuse is very low unless Notre Dame is coming along, too.  The financial barrier to enter the Big Ten as team #13 is much higher than Nebraska’s barrier to entry since any schools added from this point don’t receive the benefit of the $15 million pop from the addition of a conference championship game.  Believe me – if the Big Ten was convinced that Rutgers and/or Syracuse could deliver New York/New Jersey households for the Big Ten Network, then they would’ve been added already.  The problem is that they are not convinced and don’t believe that it would ever be possible without Notre Dame.  Other markets, such the DC/Baltimore area that could be added with Maryland, are nice but not necessarily enough to justify a larger expansion.  I’ve long said that it would take the equivalent of adding either the state of Texas or the NYC market in order to make a 14- or 16-school conference financially viable, so you won’t see the Big Ten do anything less than that if it attempts to expand again.

(2) Entrenched Interests Don’t Want Superconferences – Another drag on the prospect of the Big Ten expanding further is what I believe has been a relatively underplayed aspect of the Big 12 Lite (or as some of the commenters have referred to, the “Big IIX”) surviving: a ton of entrenched interests in college football, including ESPN and Fox, worked to killed the formation of the Pac-16.  This actually contradicted a common argument that I’ve seen stating that TV networks actually would rather have superconferences so that they can obtain rights to more marquee schools while dealing with fewer entities.  If the TV networks don’t want superconferences to happen, and they are the ones that provide the financial basis of expanding toward superconferences in the first place, then that’s going to dissuade the Big Ten and other conferences from expanding beyond 12 schools (at least for the time being).

(3) National Brand Value Trumps Local Markets – For all of the talk about TV markets and cable subscriber rates, expansion decisions really came down to a pretty basic calculation: which schools do Average Joe Sports Fan in Anytown USA want to watch?  After Notre Dame and Texas, the consensus has long been that Nebraska fit that bill better than anyone.

I’ve receive a lot of questions about how Nebraska could add financial value to the Big Ten compared to schools like Missouri and Rutgers that could bring in more households on paper.  There are several factors at play here.  First, even though a lot of focus has been on the Big Ten Network, the Big Ten still receives more TV money from its national ABC/ESPN contract than any other source.  The Big Ten Network is really just a very strong supplement to that national TV income as opposed to a replacement, which is something that a lot of people have missed.  Therefore, a school like Nebraska that brings in national TV viewers does much more for the ABC/ESPN side of the equation and seeing how the ACC and Big IIX are in line for larger paydays in their own contracts, Jim Delany must be salivating at the potential increase to the Big Ten’s deals by adding such a strong national brand name AND a conference championship game.

Second, there is the advertising argument that Patrick set forth on this blog a few months ago.  The higher the ratings, the higher the advertising rates can be charged.

Now, there have been a number of questions about that analysis, but it needs to be coupled with the final point, which is that the oft-quoted $.70 per subscriber per month rate for the Big Ten Network in the Big Ten states is an average as opposed to an across-the-board rate.  Cable providers in markets where there is extremely strong demand for the channel, such as Columbus, pay a higher rate than markets where there is weaker demand (i.e. Philadelphia).  So, a lot of fans have made the mistake in assuming that the Big Ten Network could just automatically charge $.70 per subscriber in places like New Jersey, New York and Missouri simply by adding a school in those respective states.  Fan intensity matters, and in the case of Nebraska, the Big Ten will likely be able to charge a higher subscriber rate in the Huskers’ home market than anywhere else.  So, Nebraska’s 700,000 households might be much smaller in number compared to Missouri or New Jersey, but the flip side is that the Big Ten Network can effectively name its price there (i.e. an ESPN-level subscriber rate, which is the highest rate in the cable indsutry) and it will receive it.  At the same time, since Nebraska games will draw more interest within the Big Ten footprint and nationally on DirecTV (where it is on the national basic tier), that positions the Big Ten Network to charge higher rates to its current households in its next round of negotiations.

Please note that there were two schools in the soon-to-be-defunct Big 12 that looked seriously at starting their own networks: Texas and Nebraska.  The former obviously has the households, but the latter’s fan base is so intense that they will pay any price to watch every Husker event.  I’ve seen figures that Nebraska cleared about $2 million for every single pay-per-view game that it has offered, which is an insanely high number for any college football team regardless of the population base along with providing evidence that the Big Ten Network will get a massive subscriber fee in the state of Nebraska.  Therefore, the Big Ten Network isn’t passing up on subscriber revenue in the manner that a lot of people who are just looking a population figures believe.  Besides, Notre Dame is widely assumed to be an automatic money-maker for the Big Ten, but the Irish are also completely about national name brand value as opposed to adding actual markets.  What’s good nationally for the Big Ten is good for the Big Ten Network.

(4) Basketball Doesn’t Matter AT ALL – I think most of us understood that expansion and college sports revenue are football-driven.  However, there was a small part of me that believed that basketball would at least be a minor factor (as evidenced by the fact that I made “Basketball Brand Value” worth 10 points out of the 100-point Big Ten Expansion Index scale).  After Kansas ended up being passed around like a bad doobie and looked like it was Mountain West-bound for the better part of a week, though, it showed that absolutely NO consideration was or will be given to basketball in conference realignment.  Adding Kansas to any league for basketball is akin to adding Notre Dame or Texas for football, yet no one cared.  So, be forewarned if you’re a fan of a “basketball school” that might worry more about saving rivalries with, say, Georgetown or Duke instead of being concerned about how the football program is doing.  Being in the best football conference possible is the only thing that can guarantee overall athletic program stability (even if you think that basketball in a particular conference might be “boring”).

(5) Big Ten Needs to K.I.S.S. With Divisions – The more that I think about it, the more that I’m convinced that the Big Ten needs to just keep it simple with divisional alignment and go with a straight East/West split.  As a reminder, there’s how that would look like:

EAST
Michigan
Ohio State
Penn State
Michigan State
Indiana
Purdue

WEST
Nebraska
Wisconsin
Iowa
Illinois
Northwestern
Minnesota

I know that a lot of the national sportswriters are not in favor of sticking Michigan, Ohio State and Penn State together in the same division, but I’m extremely wary of gerrymandering divisions in a way that could reduce the juice of a lot of natural rivalries.  The main argument for moving Penn State away from Michigan and Ohio State is for “competitive balance”, yet trying to guess what would be the most “balanced” divisional alignment is a losing cause.  The ACC attempted to do this by putting Florida State and Miami into separate division and then blindly drawing the names of the other schools out of a hat.  The football gods voiced their disapproval by not allowing a Florida State-Miami ACC championship game occur even once so far even though the conference clearly jerry-rigged its divisions to do exactly that.  The much-aligned and soon-to-be-defunct Big 12 North was actually the much stronger division in the Big 12 for the first several years of that conference’s existence.  Meanwhile, the SEC was perfectly fine with having Florida, Tennessee and Georgia in national title contention at the same time while in the same division.  With football play on the field being so cyclical, a divisional alignment that creates strong natural geographic rivalries is better in the long-term than trying to force an alignment that looks like a TV executive searching for short-term ad dollars put it together.

Besides, Nebraska is a great anchor for the West division that’s going to draw national TV viewers and fill up stadiums no matter who they are playing.  Wisconsin and Iowa are both top 15 revenue athletic programs while Illinois manages to put together a massive run once or twice per decade and then crush its fan base by horrifically underachieving for 5 years thereafter (rinse, lather and repeat), meaning that it’s more of “national brand” perception of strength in the East as opposed to being a real competitive disparity.  Plus, I don’t think it makes sense for Penn State to be separated from Ohio State and Michigan, which are the two main schools that the Nitanny Lions care about playing (and from a Big Ten perspective, are the matchups that best leverage the conference’s exposure on the East Coast).  As I’ve stated before, the SEC hasn’t had a problem with loaded geographically-friendly divisions before while the ACC has had massive issues with its “balanced” divisions, so the Big Ten shouldn’t think too hard about the division issue.  A logical geographically pure East/West split is the way to go.

(6) Chicago is the Best Home for LeBron (and I’m not just saying that as a Bulls fan) – OK, this doesn’t have to do with conference realignment, but please note that I’ve written more about Bulls trade and free agent rumors than any other topic over the years.  After trading Kirk Hinrich to Washington (which will be effective July 8th), the Bulls can add one mega-star free agent (LeBron/Wade/Bosh) and one “next tier” free agent (Joe Johnson/Boozer/David Lee) outright.  If the Bulls can clear about $3 million more in cap space (which would likely necessitate moving Luol Deng), then they can add 2 mega-star free agents.  I’ve always had reserved optimism about the Bulls being a player in the LeBron James sweepstakes ever since a couple of weeks into Derrick Rose’s rookie season, but the Hinrich trade has skyrocketed my confidence level.  The main argument that the Knicks had other than the lure of New York City was that it could sign 2 max free agents.  With the Bulls now in the position to sign another top-of-the-line player besides LeBron on top of its young nucleus of Rose and Joakim Noah, I believe that Chicago is unequivocally the best pure long-term basketball destination for the King.  The fact that Chicago is a great market is a bonus, yet that doesn’t mean as much as having a substantial upgrade compared to LeBron’s current roster in Cleveland.  Up until the Hinrich trade, I thought it was 60/40 for Cleveland over Chicago in the competition for LeBron’s services.  Now, I believe that it’s flipped around in favor of the Bulls.  Cavs fans are pretty much resorting to emotional home-based arguments for LeBron to stay home and/or thinking that they can just sign-and-trade for a top-line player such as Chris Bosh.  The former is a certainly a factor, but considering that LeBron would make more money if he’d re-sign with the Cavs before July 1st, I don’t believe that the “Cleveland/Akron = Home” angle is going to be dispositive.   As for the latter, a sign-and-trade only works if the free agent target actually wants to move to Cleveland as opposed to signing with New York, Chicago and Miami AND the free agent’s old team actually wants to take back anyone (or more specifically, anyone’s contracts) from Cleveland, which is a lot easier said than done.  If the three-headed GM monster of GarPaxForSonManDorf  is able to land the biggest free agent in the history of free agency (and I don’t think that’s hyperbole), then this blog might have to totally shut down since I really don’t know what I’ll write about without conference realignment discussions or complaints about Bulls management.  Regardless, the course of the entire NBA for the next decade will likely be decided within the next 10 days and I’ll be eating up every tidbit in the meantime.

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

(Image from Mr. Pressbox)

Big Red in the Big Ten

I deal with Domers, Wolverines and Buckeyes on a daily basis, but I will say that there is no fan base that I have ever encountered that is as rabid and devoted as Nebraska fans. The discussions on this blog have only reinforced that – we’re getting fan base like no other. All of the Big Ten schools are going to be invaded by a sea of red sooner rather than later, as the Huskers are starting conference play in 2011. This is something that I noted was on the table a couple of weeks ago, where the Big Ten would provide financial concessions (such as a faster vesting of NU’s share of the Big Ten Network) in order to compensate for the higher 1-year notice exit fee from the Big 12.

So, is this the end of expansion for the Big Ten or are we going to get the equivalent of the “Her Majesty” track on the Abbey Road album… or maybe an entirely new album added on? The Board of Regents of the University of Texas is discussing conference realignment on Tuesday. Despite what many of you may think, I’m a realist – if Texas A&M refuses the overtures of the SEC, then the heavy odds are on the creation of the Pac-16 with UT and friends. The situation, though, continues to be extremely fluid. There are enough dominoes in this game to keep this discussion going for awhile.

In the meantime, congratulations to the University of Nebraska! It’s about time that the Big Ten had a Memorial Stadium that could sell out.

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

“Conservative” Expansion or Super Death Star Conference?

The Big Ten expansion rumor mill continues to churn, with the conference reportedly inviting (or at least welcoming to fill out the online Common Application to join the conference) Notre Dame, Missouri, Nebraska and Rutgers.  Supposedly, if Notre Dame were to accept the Big Ten’s invite this time around, then the conference would add one more school for a 16-school conference.  If the Domers reject the overtures of the “Big Integer” once again, then the conference would decide between staying at 14 schools or finding 2 other schools to invite.  (Note that as I’m writing this, SportsCenter has teased talk about Notre Dame possibly joining the Big Ten about 8 times in the last 20 minutes with nary a mention of anyone else.)

This particular rumor has been denied by various parties, including the Big Ten’s office and Nebraska’s chancellor (who has probably been the most open university president of any of the schools involved over the past few weeks).  Still, I’m suffering from confirmation bias with respect to this specific story because it’s the main scenario that the collective brain power of this blog’s readers has settled upon over the last few posts: Nebraska, Missouri and Rutgers as virtual locks in a minimum 3-school expansion, with the Big Ten only going to 16 if it gets Notre Dame and/or Texas.  I noted this in my interview with Penn State blog Nittany Whiteout a couple of weeks ago (here are parts 1 and 2):

NITTANY WHITEOUT: I’ll have to ask you a three part question.  First: without thinking about money, or logistics, and if saying “no” wasn’t an option, what would be the ideal move for the Big Ten?  Second: getting back to the real world, what’s the best possible decision for the conference?  And lastly, just a shot in the dark, what ends up happening? Does Joe Paterno get that “Eastern Rival” he’s been pining for?

FRANK THE TANK:

1. The Big Ten adds Texas as team #12 and stops there.  There is no single school that can provide more impact for the conference (even Notre Dame).

2.  For all of the focus on TV markets, this expansion is going to require a massive football name in order for it work, which means at least one of Nebraska, Notre Dame or Texas.  Any 14-team scenario with 1 of them would work very well and I think that you need 2 of them for a 16-school conference.  If I were making a recommendation to the Big Ten and it’s not an option to just add Texas or Notre Dame as team #12, I’d go for a 14-school conference with one of those big names as an anchor.  The other 2 schools would provide a base of households (Missouri to the west and Rutgers and/or Syracuse to the east), with the caveat being that if the Big Ten can get Texas but also needs to take Texas A&M, too, then the conference should do it in a heartbeat.

3.  If I were to bet today (and be advised that this changes on almost a daily basis), I believe that the Big Ten will add Nebraska, Missouri and Rutgers to create a 14-school conference.  Nebraska provides the national name, Missouri safely delivers a state of 6 million people for the Big Ten Network, and Rutgers is a reasonable bet to at least get a toehold in the state of New Jersey.  They are all large flagship schools that are members of the AAU, so they meet the academic requirements of the conferences while “fitting” the Big Ten mold.  These are also all schools that will say yes to a Big Ten invite almost immediately.  Finally and most importantly for your readership, JoePa gets one Eastern rival to pummel annually.

What’s interesting is that if the Big Ten were to actually send out 4 invites in the manner that it was reported today, it indicates that the conference is employing something similar to the Super Death Star Conference multi-phase expansion strategy that this blog threw against the wall in a homage to John Nash.  The Big Ten is pot committed to expanding one way or another and clearly isn’t bluffing (as many casual fans across the country continue to believe).  This puts Notre Dame in a precarious position because it will end up holding the key to whether the Big East will live on with just losing Rutgers from the football side.  One line of thinking (which is the one that UCONN football coach Randy Edsall and many Big East fans believe) is that if Notre Dame were given an ultimatum to join the Big East football or give up membership in that conference’s other sports leagues, then the Irish would be “forced” into the Big Ten and the Big East could minimize its losses since Jim Delany wouldn’t pursue the East Coast any further.  (I threw a lot of cold water on this popular suggestion in my post about potential Big East expansion scenarios back in February.  Please see assumption #2.)  On the other hand, the line of thinking in my head (and what I believe is the Big Ten’s modus operandi) is that Notre Dame joining the Big Ten actually would embolden the conference to go for the jugular in the Northeast with a 5-school expansion that includes multiple Big East teams.  Jack Swarbrick has consistently tried to toe the proverbial party line that Notre Dame is fully supporting the Big East.  The Irish will have to decide whether joining the Big Ten or staying independent will end up hurting the Big East more (and if it actually matters to the school).

Now, this blog’s commenters went wild in the last post over this Northwestern Rivals message board rumor about a drunk Big Ten employee supposedly stating that the Big Ten’s true targets are Notre Dame, Nebraska… and Texas.  (What’s up with Northwestern and Big Ten expansion rumors? The university president telling a bunch of sorority girls about how the conference voted at the AAU meetings?  Plastered Big Ten insiders getting toasted with the Wildcat faithful?  Is this why Evanston was a center of the temperance movement?)  The scheduling proposal is whack and would seem to be a non-starter for the Big Ten, but as for the mix of teams itself, no one can really discount this as the ultimate goal for the conference (as much as it might be a shoot the moon attempt).  There have been multiple threads on Orangebloods (the premium Texas Rivals message board) that actually corroborated that if the Big Ten could grab Notre Dame and Nebraska, then that would be the scenario that would get Texas to join the Big Ten (whether or not Texas A&M is included).  So, call me just a little bit titillated that the Big Ten might be sending out 4 invitations to apply to receive invitations with 1 outstanding spot that seems to play right into what that wasted Big Ten guy apparently told his Northwestern alum buddy.  I’m simultaneously laughing off the thought that someone with this type of knowledge would spill it to a message board poster while seeing enough detail in the rumor to think, “Why the fuck not?”  This is what passes for “solid” expansion news when no one with actual authority is willing to go on the record.  A variant of the Super Death Star Conference might be coming along just yet.

Or it could “just” be a 3-team expansion with Nebraska, Missouri and Rutgers.  It continues to amaze me that a few months ago I thought that it was ridiculous to even think that the Big Ten would add multiple teams, yet now believe that 3-team expansion with one of the top 10 college football programs of all-time (Nebraska) that locks up the state of Missouri and possibly enters into the New York City market is a “conservative” move.  That’s how much our expectations of Big Ten expansion have changed in an extremely short period of time.  Hopkins Horn, a frequent commenter and Texas alum, asked the blog’s readers whether they’d be happy with that ultimate outcome.  Personally, I think that it would be a great outcome for the Big Ten.  While I’d love to add on Texas and/or Notre Dame on top of that group for a 16-school conference, a 14-school conference with Nebraska, Missouri and Rutgers as new additions provides a great mix of star power, guaranteed households and East Coast market potential while still maintaining some semblance of an actual tight-knit conference feel (as opposed to being a massive confederation).  As an Illinois alum, I like the natural East/West division split with annual games against long-time Braggin’ Rights rival Missouri.  Expanding further to 16 without Texas or Notre Dame isn’t worth it, in my opinion (as much as I have a huge soft spot for Syracuse).

So, that’s where we are in the expansion rumor cycle at this point.  Hopefully, some real news will come sooner rather than later.

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

(Image from College Hoops Journal)

The Big Ten’s Fab Five?

The latest Big Ten expansion rumor du jour: a 5 -team expansion with Missouri, Nebraska, Pitt, Syracuse and Rutgers.  South Bend NBC affiliate WNDU (which was owned by the University of Notre Dame until 2006) has a report from “a source in St. Louis”, while Tom Dienhart of Rivals and Yahoo! tweeted about this scenario and then explained to a Nebraska radio station (h/t to Scott C) that he had received his info from Mizzou officials.   The Show-Me State apparently has so many loose lips that we should expect to have the next big expansion news to break out of Branson.  Hooray for more rampant speculation (and beer)!

As far as news stories about Big Ten expansion go, this is at least within the realm of reasonably coming to fruition.  This particular 5-team combination is no surprise to the followers of this blog as we discussed this in detail in the comments a couple of weeks ago with hypothetical pod alignments and the potential financial and prestige merits of this option.  As a far as collective requirements for the Big Ten, this group consists of great academic schools (all are members of the AAU), provides one marquee football brand name (Nebraska), grabs a set of guaranteed households (Missouri) and makes a legit play for the New York City market (Syracuse and Rutgers).  As sports fans, this expansion would look like a mega-blockbuster if one of those schools were to be replaced by Notre Dame, but I’d still characterize this as a game-changing move that improves both Big Ten football and basketball while expanding the conference footprint.  If true, Notre Dame fans will also feel that they’ve dodged a bullet by maintaining independence while simultaneously giving up millions of dollars per year (both in added revenue and reduced travel costs) and watching their league for basketball and non-revenue sports completely collapse.  This is seriously what passes for wonderful news in South Bend these days.

In addition, I found the comments from University of Nebraska president Harvey Perlman to be slightly titillating.  One week ago, he told the Omaha World-Herald the following:

So far, Perlman said, Nebraska hasn’t been approached by another league.

In an article yesterday in the same paper, Perlman was a lot more evasive:

Last week, I asked Perlman if NU had contacted the Big Ten or any conference about joining. His response: “I’m not going to comment on that.”

Things that make you hmmmm…

Anyway, Dienhart suggested that there would be four 4-team divisions if the Big Ten were to go with the proposed 5-school expansion.  Here’s how it could shake out in my eyes:

EAST: Penn State, Pitt, Rutgers, Syracuse
WEST: Nebraska, Iowa, Missouri, Illinois
NORTH:  Michigan, Michigan State, Wisconsin, Minnesota
SOUTH:  Ohio State, Indiana, Purdue, Northwestern

These “divisions” would really be pods, where the pods would rotate every 2 years.  I’d make the East and West divisions always be opposite each other with the North and South divisions rotating.  At the same time, every team would have a permanent non-division rival as follows:

Michigan – Ohio State
Illinois – Northwestern
Penn State – Nebraska
Iowa – Minnesota
Pitt – Michigan State
Rutgers – Indiana
Syracuse – Purdue
Wisconsin – Missouri

This way, every team has 4 annual rivals while playing everyone else in the conference 2 out of 4 years (with a few exceptions) if there’s a 9-game conference schedule.  The rotating pod mechanism allows everyone in the conference to continue to play each other on a regular basis even in a 16-team conference and still comply with NCAA rules requiring divisions of at least 6-teams each to play an exempt conference championship game.

As for the permanent non-division rivals, despite Pitt’s non-land grant status, I’m fairly certain that Penn State fans will gladly hand over the keys to the Land Grant Trophy (AKA “The Trophy Designed by Rasputin: It Just Won’t Die” or “The Big Ten Bowling League Trophy with a Lion Mold-A-Rama Glued on the Side”) in exchange for an annual game with Nebraska.  Now, if you want a REAL rivalry trophy, check out this bad-ass politically incorrect killing machine that Illini like myself and Northwestern fans get to enjoy… wait a second… WTF?!

I was firmly in the camp of believing that Michigan and Ohio State HAD to be in the same division for a very long time no matter how the conference was expanded and that seriously mucked up logical pod setups if you stuck that principle.  However, I like the aforementioned pods enough that I’ve been convinced that we may be better off splitting the 2 big dogs.  The pods are geographically contiguous and has one marquee football name each.  If Michigan and Ohio State really do have to play each other 2 weeks in a row, maybe that’s not the most horrible thing in the world.  The Worldwide Leader certainly can’t get enough Yankees-Red Sox and Duke-UNC games to slam down our throats, so having a rematch of college football’s best rivalry for the Big Ten championship would be a completely different kind of Armageddon.

All in all, I’d be fairly happy if this 16-school conference came to fruition.  I still think a lot of the value that the Big Ten would be looking for could be achieved in a 3-team expansion with just Nebraska, Missouri and Rutgers (assuming that Notre Dame and Texas aren’t in the mix), but this 5-school proposal would definitely lock up the Northeastern quadrant of the United States for the conference with similarly situated top tier research schools that have big-time athletic departments.  It’s a risk to expand in this manner without either Notre Dame or Texas, yet I do feel as though all of these 5 schools could “feel” like Big Ten schools and fit in well with the current members.  Of course, the only way that this works out financially is if the Big Ten Network takes Manhattan.  That continues to be the gazillion dollar issue to be resolved in this conference realignment.

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

(Image from FanHuddle)

Getting Krunk on Expansion News (or Lack Thereof)

Ah, I love the smell of napalm and crushed Big Ten expansion dreams in the morning.  Judging by the over 1000 comments to last week’s post (a record number for the blog), we’re all exasperated that Jim Delany and the Big Ten have at least publicly stated that they will stick to original timetable of 12-18 months to examine expansion candidates.  This is certainly a fascinating topic, but Lord help me if I’m still speculating12 months from now about who the Big Ten will be adding.  At that point, I’d rather be speculating about… Big East expansion!  Let’s get to my thoughts on last week’s events:

(1) You lie!!! – In all seriousness, I’m not one of those people that subscribe to conspiracy theories and break every conference official comment down like the Zapruder film.  However, if there’s one thing that needs to be beaten into people’s heads after this past week, it’s this: TRUST NO ONE.  The various of lists of 5 and 15 candidates that the Big Ten leaked and every public comment that has been uttered mean nothing to me at this point.  The one reporter that seemed to actually have a decent clue as to what was going on in the Big Ten expansion story, Teddy Greenstein of the Chicago Tribune, appeared to get solid information that the conference was fast-tracking adding new schools and then had to make a complete retraction a couple days later.  If Greenstein is getting played by the Big Ten, then every other reporter is getting played, as well.  I’ve received info from credible people that Texas and Notre Dame are definitely still in legitimate play for the Big Ten and other info that the conference has moved on regarding both of them.  Commenters have posted information suggesting that Maryland preemptively nixed any consideration for Big Ten membership and that Northwestern’s president revealed to a sorority that the conference had actually made a decision as to who it was inviting.  Tom Shatel, one of the Nebraska beat writers at the Omaha World-Herald, shared his frustration that people he trusted last week that stated that the Cornhuskers weren’t part of the Big Ten expansion talks are now saying that the school is definitely in the mix.  It’s impossible to parse through what’s true or false in all of this.

At this point, there is no combination of Notre Dame and/or any Big East and/or Big 12 schools that are AAU members that would surprise me.  If the Big Ten announces in June 2011 that it’s adding Pitt, Syracuse and Rutgers, I wouldn’t flinch.  If the Big Ten announces in 2 weeks that it’s adding Texas, Texas A&M and Notre Dame, it wouldn’t faze me at all.  It’s all fair game at this point.  The leaks so far have been so contradictory that we’re all better off assuming that they’re red herrings.  There’s a plan out there that might be way more aggressive than even the Super Death Star Conference that I’ve brought up or it could very well be a conservative addition of a geographically contiguous school or 3 purely for households.  No one except for Jim Delany and the Big Ten university presidents knows WTF is going on.

Of course, we’ll still have fun pouncing on every leak and rumor in the meantime.

(2) Backdoor meetings are where it’s at – Some commenters astutely noted that Jim Delany isn’t going to call a press conference one day and say, “I’ve just informed the Big East and Big XII that they need to bend over and assume the position.”  If and when Delany talks to his fellow commissioners, it’s going to be private and it’s likely such commissioners would want to keep it that way so they can start planning for their own raids of leagues like the Mountain West and Conference USA.  Delany would certainly not want anything to do with speaking about anything substantive with the feeding frenzy of the media horde gathered at the BCS meetings last week.  This seems like such a simple and logical concept, yet in a world where we’re craving information on this subject, we’re dying for any type of official statement of a go-ahead.

(3) Time is on the Big Ten’s side – I really doubt the Big Ten is going to take the full 12-18 months to examine this expansion issue.  That’s just my gut feeling as the university presidents likely wouldn’t be able to stomach having this story hanging over their heads in the press for such a long period of time.  It could very well be the case that the Big Ten’s university presidents know how they want to proceed and that they simply didn’t want Delany to inform the Big 12 and/or Big East commissioners of the Big Ten’s targets at the media-filled BCS meetings.  Honestly, I don’t know what could be taking so long unless the Big Ten is vetting every single possibility with the two schools that matter the most: Notre Dame and Texas.  Those are certainly two schools worth waiting for if the Big Ten believes that either of them would be willing to join.  Every single other school in the Big East and Big XII would leap toward Big Ten membership, so if the Big Ten was solely targeting non-Notre Dame/Texas schools, this could’ve been wrapped up weeks ago.

(4) Big East being “proactive” by “hiring” Paul Tagliabue and expanding to Jacksonville – As Brian Cook of Sporting News and mgoblog (not the former Illini quasi-great) stated, “Soviet Big East Raids You!”  (I’m not going to lie – I could keep myself entertained making up Yakov Smirnoff-isms for hours at a time.)  On paper, it sounds like a massive coup that former NFL commissioner Paul Tagliabue has been tapped as a strategist for the Big East.  He’s actually providing his services pro bono because he has a very direct interest in how all of this plays out as Chairman of the Board of the Directors at Georgetown.  What does this mean?  Well, if Tagliabue has anything to do with it, the hybrid format of the conference will continue on into perpetuity.  Georgetown would be severely damaged if the Big East split up and one of his tasks will be to ensure that doesn’t happen.  If the Big East were to lose multiple schools, he has the gravitas to tell schools that might be ready to split (i.e. Louisville) that the hybrid is still the revenue maximization model for the conference.  The Big East football schools might not trust anything that the Big East office says anymore, but if the former commissioner of the NFL says that ESPN will still pay a lot more money for a hybrid league than a split league, then that’s going to carry a lot of weight.  As a DePaul law grad, though, I really hope that Tagliabue doesn’t decide that the Big East would be better off skipping the Los Angeles market in favor of the next municipality that whores itself with a taxpayer-financed stadium.

Honestly, there is absolutely nothing “proactive” that the Big East can do at this point to prevent a member from leaving for the Big Ten.  Even if the Big East could somehow create a new TV network that could generate large amounts of cash, there’s no way that could be up and running even if the Big Ten takes the maximum amount of time to complete its expansion process.

Of course, Tagliabue unintentionally torpedoed the prospect of the Big East ever creating its own network by dumping on the thought that the Big Ten adding schools in the New York area would deliver homes for the Big Ten Network by saying the following:

“One of the real challenges for the networks is to provide value, but you only provide value in markets where you provide traction,” he said. “Is Minnesota and Rutgers going to get a big rating on Long Island? Give me a break. Every game isn’t Michigan and Michigan State.” He added, “Am I going to rush home from a tennis game on Saturday to watch Minnesota and Rutgers if I live on Long Island?”

Now, I’m not exactly a favorite person with the Rutgers message board crowd, but I’ve got to defend the school here.  WTF was Tagliabue doing completely ripping apart a current member of the Big East when his job is to presumably keep the conference intact?  Maybe he was suggesting that Midwestern schools like Minnesota wouldn’t exactly attract the Long Island tennis club crowd, which is likely true, yet that’s quite a disingenuous statement coming from someone representing a league that includes Louisville, South Florida and Cincinnati (who don’t conjure up images of summer parties in the Hamptons).  In fact, the highly-rated 2006 Rutgers game where the Empire State Building was lit up in scarlet red was against Louisville as opposed to an Eastern school, which goes to show you that New Yorkers simply want to watch good teams play other good teams regardless of geographic location.  If I were a Rutgers fan, I don’t know how I could deal with someone in a leadership position in the Big East saying that about my school.  At worst, it was a complete cheap shot and at best, it came off extremely wrong with logic that didn’t follow considering that the Big East isn’t a purely Northeastern football league anymore.

(5) ESS – EEE – SEE SPEEEED! – SEC Commissioner Mike Slive articulated the real reason for expansion: it’s a high stakes pissing contest to see who can lay claim to the “Bad Motherfucker” wallet.  More than anyone, there’s kind of this lingering assumption that if the Big Ten expands to 16 schools, then the SEC MUST respond because it simply can’t handle not being the biggest (and therefore, the best).

Frankly, this line of thinking doesn’t make sense to me at all.  I know a lot of fairly knowledgeable people are convinced that we’re going to end up with 4 16-team superconferences after everything shakes out, yet too many people seem to forget that every single conference other than the Big Ten doesn’t have a financial vehicle like the Big Ten Network that would make it financially viable to perform such a large-scale expansion.  The Big Ten isn’t expanding just to expand – it’s looking to maximize the per-school payout for each of its members.  All of the other conferences are going to do the same and I fail to see how any of them would be able to make it a profitable venture to expand beyond 12 without its own conference network.  Heck, even the Big Ten isn’t guaranteed a windfall by going beyond 12 schools (even though it at least has an argument with the Big Ten Network).

In the case of the SEC, there are very few schools that make sense for it in terms of expansion at all.  I see names thrown around like Miami, Florida State, Georgia Tech and Clemson, but all of them would be duplicate teams in markets that the SEC already owns.  There’s very little point in the SEC adding more schools within its current footprint.  In fact, there are only two markets that would add value to the SEC:  Texas and North Carolina.  The problem is that in order to obtain those markets, it would need to try to add the University of Texas and UNC, both of whom would likely completely shun the SEC due to academic reasons.  Throughout this process, I’ve corresponded with many Texas alums (NOT the T-shirt fans that just care about football) and they’re pretty much unanimous in stating that the UT administration will NEVER entertain any thought of joining the SEC.  It cannot be underestimated how much the academically-minded administrators at Texas loathe the thought of the SEC.  I think about this every time I see a columnist wrongly assume that “Texas = South” and therefore “Texas = SEC”, when in reality UT likens itself to be more like Berkeley or Michigan as opposed to any of the SEC schools.  UNC is even more snobby with respect to academics and the Tar Heels have emotional ties to the ACC that go far beyond what Texas has with the Big XII.  So, the chances of the SEC adding either of those schools is between slim and none.  Without them, there aren’t any other worthy markets in the South that the SEC hasn’t already covered.

(6) Why is this topic addictive? – A number of commenters have been wondering about why this expansion topic is so fascinating.  As someone that had been writing this blog for 5 years about a variety of subjects and didn’t focus on conference realignment until the last few months, I’ve also been thinking about how I got hooked on it.  At least for me, I’ve always enjoyed writing about big-picture movements in the sports world and you really can’t get much more big-picture than power schools switching conferences.  Could you imagine if the Yankees and Red Sox approached the Cubs and Dodgers to join the AL East in order to form a super-division of all of baseball’s most popular teams?  (Please note that as a die-hard White Sox fan, it pains me to admit how popular the Cubs are and will likely always be.  I take solace in the fact that they’re paying $19 million to an 8th-inning setup guy.)  Well, the equivalent isn’t just possible in college sports, but it’s happened numerous times.  Within the past 20 years, Penn State joined the Big Ten, Miami joined the Big East and then later switched to the ACC and Texas helped form the Big XII and could be on the move again.

Let’s face it, though: this is like crack-cocaine to the sports blogging world.  As regular commenter allthatyoucanleavebehind noted, it’s a lot more fun to talk about expanding with schools like Syracuse and Rutgers (or really anyone other than the massive players like Texas, Notre Dame and Nebraska) than to actually have to play them when expansion finally occurs.  Once the Big Ten actually makes an announcement regarding expansion, we won’t have a quick fix of speculative blogging material anymore… at least until we start talking about Big XII expansion.

At that point, all I’ll want to do is to rush home from my tennis match to catch the Illinois vs. Rutgers game.

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

(Image from Retecool)

The Value of Expansion Candidates to the Big Ten Network

The Big Ten appears to be stepping up the timetable for expansion dramatically, where what once looked like a 12-18 month process might now result in announcements prior to the end of June.  So, this is a perfect time for a guest post from Slant reader Patrick, who is a long-time veteran of the television industry.  (This means that he can actually drop some knowledge, as opposed to being a speculative Unfrozen Caveman Lawyer like myself.)  If you’ve been following the comments on last week’s post, Patrick has been providing incredibly insightful analysis based on industry information and has pinpointed some critical items in the Big Ten Network revenue model that definitely has changed some of my prior thoughts on expansion.  In fact, I’ll go so far as to say that he has provided the most informative viewpoint that I’ve come across since the Big Ten announced that it was exploring expansion back in December and it has changed a number of my views on the candidates.  So, everyone should give Patrick some major kudos for investing his time on this critical issue.  Here’s what he has to say (and my take on it thereafter):

With all the talk of Big Ten expansion lately I could help but wonder why the richest conference with the highest pay outs would want to expand. Wouldn’t that break up the pie into smaller pieces? Wouldn’t that cut the take from the current conference members? In short, NO, a resounding NO! The Big Ten schools together made roughly  $214,000,000 as of the last report. $100,000,000 from ABC / ESPN, $2,000,000 from CBS, and the schools collected $112,000,000 from the newly formed Big Ten Network. That is $19,454,545 per school. The regular network haul of $102,000,000 per year isn’t going to change. Any new members would need to make up that difference, plus carry their own weight of $38,146,166 in new revenues to the Big 10 Network. The conference only controls 51% of the Big 10 Network, FOX News Corp owns the other 49% and takes 49% of the overall profits. So each possible addition would need to earn the conference $19,454,545 per year AND earn FOX News Corp $18,691,621 AND make up the difference in the take from ABC / ESPN / CBS to break even for the current members. Since the conference reported a $112,000,000 payout, the actual profit margin of the Big Ten Network is around $219,607,840. In addition, there are a number of news stories indicating that the universities take this year was just shy of $22,000,000. I haven’t seen anything official on that but if it is true than the BTN made around $272,000,000 in the most recent year. Almost a $50,000,000 climb year to year for a brand new network. So why would anyone mess with that? How could any university earn that much for the BTN?

Advertising!

By the Big Ten’s own admission they are clearing about $0.36 per subscriber per month for the states inside it’s footprint. They also tell us that there are 26,000,000 subscribers and it is AVAILABLE to 75,000,000 people. The BTN wants to increase the available number but even more important is to increase the subscriber numbers, and there is an opportunity to do that within the current footprint. Regardless, at $0.36 per month for 26,000,000 households over 12 months I only came up with $112,320,000 for a cable carry rate. Well short of the $272,000,000 that the network likely made last year. The other $160,000,000 is advertising revenue! Live sporting events get big advertising dollars and the BTN is loaded with them. As Frank pointed out, if the conference were to expand, many more games would be on the BTN. Football, basketball, and maybe down the road a Big Ten hockey conference. Throw in a few conference championship games in different sports and expansion makes money just by added Live programming and increased quality of programming. A few creative tweeks in the scheduling and you could have every Big Ten game make it to air somewhere, which is good for everybody. For the Big Ten to get to 12 schools the addition would need to equal $38,200,000 to break even, for 3 schools they need to reach $114,500,000 combined, and for 5 schools a whopping $190,800,000.  If I were to just pull the #2 – #6 schools from my estimate they would bring in roughly $266,000,000. In that scenario, FOX News Corp profit (by adding 5 schools) goes from $107 million up to $201 million. It would not surprise me to see FOX News Corp gently nudging this process along. If advertising is earning the BTN in the ballpark of what I am thinking, then FOX has realized they opened a gold mine and want to see how deep it goes.

But what about the schools being batted around? I did my level best to average numbers, to play it conservatively, to be fair across the board with finding any schools potential. Notre Dame and Pittsburgh are a little tough to gauge because they don’t add any new television markets. But I found that by extrapolating what is already happening with the conference and the Big Ten Network, combining that with my television experiences, and taking into account some of the posters comments and thoughts I came away with what I feel is a pretty fair assessment of the potential of the candidates. As many of you have noted, game attendance and athletic revenue are important. I used attendance to gauge the level of support and fan interest to help me put a dollar value on ratings potential. If the fans won’t even fill their own stadium, how valuable is the team overall? Any team that joins the Big Ten will share in the Big Ten pie, so I subtracted off the current tv pay out for those teams to gauge strength in their home markets. Then extrapolated to find a decent estimation of a new tv markets potential for advertising revenue. I also averaged in the carry rates for the home market or markets with the number of cable subscribers. I did add a category to try to account for additional Live programming on the BTN and gave each school a flat $10,000,000 for the additional sports coverage, that is probably too low but I am leaning to the conservative side.  The following is a summary of the totals of my findings.

CANDIDATES TOTAL ADDED REVENUE ESTIMATE
 
Texas $101,369,004
Rutgers    WITH NYC $67,798,609
Nebraska $54,487,990
Maryland $50,818,889
Boston College $48,382,692
Notre Dame $47,629,255
Kansas $46,320,092
Missouri $45,901,459
Syracuse $43,504,813
Connecticut $38,080,271
Pittsburgh $34,365,175
Iowa State $31,831,077
   
Syracuse  WITH NYC $65,874,573

For a full chart with my calculations, please see this Word document:

Big Ten Candidates TV Analysis

This table could be read many different ways, I have no clue what the Big Ten will do. I could make a strong argument for Nebraska, Missouri, Rutgers, Maryland, Pittsburgh, and Kansas. If Syracuse can deliver NYC then they might be in but the amount of research they do will hurt their cause. Texas is an absolute no brainer, they lead in almost every category. I don’t think Iowa State is viable, but I was VERY conservative with these numbers. It would be hard to ignore Notre Dame and Nebraska being the #2 and #4 most valuable college sports franchises. Interesting that Kansas is right there behind Nebraska and ND in athletic revenue. If anyone wants to pass along better or more current numbers, I would appreciate it. In addition, with the talk and discussions that were flying around Sunday about the AAU meetings and the accelerated time table, I firmly believe that my estimates are probably too low. The fact that they want to move this quickly with an expansion means that the potential revenue is HUGE and the decision isn’t even a tough or close one. Also in some of the statements coming from the Big Ten brass and Notre Dame, I highly doubt Notre Dame is going to be included in the expansion. I now think that the expansion will happen, and I think that they will go all the way to 16 teams. I believe they will get AAU member schools, and the Big Ten presidents seem to be very interested in graduate research.

 I for one can’t wait, Bucky Badger playing against Nebraska would be an awesome sight!

– Patrick

Based on Patrick’s analysis, there are a few important things that I take away from this:

(1) The 60/40 Rule – This might be the most important piece of information regarding Big Ten expansion that I’ve seen to date: the Big Ten Network makes 60% of its revenue from advertising and 40% 0f its revenue from carriage fees.  I’ll be honest with you – I thought that it would’ve been the other way around and it has definitely altered the lens through which we need to look at expansion candidates.  What this basically means that if push comes to shove, the Big Ten should pick a school that has a great fan base (which translates in viewers for ad revenue) as opposed to market size (which contributes to carriage fees).  This actually brings some common sense back to the discussion, where somehow the world has been convinced over the past few months that Rutgers must be the most valuable school on Earth due to the location of its campus.  We’ve been very focused on footprint sizes and research funding in our discussions lately, but at the end of the day, ad revenue is the #1 source of dollars for the Big Ten Network and that’s based on finding schools that Joe Blow in Anytown, USA will want to watch.  Here’s a chart of some of the expansion candidates with their football TV ratings from last year.  (Note how well Nebraska and Pitt performed compared to everyone else.)  Now, that doesn’t mean that expanding the footprint is irrelevant (as the New York City market is still an important target for the Big Ten), but it definitely lets people “think like sports fans” a little bit here.

(2) Pitt MIGHT make money for the Big Ten – Most of the readers out there know that I personally love Pitt as an academic institution and athletic program, but just couldn’t find any way how the school could add to the Big Ten’s coffers financially.  Well, if Pitt’s ratings for football and basketball are good enough (and judging by the chart I linked to above, they probably are), then the school can end up being financially viable.  Patrick has stated that his figures for Pitt and Notre Dame are very conservative, so if Pitt continues to draw high football ratings, it changes the equation significantly.   Now, Pitt can’t really be put into the same category as Notre Dame or Nebraska where the national draw clearly overrides a lack of new BTN households, yet it does have the advantage of being one of the few expansion candidates that has strong programs in both football and basketball.  Speaking of Nebraska…

(3) If the Big Ten wants to make a ton of TV money, it will invite Nebraska – I’ve been increasingly become more and more supportive of Nebraska joining the Big Ten lately and Patrick’s analysis completely sealed it.  Nebraska’s small market be damned – the Husker fan base is as rabid as any other in the country and they will tune in anytime, anywhere.  (If you were wondering, the photo at the top of this post is evidence of how Nebraska fans completely took over South Bend a few years ago when they played Notre Dame.)  In fact, Patrick’s figures mean that we should remove Nebraska from the realm of “Well, they might be coming instead of Missouri” or “They’re a good back-up if Notre Dame doesn’t want to join” and put the Cornhuskers into the “lock” category instead.  I will now officially be shocked if Big Ten expansion occurs without Nebraska involved.

(4) 16 Schools = Huge Inventory – The 60/40 rule that favors advertising revenue also gives a whole lot more credence to making a 16-school conference financially viable. I recalled this piece from Don Ohlmeyer on that examined how ESPN chose to schedule programs:

http://sports.espn.go.com/espn/columns/story?columnist=ohlmeyer_don&id=4582425

The message that I got from this was that LIVE EVENTS = RATINGS. A live hot rod competition after a college football game actually holds more viewers than a studio show that talks about said game, even though they have nothing to do with each other at face value.

The Big Ten expanding up to 12 schools really doesn’t increase the inventory of conference football games (which are the higher value games) very much at all. Assuming that the Big Ten continues with an 8-game conference schedule, it would have 48 conference games as opposed to 44 conference games in a season. At 14 schools, it would go up to 56 conference games. At 16 schools, though, the Big Ten would almost certainly go to a 9-game conference schedule, which would catapult the inventory up to 72 conference games.

What does 72 conference games allow you to do? Well, let’s assume that the Big Ten provides 4 games to ABC/ESPN every week (2 games on ESPN and ESPN2 at 11 am CT, 1 game on ABC at 2:30 pm CT, and 1 prime time game), which is a package that would likely see a substantial increase in rights fees when it’s now presumably including Notre Dame and/or Nebraska on top of the current Big Ten members plus a conference championship game. This leaves 2 conference games for the BTN for every single week of the season (except for maybe Labor Day weekend, which is reserved for MACrifice games). With non-conference games mixed in, the BTN could have football triple-headers virtually every week. Going up to 16 schools increases the amount of live football on the BTN in a dramatic fashion and if twice as much live football compounds the amount of ad revenue earned, then I’m starting to see how going up to 16 schools makes more financial sense under the BTN model than 12 or 14 schools.

Then, we get to basketball, where a 16-school conference can get at least one basketball game onto the BTN onto every day of the week except for Friday, whereas now the BTN usually only has games on Wednesday, Saturday and Sunday. That’s a dramatic jump in the number of high quality basketball games on more nights of the week. This also still leaves enough for the Big Ten to add 1 or 2 more basketball games on ESPN per week for widespread exposure (and likely garner a rights increase there, too, if schools like Syracuse or Pitt added to the mix). Of course, Friday night can be reserved for the new Big Ten Hockey Conference game(s) of the week if Notre Dame joins. There’s even some side benefits in the spring with baseball (as Nebraska and Notre Dame lift up the quality of that league substantially) and lacrosse (where a new Big Ten league could be formed with Syracuse as the national headliner if that school is invited). Other sports such as women’s basketball and volleyball can end up with new national (and TV-friendly) brand names, too.

So, maybe that’s why the chatter about a 16-school conference has taken center stage: if you have that many more high value football and basketball games plus a ton of other sports of interest where you’ve got live programming every night of the week that’s comparable to the college games on the ESPN networks, that can increase ad revenue dramatically (and in turn, carry rates could increase as the BTN becomes more “essential” to viewers’ lives).

(5) My Latest Prediction That Will Change in a Week – Looking at Pat’s figures, it’s clear to me that the Big Ten pretty much has to at least try for the New York market unless Texas and Texas A&M come walking through that door.  The question will be whether the Big Ten believes that it’s worth it to take both Rutgers and Syracuse.  I get the feeling that the Big Ten’s university presidents have a fondness for Rutgers as  fellow public flagship (and I’ve stated before that they make sense in a multi-school expansion), even though my personal choice would be Syracuse if we had to take one or the other.  The academically-minded people in the Big Ten love Pitt and I think that if there’s any financial case for the conference to to be able to take them, they’ll likely do it.  Missouri, although it doesn’t have gangbuster financial numbers, would  probably be seen as a “safe” option because it can at least be counted on with reasonable certainty to deliver any households in its home state that don’t already carry the Big Ten Network on basic cable at the Tier 1 rate.

The one item that I disagree with Patrick on is Notre Dame – if his figures are close to correct, then I have a hard time believe that the Irish will turn down such a huge windfall for playing a lot of the same teams that it already plays annually in football (especially if its home for basketball and Olympic sports is destroyed).  I feel pretty good that Notre Dame, Nebraska, Missouri and Rutgers would all be involved in a 16-school Big Ten.  This essentially leaves Pitt and Syracuse for the last spot (unless the Big Ten wants to cut further into the Big XII by taking a school like Kansas).  If the Big Ten wants the better institutional fit, it will choose Pitt.  If the Big Ten really thinks that locking down New York is possible for college sports, then it will choose Syracuse.  With such a large-scale expansion, the Big Ten may put more emphasis on institutional fit to ensure maximum cohesion (especially since renegade Notre Dame is very likely to be involved), which would give the edge to Pitt (as much as it pains me as an avowed Syracuse supporter).  I know that this an about-face from what I’ve been saying for quite awhile.

So, here’s my current bet on who will join a 16-school Big Ten: Notre Dame, Nebraska, Missouri, Pitt and Rutgers.  If Notre Dame continues to balk, I believe that we’ll see Nebraska, Missouri and Rutgers added for a 14-school conference.  This will probably change by the end of the week (and I wouldn’t be surprised in the slightest if Pitt is replaced by Syracuse in the 16-school scenario), but that’s my line of thinking right now.

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

(Image from Ning)

Multi-Phase Big Ten Expansion: How to Create a Super Death Star Conference

As I was going through the always insightful comments (since people seem to love talking about superconferences) and pondering life’s great questions, such as what Desmond’s plan is on LOST or why Justin Bieber has been a trending topic on Twitter for the past 15 years, it occurred to me that a multi-phase expansion for the Big Ten may actually be a strong strategy for the conference.  For a very long time, I thought that if the Big Ten was going to add multiple schools, it would do it all at once because it wouldn’t want to risk not ending up with its desired end combination by inviting 1 or 2 schools and then hoping that someone like Notre Dame would join down the road.  However, what if the Big Ten could invite 2 specific schools who would accept that would (a) apply maximum pressure on the big names to join in “Phase 2” and (b) even those big names don’t end up joining, those 2 schools plus another school that the conference apparently likes would still provide enough value where expansion would be considered to be a success?

A large part of the leverage that the Big Ten has right now is due to the fact that it stands at an odd number of 11 members, which provides the possibility of the conference adding 1, 3 or 5 schools (or even standing pat).  Basically, it’s the conference equivalent of the “triple threat” position in basketball, where the player with the ball has the ability to dribble, pass or shoot.  No one knows which direction the Big Ten is going to go right now.  The mere threat of Big Ten expansion has caused the Big East and Big XII to wonder if they’ll survive and at least making the ACC consider some contingency plans.  If the Big Ten just adds one member in an attempt to have a multi-phase expansion, then a lot of that threat goes away – the perception will be that the Big Ten is at a stable 12 members with a conference championship game and provides a strong possibility that it wouldn’t look any further.  However, if the Big Ten invites 2 strategically targeted schools that would almost certainly accept, then the conference creates even more fear and chaos in the college sports world.  Standing at 13, it’s clear that the Big Ten is pursuing a superconference strategy and there is an absolute guarantee that it needs to add 1 or 3 more members.  If there’s a frenzy about the Big Ten’s plans today, just imagine what it would be like if the conference expands with a guarantee that it will add at least one more.  The Big Ten would also show schools like Notre Dame and Texas that the conference isn’t bluffing when it says that it’s moving on.

Let’s look back at the Big Ten Expansion Index, which is likely how most of you found this blog in the first place.  After Texas and Notre Dame, I had ranked Syracuse and Nebraska as the next two best candidates for the Big Ten.  For separate reasons, Syracuse and Nebraska also happen to serve as the ideal “Phase 1” invitees to the conference.

Reading the tea leaves from Notre Dame, a split of the Big East current hybrid structure is the most likely way to “force” it to join a conference (regardless of what the school’s alums believe).  Well, if the Big Ten were to choose just one Big East school that would most likely cause the Big East to split, it would be Syracuse.  The Orange are the glue that holds the hybrid together because no other Big East football school has as much invested in rivalries with the conference’s Catholic schools for basketball.  Without Syracuse, the other football schools would almost have to split simply for self-preservation.  Those remaining Big East football schools wouldn’t know whether the Big Ten would really want any of them in Phase 2 of the expansion and with only 7 members, they absolutely have to add another member immediately just to have the minimum number for a conference to exist in the first place.  Practically speaking, they would likely want to split from the Catholic schools to have the leeway to add 2 new members to cover the situation where the Big Ten may end up taking another Big East school in Phase 2.

On the other side of the Big Ten footprint, we should note something very important with respect to the Big XII: it takes 4 schools to stop any changes to the current inequitable revenue sharing structure that favors Texas more than any other school.  Missouri’s chancellor has complained about this openly.  Right now, there’s a solid bloc of 4 schools preventing those changes:  Texas, Texas A&M, Oklahoma… and Nebraska.  Those 4 schools consistently receive the most national TV appearances of the current Big XII members, so they receive the largest share of conference revenue on a year-in and year-out basis.  (Note that as much as a lot of otherwise incredibly civil Husker fans complain about how much Texas supposedly controls the Big XII, Nebraska is one of the reasons why Texas has such a large financial advantage over the rest of the conference because the Cornhuskers are still a net beneficiary from that revenue distribution model.)  If the Big Ten takes Nebraska away, then the other Big XII schools will have a super-majority to enact the revenue sharing changes that they’ve long wanted and block the prospect of allowing member schools to create their own TV channels (such as the Longhorn Sports Network).  Who is going to be really pissed off in that situation because it now no longer has the supposed financial “control” of the Big XII?  Texas, who is already behind all of the schools in the Big Ten and SEC in TV money even with the Big XII’s deck completely stacked in the Longhorns’ favor.  If Missouri could be considered a “stalking horse” to try to get Texas, actually taking Nebraska can directly hit the pocketbook of Texas like no other Big XII school except for Oklahoma (who won’t ever get a sniff of a Big Ten invite due to academic concerns).  Texas A&M would be in a similar position.  Nebraska leaving the Big XII gives those two Texas schools a clear financial reason for them to move conferences (to the extent that it’s not there already) AND the political “moral authority” (as Barking Carnival has noted before) of telling the state’s politicians that they need to move pronto regardless of what happens to Texas Tech and Baylor because the Big XII is a dead man walking.

In summary, the Big Ten can announce that it’s inviting Syracuse and Nebraska, both of whom I believe the conference likes regardless of who else might be added.  The effect of this is even more panic in the college sports world since 2 BCS conferences will have lost key members and it’s clear that the Big Ten is going to want to add at least 1 more school (or maybe 3).  This causes the Big East to split up simply for self-preservation (which would drive Notre Dame to the Big Ten) and the Big XII’s power schools would no longer have veto power to avoid changes to its revenue distribution model (which would drive Texas and Texas A&M to the Big Ten).  We would then have a Super Death Star Conference (the one that the Empire attempted to build in Return of the Jedi):  Notre Dame, Texas, Texas A&M, Syracuse and Nebraska as new members of a 16-school Big Ten.

Now, what if the desired fallout doesn’t go as planned for the Big Ten, where Notre Dame and/or the Texas schools stay put?  (In the words of future Ole Miss mascot Admiral Ackbar, “It’s a trap!!!”)  This is not really a problem because the Big Ten has already added a huge national football name (Nebraska) and a marquee basketball school that happens to be the only BCS school in the state of New York (Syracuse).  The Big Ten would then invite Rutgers as school #14, which gets the conference to stake its geographic claim to the New York/New Jersey area.  As a result, the Big Ten has increased its national cache for both football and basketball while adding on concrete households in the form of a major presence in the nation’s largest TV market.  (This is “JoePa’s Quasi-Dream Conference” that I wrote about here.)  Adding Syracuse and Nebraska as schools #12 and #13 allows the Big Ten to disrupt the current comfort zones of Notre Dame and Texas and applies serious pressure on them to join the Big Ten themselves, but also provides a hedge in the event that those major players aren’t persuaded at the end.

I’ve stated before that Nebraska would be the one school that could make me eat my words that the Big Ten wouldn’t expand without Notre Dame or Texas involved.  Frankly, JoePa’s Quasi-Dream Conference is a pretty good outcome for everyone associated with the Big Ten.   The sports fans get great national programs in football and basketball (plus major upgrades in other sports with Nebraska baseball and women’s volleyball and Syracuse lacrosse).  The academically-minded people maintain a conference entirely composed of members of the American Association of Universities.  The traditionalists get a geographically contiguous conference that “conservatively” adds on to both sides of the league footprint.  The TV executives get another marquee football name for national TV contracts and entry into the New York/New Jersey area for Big Ten Network households.  Maybe most importantly, these are all schools that seem to actually WANT to be in the Big Ten (as opposed to feeling forced to join).  This can maintain the close-knit atmosphere that I believe is the Big Ten’s greatest qualitative strength.

That would be my maniacal multi-phase expansion plan if the Big Ten is truly looking to move up to at least 14 schools – go for the proverbial royal flush in a way where the conference is still guaranteed to be the chip leader no matter what happens.

(NOTE:  In response to several requests, I’m putting together an updated post on the potential fallout on other conferences, so stay tuned.)

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

(Image from Eco Auto Ninja)

Big Sweet Sixteen?

Tony Barnhart, a fairly well-connected college football writer at the Atlanta Journal-Constitution, dropped some titillating tidbits about the Big Ten’s expansion plans today.  He often writes from the SEC perspective (as to be expected being based in Hot-lanta), yet he has a solid reputation of not reporting much bunk.  Here’s the money quote:

The other big topic here has a chance to completely change college football as we know it. I’ve spoken to a number of athletics directors and commissioners who are convinced that the Big Ten is positioning itself to seriously consider becoming college football first super conference by expanding to as many as 16 teams.

The Big Ten is looking at three plans: Stand pat with 11 teams, add one team (hopefully Notre Dame) or make a blockbuster move and go to 16.

“If they go to 16 and one of them is Notre Dame then we’ve got an entirely new ball game,” a conference commissioner told me confidentially.

Whoa!  I was just wrapping my head around the thought of the Big Ten moving up to 14 schools, yet Barnhart is suggesting that isn’t even an option on the table.  He seems to be saying that the Big Ten wants to either go big up to 16 or go home.  Now, I don’t personally feel the love for a 16-school behemoth in the same manner that a lot of the readers of this blog do (and I attempted to throw a lot of water on the notion of superconferences early on).  I’ve long felt that 12 schools is really the perfect number for a conference and it would take a massive financial windfall in order to make a multi-school expansion work for the Big Ten.  Still, it’s worth examining which 5-school expansion combinations could work for the Big Ten if it’s really on the table.  I’m going to use the following assumptions that will be required for any 16-school Big Ten:

(1) Notre Dame MUST be involved – The amount of chatter coming from the Domers (both in support of a move to the Big Ten and, more loudly, in support of completely removing the football program altogether) indicates that Notre Dame’s leadership (if not its alumni base) is reading the tea leaves of conference realignment and is positioned to move.  I have long felt that Big Ten expansion would not occur without either Notre Dame or Texas and this is exponentially true with any multi-school expansion.  Over the past few weeks, there have been quotes from Notre Dame’s Executive Vice President, Athletic Director, football coach and basketball coach all either being extremely squishy on the school’s future as an independent or, in the case of Mike Brey, straight-up believing that Notre Dame will be in the Big Ten sooner rather than later.  Thus, let’s ignore all proposals of Big Ten expansion combinations that don’t include Notre Dame from this point forward.  The Big Ten isn’t going to add 5 schools without one of them being Notre Dame.

(2) The Big Ten won’t kill any conferences… only mortally wound them – The Ohio State athletic director Gene Smith went on the record a couple of days ago saying that he preferred that the Big Ten expand by multiple schools.  He also noted that he had faith that whichever conference or conferences were affected would be able to find replacement schools and live on.  I buy that line of thinking – the Big Ten isn’t in the business of killing off conferences if only for the fact that it’s pointless to be a dominant force if there aren’t any other conferences to dominate.  At the same time, I’m fairly certain that the Big Ten understands that if the Big East schools were really that valuable, that Big East’s current per school TV payouts wouldn’t be less than the annual interest that Northwestern receives on its Big Ten TV paychecks.  So, I highly doubt that we’ll be seeing the Big Ten add 4 Big East schools on top of Notre Dame.  More likely, we’ll see the Big East and Big XII affected along with a small possibility of the ACC being hit.  Instead of completely murdering the Big East, the Big Ten would likely leave several conferences with flesh wounds like the Black Knight from ‘Monty Python and the Holy Grail.’

(Speaking of murder, CBS just destroyed two decades worth of goodwill in a 3-minute span with its horrific NCAA Tournament montage last night.  That wasn’t “One Shining Moment” – instead, that was Sonny Corleone visiting a toll booth.  It was bad enough that the network decided to replace the version sung by the late Luther Vandross with a new shrill piece from Jennifer Hudson.  Yet, CBS compounded its mistake further by splicing in several shots of Hudson throughout the montage which could have been used for actual game footage that was sorely lacking.  It’s ridiculous that a “One Shining Moment” montage would have absolutely no recognition of national player of the year Evan Turner, the upset by #14 Ohio over #3 Georgetown, the existence of #1 seed Syracuse and, worst of all, ZERO footage of the double-overtime game between Kansas State and Xavier.  Advice to CBS executives: don’t tailor “One Shining Moment” based on feedback from focus groups that watch “The View”.  This way, you can avoid pissing people off that watch the NCAA Tournament because they actually like basketball instead of seeing Jennifer Hudson’s mug when “the ball is tipped.”  At least CBS News has noticed that the public isn’t very happy.  This has made me so angry that I encourage all of you to participate in faux activism via Facebook.)

(3) Rutgers and Syracuse are virtual locks – Whether you like them or not, it would be hard enough for a 14-school Big Ten to be financially viable without the New York City market sans Texas.  If a 16-school conference comes to fruition, then it removes all doubt whatsoever that adding on the NYC DMA is an absolute requirement for the Big Ten.  To me, this mandates adding both of Rutgers and Syracuse.  (I’ll again duly note a number of knowledgeable commenters that don’t think Syracuse would fit in the Big Ten, but the fact remains that it’s an AAU member in the top 60 of the US News rankings with the only BCS football program in the entire state of New York with 20 million people along with a marquee basketball program with a lot of NYC fans.  There’s a reason why the ACC really wanted Syracuse as opposed to Virginia Tech when it raided the Big East back in 2003.)

Under those guiding parameters, here are the main 16-school scenarios that I believe could work for the Big Ten:

  • JoePa’s Wet Dream Conference (Notre Dame, Rutgers, Syracuse, Boston College and Maryland)  – This is simple enough: let’s take the original “JoePa’s Dream Conference” that I had proposed with Notre Dame, Rutgers and Syracuse as additions and then tack on Boston College and Maryland on top of them.  This effectively allows the Big Ten to capture the entire Northeast while, at least on paper, adding the New York, Boston and Washington markets.  With Notre Dame and Penn State as anchors, the Big Ten Network could get into basic cable households that aren’t even necessarily in Big Ten states (i.e. the other New England states, Northern Virginia near DC, etc.).  These are all academically impressive schools (even if some people might quibble with the graduate research capabilities of BC and Syracuse) that could deliver 3 massive and very affluent markets on the East Coast.  The problem that I foresee is that I still believe that any ACC school is higher hanging fruit in terms of the Big Ten trying to lure one of them, whereas there are Big East and Big XII schools that could provide similar value as lower hanging fruit.

 

  • Imperial Star Destroyer Conference (Notre Dame, Rutgers, Syracuse, Nebraska and Kansas) – The more I look at this hypothetical conference, the more I like it.  Rutgers and Syracuse provide a concrete base of households to the East, but Nebraska and Kansas provide the national brand names to the West.  This type of expansion is less about pure market grabs and more about making the Big Ten Network into a true national property.  A football conference with Michigan, Ohio State, Penn State, Notre Dame and Nebraska going at each other in the fall?  A basketball conference with Kansas, Michigan State, Syracuse, Indiana (assuming that the Hoosiers will be resurrected at some point) and Illinois going at each other in the winter?  That’s extremely enticing from a national perspective.  I’ve been hammering away regarding the importance of TV markets to the Big Ten Network, but let’s not suspend all common sense here by trying to argue that a mere presence in a large market is always going to be more valuable than a powerful national presence that’s located in a smaller market.  Adding a football program like Nebraska and, to a lesser extent, a blue blood basketball program like Kansas could compensate for their smaller home population bases by drawing enough demand for games to raise rates within the current Big Ten footprint and inducing more basic cable operators to sign up outside of that footprint.  Plus, schools such as Nebraska and Kansas would actually be fairly happy to join the Big Ten (at least at the administrative level) and wouldn’t have to deal with torch-wielding alums like Notre Dame or crazy politicians like Texas.

    I’m sure a few of you out there are wondering: why not Missouri instead of Kansas?  Part of it is that Missouri’s potential value to the Big Ten is very overrated by outsiders.  The Big Ten Network is already on basic cable in the St. Louis market due to the presence of Illinois alums and fans, which means the main market that the conference would add with Mizzou is Kansas City.  However, Kansas is arguably much more popular in that market AND has a marquee basketball name nationally.  At the end of the day, the St. Louis and Kansas City markets really don’t provide much impact to the Big Ten, which already has Chicago, Philadelphia, Detroit, Minneapolis, Milwaukee, Indianapolis and the entire state of Ohio in the fold.  So, the better play if the Big Ten wants to poach any schools from the Big XII is to go for the more nationally prominent programs.  I’ve emphasized that basketball isn’t a top consideration in expansion matters compared to football, but Kansas is a special case that’s up there with Duke, UNC and Kentucky in terms of national drawing power.

 

  • Death Star Conference (Notre Dame, Rutgers, Syracuse, Texas and Texas A&M) – No real explanation needed as to how adding the two main Texas schools on top of Notre Dame and the New York market would completely alter the college sports landscape.  I think even the Domers would come around to being in this type of conference.  The chatter has certainly died down about the Texas schools moving over to the Big Ten, yet it’s still an intriguing possibility.

I’m still extremely skeptical of the current Big Ten members ever voting to expand the conference by nearly 50% when it has only added two new members in the past 90 years.  That being said, the Big Ten Network has changed everything in terms of how we look at expansion and Notre Dame effectively said that it has no choice but to join a superconference if it were ever to come to fruition.  If the Big Ten can’t get the Texas schools, I’m warming up to the thought of the Imperial Star Destroyer Conference.  I’ll emphasize again that I don’t personally support having such a massive change (when you get past 12 schools, you risk of no longer being a tight conference and becoming a loose confederation).  However, it may not matter since the wild predictions of a “Big Tent” conference aren’t as crazy as I thought a few months ago.

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

(Image from Almost Not There)