Conference Realignment Chaos: It’s On Like Donkey Kong

There’s obviously tons of conference realignment news out there from a lot of different fronts, so let’s get right to it (and I’ll warn you ahead of time that I’ll be jumping around a bit):

(1) ACC officially adds Syracuse and Pitt – I don’t know if adding Syracuse and Pitt alone makes financial sense for the ACC, but it’s a great move from a cultural fit standpoint.  Neither Syracuse nor Pitt were likely going to receive Big Ten invites, so it made sense for them to jump at the chance to move to the more stable ACC.  (Personally, I’ve long been a proponent of Syracuse receiving a Big Ten invite and thought that if Pitt could just trade locations with Rutgers, they would’ve been invited to the Big Ten many years ago.  Alas, the Big Ten is looking for football grand slams, which I’ll get to later on.)  This might not be a great football move on paper, yet from a market and academic standpoint, it still makes the ACC stronger than where they were a couple of days ago.

(2) Is 14 (not 16) the new 12? – With the Pac-16 looking like it might come to fruition (Oklahoma seems to be steamrolling over there) and speculation turning to the ACC supposedly not being done and planning to move up to a 16-school league (with candidates like Texas, Notre Dame, Rutgers and UConn being thrown around), the argument is that we are on the precipice of the full-fledged superconference era.

Call me skeptical right now.  The Pac-12 is on the verge of going up to 16 with both Texas and Oklahoma, which certainly justifies an expansion to 16.  For the Big Ten, ACC and SEC, though, there isn’t quite as compelling of a financial argument to move beyond 14 (or even 12 in the case of the Big Ten) simply for the sake of getting to 16… unless we see Notre Dame join one of them.  I’ll have more on that in a moment.  Otherwise, there’s just not enough firepower available for spots 15 or 16 in these leagues to justify large-scale expansion.

Regardless, there are a bunch of schools in the Big East and Big 12 (i.e. Rutgers, UConn, Louisville, maybe West Virginia, maybe Kansas, etc.) that are better off either with as little change as possible (i.e. Texas deciding to stay in the Big 12, which makes that a more palatable destination) or full-fledged realignment Armageddon with 4 16-school superconferences (of which those schools would presumably be in the “top 64” to be included).  What’s NOT good for them is a “tweener” superconference era of 14-school leagues, as they’ll likely end up in a league with Big East and Big 12 retreads without any football kings.

(3) What should the Big Ten do? – Since I’m a Big Ten guy, lots of people have been asking me what Jim Delany should be doing right now.  My unequivocal response: ABSOLUTELY NOTHING UNLESS NOTRE DAME AND/OR TEXAS WANT TO JOIN.  The Big Ten has a tight-knit conference with a national TV network, huge fan bases, great academics and four football kings (Michigan, Ohio State, Penn State and Nebraska).  There is absolutely no reason to have Big Ten expansion without Notre Dame (and/or the much less likely Texas) involved.  If the Irish come calling, then my feeling is that the Big Ten would look to add Rutgers to provide a direct New York City market presence (even though I believe UConn has the better overall athletic department).  The Big Ten seems to like Rutgers but not enough to add without Notre Dame.  With the amount of money that the Big Ten is splitting already, the standard is massively high.  Speaking of the Irish…

(4) Notre Dame has to start thinking again – Let’s be clear about one thing: from a pure football perspective, Notre Dame will never be forced to give up independence.  As long as the BCS exists, it’s going to deal with Notre Dame on favorable terms.  When BYU can get a multi-year multi-million dollar TV contract from ESPN, it shows that Notre Dame is not within one iota of being in danger of losing its NBC contract (or having someone else like ESPN pick it up instead).  TV networks and bowls will always want Notre Dame while power schools such as Michigan and USC will continue to schedule the Domers no matter what.

The irony is that the main way to get Notre Dame to join a conference has nothing to do with football.  My reader M pointed out a blog post that I wrote back in June 2010 that could almost be written verbatim again today (Pac-16 on the horizon, Texas A&M going to the SEC and the Big East in danger).  In that blog post, I referenced a source that had knowledge of the Big East conference agreement, which states that in the event the league loses 2 football members, the football and non-football sides can split and maintain their respective revenue distributions (i.e. NCAA Tournament credits).  At that time, what I was told was that the Catholic members were actually the ones looking to opt for a split in the event of the loss of any members.

It’s unclear whether there’s the same understanding now, but either way, Notre Dame’s overall athletic department has progressed to the point where a league with only the BE Catholic schools wouldn’t be satisfactory for a program of the size that’s in South Bend.  Basketball would be fine, but it’s everything else that would be a large problem.  While Notre Dame’s alumni base might be willing to throw all non-football sports under the bus in the sake of football independence, Jack Swarbrick and the rest of the leadership at the school aren’t going to have the same perspective as they have to weigh the interests of a whole lot more student-athletes.  Like Texas, Notre Dame was in the position of having its cake and eating it, too, with football independence coupled with a BCS-level league for non-football sports.  Now, it’s probably going to have to give up one or the other, and considering that Notre Dame was on the verge of joining the Big Ten in 2003 when the remaining Big East schools were much more attractive than whose in place now, it’s an indicator that independence is in danger.  It would be great if the ACC could offer them non-football membership outlined in my last post, yet that seems extremely unlikely now.  Granted, independence is still an institutional identity issue for the school more than a money issue (which is contrary to what a lot of college football fans believe), so you never know where the Irish might come out on this.

One thing to note (and I’ll have to give credit to one of the Northwestern posters on a Purple Book Cat thread on Wildcatreport.com for pointing this out, but I can’t find the link right now): keep a close eye on what Notre Dame is doing (or not doing) with respect to hockey conference membership.  The college hockey world experienced its own Conference Realignment Armageddon this past summer after the formation of the Big Ten hockey conference and a new league that siphoned off many of the best of the remaining WCHA and CCHA programs.  Notre Dame, though, hasn’t announced a single thing about joining a different hockey league even though everyone else had done so a couple of months ago.  If you see Notre Dame announcing that it’s joining the Hockey East next week, it’s probably a pretty good indicator that the Irish aren’t joining the Big Ten.  However, the longer that Notre Dame doesn’t say anything about hockey, the more likely it means the Big Ten is a viable option.  Consider the Notre Dame hockey program the college football realignment canary in the coal mine.

(5) Mergers and Acquisitions – A couple of mergers might be on the horizon to create even more mega-conferences.  CBS Sports is reporting that the remaining Big 12 and Big East football schools are exploring a potential merger.  This makes sense in a number of ways since as long as the Big East and Big 12 are existence, they will have BCS AQ bids through 2013.

Someone that had worked with a conference office told me a couple of weeks ago that a merger between the Big 12 and Big East would be a smart move for the leftover schools.  A conference merger actually occurred in 1991, where the American South Conference merged with a wounded Sun Belt Conference that was on the verge of collapse after losing nearly all of its members.  Why did the American South step in to save the Sun Belt?  It’s because in the event of a merger, it meant that the Sun Belt wouldn’t dissolve and therefore, the NCAA ensured that the new merged league (which would decide to keep the Sun Belt name) would retain all of the NCAA Tournament credits of the departed schools.  In the cases of both the Big 12 and Big East, there’s an even stronger incentive for both conferences to avoid dissolution in order to preserve the NCAA Tournament credits of the schools that left their respective leagues (which are actually quite substantial with schools like Syracuse and Pitt involved) along with AQ status for football.  At the same time, the SEC, Pac-12 and ACC all have fairly strong incentives to see a merger occur as it lowers their potential legal exposure from schools such as Baylor and Iowa State that might otherwise be left out of the AQ level.

On the non-AQ front, the Mountain West and Conference USA are considering a football-only merger in an attempt to procure BCS AQ status.  It will be interesting to see whether a mega-league would be persuasive to the BCS powers-that-be on that front since the issue has largely been about the weakness in the bottom halves of those 2 conferences, which won’t go away (and might even be exacerbated) with a merger.

(6) The Geography of Conference Realignment – Finally, as a political junkie, one of my favorite analysts out there is Nate Silver of the FiveThirtyEight blog.  So, I was ecstatic to see him post a massive analysis of college conference realignment to determine the different values of various schools.  I actually wrote about the CommonCensus Sports Map Project several years ago (prior to when most of you had stumbled onto this blog) that Silver used in his posting and had noticed at the time that the SEC schools were largely underrepresented in the college football fan numbers.  Regardless, both the Nate Silver piece and the CommonCensus Sports Maps provide a starting point and an incredible amount of data points to examine for anyone interested in how fans of sports teams are distributed by market.

Over 1500 words about the latest in conference realignment and I’ve barely talked about Texas.  Don’t worry – I’ll be writing much more about the Longhorns soon.  Until then, enjoy the hourly changes in the rumor mill.

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

(Image from TV Tropes)

 

Big East Says No Va to Nova For Now

Back in the fall, the Big East extended an “invitation” to Villanova to move up from Division I-AA football and join the football side of the conference.  After several postponements on a decision by Villanova, the school’s Board of Trustees was finally prepared to vote today to approve the football upgrade.

However, the Big East suddenly said, “SIKE!”

The issue appears to be Villanova’s choice of 18,500-seat PPL Park as a home football venue, which is the soccer home to the MLS Philadelphia Union.  I would certainly understand the hesitancy on the part of the other Big East football schools… if it weren’t for the fact that PPL Park has been well-known as the only realistic stadium option for Villanova for around 5 months now.  Regardless of whether one believes that Villanova joining Big East football is a good idea, it appears to be disingenuous on its face that some of the conference’s football members brought up the stadium situation that they’ve known about for quite awhile at the very last minute.

The New York Daily News reported today that 75% of the Big East’s football members would need to approve the upgrade, which means that it requires a 6-3 majority.  What’s interesting is that the scuttlebutt among Villanova insiders is that the Big East members that are blocking the process are Pitt, Rutgers, Syracuse and West Virginia as opposed to the newer members.  (See the 4/11 9:37 am post from the publisher of Rivals site VUSports.com.)  It doesn’t surprise me to see Pitt, Rutgers and West Virginia up there, but the talk about Syracuse having objections is quite jarring as the Orange (along with UConn) have the longest conference relationship with Villanova of any of the football schools.

I explained the rationale for the Big East prodding Villanova to move up in football in my last post: (1) approval of any all-sports expansion (including the addition TCU) by the Catholic members was predicated on Villanova getting a chance to move up and (2) none of the potential expansion candidates from C-USA would clearly add enough football revenue to risk diluting the conference’s basketball revenue even further.  That’s not to say adding Villanova would really do much for Big East football competitively, but they were a necessary political mechanism to obtain the votes for football expansion overall with TCU (which virtually everyone agrees was a great move).

The Big East released a statement that it would continue to perform “due diligence” on the Villanova upgrade.  What I don’t understand is what’s going to change over the next few months – the PPL Park plan “is what it is” and there aren’t any alternative options for Villanova.  If Pitt, Rutgers and others don’t like the Villanova proposal today, then they’re not going to like it in June.  Everyone involved would be best served by an up-or-down vote ASAP instead of dragging this out further.

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

(Image from Sports Business Daily)

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)

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)

Welcome to the BC

As we enjoy a glorious first round of the NCAA Tournament, which included Notre Dame losing to my long-time bracket busting favorite Ol’ Dirty University, there have been rumblings that that the real plan for the Big Ten is a permutation of JoePa’s Dream Conference, with an expansion threesome of Notre Dame, Rutgers… and Boston College.  Hawkeye State of the ever esteemed Black Heart Gold Pants (whose love for freedom fighter J Leman knows no limitations) had heard these rumors and then commenter Justin noted the same thing in this posting last night.  Now, I’m just an unfrozen caveman lawyer/blogger, so I’m certainly not reporting this as news or fact.  However, this doesn’t seem to be a far-fetched scenario considering that I believe that the Big Ten has a two-pronged plan to both add large markets for the Big Ten Network and grab at least one national marquee football name.

I’ve seen a number of people bring up BC as a Big Ten expansion candidate before and, frankly, I never took it seriously.  As I’ve noted before, the ACC is a fairly tight-knit group, while BC isn’t exactly high on the Boston sports agenda.  That being said, if the Big Ten inviting BC is ultimately the final hook for the conference to grab Notre Dame, then I believe that it would move forward.  While Boston is definitely a pro sports town, BC at least has the advantage of being the clearly designated major college football home team in that area, while the New York City area really doesn’t have any single school of that nature.  Thus, there’s a reasonable argument that BC, for all of its issues of supposedly not delivering its home market very well for the ACC, still would have enough pull (in conjunction with Notre Dame and Penn State) to get the Big Ten Network onto basic cable in Boston (whereas a school like Syracuse, by comparison, would be speculative in terms of its ability to deliver homes in the NYC market).  That turns BC into a pretty powerful asset for the Big Ten in and of itself.  Let’s also not forget that this could create a kick-ass Big Ten hockey league.  (Illinois doesn’t even play Division 1 hockey and I’d be excited to see that type of league formed.)  At the same time, the ACC may not really care if BC stays or not – it may just as soon grab Pitt and/or Syracuse instead and say goodbye to BC in a mutually agreed upon separation.

Now, the Notre Dame fan readers out there will likely point out something that a lot of non-ND fans don’t seem to realize: the Irish and Boston College really aren’t that close emotionally.  There’s a perception that they’re tied together as the only two Catholic universities that play FBS football, yet they really didn’t play on a regular basis until the 1990s.  Notre Dame arguably cares about 3 schools: Navy from a historical and emotional standpoint and USC and Michigan from a marquee competitive standpoint.  Everyone else would be expendable, including BC (who is rolling off of Notre Dame’s schedule in the coming years).

Still, the Big Ten inviting BC would effectively remove the last two “non-emotional” arguments that Domers have against Big Ten membership: the inability to play a “national” schedule and having no peer institutions in a conference that’s dominated by large public flagship universities.  If the Notre Dame/Rutgers/BC additions were to occur, I fail to see how Notre Dame’s schedule would be materially different from what it is today.  Assuming that Notre Dame continues to play Michigan, Michigan State, Purdue and BC annually within conference play plus USC and Navy in non-conference play, the Irish would be retaining 6 of its 8 main re-occuring rivals.  Pitt would fall off of the schedule, but it would be replaced by Penn State in the Big Ten, which delivers the same market as Pitt and is a much larger national name.  The one true loss would be not playing Stanford anymore, but Notre Dame would still be heading to California with its USC rivalry and the Irish would in turn be playing the likes of Ohio State (which, even with its Midwestern location, provides much more of a “national game”) and get some direct access to prime recruiting territory in the state directly east of Indiana.  Add in a regular trip to the ND-fan heavy New York area at Rutgers and it’s very hard to argue that the Domers would lose much of its “national” schedule at all while concurrently adding some much better teams.

Meanwhile, the other major Notre Dame complaint is that it would be a member of a conference without any of its institutional peers, thereby putting itself at risk of being on the losing end of a lot of “11-1” or “13-1” votes in the Big Ten.  I’m not exactly sure what issues with respect to athletics would be so different between Notre Dame and the rest of the Big Ten that there would be that wide of a gulf – as some commenters pointed out, no one has ever pointed out anything specific that ND has an objection to other than joining a conference in the first place.  Certainly, Northwestern is a higher-rated private university with tougher admissions standards than Notre Dame and we haven’t seen any type of acrimony between NU and the supposedly “big bad public schools”.  If there’s any major conference in the country that actually has upheld high academic standards, it’s the Big Ten from top-to-bottom.  The discussion occurring in the comments section in the “Notre Dame to the Big Ten: Thy Will Be Done?” post has been fascinating.  I agree with alot of commenters that it’s incredulous that some Domers think that there’s some type of academic downgrade by moving to the Big Ten (once again, it doesn’t seem to bother the people in the tougher academic environment at Northwestern) or that improving graduate research will somehow be toxic to the Notre Dame undergraduate experience (as several commenters have noted, ND actually has been ramping up its graduate research capabilities on its own and that the school has been doing itself a disservice by downplaying this fact to its alums, who mistakenly still think that the undergrad focus continues to prevail and use it as another excuse to not join the Big Ten).

Look – I have a lot of friends that went to Notre Dame and Domer commenters such as Rich have been presenting viewpoints in a very civil manner on this blog knowing that he’s going to be critiqued.  I completely understand and respect the emotional foundation that ND alums have towards independence.  I’m not going to argue with that and it’s pointless for anyone else to do that, either.

It’s just that the Notre Dame supporters need to understand that the stand that they are taking is simply that: completely emotional.  The financial advantage of independence is now gone since the Big Ten’s TV revenue completely trumps Notre Dame’s NBC contract.  Now that Notre Dame doesn’t schedule the likes of Miami, Florida State, UCLA and Tennessee anymore, the “national” schedule of yesteryear is dead and its hypothetical conference schedule in the Big Ten would actually draw more national interest than a game against Washington State in the Alamodome.  The academics in the Big Ten supercede all of the other BCS conferences, so it’s not as if though there is some type of greener pasture for Notre Dame elsewhere on that front.  Finally, if Boston College were to join the Big Ten, then Notre Dame wouldn’t even have the argument that it doesn’t have any peer institutions within the conference.

There’s no problem with those emotional ties per se.  The fact that any of us watch and care about spectator sports at all is a fairly irrational practice.  However, I do have a problem when those pure emotions are attempted to be supported by substantive arguments that don’t hold water anymore (if they ever did in the first place).  At the end of the day, do you want the leadership of any organization that you care about, whether it’s a charity, company or university, making long-term decisions based on pure emotion?  Good intentions based on tradition aren’t necessarily enough to make sound decisions for the future.

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

(Image from Sports Illustrated)

Notre Dame to the Big Ten: Thy Will Be Done?

Big Ten expansion news continues to fire out at a rapid pace, which means that there isn’t any rest for me other than watching the latest episode of LOST and wondering if Bruce Weber was giving Demetri McCamey a lesson on the Bolshevik Revolution this past Sunday.  (OT rant – Joe Lunardi, why are you fucking with my head on the Illini?  What the hell do you see in us?  Does the NCAA Tournament Selection Committee secretly like teams with RPIs in the 70s that go down by double-digit deficits in the first half, mount furious comebacks within the last 10 minutes of the game, and then commit insane fouls like tackling opposing players to blow any chance of winning?  You’re telling me that I actually still need to care this week during the Big Ten Tournament and Selection Sunday?  Damn it all to hell. /OT rant)  Everytime that I think this story is going to slow down until the summer, something pops up that throws everyone for a loop.  The surprise this week is that the latest expansion tidbits are coming from the almighty University of Notre Dame itself.  Irish Athletic Director Jack Swarbrick basically said that Notre Dame’s hand could be effectively forced to give up independence in the event of a “seismic” shift in the college sports landscape.

Just as I wondered what purpose the Big Ten had in leaking its study of 5 different expansion candidates last week (including Notre Dame), I’m perplexed as to why Swarbrick started spouting his mouth about whether Notre Dame would end up joining a conference.  Up until today, there seemed to be a media consensus that Notre Dame was a “pipe dream” for the Big Ten (which I never really believed, but that was the perception), so it wasn’t as if though he was trying to bat down any specific rumors.  Maybe Notre Dame was just testing the waters with its own alumni base to see how they’d react?  (I already know the answer to this: it is vitriolic anger and they’d rather drop to football program entirely than dare join a conference.)  Perhaps the Irish were getting a little tired of hearing how great Rutgers would be in the Big Ten or that Texas would actually be way better for the Big Ten than the Domers ever could be?  Or could Swarbrick and Notre Dame’s administration be seeing the proverbial writing on the wall where conference membership will become a necessity in terms of having a financially viable athletic department and they’re preparing their alums for an unpopular decision down the road?

I really don’t think that Swarbrick is really saying anything that contradicts with what he’s stated before.  As I noted in point #2 in this post, he’s a shrewd attorney skilled at wordsmithing and there isn’t a single comment that he’s uttered over the past several months that would be considered to be a lie if Notre Dame joined the Big Ten tomorrow.  What’s a little more unusual in Swarbrick’s latest comments is that he stepped out with an affirmative acknowledgement that Notre Dame could indeed consider conference membership under the right circumstances.  Of course, everyone wants to know what those circumstances would be.

I’m not going to presume anything about Notre Dame.  As much as the Irish are criticized as being selfish, they have actually been willing to leave money on the table in order to preserve certain traditions.  Notre Dame doesn’t play games in South Bend in prime time even though NBC would love to see that happen, there isn’t any advertising in Notre Dame Stadium and its NBC contract is worth a lot less today than the Big Ten’s TV deals.  In contrast, Texas became the #1 revenue generating sports school in the country because it squeezes every penny out of its athletic department.  The Longhorns have every home football game sponsored by a major corporation (i.e. “Texas vs. Louisiana-Monroe is presented by JetBlue Airlines”) along with an electronic scoreboard that would make Jerry Jones proud.  It’s difficult for me to see Texas leaving any money on the table, which is why I’ve scoffed at the notion that an extra $10 million or more doesn’t mean anything to that school.  That’s not a criticism at all.  They’re just acting rationally in their economic self-interest in the same manner that almost every other school in the country would.

So, I fully acknowledge that Notre Dame is different from everyone else.  If you’ve been fortunate enough to attend a game in South Bend as I have (courtesy of Sully), it’s one of the most amazing settings that you’ll ever come across in sports.  The school’s self-image is intertwined with independence going back to the days when there was a horrible anti-Catholic sentiment across much of the country in the early 1900s, including within the Big Ten (who wouldn’t allow Notre Dame to join on those religious grounds).  Notre Dame became the team for Catholics across the country even if they didn’t have any direct connection to the school itself (AKA the Subway Alumni), which provided it a unique national fan base that has reinforced its independent nature.  That being said, it has been easy for Notre Dame to claim an adherence to independence over the past few decades when it was in its financial interests to do so.  When Notre Dame rejected an invitation from the Big Ten back in the 1990s, the Irish were making about twice as much TV money as every Big Ten school.  As of today, though, the positions are reversed.  I noted in the Big Ten Expansion Index post that Notre Dame is now #3 in TV money… in its own home state behind Purdue and Indiana.  Independence isn’t quite the no-brainer choice for Notre Dame that it used to be from the financial side of the ledger.

Here’s the other thing to consider and which I’ve alluded to before: whether the school wants to admit it or not, Notre Dame has the freedom to be independent only as long as it believes that it can join the Big Ten whenever it wants.  The Irish can proceed with independence with very little risk if the worst case scenario is having to join the Big Ten, which is the best case scenario from a financial standpoint for virtually every other school in the country.  When talk about Big Ten expansion centered on Rutgers and Missouri, that certainly didn’t give Notre Dame any pause at all.  Even if the Big Ten added Rutgers or Mizzou as school #12, Notre Dame could be confident that they could be added in a larger Big Ten if the Irish ever needed to join a conference 20 or 30 years down the road.  When Texas and Texas A&M entered the discussion, though, then that completely changed the story.  If the Big Ten added the Texas schools plus one other random school (i.e. Rutgers, Missouri, Alaska-Anchorage, Toronto, Little Sisters of the Poor, etc.) for a 14-school conference, that’s a scenario where Big Ten membership could very well be closed off to Notre Dame forever.  The Big Ten legitimately doesn’t need or even want Notre Dame if it adds a school like Texas.  That turns Notre Dame’s current worst case scenario from joining the Big Ten, with all of its academic and financial advantages, into having to join the Big East in all likelihood, whose ENTIRE football TV contract last year was worth $13 million to be split amongst 8 schools (compared to $22 million for every single Big Ten school).  Thus, Notre Dame faces a real risk of being completely screwed in the long-term if it passes up an invitation to the Big Ten in this round of conference realignment, which is something that it hasn’t faced before.

This leads to the key question: what change on the college sports landscape would be “seismic” enough to get Notre Dame to join a conference?  Swarbrick mentioned the notion of 16-school superconferences, although I have a hard time believing that those will come to fruition in the near future.  However, I would certainly consider the Big Ten adding Texas and Texas A&M to be a massive seismic shift in college sports.  Could Notre Dame seriously let someone else take the 14th spot in the Big Ten if that were to happen?  That would certainly satisfy the Irish need for a national schedule.  If the Big Ten couldn’t get the Texas schools, would simply adding 2 Big East schools be enough?  The scenario that I described as “JoePa’s Dream Conference” where the Big Ten would add Notre Dame, Rutgers and Syracuse could also represent a seismic shift.  That would effectively kill off the Big East while creating a massive East Coast presence for the Big Ten.  As much as Notre Dame might claim to not care about basketball and its non-revenue sports, I think that it still cares that those athletes are participating in a BCS power conference.  I have a feeling that the Atlantic-10 or even a league made up only of the Catholic members of the Big East wouldn’t suffice for Notre Dame if the Big East split apart.  Regardless, Notre Dame’s administration is starting to realize that it might not be an island that is immune to the greater market forces around them.  The alumni can continue to take a hardline stance regarding independence based on tradition and emotion, but Notre Dame’s leadership is going to be facing some extremely tough choices in the new economic paradigm in college sports.

Remember what I said at the end of my post on the Big Ten study that was leaked: “If the Big Ten doesn’t add Notre Dame, then it’s going to go after a school that’s even better (not secondary choices that are lower in terms of impact).  Call me naive, crazy or one-track minded, but money has a way of making ‘pipe dreams’ on paper  in sports fan terms become much more realistic.”  Jack Swarbrick just confirmed that at least one “pipe dream” might not be that far from becoming a reality.

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

(Image from ESPN.com)

How Rutgers Could Work in the Big Ten

When I created the Big Ten Expansion Index, I was 99.9% sure that the Big Ten was simply looking for the perfect school #12, which led me to write that the “Only Real Choices” for that spot are Texas and Notre Dame.  Since that time, lots of rumors have been circulated, including ones about Missouri, Texas and Pitt.  The latest rumor is that Rutgers is supposedly at the top of the wish list after the no-brainers like Texas and Notre Dame.  That spurred me to write essentially that Rutgers was fool’s gold in terms of delivering the ever elusive New York market, where Scarlet Knights fans then responded that I ought to be re-enacting the critical scene in Deliverance.

After mulling it over for a little while and engaging in a great discussion with all of the commenters out there (who I must commend for a multitude of ideas and incredible wisdom during a literally 24/7 debate), I’ve come to the conclusion that Rutgers could make sense in the Big Ten as long as it’s in a 14-school conference that concurrently has another big national name involved.  Personally, I think that 12 schools is really the perfect size for a conference in practice and I’ve gone over how there needs to be a massive value proposition in order to make a 14-school conference work financially.  However, the Big Ten may decide that the New York market is too big to ignore even if they don’t really watch college football out there.  If that’s the case, here are 3 ways to do it correctly in terms of adding packages of 3 schools:

(1) JoePa’s Dream Conference (Notre Dame, Syracuse, Rutgers) – If any conference really wants to secure the New York market as much as it could possibly be secured, it needs that old standby Midwestern university involved: Notre Dame.  The Irish arguably have the largest fan base in the NYC market simply due to the large Catholic population constituting the Subway Alumni.  Adding Syracuse and Rutgers on top of Notre Dame and current Big Ten member Penn State would get the 4 top fan bases in NYC, which would create a “penumbra effect” where all of those schools together would turn New York into a Big Ten town.  This league would effectively be a high rent version of Joe Paterno’s proposed Eastern football conference merged into the Big Ten.  For the geographically inclined, there’s also a certain elegance to this hypothetical conference as it’s a pretty natural extension of the Big Ten’s footprint.  Out of the 5 schools examined in the Big Ten study that was leaked, I’m fairly certain that this had to be the highest value 3-school combination since it legitimately locks down the Northeast for the conference.

(2) JoePa’s Quasi-Dream Conference (Nebraska, Syracuse, Rutgers) – I’ll reiterate that I truly don’t believe that the Big Ten will expand without Notre Dame or Texas involved, but if there’s one school that could prove me wrong on that statement, it’s Nebraska.  In my discussions with commenters, I’ve noted that Nebraska is really “Notre Dame lite” as an expansion candidate.  When you really look at everything closely, the Cornhuskers provide the same main attributes that Notre Dame would bring to the table: a national football brand name and huge fan base that trump the lack of a substantive home market.  If Nebraska has the national name without a great home market while Rutgers has a great home market without a national name, then putting those two together could make financial sense together when either one on its own as school #12 in a 12-school conference wouldn’t cut it.  Add Syracuse on top of those schools to further solidify the Big Ten’s presence in the Northeast and the conference can come pretty close to getting the same value as it would’ve gotten with Notre Dame.

(3) Game of Risk Conference (Texas, Texas A&M, Rutgers) – Let’s say that the Big Ten can nab the two Texas schools and Notre Dame continues to refuse to join.  If the Big Ten has the entire state of Texas in the fold, then it’s playing with house money where it can make a bet to shoot the moon with the New York market on top of it with Rutgers.  It would be like a game of Risk where the Midwest would be flanked by the two power schools in the Southwest (Texas and Texas A&M) and then two major East Coast schools (Penn State and Rutgers).  On paper, the demographic power of the Big Ten would be staggering, with 4 of the 5 largest TV markets in the country in the fold (New York, Chicago, Philadelphia and Dallas-Fort Worth), 3 others in the top 15 (Houston, Detroit and Minneapolis-St. Paul) and 6 of the 11 largest states by population (Texas, Illinois, Pennsylvania, Ohio, Michigan and New Jersey).  This is one of the best situations that you could possibly construct in terms of maximizing the number of households available to the Big Ten Network outside of heading into the state of California.  All of this assumes, of course, that Rutgers can actually deliver New Jersey households for the Big Ten Network (which is a very open question).

So, Rutgers fans, I’m not entirely opposed to your school joining the Big Ten.  However, the Big Ten is going to need a marquee name to come along in order to back up the risk that the conference would be taking on whether Rutgers can deliver its home market.

(Follow Frank the Tank’s Slant @frankthetank111)

(Image from Takhoma.com)

Big Ten Study Leaked: What’s the Purpose?

 

The Chicago Tribune reports today that the Big Ten has received a study from William Blair & Co., a Chicago investment banking firm, that analyzed five expansion candidates: Rutgers, Syracuse, Pitt, Missouri and Notre Dame.  According to the Tribune’s source, the report indicated that the Big Ten members would be able to increase their current payouts of $22 million or more with expansion with the “right team or teams”.  The source also said that these were the “obvious candidates” and other schools could be considered.

I’ve worked on enough business deals and seen enough positioning in the media through the years (whether we’re talking about trades in sports or political wrangling) to know that leaks to the press rarely occur without a purpose that was authorized from above, especially when dealing with places that have tightly-run ships like Jim Delany’s Big Ten.  So, what was the purpose of this leak?  Was it to put cold water on the thoughts of Texas or even other schools like Nebraska or Maryland joining the conference?  Maybe Notre Dame is a legitimate candidate after all and we shouldn’t assume that they’ll never join?  Is it to try to get Big Ten fans comfortable with the idea that the 12th school isn’t going to be nearly as sexy as we hope?  Or could it be a classic stalking horse case, where the Big Ten is effectively telling the rest of the Big XII schools like Texas and Nebraska, “Just so you know, we make more TV money than you do now.  We’d make a lot more money if we take Missouri and we’re willing to do it, while you’d make even less.  So, maybe we should do lunch?”

All of those reasons are certainly possible.  My personal opinion is that it would be unconscionable to have Texas alums legitimately considering a move to the Big Ten (and generally not having a knee-jerk reaction to it in the same way as Notre Dame alums) and then add a school like Rutgers or Missouri instead, but I’m just an Unfrozen Caveman Lawyer.  Teddy Greenstein, who wrote the Tribune article, is of the opinion that Rutgers is at the top of the list (if you discount, in his words, the “pipe dreams” of Texas and Notre Dame).  Now, I believe that Greenstein is one of the better writers in the Chicago sports media (and believe me, having suffered through a period where both Skip Bayless AND Jay Mariotti were competing columnists here at the same time, I appreciate the good ones), but I have to take issue with this line of thinking:

Fans wonder: Does New York care about Rutgers? The simplest answer: When Rutgers wins, yes.

During Rutgers’ football nirvana season of 2006, its game against Louisville on ESPN drew an 8.1 rating in the New York market, a “phenomenal number,” according to one TV executive. That night, the Empire State Building was lit up in scarlet.

This anecdote continues to keep coming up and it’s a red herring.  I fully expect any school that’s competing for a possible slot in the national championship game to receive incredible ratings in its home market, even in a historically poor college football town like New York.  That’s not the issue!  Here’s what I stated in the original Big Ten Expansion Index post:

It must be emphasized that Football Brand Value puts much more weight on the long-term history and financial underpinnings of a program over short-term or recent success. Thus, Team A that has sold out 80,000-seat or even 100,000-seat stadiums for decades whether it wins or loses is much more valuable than Team B that only sells out a 40,000-seat stadium when it’s in the national championship race, even if Team A has had a mediocre seasons recently and Team B happens to rank in the top 3 of the BCS rankings this year. The “What have you done for me lately?” attitude of most sports fans doesn’t apply here. Instead, the proper question is the opposite: Even if the target school goes 0-12 in a season, will it still attract TV viewers and attendance? In other words, the true value of a football program is really measured by how much attention it still receives when it’s down as opposed to how much attention it gets when it’s up. The Big Ten will only consider programs that have large and real hardcore fan bases that will stick them in good times and bad as opposed to programs that have bandwagon fans that will bolt when there’s a 7-5 season.

The fact that then-35-year old Danny Almonte led his baseball team to the Little League World Series and was front-page news in New York for the better part of a month in 2001 didn’t turn the NYC market into a “Little League” town.  Even the New Jersey Nets could deliver the New York market once a decade when they’re competitive.  The problem is the other 9 years in the decade when they’re non-entities, where the fact that they play a few miles away from Midtown Manhattan becomes irrelevant.  Taking the NBA analogies further, commenter Dcphx brilliantly described Rutgers as “the 7′ 3″ athletic center that NBA GMs can’t avoid drafting.”  My initial response was that I was worried that Rutgers would be the expansion equivalent of Michael Olowokandi.  Like NBA GMs ignoring the fact that Olowokandi didn’t have a post-up game, basic boxing-out fundamentals, or any discernible basketball skills whatsoever other than being REALLY tall, it feels like a lot of people (particularly the TV executives that are disproportionately based in the NYC market) are blinded by the size of the the New York market or even just the New Jersey portion of it with respect ot Rutgers without taking into account their actual athletic history (whether it’s in football or basketball).  Upon further review, the thought of adding Rutgers might even be closer to the Pistons drafting Darko Milicic instead of Carmelo Anthony in 2003, where a team on the precipice of a championship felt it was better to keep its “chemistry” than adding a guaranteed superstar to a top-of-the-line squad.  As applied to Big Ten expansion, concerns about “geography” are the equivalent of the Pistons wanting Darko for “chemistry”.  (FYI – if you’re able to combine my concurrent dreams of being a conference commissioner and NBA general manager, I will turn into warm puddy.)

Let’s think of it this way: the Big Ten has spent the last two decades waiting around for Notre Dame.  During that process, they’ve actually looked at Missouri, Syracuse, Rutgers and Pitt several times and they were never deemed worthy of being invited before.  They’ve also given up conference championship game revenue during that period of time as a result of waiting for the Irish.  The Big Ten then took a massive risk of building its own TV network (which a lot of people ridiculed at the time), which has now paid off in spades in the form of TV revenues that far surpass what Notre Dame receives from NBC.  This means that the Big Ten has never had more leverage in terms of adding schools in its entire history.  So, after all of this time and at the height of its power, is the Big Ten really going to cash in all of its chips after all of that time on a potential project like Rutgers?  A “safe but not glamorous” choice like Missouri?  Is the Big Ten, with all of its financial advantages today, really going to add a school that doesn’t bring as much to the table as Penn State did to the conference or even Miami did to the ACC?  While there might be some Big Ten ADs out there like Ron Guenther that think small, Jim Delany is a big-time visionary and I have full faith that he’s not going to push a move just for the sake of making a move.  If the Big Ten doesn’t add Notre Dame, then it’s going to go after a school that’s even better (not secondary choices that are lower in terms of impact).  Call me naive, crazy or one-track minded, but money has a way of making “pipe dreams” on paper  in sports fan terms become much more realistic.

(UPDATE: This was written without taking into account today’s story, but The Rivalry, Esq. has a great look charting the ups-and-downs of talk regarding various Big Ten expansion candidates.)

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

(Image from Chicago Tribune)