(01-15-2018 07:33 AM)GE and MTS Wrote: (01-14-2018 10:54 AM)quo vadis Wrote: (01-14-2018 10:10 AM)JRsec Wrote: And Quo you can get a breakdown of the various aspects of the athletic department's of each school's revenue at Equity in Athletics. Ticket sales, donations, merchandising and licensing, concessions, radio and TV money all go into that pot as do in some cases interest off of endowments. And while it is true that TV money at a well run institution might only be 1/4 to 1/5th of the total gross revenue, it is the only part that reflects in any substantial way any form of shared revenue.
Not exactly. Would LSU be making nearly $100m a year from local revenue - tickets, parking, concessions, seat licenses, etc. - if they were in the Sun Belt and playing Troy, Georgia State, and FIU instead of Alabama, Georgia, and Florida?
Maybe, but probably not. Even if ESPN wasn't willing to pay more for Texas A/M, they help fill up the seats in Tiger Stadium, as do all the other SEC teams. Those are the teams Tiger alums and fans want to see their school competing against, so you think about that.
I don't think the SEC votes to take in FIU even if ESPN promises them $2m more a school in media money for them because it will better-penetrate greater Miami or something. The stands would be half-empty and lots of fan goodwill and cash would be lost as a result.
IMO, you are largely correct, but too much of media-determinist. You take a correct point a bit too far.
This hits the nail on the head. The media deal is great but ticket sales are roughly comparable. I don't have time to look up actual figures right now but if a school has attendance of 80,000 and an average ticket price of $50 (not including concessions and parking) for seven games, that is $28 million which is almost on par with the media deal. If a Texas A&M, Florida State, and/or Clemson replaces a Vanderbilt, Mississippi, or Mississippi State on the schedule then they could charge more for the premium opponents and make more revenue.
SEC games are roughly $80 per ticket now. P5 OOC games are the same. G5 oppenents are about $70 bucks a ticket and FCS schools about $60. But no, that isn't the next biggest source of revenue. That would be the $800 you had to give to be able to purchase a pair of season books that averaged around $600 dollars each for end zone seats. The $1200 you had to give to purchase the same pair of tickets from the goal line to the 20 in the lower stands or buy tickets in the upper deck. The $2500 you had to give to get lower deck tickets between the 20 & the 40, the $5000 you had to give to get those same seats under the overhang of the upper decks so the sun and weather didn't bother you. The half scholarships you had to give to be in the theater seat section or between the 40's, and the full scholarships you had to give to be in the boxed seats between the 40's and under the overhang, and the 100,000 that had to be given for a skybox, those are the big money makers. And remember the SEC averages 77,500 per football game and that average is only that low because Vanderbilt's stadium doesn't seat 50,000 and Missouri's doesn't seat 75,000 and Missouri didn't sell out last year.
And this doesn't bolster your argument about taking schools the networks won't pay us to take an Iota's worth.
Under Mike Slive 1 rule was adopted after the last expansion that took A&M and Missouri. In the future 1 school to a state would no longer be enforced since the markets clause had been satisfied. The only restriction moving forward to SEC expansion was the candidates had to add to our bottom line. And the only bottom line not in the hands of the schools is the media contract. So if the networks don't add to the bottom line of the media contract nobody is added, period, ever.
The same is true for the Big 10, the ACC, the Big 12 and the PAC.
That's why none of the G5 that were interviewed last year were added to the B12. They even went to a Chicago accounting firm to verify what the networks had told them and no, not even Cincinnati added to their bottom line. There was only 1 school that would have, B.Y.U. but there were other issues there.
Nobody adds a school, any school, that the networks don't agree will increase the bottom line for a conference.
The SEC out earns the Big 10 regardless of whether they have a larger media contract or not because of the donations for ticket sales, and not just the cost of tickets alone.
This year when the Big 10 earns 5 million more than the SEC in per school payouts for media rights thanks to their new contract, the SEC will still out earn the Big 10 in total revenue by an average of 12 million dollars per school. Ticket prices and donations are the reason why, and of course a larger average attendance by 11,500 people per event.
Schools are not added for what they make and keep on their own. They are added because of what they can add to the other schools bottom line and the only area in which that applies is the media contract. The media contract, bowl revenue and tourney creds (both of which pale in comparison) and are also considered media revenue is all that they share. Visiting ticket sales is pretty much a wash. What people donate to L.S.U. or spend on tickets doesn't add a penny to any other conference school's revenue. Only the number of eyes a school can put on an event via the tube matters to the networks.
If you want to use metrics to assess expansion candidates then you need to look at those metrics that indicate their relative fit to a particular conference. Last year the SEC averaged 131 million per school in gross revenue. Take out the difference in the average for media deals between the candidate and their conference media contract and that of the SEC and compare those numbers. If they generate at or above the SEC mean in gross revenue then they likely will add add value to the SEC's media contract. Then compare the stadium capacities. If the roughly average 77,500 per game then there is no variance there to indicate that their ticket prices would lead to a decline in attendance if they join provided their donation levels run about the same. One of the biggest missed evaluations regarding Missouri was that their ticket prices almost doubled in the SEC and that shock helped with their low attendance figures. It certainly wasn't the sole cause as they plummeted after their players threatened a boycott over the Missouri police issue a couple of years ago.
So revenue, capacity/tickets/donations/ and athletic endowment are all looked at prior to getting a media evaluation. Under the market model the SEC had relatively few schools it could add and increase its bottom line: For markets they were Virginia, Virginia Tech, N.C.State, and U.N.C.. By brand and national eyeballs they were Texas, Oklahoma, and just barely Florida State. That's it. Of those only Texas, Oklahoma and North Carolina could bring enough alone to justify taking as their companion another school not listed here, and even then that school had better at least be earning in the 90 million range in total revenue to be considered and have a strong regional following.
I enjoy these grandiose realignment scenarios like most folks around here and I generate some threads to them. But the list of schools that could feasibly be added to the Big 10 and SEC are fewer than half a dozen and even those would be separated by a wide degree of profitability. Now should the PAC ever become vulnerable conceivably the Big 10 could have about 6 more to consider. But that's about it. I suppose you could add Notre Dame to the list of schools that would be profitable to add to the Big 10 or SEC but I really don't see them being a legitimate target for the SEC.
For the SEC the most likely expansion targets are Texas and Oklahoma and should they not come together, a companion for one of them that at least when combined with the brand doesn't detract from the bottom line. Not coincidentally those are also the Big 10's only viable candidates at the time. Kansas only gets into the Big 10 if they accompany either Texas or Oklahoma.
The PAC is really not a consideration simply because Texas earns almost 22 million more than any PAC school in media revenue and Oklahoma earns about 11 million more. And since the PAC is a media revenue sharing conference I can't conceive of a way that Texas and Oklahoma could earn the PAC enough revenue to give every school in the PAC a 22 million dollar raise to give Oklahoma a nice bump and to keep Texas on par, or why Texas and Oklahoma would choose that when obviously the PAC can't afford for them to bring traveling companions.
If Texas or Oklahoma move at all it will be either to the SEC or Big 10. If the Horns can keep their sweet LHN deal and move like an independent then the ACC might be a possibility.
That's about it. No conference is taking a school that lowers the existing members media payouts. The Big 12 is the most vulnerable and their GOR expires first and they voted to not extend it last year. And of those schools Texas and Oklahoma are the only two that move the needle up for the Big 10 and SEC and of the schools in the Big 12 that qualify to be a traveling companion the list is not long: T.C.U.: markets & total gross revenue in the 90 million range, Kansas: national brand in hoops, total gross revenue in the 90 million range, Oklahoma State: total gross revenue in the 90 million range and may be the SEC's best play to get Oklahoma, West Virginia: total gross revenue in the 100 million range, and a decent regional draw. The only other Big 12 school with gross revenue within an acceptable range is Baylor in the 90 million range, but right now they are toxic.
Unfortunately for Iowa State, Kansas State and Texas Tech they lag too far behind to be able to move with Oklahoma. But any of them could make the cut if paired with Texas. My money would be that Texas would insist on Tech.