Big East Must Consider Reorganizing for TV
The Business of Sport
BY EVAN WEINER
August 8, 2007
URL:
http://www.nysun.com/article/60078
Take a good look right now at how the college conferences are currently configured, because chances are pretty good that there will be a shuffling of schools within the next two years for one single reason: The ability to make more money off of college football from cable television. Inviting another school to the conference could mean two six-team divisions and a Big Ten championship game, which would mean more revenue into the conference.
The Big Ten Conference, which has 11 teams, may be looking to expand because it might need a bigger market presence for its new cable TV network, which begins airing on August 30. Nothing official has been announced yet from the Midwest-based conference, but its commissioner, Jim Delany, told a group of reporters from the Des Moines Register on July 25, "I think we need to look at it in the next year."
That declaration is about as straight an answer about expansion as you are going to get. But last Tuesday, Delany backtracked and said expansion is only a back burner issue. That doesn't mean Big Ten expansion is dead. It just may be in hibernation until the football season is done and the Big Ten can make an assessment of where its new network should be headed.
Rutgers University might be a school that Delany targets, although the school is not commenting about Delany's statement to the Des Moines Register. The Big Ten might also consider Missouri, Syracuse, or Pittsburgh. Rutgers would give the Big Ten a presence in the country's largest TV market — New York — but the new Rutgers football stadium seats only 40,000 people. That's a problem because visiting teams would take home less money as their share of the gate in comparison to, say, Michigan or Ohio State, two schools with much larger seating capacities. The Rutgers football stadium is expandable, but would New Jersey spend money to construction 20,000 to 30,000 more seats?
There is also an ethical question that needs to be answered. After the New Jersey school — now a part of the Big East — joined with four other Big East schools in 2003 to sue Miami, Boston College, and the Atlantic Coast Conference in an attempt to block Miami and Boston College's move to the ACC, can Rutgers move from the Big East Conference to the Big Ten? Virginia Tech was also a plaintiff in that case but that school jumped to the ACC after the lawsuit was filed. There is a precedent should Rutgers bail out of the Big East.
The Big Ten needs another school — particularly in a major market that does not feature Comcast as the major cable TV operator — to shore up its cable network. The network is having trouble signing the big cable operators and presently is reaching only about 20% of the conference area's cable subscribers.
The conference is demanding that Comcast, which is the primary cable TV operator in the eight states that house Big Ten schools, put the new network on a basic expanded tier, as that is where the most subscribers are. Comcast, which initially thought it might be a partner in the network before deciding it was too costly to operate, has declined, and has offered the Big Ten carriage on its digital tier. The conference has since declined Comcast's offer.
Charging about $1.10 per subscriber to show the Big Ten Network, the cable operators do not think it is worth passing a $13 annual increase on to their subscribers just for one network. The conference is also having problems completing a carriage deal with Mediacom in Iowa. Mediacom has 450,000 subscribers statewide. Time Warner has not signed a deal with the network either. The Big Ten Network has promised that each school will get $7 million a year from the channel. But the money won't be there without agreements from the multiple systems cable operators.
The Big Ten is acting like the New York Yankees and their YES Network in demanding that cable TV multiple systems operators pick up its network at a pretty high cost. But the conference is not an amateur college production. It is big time sports and when Delany tells a newspaper that his conference is interested in expanding in part to help its newly created network, then he should be taken seriously.
College sports conferences, like their pro counterparts, don't add teams just because they feel a need to get bigger. They do it to maximize revenues. The ACC's 2003 reorganization eventually gave them Miami, Virginia Tech, and Boston College from the Big East. This gave the ACC one more major market city, Boston, and one more midsize city, Miami, to go along with Washington–Baltimore and Atlanta.
The newly formed ACC got more TV money because of the movement of the schools. The Big East, which lost Boston and Miami, scrambled for replacements not only to fill TV markets but also to keep its Bowl Championship Series status. The Big East took five schools away from Conference USA, three of them to replace Miami, Virginia Tech, and Boston College in football, and two others to bring the number of schools in Big East basketball to 16. Football schools Cincinnati, Louisville, and South Florida were added to the conference, and the University of Connecticut, known more for its basketball program, was also added as a new Division 1-A football school. The moves also affected the Western Athletic Conference, the Mid-America Conference, the Sun Belt Conference, Mountain West, and the Atlantic 10, all of whom had to reorganize.
Why do colleges need more and more revenues? Why are colleges redoing stadiums, adding luxury boxes, club seats, and all those other so-called fan-friendly amenities — which really is a code for charging top dollar for restaurants and concessions? Parts of the answer lie in what colleges are now paying coaches. Alabama gave Nick Saban more than $4 million a year to leave the Miami Dolphins to coach the Crimson Tide.
There is an arms race taking place when it comes to coach's salaries. Money is also needed to pay monitors and tutors to keep an eye on players and make sure they show up to classes and do classroom work including taking tests. Insurance costs and debt services on stadium improvements and travel also need to be considered. The schools save a ton of money by not paying players, although college sports defenders point out that student athletes get a free education if they choose to take advantage of it.
The Big Ten, along with other college sports, ceased being an amateur-educational endeavor years ago. Of course, it could be argued that college football has always been about business. Back in 1932, the Marx Brothers lampooned college football in the movie "Horse Feathers" when Groucho Marx, as Professor Quincy Adams Wagstaff, the head of Huxley College, said in his opening remarks to his faculty, "And I say to you gentlemen that this college is a failure. The trouble is we're neglecting football for education."
In a lot of ways, nothing has changed since 1932.