(04-13-2011 09:06 AM)Lumber Wrote: My 1st post, how much would it devalue the TV contract between Fox and CUSA if the BE takes 2 (or 3) major programs from CUSA?
In my opinion, it would have a huge impact on the CUSA TV deal.
In the not-too-distant past, many on the expansion board said that no CUSA teams could bring any TV value to the Big East...that any increase in TV revenue would not offset the cost of the "pie" being split further. To support these claims, a popular model utilized was to divide the CUSA tv revenues by 12, thereby arriving at an estimated "value" to the conference. As this value was significantly less than the estimated 3.7 million per team each football playing member is receiving, it was believed that no team could generate value in excess of what they would take, shoule they join the Big East.
The fallacy in this line of thinking is the assumption that all members of the conference contribute equally to the value of the television contract.
Under this line of thinking, losing ECU, UCF and Houston would not result in any less tv revenues per team once the contract is re-written as all members contribute evenly and would keep their per-team share.
I don't believe this is the case. Together, ECU, UCF and Houston represent the last 5 conference champions, two of the conferences best TV markets and the conferences largest fan base. All three have been nationally ranked during the last 5 years and have had marquis BCS wins.
The loss of two or three of any of the top programs in CUSA would have a tremendous impact on the perceived value of a television contract for the remaining schools.