04-10-2013, 12:31 PM
(04-10-2013 11:58 AM)arkstfan Wrote: [ -> ]Let's assume it is true CUSA is considering going to 16.
Let's assume that CUSA makes the invitation by July 1, 2013.
The two new schools would enter July 1, 2014.
Based on past reports, entry fee would be aproximately $2 million each probably in the form of waived conference distributions in 2014-2015 and 2015-16.
2016-2017 is the final year of the CUSA TV deals... UNLESS during negotiations in 2015-16 CUSA agrees to new deals with the existing TV partners during the exclusive negotiation period in which case they go ahead and replace the final year of the contract and begin it in 2016-17 (the first year the new members take full shares).
Or, they don't like what is offered and go to the marketplace and the new deal is for 2017-?
CUSA members lose basically nothing the first two years the new members are in. The CUSA TV deal has a reported value of $1 million per member (the $1.2 was based on a 12 member CUSA). In the first two years the waived revenue of the two new members is $1 million each. In other words they get none of the stated value of the TV deal (or they lump sum a cash payment in to replace what is lost).
Not until 2016-17 is there a "more mouths to feed" argument and we don't know if the current TV deal is in effect or not because CUSA hasn't started the exclusive negotiation window with Fox and CBS. That final year it costs the rest of CUSA $125,000 to have gone to 16 so the two new members have to generate $2 million in league revenue to offset that.
Where CUSA finishes in the CFP with and without them might be enough to cover the offset even if they hold $0 in TV value.
What is scary is what happens if the shifts in the TV marketplace results in an offer that is less than $16 million per year? If that happens everyone is losing money compared to where they were.
If that happens you have the Big XII panic all over, you have Mountain Goat panic all over and CUSA splits apart. But adding or not adding that same scenario looms in 2016 whether or not CUSA adds members.
AAC faces the same in 2020.
While I understand your thought process, I can't see presidents thinking this way. There would need to be a tangible financial benefit for such a move, not a thought process that says: "stAte and ULL would work for free for two years anyway, so why not invite them".
Have to assume they would be full members from a revenue and expense standpoint in any calculation.
And, for the exact reasons you spoke of: Because so many media deals will be struck between 2014-2016 I think there will be a reluctance out there to be the only conference with 16 members until they have a better idea about what the market will be.