(08-05-2022 04:58 PM)Attackcoog Wrote: [ -> ] (08-05-2022 04:07 PM)quo vadis Wrote: [ -> ] (08-05-2022 03:49 PM)Milwaukee Wrote: [ -> ].
There has been a lot of chatter about the possibility that the Big XII schools may receive less than $20 million per year in broadcasting revenue, due to the departure of OU & Texas.
This would represent a substantial revenue cut, in the range of $10 to $15 million/year less than what the Big XII schools are currently receiving from the broadcasters.
Yet those who argue that the PAC will stay put with only 10 schools seem to have the impression that their broadcasting revenue streams will be relatively unaffected by the departure of USC and UCLA.
Question: Why would the departure of OU and Texas have a devastating impact on the Big XII remainers' broadcasting revenue, while the departure of USC and UCLA would have only a trivial impact on the PAC remainers?
Well my answer would be that I expect both the nB12 and nPAC to see very substantial reductions compared to what they would have gotten had the four schools not left the respective conferences.
I think thats what many people fail to understand when they start with the calculating. They take the present value of a over a decade old contract---subtract half the value---and then divide by 12 to generate a current Big12 per team value estimate. In 2011, the Big East was an AQ conference (BCS system) and had probably the best basketball leagues in the nation. The full members were making about 4 million each from TV. In late 2011 and 2012 the Big East lost almost all of its former P5 members, almost all of the old basketball league including Notre Dame and the C7----and had to replace those football/basketball loses with Navy and a bunch of CUSA schools. Just 9 years later---the rebuilt and renamed Big East successor conference (The American) landed a 7 million dollar per team deal---almost twice what the "AQ/P5" level Big East was paid in 2011 with its outstanding basketball league fully intact. The lesson here is those decade+ old TV deal values mean little today.
Yeah, the Big12 lost its brightest two brand names....but it still has 8 well known P5 names. It brought in 4 of the best from the non-P5 world---all 4 with very attractive football programs---and 3 of the 4 with very high level basketball programs. The current Big12's football will be better than the old Big East and its basketball league may be the best in the nation. The Big12 is going to end up with some very nice media offers because, despite the loses---it still represents a very attractive college sports property---it just wont be as attractive as it would have been with UT and OU. Still---wait and see----nobody in the Big12 is going to be taking a pay cut.
I agree about rising rights fees and that this has to be taken in to account. How it will play out with the nB12 and nPAC, though, is IMO not really known.
For example, you mention the Big East/AAC situation between 2012 and 2020, and how even though the Big East was decimated with losses in 2011-2012, the AAC that emerged signed for $7m in 2020, almost double the $4m the Big East was making in 2011. Fair enough.
But, we can also look at what happened before then. That $4m deal you mention was signed in 2006. In 2011, ESPN came in with an offer of around $12m per school ($9m per school if we parse out the $3m that was going to go to the C7 hoops only schools), a large increase by comparison. But, the loss of Big East schools to the ACC, B1G and B12 and backfill with a pile of "best of the non-AQ" CUSA schools resulted in that value plummeting to $2m a year. It wasn't the case that the rising value of TV rights between 2006 and 2012 (the "first wave" of rising rights) meant that the Big East/AAC was going to make at least as much or more as it had been making before the losses. To the contrary, it took a 50% haircut from what it was making from 2006-2012, from $4m to $2m. Yes, that $4m included about $1.5m for basketball, but that's still a 20% cut from $2.5m to $2m, really more because the basketball in the new AAC was worth something too.
Now, I agree that the situation isn't entirely the same with the nPAC and nB12. As you say the Big East lost most of its AQ schools, the new conference was mostly G-level backfill whereas the nPAC and nB12 will, at least as of now, have a large majority of teams that are established "P" schools.
But, on the other hand, IMO none of the Big East school losses were anywhere like losing Texas and Oklahoma. Texas arguably has more brand value than West Virginia, Syracuse, Pitt and Rutgers combined. There is IMO a far larger value-gap between TX and OU and the four G-level callups the nB12 added than there was between Syracuse, Pitt, WV, Rutgers, Louisville and Houston, UCF, and Memphis during the 2012 BE/AAC transition. There was certainly a gap, but IMO not as large. That was the problem the post-2004 Big East had all along - it didn't have brand tentpoles, it was a collection of schools that were quasi-brands. In contrast, TX and OU are the definition of Big Tentpoles.
So I just don't know how it will play out. Do I expect the nB12 and nPAC to actually make 50% less money going forward (in their new 2024/2025 deals) compared to what they are making now? No. But I am also skeptical of claims that they will be making as much, or more than they are now too. IIRC, I've seen posts by some nB12 enthusiasts quoting tweets saying they will sign for $50m to $60m per school. I find that as hard to believe as some saying they will sign for $20m per school.
I really just do not know.