quo vadis
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RE: Mountain West gets 62% increase in revenue. $47 million to be distributed.
(06-10-2015 12:31 PM)Attackcoog Wrote: (06-10-2015 11:57 AM)quo vadis Wrote: (06-10-2015 10:35 AM)Attackcoog Wrote: (06-10-2015 08:20 AM)quo vadis Wrote: (06-09-2015 06:55 PM)Attackcoog Wrote: Im a realist. The only way to create the nationwide conference at this point in time is to build one using either the MW or the AAC as the base. Neither conference is going to kick out current members. That's just not going to happen. Yes, a "true" best of the rest would take the best from each conference. Unfortunately, reality of waiting 7 years for autobids and not being a signee of the CFP agreement means a totally NEW conference makes no sense at this juncture. To pick at current proposals that use and existing conference as a base is just another empty straw man argument that Quo and others like to make.
There isn't much realism here. Let's make the following assumptions, that sound realistic to me:
The average value of the top 6 AAC teams = $2.5m per year, of the bottom six the average value is $1.5m, collectively that adds up to an average of $2m per year, roughly the AAC media value.
No way to know
Well, $2m is in fact the current AAC media value.
Now let's say the average value of the top 6 MWC teams is also $2.5m per year, and of the bottom six just $1m per year (that comports with your AAC-fantasy belief that the bottom of the AAC is worth more than the bottom of the MWC). That values the current MWC at $1.75m per year.
Again--is it? The value of the entire conference is not based on the whole, but the top. See Texas and Oklahoma in the Big-12
That's true for the Big 12, because Texas and OK are top-10 blue chip brands. There's nothing remotely like that in the AAC or MWC, with the possible exception of Boise, and Boise is already getting $5.3m from the MWC even without the Access spot, more than the AAC has proven willing to pay, as per Aresco's failure to keep them in January 2013.
If we do what you propose, and the top 6 of the MWC join to form an 18-team AAC, that raises the overall media value of the expanded AAC to .... $2.16m per year.
Don't forget the half continent multiplier effect. A half continent model double s the rate of pay of a more regional G5 model. Seems reasonable that a national model would at least double the value of the half continent model
The "continental multiplier effect" is a fantasy concept. No evidence it has any basis in reality.
That's it, just $160k a year more per school for the AAC, just $310k for the MWC schools that leave.
That's chicken feed. Nobody in the MWC is going to leave their regional travel and rivalries behind to compete against ECU, USF, Tulane, etc. unless SERIOUS money is involved, Boise and SDSU in 2013 already proved that. A movement in value from $1.75m to $2.16m won't come close to cutting it.
It is chicken feed. But I don't agree with your assumptions. That said, TCU left for the MW for less of a difference.
For an AQ conference. The AAC isn't that.
Furthermore, such a move makes even less sense for the AAC cream, as their value would go up just $160k.
And yes, this new conference will dominate the Access slot. But, the impact of that is seriously diluted by having to divide that booty 18 ways. That's rough.
Making the expanded AAC a defacto contract bowl conference. There is value in that fact which you do not address. Not to mention the expansion would create a basketball conference that is likely to land more NCAA bids annually than the Big East. The expanded AAC's basketball is likely to be of significant value.
I don't see value in that. "De Facto" isn't nearly the same thing as "guaranteed". The P5 will still split a minimum of $50m each off the top and this new AAC-MWC will still be G5.
In contrast, a new conference made up of the best six from each would be worth $2.5m per school, which would increase the MWC schools almost 50% above what they get now and give the AAC cream a 25% boost, and the Access booty would just be divided 12 ways. That's probably worth it.
Keep in mind, earning in the MW is variable. UNLV got barely a million dollars. Assuming pay in the AAC didn't change at all, they would see a doubling of their media payout.
The MWC, smartly, pays its top schools disproportionately more than other conferences. That makes it harder to raid them. It probably makes it impossible for the AAC to raid them. The whole reason they pay more was to lure Boise and SDSU back from the AAC, and it worked.
Bottom line: Carrying the bottom 6 of the AAC still drags this deal down, kills it.
Wasn't Memphis part of the "bottom" before last season? The large budgets in the AAC--even at the bottom, make them viable teams in the expanded league.
That's an AAC fantasy - "we're ALL strong!!!". All conferences have tops and bottoms. In the AAC, it's even spelled out: Temple, Houston, Cincy, and UConn are the top four. As a USF fan I don't like that, but it's reality.
The AAC has dregs, and they kill your proposed raid of the MWC.
You also talk about the set-in-stone nature of the CFP contract. That's debatable, but even if so, TV contracts exist as well. Nobody at ESPN is going to tear up the current AAC deal and renegotiate before 2020 over such a marginally small increase in value.
If you can find a majority of the conference reps willing to lower thier share of the CFP to let your new confernce join, then--yes, i could be altered---good luck with that,
On that point, I agree with you.
And you need to stop being unrealistic about the impact of being a "national" conference. There will be no "synergy effect" or somesuch of being national compared to regional. For example, the SEC and B1G are still very much regional conferences and yet make gigantic money. It's the brands you have not where they are located that matter. Far better to have Georgia, Auburn, and Florida in your conference (all located within 350 miles of each other) than to have SDSU, Tulane, and UConn, which span the nation. Regions don't matter, brands do. The reason the AAC makes more than the MAC is we have slightly bigger brand name schools, not because we are more sprawling. Nope. They are all the same as you have reminded us so many times. You cant compare the G5 regionals with the P5 regionals. If the G5 had 100K fans cramming their stadiums, then yes---the G5 could be successful using the same P5 regional model. We have 35 years of data showing the regional model is failing the G5. It is what it is.
As I indicated in the previous posts, the regional model is failing the G5---that's not arguable. In 1997 CUSA team made half of what thier P5 counterparts earned. Less than 2 decades later they make barely 10% of thier P5 competition. Yes, the national model might not turn out to be better---but trying the national model is better than continuing to do something we KNOW doesn't work.
It's not the "regional model" that is failing. The SEC, PAC, and B1G are still essentially regional conferences, and they are booming. It's the gap between the top brands and smaller brands that is widening, and the G5 consists of small brands - both the AAC and MWC.
A new conference of just the Best 12 might be worth significantly more than the current MWC or AAC, but forcing a hybrid to carry either's bottom six amounts to reshuffling the deck chairs on the Titanic.
If you are correct that the CFP is set in stone and that a new conference could not join, and that no conference will kick existing members out, then all that means is that there is no rational basis for the MWC or AAC to raid each other before 2025. Don't let the perfect be the enemy of the pretty good.
I am letting the far from perfect be the enemy of the not good enough.
The only type of rearrangement that makes dollars and sense is a cream of each conference. If that truly is precluded by the CFP until 2025, then both sides will wait until then to act, because an arrangement in which the cream of one has to carry the dregs of the other simply doesn't make enough money to be worth it. The cream would be better. It just isn't possible right now.
Agreed. But problem is, what is possible isn't worth it.
BTW, what would the MWC exit fees for those leaving six be?
Quick response.
1) TCU left CUSA for MW when both earned virtually the same amount (I wasn't referring to TCU leaving the MW for the Big East).
IIRC, TCU left for the MWC right after five C-USA teams had bolted for the Big East and two more for the A-10, making C-USA far less desirable than it had been. Also, at the time C-USA's media contract was up for renewal in 2006, so TCU had every reason to believe the value would be in the toilet.
2) A premium exists for half-continent conferences over smaller more compact regional conferences at the G5 level. That's simply a fact. See MAC vs the AAC or MW. And before you say brand is the difference---half the MW is former WAC teams that made virtually nothing in the WAC.
Brand is always the difference. There is no premium. The MWC and AAC clearly have bigger names than the MAC.
3) Comparing the P5 version of regional conferences with the G5 experience is like comparing Disney World with the local traveling Carnival. We cant execute the same strategy as the P5 and expect the result to be anywhere near the same. We have tried it for decades through multiple contract cycles and the proof is in the pudding. The G5 regional conference does not work and will never succeed at generating media value. That's simply a proven fact at this point. That's not to say the national conference will definitely do better---but there is some reason to think it might, where as there is little justification thinking there will be any real improvement in closing the earnings gap between the G5 and P5 with the current G5 conference structures.
I don't think there is any reason to think a national conference that is weighted down with the dregs can do better.
4) Yes, the top of the MW is better than the bottom of the AAC. But since you can't dump the bottom of either, its an irrelevant point. The best you can do is add the top of the AAC to the MW or vice versa. I choose adding the top of the MW to the AAC because the bigger budgets in the AAC make its bottom more upwardly mobile. Besides, having 12 teams in the east and central time zones makes more sense than having 12 teams in the west and just 6 sprinkled over the other 2/3's of the country (where most of the people actually live). A 6-6-6 allows for a more even distribution of schools across the country and more economical travel within divisions (where most of the minor sports will largely compete---thus cutting costs).
I never made a "point" about the top off the MW being better than the bottom of the AAC - I thought that went without saying. What is relevant is: IMO, if you can't dump the bottom of BOTH, you can't create a conference that is worth either the top 6 AAC or top 6 MW teams leaving their conference for. So there is nothing to be done in that regard.
What would work is if the AAC could just take Boise. That would hugely increase the chances the AAC would get the Access slot, and at no extra cost. But we know the AAC can't do that. The MW smartly gave Boise a deal they can't refuse, and that the AAC can't match.
(This post was last modified: 06-10-2015 06:04 PM by quo vadis.)
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