(08-07-2022 02:41 PM)Poster Wrote: It is rather suspicious how schools like Washington and Oregon supposedly would negative value for the Big 10, but Rutgers and Maryland are supposed to have positive value. The math to that really doesn’t make a lot of sense to me.
Even if you look at things purely from a “market size” perspective, Washington has 10 US House seats, Maryland has 8 US House seats and New Jersey has 13 US House seats. Washington state is actually bigger than Maryland, and not that much smaller than NJ.
I know that half the rationale is the Washington DC and NYC tv markets, but it almost seems embarrassing to claim they bring these markets when they barely bring the markets of their home states. Washington DC is not really that big of a city, anyway. (If DC was a state, it would be the second least populated state, just barely ahead of Wyoming.)
Piscataway isn’t even as close to NYC as Rutgers fans would have you believe. It’s 40 miles outside NYC, which is 74 minutes with current traffic.
So I think there's two things going on here. One is the logic behind the expansion. When Rutgers and Maryland were added a decade ago, the landscape was a bit different. For the Big 10, it was largely about markets as it owned its own network. More specifically, the rates the Big 10 could charge cable providers. And the brilliance there is that they were collecting money from everyone who had cable, not just people who actually wanted to watch the Big 10. So the measure wasn't really fan interest, but the overall population. Now fast forward ten years later. While that cable revenue isn't gone by any stretch, the amount of cable subscribers has fallen. And likely will continue to fall. Correspondingly, the revenue the Big 10 gets from cable will also fall. In hindsight, the decision to add Rutgers and Maryland looked fine in the short-term, but were basically that. Short term decisions with more questionable long-term ramifications. Because of all of this, we know the test is somewhat different in 2022 for potentially adding schools like Washington and Oregon than it was for Maryland and Rutgers. You can't really use the old model.
There's also an additional point to this. To use some economics terms, what are the marginal utility and marginal value of adding more schools? Because of the gains from Maryland and Rutgers plus the projected gains from UCLA/USC and the general growth of the conference, the bar to actually add value to the Big 10 has risen significantly. And we also know its not really just about markets anymore. It's more about drawing actual eyeballs to watch your product, which you can monetize into media rights deals. Schools like Washington and Oregon do well, they just don't do THAT well and the bar is incredibly high.
The other thing going on is that you're really underestimating the markets that Rutgers and Maryland brought. Rutgers allows you to add in the New York media market, which is not only #1 in the country, but over twice the size of # 3 (which is Chicago). Washington, DC is #7. Seattle is #14 and Portland is #25. But Baltimore is #26. Maryland brings both Baltimore and DC. If you looked at overall metro areas, the difference is pretty big (here's a ranking -
https://www.thoughtco.com/largest-metrop...as-1435135)
New York/NJ is bringing in 19,261,570 people. No one is close to that. Only Los Angeles is even more than half that size. Washington brings in 6,250,309 with Baltimore bringing in another 2,800,427. Seattle brings in 3,928,498 and Portland brings in 2,472,774. Simply put, Rutgers touches so many households, it didn't even really matter if it could compete on the field under the old model. And Maryland still brings in twice the households as Washington would, plus isn't completely inept like Rutgers. We know markets aren't as important these days, but you can see the difference in size.