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RE: UNC officials now 'barking' about ACC revenue gap
(02-04-2024 06:29 PM)JRsec Wrote: (02-04-2024 06:22 PM)bullet Wrote: (02-04-2024 06:00 PM)JRsec Wrote: (02-04-2024 05:07 PM)quo vadis Wrote: (02-04-2024 01:51 PM)JRsec Wrote: You aren't a fan because it inhibits your prejudices. USC is exactly where they need to be. They may be located in Los Angeles but they hardly command that market most years. If people believe Miami is fair weather when it comes to fans Los Angeles says, "Hold my beer!" It is, has been, and shall always be about the numbers. Some coaches can inspire better results, some kids grow and rise to the challenge and that makes the sport. But the vast majority of the time it plays out along the numbers.
The WSJ measures the amount of commercial business in a region generated by the school's athletic teams. That perhaps is the best indicator of the strength of a brand. USC is only elevated in your mind because of Simpson, White and Cunninghame and Keith Jackson calling the Rose Bowls. All of that is gone and has been for twenty years minimally and even that 2 year stint was anomaly for the past 30 years.
Maybe I am stuck in the past, but IMO it is just obvious that USC is a way bigger brand than schools like Michigan State, Louisville, Kansas, Indiana, Minnesota, Arizona State and others that the WSJ has ahead of them. USC is a true blue-blood.
That IMO is why USC was invited to the B1G, and without having to wait any time at all to collect full conference pay, while schools like Washington and Oregon, that WSJ says are much more valuable, were not invited and had to twist in the wind for two years before getting B1G invites.
I mean, the SEC and B1G are really the ultimate arbiters of school value, as they are the top market for schools. And in 2021, the same year that WSJ said USC was behind 11 SEC schools in value and only the 5th most valuable PAC 12 school, USC was invited by the B1G and was even allowed to bring a tagalong.
Just MO.
USC was taken by the Big 10 who swallowed the addition of UCLA along with them because the SEC had just taken the #2 and #8 additions in the nation. And USC was shopping the notion of independence and had been for over a year prior to the Big 10 taking them, and the Big 10 knew that without Notre Dame there was no catching up to the SEC acquisitions. USC had to be taken first. If ESPN signs them to an N.D. style deal in the ACC Notre Dame is never shaking loose.
USC's importance was to a degree due to their desire to lure Notre Dame and to prevent ESPN from cementing them in place with a USC addition.
So, boom! We get USC and UCLA to the Big 10. The massive destabilization created by the OU / UT moves cannot be overestimated. It was nuclear. The rest is the response by the Big 10 as they hunt and hope for their white whale. The additions of Notre Dame cuts the future advantage of the SEC to a third of where it stands now. Pick up enough of the remaining value of what is left in the PAC and ACC and they can close it by another third. If the SEC counters with more moves of its own the value gap and future revenue gap projected by ACC studies to be 13 million in favor of the SEC in media revenue is also closed.
Now we get the talks between Petitti and Sankey. I'm wondering if FOX and ESPN want a truce so they can make solid bids on the CFP which the ACC screwed up for ESPN. If the SEC and Big 10 agree to a breakaway and to the rules governing it and if they agree to selling their rights as one at some point in the future, then it doesn't matter who goes where, they will be working together. It ends the destructive escalation currently being considered, contains the damage, and allows a cohesive unit moving forward in which could provide rights to all of the OTA's and Cable Channels and still stream.
But USC and UCLA were the response of two schools in the 20th or lower standing to two top 10 picks. The SEC already had 1.7-billion-dollar lead in valuation, they just didn't have the same affluence in the markets so the justification for the Big 10 to earn more in media revenue. That's going to be gone.
So, there's a lot more disarray going on than meets the eye. The courts just complicate it, and damages just add to the inability to adequately prepare for the future.
In the midst of all of it is the FSU case destabilizing the ACC and setting up another round of snatch and grab.
Right now, I suspect the Networks and the Commissioners are trying to figure out how to put the brakes on it, cooperate, and manage an uncertain future together.
The issue is how do you stop a train wreck in progress? Answer: The SEC and Big 10 agree to halt until they can work it out together. FOX and ESPN's role might need to be similar. We'll see. Surely, they both have a need to cap the growth of the Big 10 and SEC at levels affordable to both which meet each's need for content.
Face it, Quo, the destruction of one, possibly 3 P conferences, was unthinkable and unprecedented. It seems to have gotten beyond the control of those responsible for its control. The courts, the loss of OU and UT, the challenge to the GOR, and the panic exhibited by the MAG 7, the radical move of Cal and Stanford. These are apocalyptic signs in terms of college athletics. We process them slowly because that is how the human mind is supposed to handle stress. We rationalize the strategies involved and what kind of possible orderly outcome there can be. What if it's not?
I think we all should ponder that. In the middle of realignment two archrivals sit down to hammer things out. That's either because they have already agreed to the divvy, or they are trying to stop the need of it.
In that world an agreement to grow by those who want in and sell the rights collectively and follow a uniform governance has to be worked out to stop the destruction of value among too many friends and neighbors.
I think they have already decided on the divvy and are working out future rules, but I'm also keeping an open mind for the fact that this thing may be out of control and in need of a mutually agreed upon ending.
3 P conferences have already been destroyed, SWC, Big East and Pac 12.
I don't think the Big 10 and SEC are talking about divvying up the spoils. I think they are worried about everything getting spoiled by NIL and the lawsuits. They don't seem to have been concerned in the past about collateral damage.
I never considered the Big East to be a P conference in fact, just in claim. The SWC wasn't killed by realignment. It died because of the cable subscription model and only have 2 states in the footprint, and a key school having the death penalty. And the ones I'm referring to should have been much more stable P12, B12, & ACC.
The Big 10 and SEC aren't the only ones worried about the lawsuits and damages either. So that's not their sole purview of worry. I think bringing what has happened to a more organized landing rather than a wheels up, flaps down belly landing is what they are concerned about. And it is quite possible they've agreed on their last set of moves. We'll see. I truly think all parties (FOX/ESPN/Big 10/SEC) are looking more at immediate damage control and maximizing future efforts to land their new upper tier.
SWC was killed by the same things that killed the Pac 12 and Big East. Economic forces. After Texas to Pac and A&M to SEC fell through, eventually Texas, Texas A&M, Texas Tech and Baylor joined with the Big 8 schools to form a stronger group. Same thing Nebraska, Texas A&M, Missouri, USC, UCLA, Washington, Oregon, Texas, Oklahoma, Miami, Virginia Tech, BC, Syracuse, Pitt, Rutgers and Louisville later did.
Big East had Miami and Virginia Tech and West Virginia. Syracuse and Boston College were solid at the time. For a time in the 90s, they were making more than any conference but the ACC. And they were usually stronger on average than the Big 10 and ACC during this era. Even after losing Miami, VT and BC, they were still usually stronger on average than the Big 10 and ACC.
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