JRsec
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RE: SEC Network Summary
(04-18-2013 02:07 PM)quo vadis Wrote: (04-18-2013 01:31 PM)JRsec Wrote: At some point it is essential for the SEC to hold Clemson, Florida State, and Georgia Tech to consolidate the core of their identity. Whether or not we would need Louisville and Texas for core identity depends on how far the fringes eventually extend.
The SEC's core identity is rock-solid despite FSU, Clemson, and Georgia Tech being in the ACC. That's because the SEC has Florida, South Carolina, and Georgia, the flagship schools, of those states. The threat to the core identity would be if the status of those flagships was threatened, if there was a danger of any one of them leaving for another conference. And *that* is only a danger if the other conference is considerably stronger financially than the SEC, since given the obvious cultural preference for the SEC, if the money was even close, those schools would opt to remain in the SEC. And since the ACC isn't and never will be financially much stronger than the SEC, the ACC is no existential threat to the SEC's core, whether it has Clemson, FSU, and GT or if it doesn't.
In contrast, the B1G is a lot finaincially stronger than the ACC, and if it makes a lot more money from its network than the SEC does from its network, than it might be in a financial position to tempt flagships like Florida, Georgia, and South Carolina and thus threaten the SEC's core. But crucially, that threat depends on money, and exists whether FSU, Clemson, and GT are members of the B1G or not.
Thus, IMO, the SEC has no need to ever invite Clemson, FSU, or GT, as the only way the SEC can protect its core is by expanding via adding new schools that make it a financially stronger conference, strong enough that no significant money-gap develops vis-a-vis the B1G. And the two schools way at the top of that list would be North Carolina and Texas, not FSU, Clemson, or GT. The protection of the SEC's core, it's geographical center, depends on the same thing that protects all of its other "territories" - financial strength.
Now, I do agree that geography matters: It would not make sense for the SEC to add schools that would significantly dilute its Southern character, because the main reason it is financially so strong is that fans of its schools place great value on the southern cultural roots of its members, and the rivalries that naturally flow through that. Yes, in a given year when Oregon is great and Ole Miss sucks, maybe more LSU fans would rather see LSU play Oregon, but over the long haul, they'd much rather play Ole Miss every year. IOW's, part of the "core strength" of the SEC is in its southern character, and if you dilute that, then fans will lose interest and money will dry up. Southern character thus places a constraint on the notion that the SEC should add new schools that are valuable media/money properties. They should be that, but they should also be Southern.
Neither UNC nor Texas would dilute that southern character.
I understand that point of view and from that perspective I concur. However what I'm speaking of is another paradigm shift in the method of calculating payment to the conferences in 10 years when the new contracts come up.
Networks have encouraged the 1 school per state philosophy because new markets is what they have rewarded. That's a dangling carrot for now. In 10 years those same networks aren't going to want to pay the Big 10 and the SEC full price for the same states regardless of whether it is tier 1 or 2. They aren't going to want to pay the ACC and SEC both full price for the state of Florida or the Big 12 and the SEC both full price for Texas. Realignment has broken up large states on purpose.
The purpose is if a switch is made to a market saturation model (which a la carte could certainly force) then it is not inconceivable that the networks, who have in 10 years tied all of the collegiate property up in contracts and has broken up their respective regional domination of product to a degree, now has an opportunity to maximize their own profits by either paying just for the homes that subscribe to a particular conference network, or worse and more likely, simply pay each conference for the percentage of the state they actually represent. In the state of Florida for example the split could be between 5 schools potentially. Suddenly the SEC doesn't make what they once did for holding the Gators. The Big 12 might lose 25% of the state of Texas or possibly more.
What will the conferences do then? They really can't afford to realign yet again. That's why the safest way to hedge your vulnerabilities is to consolidate your geographical core and expand on the fringes with shared states. Arguably it would be hard for the SEC to lose a lot of value in Florida under a new system such as the one I've described if they own both F.S.U. and Florida. Owning all of Georgia, Mississippi, Alabama, Louisiana (essentially), Arkansas, Tennessee, Missouri, South Carolina and North Carolina would make the gains in Virginia balance out with losing half of Kentucky or a percentage of Texas. Recovering from that kind of potential shift in payment calculations would keep the conference strong. That is why I said Georgia Tech, Clemson, and Florida State would be essential in holding onto revenue regardless of the calculation model. Picking up U.N.C. and N.C. State both would do the same for N. Carolina.
That is why the Big 10 should at some point look at Iowa State and Pittsburgh. Boston College, Syracuse, and Connecticut are too tempting as essentially the only upper tier teams in their states. Locking up New England should be a priority for the Big 10 to minimize the risk of having the payment model change for them. Delany has been smarter than many give him credit for being. Of his 4 additions 3 have been the sole University of consequence in their state.
They can share Virginia, Kansas, or Oklahoma if need be. Growth on the fringes consolidation at the core will be the next strategies that should be employed by the conferences. That strategy will lock the networks into a tighter range of payment calculations. Otherwise the conferences are vulnerable to payout model shifts. And the time to prepare for this is now, not in ten years.
Just because I'm paranoid about this doesn't mean the networks aren't out to maximize their profits off of conferences that are now too spread out and late to the game to defend their bases and too weary of realignment to react in their self interest. Remember their is a reason that the SEC is being rewarded to extend while ignoring regional and national brands closer to home. And weren't you very correctly saying the other day that this wasn't as much about markets as brands. Now you were using brands in your flagship argument, which was appropriate. Now I'm using brands to point out why you don't want to leave the ones within your core for someone else to pick up. It might cost you some additional revenue to take them today, but it might cost you even more of what you've grown accustomed to earning not to take them against the risk of tomorrow. The networks aren't any of our friends. They make money off of us. At best it is a symbiosis at worst it is parasitic.
(This post was last modified: 04-18-2013 04:25 PM by JRsec.)
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