AllTideUp
Heisman
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RE: The SEC and Realignment: A Review of a 25 Year Old Strategy
(02-17-2017 08:56 PM)JRsec Wrote: (02-17-2017 01:20 PM)AllTideUp Wrote: (02-17-2017 10:52 AM)YNot Wrote: (02-16-2017 10:11 PM)AllTideUp Wrote: But, I'm not sure I see the PAC taking all those schools. The financial package they offer is already inferior. They NEED those schools to generate massive revenue. The SEC and B1G are already generating massive income without them and will only make more should they join.
If, however, ESPN can negotiate a major deal with the PAC then maybe something like this would work...
PAC takes Texas, Texas Tech, Oklahoma, and Oklahoma State while ESPN gets half the rights to the PACN. As part of the restructuring, the PACN is whittled down to one national network similar to the SECN. Not sure what they do with the LHN, but I would assume it's either rebranded or discontinued.
The PAC would add most of the Big 12's media contract value if it adds Texas, Oklahoma, and Kansas plus 3 other schools. TCU, Baylor, WVU, and Kansas St. don't carry much value independently. (I agree that TCU and the SEC have synergies that create value to perhaps justify TCU to the SEC; WVU would also carry some value if added to another Power conference, but not on its own).
So, the PAC would *substantially* increase the pie by adding most of the Big 12 value and getting full distribution for the PACN. And, the increased pie would be split 16-18 ways, instead of 22.
Note sure what the exact numbers would be, but let's say that the PAC and Big 12 each currently bring in $25M per school - $550M per year. The expanded PAC would essentially get the full $550 value (or close to it) and increase the pro rata payment to $30M (...fewer mouths to feed) if nothing else changes. But conference games like USC-Texas and Oregon-Oklahoma could see the PAC+ add even more value to the media contract such that it gets a bump closer to B1G and SEC levels.
Then, add the value of Texas, Oklahoma, and Kansas content to the PACN and full PACN distribution (DirecTV). That could be another $3-5M per school - or $33-35M total, pro rata.
That's a nice bump for everyone involved (assuming Texas gets compensated directly from PACN or ESPN/FOX for the sale of the LHN).
I think you miss my point.
Let's say the PAC was able to make these moves and net $35M. Great for them? Absolutely. Problem is that the SEC is already at $40M and additions haven't been made yet. The B1G is in similar territory.
If you add most of the value of the Big 12 contract to the SEC or B1G then the number grows even more. So the Big 12 powers could go to the PAC and make $35M or go to one of the others and make $50M or more. If you're one of those schools then which do you choose?
Now, these schools could very well end up in the PAC, but I think the networks will have to orchestrate that as a way of securing their investment in the PAC and providing longer term balance to college athletics. Possible, but the Big 12 powers can't move to the PAC because of money...there just isn't enough to go around.
This is why the SEC must have one of them if the other goes to the Big 10. It is the reason the Big 10 must have one of them if the other goes to the SEC. If we each get one then our payouts jump north of 45 million. If one conference gets both their payouts will jump to over 50 million while the other stays put just above 40 million.
But, even if each of us gets one we both increase the distance between us and the PAC and ACC.
I would be okay with the PAC getting them both. We still can obtain our objective with T.C.U. (the DFW market). The SEC gets a slight nudge in product, and likely the Big 10 does as well and we remain relatively close to where we are now. The PAC catches up a tad, and the ACC if it lands N.D. fully does as well.
I believe that at some point in the future, if both the SEC and Big 10 land one of these two brands that the PAC and ACC will have to merge with us in order to remain competitive. If OU & UT head West together we will likely remain 4 distinct conferences.
So if we expand it would be great for us to land Texas and Oklahoma, at least financially.
It would be necessary for us to land OU if UT went to the Big 10 (which they won't).
It would be necessary for us to land Texas if OU and Kansas went to the Big 10 (which is much more likely than Texas going).
If both go to the PAC then T.C.U. is a good substitute for a presence in the DFW market.
But if T.C.U. comes on board we might very well go after WVU. Why? Without OU or UT to join with LSU, A&M, and Arkansas the move of Alabama & Auburn to the East would make the West too weak and the East too strong. So I think we would add someone else to the East. If we handled it correctly however, Auburn could move East and we could add another to the West.
Weird to think we might add the same schools that the Big 12 did when they were trying to get back to 10, but I suppose it's possible.
If we go to 16 with those 2 then I would prefer pods...
-Texas A&M, TCU, Arkansas, Missouri
-LSU, Ole Miss, Mississippi State, Alabama
-Auburn, Florida, Georgia, South Carolina
-Tennessee, Vanderbilt, Kentucky, West Virginia
That's a fair amount of balance and lots of rivalries preserved.
PAC takes Texas, Texas Tech, Oklahoma, and Oklahoma State
B1G takes Kansas and UConn
ACC takes Notre Dame and Cincinnati
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