Archive for the ‘College Football’ Category

Power Conference Breakaway: Can It Benefit Student-Athletes?

Posted: June 18, 2013 in Big Ten, College Basketball, College Football, Sports
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(Note: as conference realignment has slowed down, I’m going to shift back toward looking at some of the broader issues in the business of college sports, such as the impact of television rights, tensions between the power conferences and the NCAA, and the new playoff system. I’ll also likely get into some related pro sports angles with how the NFL, NBA, NHL and Major League Baseball are dealing with domestic franchises along with looking internationally for new markets and fans. Obviously, if conference realignment heats up again, I’ll cover it thoroughly here. For those that still need a conference realignment fix, I had a Big Ten-focused realignment Q&A last week with Off Tackle Empire and will have a different Big 12/Texas-focused one with Burnt Orange Nation in the near future.)

The notion of the power conferences splitting away from the non-power leagues to form either a new association separate from the NCAA or a different division (hereinafter called the “Super FBS”) has been percolating over the past few years. For various reasons, the talk has been intensifying lately with the settling of the conference realignment landscape and increased calls for greater compensation for student athletes beyond their respective scholarships (with the Ed O’Bannon lawsuit against the NCAA as a backdrop)*. There is already a de facto split between the 5 power FBS conferences (Big Ten, Big 12, Pac-12, SEC and ACC) and the rest of Division I schools in terms of TV and postseason football revenue, so it seems natural to many observers that a split along those lines would make sense.

(* In the interest of full disclosure, I’m personally a strong supporter of paying college athletes. While the cost of a college scholarship is substantial, the power conference athletic departments are still receiving outsized revenue gains off of the backs of football and men’s basketball players and they ought to be compensated accordingly. Now, I understand why colleges want to fight those types of payments to the death and there are major Title IX implications, as it’s likely that payments would have to be made across the board to all non-revenue sport athletes on top of the revenue generators. It’s easy to point to the quarterback whose jersey is getting sold nationwide and say that it isn’t fair that he hasn’t been compensated fully, yet should a water polo player at the same school be receiving the same type of payment? There’s no easy answer to this. From my vantage point, the inequity of the quarterback not getting fully compensated for the revenue that he’s bringing in for a school is much greater than the thought that non-revenue athletes would have to get paid, too, but I know others may disagree.)

Warren K. Zola had an excellent commentary in the Chronicle of Higher Education that outlined several potential proposals that a Super FBS division could implement that would serve both the commercial reality of college sports and improving student-athlete welfare:

  • Have athletics scholarships cover the full cost of attendance and not be capped at tuition and fees, room and board, and required books. A stipend, in the neighborhood of $3,000 per student, according to a recent study, would help reduce the growing underground compensation system for elite athletes.

  • Embrace the Olympic amateur model by lifting the restriction on college athletes’ commercial opportunities. This shift would offer any student the opportunity to secure endorsement deals or receive payment for the use of his or her name and image.

  • Create an education fund that provides continuing financial assistance to college athletes, allowing them to complete their degrees even after their athletics eligibility, and corresponding scholarship, has expired.

  • Provide full health insurance for all athletes and cover all deductibles for injuries related to participation in an intercollegiate sport. Offer full disability insurance to elite athletes, protecting them against catastrophic injuries that could derail their professional careers.

  • Allow athletes to hire agents to protect their rights, including providing assistance in evaluating scholarship offers from institutions, negotiating commercial opportunities, and navigating the transition from college to professional sports.

I believe that all of these suggestions are on the mark. The reference to the “underground compensation system” is astute and one of the largest issues that I have with the current NCAA model of anachronistic recruiting regulations on the books with haphazard and inconsistent enforcement of those terrible rules on top of them. NCAA recruiting rules are sort of like campaign finance regulations in Washington – everyone publicly votes for them on one day and then privately tries to find loopholes around them the next day. I’m much more of a full disclosure-type of person as opposed to attempting to put the brakes on market-based transactions, where I believe colleges and universities would have better control over the “underground” market if they acknowledge that it exists and provide a viable alternative that allows for athletes to take advantage of their talent to get stipends directly from schools and commercial endorsements.

The last bullet about allowing athletes to hire agents is an interesting one. There have been many prominent power brokers over the years, such as Worldwide Wes for basketball*, that have effectively taken that role, so I believe that there’s some benefit to formalizing that type of relationship. The NCAA’s agent contact rules are just as backwards with spotty enforcement as the organizations recruiting rules, so having a reactionary stance of zero tolerance simply isn’t realistic in today’s world. It’s better to get those relationships out in the open and snuff out as much under-the-table action as possible.

(* If you haven’t read it already, this GQ piece on Worldwide Wes from a few years ago is one of the most fascinating profiles that you’ll ever see of a behind-the-scenes sports figure.)

So, I see a lot of potential benefits to separating the power conferences away from the non-power conferences simply from the student-athlete perspective. Of course, the increased control and, in turn, revenue that the power conferences would see from a breakaway would be the real reason why they’d want to do it. That isn’t necessarily a bad thing in and of itself, but it also makes it difficult to draw up clear criteria as to why a school or conference would be in “regular” FBS while another one is in Super FBS. For instance, would it really benefit the 5 power conferences very much if, say, the AAC and Mountain West Conference are willing to pay student stipends, thereby qualifying for Super FBS? It would seem that the power conferences would only want to split off into a new division if they could ensure that they’re the only ones in it or else it would defeat the purpose of that split*.

(* Speaking of power conference revenue, one byproduct of the Ed O’Bannon case is that the specific terms and payment schedule of the Pac-12′s new contract with ESPN and Fox have been disclosed. Nothing is too surprising, although it’s interesting to see some of the items that we have speculated on confirmed, such as the rights fees escalating approximately 5% per year. The term sheet is here.)

Now, there’s the more nuclear option of the 5 power conferences simply breaking away completely from the NCAA that would serve as a clean revenue-based split, although I find that to be an option that guys such as Jim Delany and Mike Slive would prefer to keep in their back pockets than one that would ever be implemented. While I generally believe that many non-power conference fans overstate their influence with politicians (i.e. mistakenly thinking that they’ll step in to help them with the playoff system or taxing power school revenue), a full-scale break-off would be one of those events that could definitely spur an untenable political backlash. It might be a move that the power conferences would secretly like in the back of their respective heads, but there are too many political landmines (particularly at the state-by-state level) to realistically engage in that scenario.

The upshot is that nothing is really easy or clear here. Power conferences definitely want more autonomy, but the process of making sure that they’re truly their own group without perceived “interlopers” might be more difficult to achieve than any changes about compensating student-athletes. All of Zola’s suggestions could still be implemented in theory without creating a Super FBS Division – it’s just that the power schools and maybe a couple of the non-power conferences are probably the only ones that could afford to put them into place.

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

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B1G East Coast Expansion: Big Ten Adds Johns Hopkins Lacrosse and the Pinstripe Bowl

Posted: June 3, 2013 in Big Ten, College Basketball, College Football, Illinois Fighting Illini, Sports
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The Big Ten continues the march to increase its presence on the East Coast by adding Johns Hopkins men’s lacrosse as the conference’s first-ever affiliate member and the Pinstripe Bowl based at Yankee Stadium in New York City as a bowl tie-in. These moves aren’t necessarily earth-shattering in the way that the expansion with Maryland and Rutgers was back in November, but they show how Jim Delany and the Big Ten’s university presidents are aiming to make the league as much of an East Coast conference as it is a Midwestern conference.

As far as men’s lacrosse programs go, Johns Hopkins is considered to be the gold standard with more national championships than any other school and clung onto independence in the same way that Notre Dame continues to do so for football.* At the same time, the Big Ten has long had the stance that schools with either “all in” or “all out” (hence the hardline resistance to ever offer schools like Notre Dame any non-football membership). So, it was a bit of a surprise when news broke a few months ago that the Big Ten and JHU were exploring an affiliate relationship. Johns Hopkins then formed a Blue Ribbon Committee that ultimately recommended that the men’s lacrosse team should join a conference last month in a fascinating report. Among the requirements that JHU deemed to be important were an initial membership period of 5 years and that the school could maintain its current TV contract with ESPNU. A number of Big Ten observers thought that the latter TV rights item would be an obstacle on paper (since increasing the inventory of desirable non-football/basketball programming has been a primary goal of the Big Ten Network), but that was assuaged by the fact that Johns Hopkins would not receive any conference revenue (which would make any potential complications as to how an affiliate member would partake in the BTN money trough moot).

(* For anyone that remembers the original version of The Official Preppy Handbook, I always recall that lacrosse was listed as a preppy sport simply because people from Baltimore loved it and that the city was “very prep”. That’s quite a jarring characterization these days for people that have seen The Wire.)

Looking back, this was a perfect storm for both parties to get to this position: the Big Ten needed 1 more school to create a men’s lacrosse league after it had added Maryland and Rutgers, Johns Hopkins had been concerned about how conference realignment was changing its ability to remain independent in men’s lacrosse even before it had failed to make it to the NCAA Lacrosse Tournament for the first time since it began in 1971, and JHU would provide the Big Ten an elite academic research powerhouse located in close proximity to the conference’s other Eastern members and the very best program in the history of the sport. Plus, the only sports that Johns Hopkins sponsors at the Division I level are men’s and women’s lacrosse*, while the rest of its athletic department operates under Division III. Finally, if JHU ends up joining the Committee of Institutional Cooperation (CIC), which is the academic research consortium that includes all 14 Big Ten members plus the University of Chicago, then it’s a coup in terms of prestige. (For whatever reason, Penn State’s official press release on the new Big Ten lacrosse league is the only place that I’ve seen that mentions Hopkins contacting the CIC.) All of those factors make this situation quite unique compared to thoughts of adding Notre Dame for various non-football sports or, say, Boston University for hockey. As a result, I don’t see the addition of Johns Hopkins for men’s lacrosse as any indication of a broader intent by the Big Ten to search for affiliate members in other sports. Johns Hopkins was the right program in the right sport with the right academic profile at the right time for the Big Ten.

(* Interestingly enough, the Johns Hopkins women’s lacrosse program is going in the opposite direction of choosing independence after having been a member of the American Lacrosse Conference. The ALC featured three Big Ten programs, including national powerhouse Northwestern. I’m personally not a fan of JHU going in this direction as the school would have technically been “all in” with the Big Ten for all of its Division I sports if women’s lacrosse had joined, but it’s less of an issue since men’s lacrosse is clearly the marquee program there. It’s akin to Notre Dame stating that it would join a conference football but go independent in its other sports, where pretty much any league would say, “That’s kind of weird, but HELL YES, we’ll take that deal!” Also note that Northwestern and Maryland have more women’s lacrosse national championships between them than all of the other schools that sponsor the sport *combined*, so the intense competition level may have also been a factor for JHU. That being said, there still seems to be somewhat of a door open for the women’s program to join the Big Ten down the road, as the powers that be have claimed that they “haven’t discussed it” yet.)

Meanwhile, a little further north, the Big Ten and New York Yankees announced that the conference will have a tie-in with the New Era Pinstripe Bowl for the next 8 years (with the opponent almost certainly coming from the ACC). From the standpoint of increasing the Big Ten’s mindshare on the East Coast, the tie-in makes perfect sense. The long-term goal of Jim Delany is to make the Big Ten into the de facto “home conference” for the New York City market in the same way that it is in Chicago already. To be sure, that’s a monumentally tough task (as the number of Big Ten grads in the Chicago market is massive by comparison), but the hope is that the cumulative effect of the presence of Rutgers, the Pinstripe Bowl tie-in, and the fans and alums from other Big Ten schools that have a large presence in the NYC area (particularly Penn State, Michigan, Ohio State and now Maryland) will gain traction there in a way that none of the other conferences would be able to (which is arguably a risk well worth taking considering the size and power of that market). In an interesting marketing wrinkle, the Big Ten will actually have a fixed sign in Yankee Stadium along the first base line along with being part of the rotating ads behind home plate during regular season Yankees games starting in 2014, which might end up being the best advertising that the conference could get in that market.

Whether the Pinstripe Bowl will actually be a great deal for traveling fans is a different matter. Believe me – I love New York City and enjoy the idea of playing a bowl game there, but most of the Big Ten territory prefers its winter destinations to be escapes from the cold weather of the North*. At the same time, Yankee Stadium isn’t in Manhattan or even in a neighborhood comparable to Wrigleyville in Chicago. (As a White Sox fan, it always amuses me when people complain about the “bad” neighborhood that surrounds U.S. Cellular Field as being a drag on attendance since it makes it clear that they’ve never visited the Bronx.) I could see how Rutgers, Penn State and Maryland could travel up to the Pinstripe Bowl fairly easily, but it remains to be seen how the rest of the conference would travel there.

(* If the speculation is true that the Big Ten bowl rotation will consist of the Rose, Orange, Capital One, Outback and Holiday at the top, a mix of the Kraft Fight Hunger, Pinstripe and Gator/Music City at the next level, and a new Detroit Lions bowl against the ACC and maybe the Heart of Dallas in the old Cotton Bowl at the bottom, then I’ll be pretty happy with that lineup. It would hurt to lose the Buffalo Wild Wings Bowl since the Phoenix area is such a large home base for Big Ten transplants, but the Kraft Fight Hunger is going to turn into a top notch game when it moves to the new 49ers stadium in Santa Clara and I will always quickly find any excuse to head out to San Diego. I’ll have a more in-depth analysis of the entire Big Ten bowl lineup once it’s officially confirmed.)

The overall message from the Big Ten today is that it’s going full steam ahead in heading to the East Coast. I’ve long been confident that the strategy will work around leveraging Maryland to get into the Washington, DC and Baltimore markets (which will only be further aided by adding Johns Hopkins as an affiliate member), yet the New York City portion of this cycle of expansion and bowl contracts will determine whether Big Ten is going to end up being the second most powerful sports entity in America after the NFL in 10 years or we’ll be sitting around wondering why the conference had chased after cable network fool’s gold. There’s a better chance for the former to occur than what a lot of conference realignment skeptics believe, but the latter could certainly still happen.

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

(Image from Baltimore Sun)

Conference Realignment Reset: A Look at the Power Conferences’ Expansion Plans (or Lack Thereof)

Posted: May 7, 2013 in Big East, Big Ten, College Basketball, College Football, Sports
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The main question that I’ve been getting over the past few weeks is the following: “Is conference realignment really done? Seriously? Isn’t everyone still lying?” Well, from my perspective, power conference realignment is finished for the foreseeable future with one possible exception (which I’ll get to in a moment). The fact that the Big Ten, Pac-12, Big 12 and now ACC all have grant of rights arrangements in place really puts a damper on any further movement. Even if grant of rights agreements could be challenged and struck down, the issue is that none of the 4 conferences that have them in place have any incentive to test that (or else they’d be challenging the strength of their own protections). It’s simply slim pickings in terms of expansion candidates that are outside of the 5 power conferences for the healthiest leagues. Let’s take a look at where everyone stands:

(1) Big Ten – The Big Ten certainly has no need to expand at this point without a school from the ACC or Big 12. A school such as UConn might provide a nice market in theory with elite basketball, but that was already a massive stretch candidate with its lack of AAU status and FBS football history. Plus, even if the Big Ten wanted UConn, who the heck else would the conference add with them? Let’s disregard any notion that an odd number of football schools can be workable from this point forward – what was acceptable with the 11-team Big Ten without divisions and a conference championship game is simply not acceptable in the new larger Big Ten. There has to be a Noah’s Ark expansion approach for any conference that has more than 12 members. As much as I’m a Big Ten fan, I’m also not delusional enough to trick myself into thinking that they could raid the SEC since that’s the only power league doesn’t have a grant of rights arrangement as of yet. Note that the Big Ten passed on Missouri (the most oft-referenced school that would plausibly defect) multiple times when the school was a Big 12 member, so it makes little sense that Jim Delany and the university presidents would even target them now, while a school like Vanderbilt might make the ivory tower-types happy but does little for the financial football goals of the conference (and believe me, as much as I enjoy talking about the CIC and academic status of the Big Ten, the “football” part of the equation still needs to be met). After adding Penn State, the Big Ten was more than willing to wait for two decades to find the correct non-Notre Dame expansion candidates, so I find it to be entirely consistent that they’d be fine with waiting another decade to see if schools like Texas, UNC, UVA, Georgia Tech, Kansas and/or Oklahoma are willing to test the free agent market at that point.

(2) SEC – Meanwhile, the SEC is essentially in the same boat as the Big Ten: all of the candidates that it would realistically want are sitting in the ACC or Big 12. The new SEC Network being formed with ESPN isn’t going to gain anything without a UNC-level addition, which means that expansion is pointless for Mike Slive’s group for the next decade. I don’t subscribe to the Clay Travis bloviations that the SEC Network will blow everyone else out of the water (there are some basic concrete reasons why the Big Ten will very likely continue its current TV revenue dominance for quite awhile, not the least of which is that Jim Delany will get to send the Big Ten’s first tier rights out for open market bidding in a couple of years and that would result in a massive windfall even if Maryland and Rutgers don’t add another dime of revenue to the BTN), but the league will certainly make enough to make it rain in the clubs.

(Note that the key market to watch for SEC Network carriage is the state of Texas. To be clear, I believe that Texas A&M has significantly more pull in its home state than, say, Rutgers has in New Jersey. However, the state of Texas is already home to two of the most high profile ongoing sports network carriage disputes in the country with the ESPN-owned sister channel Longhorn Network not being able to strike a deal with any major cable or satellite carrier other than AT&T U-Verse and Comcast SportsNet Houston, which carries Astros and Rockets games and is co-owned by those teams, still not having anything in place with DirecTV and DISH Network (which is particularly problematic in the Texas market that has higher satellite penetration compared to Northeastern markets such as New York, Boston, Philadelphia and Washington, DC that have larger percentages of traditional wired cable customers). Now, the SEC Network is going to provide significantly better content than the Longhorn Network, but the fact that such a large portion of the Houston market hasn’t had access to the Rockets led by James Harden, Jeremy Lin and Omer Asik (I still can’t believe that my battered but still fighting Bulls let that guy get away for nothing in return) for an entire season and currently the Astros (as horrible as they might be on-the-field these days) is an indicator that the SEC Network isn’t just going to get Texas cable and satellite operators to roll over. I fully acknowledge that no cable operator will be able to last a day within the state of Alabama if they’re not carrying Crimson Tide football, so I’m just pointing out the Texas market specifically here as a place to focus upon.)

(3) ACC (plus Notre Dame) – At the same time, the ACC is likely going to spend the next decade in the same mode that the Big Ten was during the 1990s: reserving a spot for Notre Dame. Now, that doesn’t mean that Notre Dame has any intention of joining the ACC as a full football member. Quite to the contrary, I believe that Notre Dame’s ability to stay independent is stronger today than it was 10 years ago when the ACC began its multiple raids of the Big East. Notre Dame has secured an long-term extension of its NBC deal, isn’t subject to any conference championship requirement to have access to the new College Football Playoff, will have access to the Orange Bowl and all secondary ACC bowl tie-ins, and will be in a great power league for basketball and non-revenue sports. There’s less logic in Notre Dame giving up independence today than when it appeared that the Big East was going to collapse without a home for non-football Irish sports in 2003. However, never underestimate how much university administrators delude themselves into thinking that they’re going to be the ones that change the hearts and minds in South Bend. Jim Delany, Deloss Dodds and John Swofford, who I consider to be smart men (whether or not you agree with their actions), have all been fooled on this front. With a grant of rights in place, the ACC doesn’t need to proactively grow at this point and can use the “We’ll wait for Notre Dame to come around” retort to further expansion for awhile (even though anyone that has any clue about how single-mindedly focused the Notre Dame alumni base will fight any hint of giving up football independence knows that they’ll never come around). There’s really no need for the ACC to act unless (until?) it gets poached again by another power conference.

(4) Pac-12 – The Pac-12 is an interesting case since it could conceivably benefit from further expansion with schools that are outside of the 5 power conferences (particularly the Mountain West) from a pure financial standpoint, but none of the realistic candidates for that league fit the requirements for markets and/or academics. BYU has a great brand name with a national following and solid academics, but the political viewpoints of the LDS make that school into a non-starter at places like Berkeley. UNLV provides a great market with potentially a gleaming new football palace in Las Vegas, yet the school is far off from what the Pac-12 wants for academics and even worse on the actual on-the-field football front. New Mexico has a similar decent market/horrific football combo. Hawaii could possibly pass muster in terms of academics and football, but this is one case where geography is likely untenable. (It’s still a quicker flight from Los Angeles to Miami than it is from LA to Honolulu.) Boise State’s football prowess and national TV appeal can’t overcome its academic standards that the Pac-12 won’t accept. So, the Pac-12 seems to be boxed in even if it wanted to expand.

(5) Big 12 – As a result, any realistic chance for further power conference expansion in the near future rests with the Big 12. When Jim Delany, Mike Slive, John Swofford and Larry Scott tell reporters that their respective conferences are happy with their current membership levels, I believe them. All 4 of those conferences are at natural stopping points. In contrast, the Bob Bowlsby and the Big 12 seem to have unfinished business – being at 10 members in this environment of larger conferences is much more tenuous than it was 3 years ago, so there’s going to be a lingering feeling of instability with the Big 12 until it gets back up to at least 12 schools in the same way that no one could rest easy when the Big Ten sat at 11 members. While the Big 12 doesn’t have any truly obvious expansion options, they have a bit more leeway compared to the Pac-12 geographically, academically and culturally. For instance, what bothers the Pac-12 about BYU isn’t going to fluster a conference that has a member that didn’t allow any dancing on campus until the Tupac/Biggie feud was at its zenith. The Big 12 could also conceivably expand in virtually any direction within the continental United States, so it’s not implausible that the conference could consider any of UConn, Cincinnati, Colorado State,New Mexico and/or UNLV.

The problem, though, is that the Big 12 is boxed in financially. Unlike the Big Ten, Pac-12 and SEC (and maybe eventually the ACC), the Big 12 doesn’t have a conference network that can leverage additional households in expansion and is entirely dependent on its national ESPN/Fox deal for conference TV revenue. Now, schools such as Texas and Oklahoma enjoy lucrative third tier rights deals within the Big 12, yet that doesn’t do anything to support overall conference expansion. Plus, the expansion candidates are still largely flawed, as the best football schools like Boise State don’t bring any solid TV markets or recruiting grounds while the schools with the best demographics (e.g. UNLV, New Mexico, Colorado State) have some of the worst FBS football programs anywhere. BYU plus Cincinnati or UConn would seem to be the best shot for the Big 12 to maximize financial value in expansion out of what’s realistically available, yet that combo may not be enough. Unfortunately for the Big 12, the conference’s leaders (or maybe just Texas AD Deloss Dodds specifically) got sidetracked for awhile by chasing the expansion lottery dreams of Notre Dame and Florida State while passing on what could have been lucrative and stability-producing additions with Louisville (which would have given a nearish geographic partner for isolated West Virginia) and BYU. The ACC grabbed Louisville to backfill for Maryland, though, and that ended taking a lot of solid expansion combos for the Big 12 off the table (as any desirable expansion for the Big 12 that didn’t include the pipe dreams of Notre Dame and/or Florida State involved Louisville on some level).

To be sure, the Big 12 (a) probably will always be a pretty good conference in terms of football on-the-field by virtue of being the most prominent conference in the recruiting rich state of Texas and (b) will unequivocally be a power conference with high national TV revenue numbers and bowl appeal as long as Texas and Oklahoma are members. However, that’s also a blessing and a curse, as the conference’s over-reliance on the state of Texas and a couple of marquee brand names exposes some of the same weaknesses in the Big 12 that eventually caused the old Southwest Conference to collapse. The demographic growth prospects of the state of Texas specifically are fantastic, but that masks the fact that the Big 12′s demographics outside of Texas are the worst out of all of the 5 power conferences by a wide margin. (This is a large reason why I never bought what was seemingly a widespread belief that ACC schools would defect to the Big 12 no matter what financial arguments some observers attempted to make.) Long-term, the Big 12 is at risk because there isn’t a ready reservoir of brand names that it can expand or merge with in the way that the old Big 8 took Texas, Texas A&M, Texas Tech and Baylor from the SWC. That doesn’t necessarily mean that the Big 12 is at risk of completely breaking up like it did back in 2010-11 since I firmly believe that Texas desires the ability to control (or have perceived control over) a conference more than even making the most TV money, but it’s still the power conference that is bound almost entirely by the strength of its current TV contract (which will eventually expire) as opposed to the strength of its bonds beyond that (unlike the academic bonds of the Big Ten, ACC and Pac-12 or the geographic institutional football focus of the SEC). So, the Big 12 is still be the power conference that will be most susceptible to raids in the future, just as it was 3 1/2 years ago when Jim Delany first announced that the Big Ten was looking to expand. We may just have to wait another 10 years before power conference chaos happens once again. Until then, we’ll need to pay attention to the non-power conferences and basketball leagues (Oakland moving to the Horizon League was announced today and Davidson appears to be heading to the Atlantic 10 as rumored) for our conference realignment fixes.

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

(Image from Sports Illustrated)

ACC Grant of Rights: The Beginning of the End of Conference Realignment?

Posted: April 22, 2013 in Big Ten, College Basketball, College Football, Sports
Tags: , , , , , ,
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Despite being a Big Ten guy that would personally love to have Jim Delany add Florida State, I’ve repeated the following statement many times on this blog: the ACC is much stronger than what people give it credit for. It’s not that I’m a fan of the ACC at all, but simply a reflection that it has never been as open for poaching as so many conference realignment observers thought or wanted it to be. Despite perceived TV contract problem, it’s a conference with strong brand names and good-to-great academics in arguably the most demographically desirable geographic footprint of any league in the country. So, it wasn’t a surprise to me that the ACC finally solidified its position to the outside world with its members unanimously agreeing to a grant of media rights to the conference through 2026-27. For the uninitiated, the “Grant of Rights” is a key tool in protecting a conference’s membership since each school individually grants its media rights to its league for a set period of time, which applies even if such school ends up defecting. For example, if an ACC school now attempted to leave for the Big Ten, SEC or Big 12, the ACC would still own that school’s media rights until 2026-27. That effectively makes ACC schools worthless from a raiding conference’s standpoint since they either can’t get access to those media rights or would have to pay a large buyout to the ACC to obtain them. The Big Ten, Pac-12 and Big 12 schools have already agreed to a grant of rights to their respective conferences.

With 4 of the 5 power conferences having a vested legal interest in seeing grant of rights agreements being upheld in court (and the 5th power conference that doesn’t have a grant of rights, the SEC, being so strong financially off-the-field and competitively on-the-field), it’s likely that we have seen an end to power conference realignment for the next decade or so. There’s a chance that the Big 12 may be compelled to expand back up to 12 or more members from its current 10 or that the Pac-12 could eventually find a current Mountain West Conference member attractive, but the shifting between the power conferences themselves is probably over. From the Big Ten’s perspective, it’s probably all well and good. As much as I personally wanted the Big Ten to look at a school like Florida State, it likely only had eyes for the AAU likes of Virginia, North Carolina and Georgia Tech, all of whom would have been extremely difficult to poach (particularly UNC). The SEC also was set on looking at UNC and maybe rival Duke as a pair, which also would have been a monumental task to pull off. Much like the Big Ten was better off seeing Texas stay in a weakened Big 12 as opposed to heading off to a stronger Pac-16, if Jim Delany can’t nab his alma mater of UNC for himself, maintaining the status quo is much more preferable than seeing UNC head off to the SEC (as unlikely that would have been). From both the conference financial and fan perspectives, there isn’t any Big Ten expansion scenario that makes any sense without 2 or more schools from one of the ACC or Big 12. I’m sure that Mike Slive and SEC fans would feel the same way about SEC expansion.

The conference realignment game has been particularly cruel to American Athletic Conference* orphans UConn and Cincinnati. Their most realistic paths back to power conference status were all via further raids of the ACC opening up more slots. Neither school fits the profile of what the Big Ten and SEC would be looking for, the Pac-12 is out of geographic reach, and the ACC isn’t likely going up to 16 with either of them and would only be interested in them as backfill candidates in the event they ever do lose other members. The best hope for UConn and Cincinnati at this point (and it’s a bit better for the latter) is that the Big 12 ends up having an urgent need to expand again. Using 20/20 hindsight, the Big 12 might rue the day that they passed over taking Louisville and a 12th school (either BYU or Cincinnati) as the ACC surprised a lot of people in grabbing what has ended up being a fairly valuable football and basketball chip off of the table. A Louisville/BYU combo was likely financially viable to the Big 12 in a way that any BYU/Cincinnati/UConn combo probably can’t be, so the Big 12 seems stalled at 10. That might be perfectly fine for the conference’s university presidents and athletic directors at this time, but having a lack of viable expansion options is a much more acute long-term problem for a 10-school conference than ones at 12 or 14 members. I’ve never been a proponent of any conference expanding simply for the sake of expanding, yet it feels like the Big 12 didn’t take advantage of a momentary position of strength after they signed their new TV deal with ESPN and Fox last year. Now, to be sure, I never bought for one second that the Big 12 had any legitimate chance at Florida State and Clemson (the former was really only interested in shaking the money trees of the Big Ten and SEC). However, adding Louisville and BYU would have been a solid expansion both athletically and geographically for the Big 12 and that’s an opportunity that has slipped away. The ACC’s choice of Louisville over UConn and Cincinnati effectively blocked Big 12 expansion, whether John Swofford intended for that to happen or not (and I tend to agree with Andy Staples that Swofford is a ninja that has been underestimated by a lot of college sports fans).

(* My vote for the new AAC logo is here.)

As for the ACC itself, there’s little point in entertaining expansion for the foreseeable future. Contrary to the belief of a surprisingly large number of sports fans, the fact that the ACC has an odd number of basketball teams as a result of Notre Dame’s non-football membership has absolutely zero bearing on conference realignment. The only time that an odd number of schools matters is for a football alignment, which wouldn’t apply in the case of the ACC. Therefore, the conference certainly wouldn’t add a single all-sports member to create an odd number of football schools, and it’s doubtful that going up to 16 is appealing with the ongoing hope (however misguided that it might be) that Notre Dame might join the league as a football member within the next 40 years.

Speaking of Notre Dame, the Irish have managed to solidify their independence for the foreseeable future with an extension of their contract with NBC through 2025. If one thing has been made clear through conference realignment over the past 3 years (to the extent that it wasn’t already clear), it’s that Notre Dame’s ironclad principle is to maintain independence above making the most TV money (which, to be sure, is still quite good for them), scheduling concerns or any other factor besides being structurally foreclosed from winning a national championship (which will be far from the case in the new 4-team playoff format). The ACC is honestly a perfect setup for Notre Dame – the Irish get access to a power conference for non-football sports and a full slate of bowls with a partial conference scheduling commitment that consists largely of schools that they would generally be willing to play, anyway. They’re not going anywhere for a loooong time.

Now, conference realignment for the world outside of the five power football conferences is far from over. The formation of the “new” Big East is spurring a large scale realignment of non-FBS Division I conferences (starting with the Atlantic 10 adding George Mason and Davidson and the Missouri Valley Conference taking Loyola). Many FCS football programs are finding themselves in financial purgatory where they are looking to move up to FBS homes. There might even be a full scale realignment of the college sports world with a possible breakaway of the top football leagues from the NCAA. Still, it feels like the big conference realignment moves (outside of that possible NCAA break-up) have been completed… except, of course, for Johns Hopkins going to the Big Ten.

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

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Back Home: Big Ten Division Thoughts and Sweet Missouri Valley Conference Expansion

Posted: April 2, 2013 in Big East, Big Ten, College Basketball, College Football, DePaul Blue Demons, Illinois Fighting Illini, Sports
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I’m finally back from a spring break vacation in Arizona (80 degrees for the White Sox spring training game that I attended last Wednesday compared to 30 degrees for Opening Day in Chicago yesterday), so let’s get a few updates since I haven’t posted in awhile:

(1) Big Ten Divisions – It appears that the Big Ten office is heeding the calls for the “Keep It Simple Stupid” approach of dividing the soon-to-be 14-team conference into East and West divisions, with Michigan State heading East with Michigan, Ohio State, Penn State, Rutgers and Maryland, the West having Illinois, Northwestern, Wisconsin, Nebraska, Iowa and Minnesota and the only debate being where Indiana and Purdue will be placed.  IU-PU will then be the only protected cross-division rivalry.  Assuming that this comes true, my message to the Big Ten office is the following: THANK YOU! THANK YOU! THANK YOU!  While I initially advocated Michigan State being placed in the West with both Indiana-based schools in the East, the newly rumored setup was the next best alignment from my perspective.  The Pac-12 was smart in not trying to force any protect cross-division games outside of the California-based schools playing each other annually, so it’s great that the Big Ten reportedly will only keep the Old Oaken Bucket as protected while the West can continue to rotate through Michigan, Ohio State and Penn State more often in this KISS alignment.  (Note that it’s a heck of a lot less heartburn for the West schools to see Indiana or Purdue falling off the schedule more often compared to Michigan, Ohio State and Penn State, which was likely a large driver for Sparty getting placed in the East.) It still makes a lot more sense in my mind for Indiana to head to the East since it’s (1) actually further East than Purdue, (2) a school with a disproportionately large East Coast student population and (3) better for competitive balance purposes.  The only reason that I can think of for IU pushing back on an Eastern placement is that it knows that it will never break its Rose Bowl drought competing in a division with resurgent Michigan and Ohio State programs.  Regardless, the Big Ten seems to finally be making the right choices on its divisional alignment.  Let’s just hope those right choices also extend to burying the Legends and Leaders division names next to Jimmy Hoffa*.

(* The Meadowlands aren’t that far from Rutgers, so it would still be in the Big Ten footprint.)

(2) Sweet Missouri Valley Conference Expansion – The “new” Big East consisting of the old Catholic 7 schools poached Butler and Xavier from the Atlantic 10 and Creighton from the Missouri Valley Conference right before the start of the NCAA Tournament, which is likely going to trigger a massive realignment of the midmajor non-FBS conferences.  While the MVC is celebrating Wichita State’s Final Four run, it is also the league most openly pursuing expansion/replacement options as of now (Missouri State’s president actually Tweeted that he’s out visiting interested expansion candidates)*.  Various reports so far indicate that the MVC has had some conversations with Oral Roberts, UMKC, Loyola (Chicago), UIC** and Valparaiso.  The latter three Chicago area schools don’t surprise me at all: I Tweeted a few weeks ago that my gut feeling was that those programs plus Belmont would be at the top of the MVC list if Denver wasn’t going to be considered.  (Reading between the lines in this interview by MileHighMids of Denver’s athletic director, it appears that the MVC would have been interested in Denver if the school were to add more sports, but the AD isn’t willing to commit to that right now.)

(* For a great analysis of potential MVC candidates using Google Maps, check out this anonymous posting.)

(** For disclosure purposes, my parents met at and graduated from UIC, with my father then spending over 3 decades working at that campus. I don’t have any real rooting interest in the UIC Flames sports teams, but I’ll admit to having an affinity for the institution overall with my family connection.)

Perusing some MVC message boards and blogs, I’ve generally seen fans vomit over these choices with calls that they could either (1) do better or (2) stand pat at 9 schools.  It reminds me of the recent UCLA basketball coaching search*, where much of the fan base seemed to be incredulous that they couldn’t lure the likes of Brad Stevens or Shaka Smart and had to settle for the protector of a rapist… er… Steve Alford.**  The MVC fans seemed to have hopes for the likes of SLU and/or Dayton (the former of which is definitely going to be in the Big East, where it’s just a matter of when, while the latter likely will be there but has to sweat it out a bit with Richmond as a competitor for spot #12) and are now facing the reality that the realistic candidates aren’t nearly as desirable.

(* For what it’s worth, I believe that UCLA is an elite program with only Kentucky, Kansas, North Carolina, Indiana and those rat bastards from Duke being in the same class. However, the Bruins’ lack of a sexy hire was the result of an elitist approach to job security by the school and fan base. That is, they just fired a guy in Ben Howland who went to three Final Fours, pulled in a top-ranked recruiting class last year and won the Pac-12 regular season championship this year.  At most schools, that record warrants a lifetime contract – Shaka Smart is going to be able to parlay a single Final Four run into perpetuity at VCU.  I fully understand how many UCLA fans believed the trajectory of the program was going in the wrong direction with Howland and a change might have been needed simply for the sake of a change, but they might have failed to understand how top level coaches in stable positions aren’t exactly enthralled with the prospect of taking a job where a 3-time Final Four coach got canned right after winning a conference championship. Hence, the pool of interested parties was much more shallow than anticipated.)

(** I highly recommend Black Heart Gold Pants blogger Patrick Vint’s message to UCLA fans about Alford on Bruins Nation.)

From my perspective, the MVC isn’t going to be able to add any real home run additions on-the-court. Belmont has the best performance over the past few seasons of the potential candidates, but geographic fit seems to be an issue in that case and their attendance figures have been subpar.  As a result, the MVC likely needs to concentrate on attacking its worst weaknesses as opposed to attempting to replace the irreplaceable Creighton in terms of basketball performance.  To me, that worst weakness is that fact that Wichita is the MVC’s largest TV market at #69 overall in the US.  Those of you that read me regularly know that I’m not in favor of expansion only for the sake of additional markets, but in the case of the MVC, having Wichita as your largest market is Charles Barkley turrible. Even if some of the candidates in large markets aren’t necessarily great TV draws, the MVC is eventually going to need them for recruiting purposes for long-term survival.  (This is why even if SLU and Dayton end up leaving the Atlantic 10 on top of Butler and Xavier, that league is still in much better position going forward with its footprint.) That means that a school like Murray State, which has had solid attendance and on-the-court performance, might appear to be desirable for MVC fans but not so much for the conference’s university presidents.

As a lifelong Chicagoan, I have a particular interest in how the MVC is going to proceed since I firmly believe that it should have a better presence in the Chicago market than it does today. Illinois State, Southern Illinois and Bradley all predominantly draw students from and send alumni to the Chicagoland area (with Northern Iowa and Drake also sending large contingents to the region, too).  However, the MVC doesn’t draw the coverage that it ought to considering the in-place fan base since it lacks a direct Chicago presence (which is critical unless you’re the University of Illinois or Notre Dame).  Therefore, it’s not a shocker that two city schools (UIC and Loyola) and a university on the periphery of the metro region in Northwest Indiana (Valpo) are being visited by the MVC powers that be. The MVC leadership likely recognizes what I see in that Chicago is a large market that can be legitimately leveraged by the conference.  It’s not so much that the MVC thinks that UIC or Loyola can “deliver” Chicago in a way that Illinois, Northwestern, DePaul or Notre Dame are able to, but rather that the critical mass of MVC students from and alums living in the area can give the league a solid presence akin to what the A-10 has in Philadelphia or Washington, DC. The MVC doesn’t have any type of major market anchor right now and that’s increasingly going to be a negative risk factor if it’s not rectified.

I haven’t forgotten that ORU’s crosstown neighbor of Tulsa just got invited to the “Old” Big East (or Conference TBD) today. I’ll have more thoughts on that the status of that league in a separate post. Until then, enjoy the Final Four!

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

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Revenge of the Ballers: Why Football Isn’t Everything in Conference Realignment

Posted: March 4, 2013 in Big East, Big Ten, College Basketball, College Football, Sports
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Back in 2010 and 2011 when the Big 12 was under siege by the then-Pac-10, Big Ten and SEC and appeared to be on the verge of collapse, basketball blue blood Kansas was looking like it could left out of the power conference structure. Circumstances were so dire at that point that Kansas, Kansas State, Iowa State and other Big 12 schools without any realistic prospects of moving to another power league actually approached the Big East to join if the worst case scenario came to fruition. It was a scary thought to a lot of fans: if Kansas could be left behind, then football is truly all that matters and basketball must have virtually no value in conference realignment. The 10 points (out of a total of 100) that I assigned to “Basketball Brand Value” in the original Big Ten Expansion Index was looking like a massive overweighting of hoops back then.

To the extent that it was already clear, the maxim was set in stone: “Football is everything in conference realignment.” Discussions about basketball value went by the wayside over the past couple of years as conference realignment discussions focused intensely upon how to maximize football dollars. Now, to be sure, much of this made (and still makes) sense for the power conferences. First tier TV contracts for college football dwarf those for college basketball while the top conferences (via the bowl system) are able to funnel postseason football money directly to their own coffers instead of having to deal with the NCAA for basketball postseason dollars.

However, any hard and fast rule is bound to be broken. As the Big East started suffering from a disintegration over the past 18 months that was originally prescribed for the Big 12, the seven non-football playing Catholic members of that league decided to break off and form a basketball-focused conference. There was quite a bit of skepticism that this could be financially viable considering that the Atlantic 10 signed a new deal worth only $350,000 per school per year (compared to the $1.3 million per year that each of the Big East schools were receiving for basketball under the current ESPN contract that’s about to expire). The perception was that football was propping the “Catholic 7″ up and they would be taking a substantial haircut by splitting off from the gridiron portion of the conference.

Then, the TV offers came in. The Catholic 7 received an offer from Fox worth $3 million to $4 million per school per year just for men’s basketball, while the remnants of the Big East will be getting about $2 million per school per year for both football and basketball. Think about it this way: Cincinnati, which has been to 2 BCS bowls and was seconds away from making it to the football national championship game in 2009, is going to end up making 50% to 100% less TV money for football and basketball than crosstown rival Xavier will be making from basketball alone (assuming all of the reports are correct that Xavier will be joining the Catholic 7)… and Xavier is going to end up being in the conference named “The Big East”, too.

If the Big East/Catholic 7 TV contract situation hasn’t changed how you view conference realignment overall, it should. This should be a glaring warning signal any conference that is not named the Big Ten, SEC, Pac-12, Big 12 or ACC: football in and of itself isn’t going to get leagues paid and they better start paying attention to basketball if they want to maximize revenue. For instance, if I was running UConn, Cincinnati, Memphis and/or Temple, I would start questioning what the point is of having massive capital expenditures and operating expenses for football when nearby schools are getting paid more than my athletic department based on perceived basketball prowess. Now, schools like UConn or Cincinnati are still be positioning themselves to get into the ACC or Big 12, so they obviously can’t downshift in football, but maybe they would be better off creating a public university version of the Catholic 7. For instance, take UConn, Cincinnati, Memphis and Temple as a base and then add on UMass, Old Dominion and Charlotte as all-sports schools and Virginia Commonwealth (VCU) and Wichita State (and maybe a couple of other public schools like Rhode Island) as basketball members. Navy might actually prefer to be a football-only member in that type of league compared to the Big East as currently configured, as well. That’s just throwing a list of schools against the wall, but what’s clear to me is that very high basketball value of UConn, Cincinnati, Memphis and Temple is getting severely diluted by the rest of the “new” Big East that won’t be called the Big East anymore. (For the purposes of this post, I’ll define the Big East football schools left behind as the “Big X”.) UConn getting a fraction of what Providence is receiving in terms of TV money ought to be unacceptable to the people in Storrs (even if the Huskies’ long-term plan is to get into the ACC at all costs), so it’s time to start rethinking the conventional wisdom of the role football plays in conference realignment.

What we have seen over the past 3 years is a lot of moves on paper, but the overall effect being more of the same. The power club when the BCS system was created in 1998 consisted of 6 conferences and 63 schools (including independent Notre Dame). 15 years later, the power club now has 5 conferences and 65 schools, with 3 schools moving up (Louisville, TCU and Utah) and 1 school moving down (Temple, who was kicked out of the power structure due to performance as opposed to anything related to realignment). That is a net change of 2 schools over the course of 15 years. Essentially, every single school that isn’t already in a power conference is praying for a winning lottery ticket with their respective football programs with those odds. As any financial adviser could tell you, though, pinning your dreams on winning the lottery isn’t a viable investment plan. When the Big East became too filled with “riff raff”, the entire league got kicked out of the power club instead of being integrated. It’s clear that the power club doesn’t want to get much larger (if at all), so everyone outside of that top tier needs to start looking at other ways to maximize revenue.

While basketball is much less of a concern to the power conferences at face value, consider which school is the top target for both the Big Ten and SEC (the 2 richest and most powerful conferences): North Carolina. It certainly isn’t due to UNC’s prowess at football or avoiding academic fraud. To the contrary, UNC is a basketball blue blood, and more importantly, Tar Heels basketball games are so critically important in the state of the North Carolina that a conference TV network carrying such games can effectively charge whatever carriage rate that it wants in that market. Think of the Big Ten’s addition of Maryland, as well. Fan enthusiasm for Terps football has been tepid lately, but part of what the conference is banking on is that there is a critical mass of interest in Maryland basketball where it can get the Big Ten Network basic carriage in the Washington, DC and Baltimore markets.

For conferences that don’t have their own TV networks, then the main way to monetize expansion is through first tier football TV contracts. In contrast, the “market” model of conference TV networks means that basketball needs to be taken into account more. (See the BTN garnering its highest-ever rated month in prime time in January based on the strength of the hoops league this year.) At the same time, the number of strong football brand names that are willing to move is pretty low right now. In 2010, everyone in the old Big 12 that had Texas, Oklahoma, Nebraska, Colorado and Texas A&M, everyone in the Big East that had Pitt, West Virginia, Syracuse and Louisville, and the ultimate hammer of Notre Dame was conceivably on the table. Now, the biggest football brand name that seems to be possibly available is Florida State, but there’s a feeling that they’re just rattling sabres about their supposed dissatisfaction with the ACC (where they’d be happy to move to the Big Ten or SEC, but don’t dislike the ACC enough to go to the Big 12). As a result, it simply might not be realistic (or possible) for conferences that are in acquisition mode to add much football prowess even if that’s their top priority. Thus, those leagues have to look to other factors such as monetizing basketball, which is very much possible (if not completely necessary) under the conference network model. Football might bring in the largest audiences for conference networks, but basketball is what keeps the lights on and provides enough content to justify basic carriage.

Make no mistake about it: all things being equal, of course conferences would want top football programs over top basketball programs. There’s nothing that generates more revenue than a power football school. However, what people need to start questioning is the misguided logic that any football program is more valuable than any basketball program. The Catholic 7 has shown that this isn’t the case at all. Athletic departments across the country need to take note in trying to figure out how they want to position themselves in the new college sports landscape.

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

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The Big East Name Defects from the Big East: Catholic 7 Expansion and Branding

Posted: February 28, 2013 in Big East, College Basketball, College Football, DePaul Blue Demons, Illinois Fighting Illini, Sports
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It figures that a conference that has lost 5 all-sports members, 8 non-football schools and 3 schools that accept invites to join but then backed out before playing a down of football within the past 18 months would ultimately end up losing its own name.  Both Brett McMurphy of ESPN.com and Mark Blaudschun are reporting that the Big East presidents are expected to approve a plan to allow for the “Catholic 7″ defectors from the conference (Georgetown, Villanova, St. John’s, Seton Hall, Providence, DePaul and Marquette) to keep the Big East name and leave the league for the 2013-14 season.  Pete Thamel of SI.com notes that Fox is pushing for the early exit and is expected to announce a contract with the Catholic 7/Big East when it unveils its plans for its new pair of sports networks of Fox Sports 1 and Fox Sports 2.  He also reports that the Catholic 7′s keeping of the Big East name and early exit are effectively being paid for by leaving the exit fees and NCAA Tournament credits of the other Big East schools that have defected or will be defecting (West Virginia, Syracuse, Pitt, Louisville, Rutgers and Notre Dame).  Meanwhile, a consensus has formed that Xavier and Butler will be added immediately to the new league with the old name for next season with a chance that a 10th, such as Creighton, comes in at that time.  The Catholic 7/Big East would then likely move up to 12 with St. Louis and Dayton (or possibly Richmond) in 2014-15.

The fight over the Big East was interesting since it’s a brand name that has been dragged through the mud lately yet still had a lot of value to both the Catholic 7 and Conference Formerly Known as the Big East football schools for different reasons.  From my vantage point, the Big East name is more valuable with the Catholic 7, but was more valuable to the football schools.  That is, the Catholic 7 are more able to fully realize the value of the Big East name since it had the bulk of the remaining historical members that weren’t in other power conferences and there wouldn’t be a cognitive dissonance if they held their conference tournament at Madison Square Garden.  On the other hand, the football schools have little association with each other besides being new members of the league that was known as the Big East specifically.  The Catholic 7 could have more easily re-branded themselves under a different name since the average sports fan could already largely recognize that group as a cohesive unit, while the football members will need to sell a new untested name on top of educating the public about who is in their conference.  As a result, I’m a little surprised that the football schools didn’t pull out a rant like Marlo did on The Wire about how “My name is my name!”

Of course, the exit fees and NCAA Tournament credits of the other Big East defectors that the Catholic 7 are leaving behind aren’t small amounts.  Some back-of-the-napkin calculations would put that at least on the order of $20 million just for the NCAA credits.  (Edit: Jeremy Fowler of CBSSports.com reported earlier this month that the Big East actually has a “Realignment Reserve Fund” that is projected to be worth $68.8 million by 2020.)  Significantly, it’s likely that none of that is going to the incoming members of the league as part of their entrance agreements since it is standard operating procedure that new schools do not receive any of the revenue earned before they joined.  This means that UConn, Cincinnati and USF, which are currently the only all-sports members in the Big East with voting rights (Temple still isn’t a full member yet), are probably ending up with all of that money that the Catholic 7 are leaving behind, which would certainly make it more palatable for them to let go of the Big East name in return.  It’s at least some financial consideration for literally the only three schools in all of FBS that will end up earning less conference-level money outright in the new college football playoff system that starts in 2014 than they are in the current BCS regime.

Maybe it is all for the best for the football schools that thought that they were going to be in a conference called the Big East.  Andersen Consulting had to go through an acrimonious split with its parent Arthur Andersen back in the late-1990s, including losing an arbitration proceeding where it was forced to give up any reference to the then-extremely valuable Andersen name*.  The new name “Accenture” was chosen and literally hundreds of millions of dollars needed to be spent on re-branding efforts.  What seemed like a huge branding blow in 2000 ended up becoming one of the most fortuitous name changes in history just a year later when the Enron scandal hit and took Andersen down entirely as an accounting firm.  Sometimes, a fresh name with a new start can end up being better in the long run even if the benefits aren’t obvious today.

(* I was a finance major at the University of Illinois in the late-1990s and, without question, the most prestigious of the then-Big Five accounting firms was Arthur Andersen.  The sad irony of Andersen getting taken down in the Enron scandal partly for enabling poor audit decisions in order to preserve other types of tax services fees was that its main reputation, at least in Chicago, was that it was actually the least sales-oriented and most client-focused of the large accounting firms.)

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

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B1G Dirty South Expansion

Posted: February 19, 2013 in Big Ten, College Basketball, College Football, Sports
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Conference realignment observers have been chatting about the Big Ten raiding the ACC for awhile, but there were two separate reports today from sites with fairly good track records that point to this possibly occurring sooner rather than later.  InsideMDSports, which is the site that was among the first to report that Maryland was heading to the Big Ten, has Tweeted that North Carolina has an offer from former Dean Smith disciple Jim Delany and that Virginia and Georgia Tech are in the mix.  Meanwhile, Mr. SEC has his own post about how UVA and Georgia Tech have spoken with the Big Ten, but there won’t be any moves until there’s clarity in the ongoing Maryland/ACC lawsuit.

As I’ve stated previously, this all jives with what I believe the Big Ten wants to do with expansion.  The demographic shift to the South (both in terms of sheer population and football recruiting) has been a concern of the Big Ten for quite awhile – recall the results of the conference’s expansion study back in 2010 before they added Nebraska.  UVA in particular would give the Big Ten flags on both sides of the Washington, DC metro area, which might end up being the second most important market for the conference after Chicago when all is said and done.  (New York City is obviously the great white whale for college sports, but penetrating that market is going to be a long-term process for the Big Ten.  DC, on the other hand, can be turned into a legit “Big Ten town” immediately with the right combo.)

UNC, as one of the most prominent brand names in college sports that can deliver its entire home state all on its own, is at or near the top of the list of both the Big Ten and SEC, so it wouldn’t be a surprise if Delany had offered his alma mater an invite years ago.  However, I’ll reiterate that the Tar Heels are going to be one of the toughest nuts to crack in conference realignment (if they’re even crackable at all) since TV money alone isn’t going to sway them.  The ACC culture is strong at that school and, even if there are other defections from that league, UNC alone could keep the rest of the conference together just as the presence of Texas kept the Big 12 together.

Georgia Tech is a name that is brought up in Big Ten expansion discussions fairly regularly.  In a vacuum, there’s a lot to like about Georgia Tech – a great academic school in a top TV market and football recruiting area that is one of the largest destinations for Big Ten grads outside of the Midwest.  The problem, though, is that the SEC rules (and likely always will rule) Atlanta.  If there is a broader Southern expansion for the Big Ten (e.g. UVA, UNC, Georgia Tech and Florida State are all added to create an 18-school Big Ten), then there probably is enough of a critical mass of fans in the Atlanta market where it’s worth it to be the #2 conference there (as it’s such a strong college football market overall).  I’m not a fan of it being a lone geographic outlier in the South, though, which is close to what it would be if only UVA were to be added with the Yellow Jackets.

At the same time, as someone that implored people to “think like a university president and not like a fan” when it came to conference realignment back in 2009, I’ve now come full circle in badly wanting to make sure that the Big Ten ends up with at least one more legit football power if it is going to continue expanding.  Unless Notre Dame suddenly gets conference religion, the only realistic option on that front is Florida State and, by several accounts, the Seminoles are there for the taking.  As I’ve stated before, Florida State hits virtually every metric that the Big Ten is looking for long-term: football power, growing population and massive TV markets.  I understand better than most people about the importance of TV markets and academics to the Big Ten, yet this expansion gravy train is still ultimately fueled by football games that sports fans actually want to sit down and watch.  Let’s hope that if the Big Ten actually is able to further raid the ACC (and I’ll be a skeptic of that occurring until the day that there’s an actual announcement) that Jim Delany (who I’m sure is more than open to the prospect of adding FSU) is able to remind the university presidents that there still needs to be football branding on top of collecting large metro areas and research institutions.

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

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A TV Network Killed the Big East (and It’s Not the One in Bristol)

Posted: February 11, 2013 in Big East, Big Ten, College Basketball, College Football, DePaul Blue Demons, Sports
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Brett McMurphy and Andy Katz of ESPN.com have reported that NBC has verbally offered the remnants of the Big East between $20 million and $23 million per year for six years for the conference’s TV rights for all sports (including both football and basketball).  That would be approximately $2 million per year for each school in the league.  By way of comparison, each individual school in the Big Ten, SEC, Pac-12 and Big 12 (and depending upon who you talk to, soon the ACC) will make about as much TV money on its own annually than the entire Big East conference.  This is the latest news in the stunning decimation of the Big East since the league rejected an offer from ESPN two years ago worth an average of $130 million per year.  During that time frame, the Big East has lost 5 football members that have actually played in the league (Pittsburgh, Syracuse, West Virginia, Rutgers and Louisville), 8 non-football members (Notre Dame, Georgetown, Villanova, St. John’s, Seton Hall, Providence, DePaul and Marquette) and 2 3 schools that defected before they even played a down of Big East football (TCU, Boise State and San Diego State).  In the middle of that process, the conference also lost its place in the college football postseason structure, where it failed to secure a “Contract Bowl” slot (with its former BCS AQ counterparts Big Ten, SEC, Pac-12, Big 12 and ACC) and is now part of the “Gang of Five” non-power conference group (with the MAC, Conference USA, Mountain West Conference and Sun Belt as new counterparts).  The Big East made a huge gamble in taking its sports rights to the open market when it turned down that lucrative ESPN offer and even the largest conference naysayers couldn’t have predicted how badly that decision would backfire.

The argument that ESPN systemically devalued the Big East to the point where it was effectively destroyed is taken as gospel by many Big East partisans.  It started back in October 2011 with a quote from the then-AD at Boston College stating that ESPN “told [the ACC] what to do” in the wake of Pitt and Syracuse defecting to the ACC.  This line of thinking then continued on as the Big East lost more access in the new college football playoff system than any other conference (in fact, they’re likely going to be the only league that will end up making less money in the new format than it does in the current BCS system) and then suffered a literal avalanche of defections in the past 5 months.

However, it wasn’t the Bristol-based network that effectively killed off the Big East as we once knew it.  Instead, Fox, in its pursuit of becoming the main competitor to ESPN in US sports television, ended up pulling the trigger.  Consider two critical moves:

(1) Big Ten expands with Maryland and Rutgers – When the Big Ten added Maryland from the ACC and Rutgers from the Big East, Jim Delany wasn’t looking to aid its first tier national TV slate that’s being shown on the Disney networks of ABC and ESPN (unlike the addition of Nebraska in 2010).  Instead, the main beneficiary from this expansion was Fox, which is 51% owner of the Big Ten Network (BTN), since it now has an argument that the network should be carried on basic cable in the New York City and Washington, DC markets.  If anything, this move was terrible for ESPN since it makes Fox/BTN much stronger on the East Coast and took away schools from the two main conferences – the ACC and Big East – in which the Worldwide Leader owns all tiers of conference multimedia rights.  Without Fox and the BTN, the Big Ten doesn’t take Rutgers directly from the Big East or indirectly causing Louisville to defect (since the ACC replaced Maryland with the Cardinals).  The Big East still had the ability to survive as a viable football conference with Louisville and Rutgers in the fold, but once they were gone, Boise State (and subsequently San Diego State) didn’t believe that they would receive enough TV money to justify being complete western geographic outliers.

(2) Catholic 7 leave the Big East… because Fox convinced them to do so – A few weeks after the Rutgers and Louisville defections, the 7 remaining Catholic non-football schools (DePaul, Georgetown, Villanova, St. John’s, Seton Hall, Providence and Marquette) decided to split off from the Big East’s football members in order to form a new league (hereinafter called the “Catholic 7″).  Multiple reports from both ESPN (including the McMurphy/Katz report linked above) and Sports Illustrated have stated that Fox is the leading suitor for the rights to the new Catholic 7 league with offers of between $30 million and $40 million per year depending upon whether it has 10 or 12 schools.  That represents the Catholic 7 making around $3 million per year for basketball rights, which is more than the NBC offer to the Big East of $2 million per year for both basketball and football.

I’ve previously set forth reasons why the Catholic 7 would be more valuable than the new Big East even when they don’t offer any football (namely that football in and of itself isn’t what’s driving value and the Catholic 7 brand names and markets are much stronger top-to-bottom in order to garner a premium).  Even if you don’t want to believe that’s the case in terms of comparing the inherent values of the Catholic 7 versus the Big East, a Tweet from Brett McMurphy on Saturday should put this into clearer focus:

Do you see what occurred here if this is true?  Fox approached the Catholic 7 before they split off, which means it’s not so crazy to believe that Fox wanted them to split off.  So, if you believe that Fox is overpaying for the Catholic 7, then you might be right.  However, the point is that Fox needed to overpay the Catholic 7 in order to serve as a catalyst for them to split off.  If Fox just merely offered “fair market value” to the Catholic 7, then they likely would have stayed in the hybrid.  (Anyone that thought that the Catholic 7 would have split off without the knowledge that they’d be getting paid more compared to staying in the hybrid Big East isn’t thinking straight.)  There needed to be an extraordinary financial windfall from Fox in order for the Catholic 7 to take the extraordinary step of splitting off from the Big East football schools.  As a result, it’s almost pointless to try to compare the on-the-court basketball quality of the Catholic 7 versus the New Big East.  The amounts that are being offered by Fox to the Catholic 7 reflect a “blood money” premium offer that they couldn’t refuse, whereas the Big East isn’t going to garner any premium at all and will be subject to the “normal” market forces in play.

That leads to a corresponding question: why would Fox do this?  Why would it want to pay this much for the Catholic 7 instead of, say, simply bidding for the entire hybrid Big East?  Well, let’s take a step back and examine what Fox actually needs in terms of sports content.  The reality is that Fox (and when I say “Fox”, I really mean its new cable networks Fox Sports 1 and Fox Sports 2 as opposed to over-the-air Fox) already has a fairly full sports slate in the fall with Major League Baseball, NASCAR, Pac-12 football and Big 12 football rights.  As a result, they don’t have much of a need for other college football games.  The biggest programming gap that Fox has right now is during the winter, where its cable networks are pretty much wide open outside of some Pac-12 basketball rights.

I’ll put on my own tinfoil hat here, where my semi-educated guess is that Fox: (a) no longer had much interest in the New Big East football product after Rutgers and Louisville left, (b) still had interest in the Big East’s basketball product in order to provide winter programming and (c) didn’t want to get into a bidding war with NBC and/or ESPN to buy a Big East package for both basketball and football when all it really wanted was basketball.  As a result, Fox went straight to the Catholic 7 (who represented most of the schools that they wanted to showcase for basketball, anyway) and offered up enough money that would simultaneously be a financial boon to those schools while allowing the cable network operation to save money compared to a competitive bidding situation for the all-sports hybrid Big East rights.  It’s the very essence of a “win-win” for both the Catholic 7 and Fox here.

Meanwhile, the Big East has been left with only one legit suitor with NBC since Fox obviously has no interest (seeing that it made an offer to the Catholic 7 to split up the league), CBS has little funding for its fledgling CBS Sports Network and ESPN has had lukewarm feelings toward the league.  Without a bidding war, the already thrifty Comcast/NBC organization zero incentive to drive up the price of the Big East on its own, so this very low offer reflects that reality.  Either NBC takes the Big East rights or ESPN comes in to match it with its right of first of refusal (which the McMurphy/Katz article notes that the Worldwide Leader has), but there’s no other potential fountain of cash out there.

Sometimes, it’s not quite as simple as saying “UConn is a much better basketball program than DePaul, therefore, UConn should get paid more than DePaul”.  Timing matters in conference realignment and TV contracts, so in this case, Fox had a specific need in a situation where the Catholic 7 was in the right place at the right time.  Granted, that’s no consolation for the fans of schools that are left in the Big East and who may need to start hanging up pictures of Rupert Murdoch on their dartboards instead of Mickey Mouse.

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

(Image from Blackhawks DL)

Big Ten Expansion Lacrosse-Style, Potential Catholic 7 Fallout and the “Classic East” C7 Name Game

Posted: February 7, 2013 in Big East, Big Ten, College Basketball, College Football, Sports
Tags: , , , ,
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It’s been a wacky week in sports: a power outage at the Super Bowl, moms stealing national letters of intent, a previously listless Illinois team taking down #1 Indiana (I-L-L!) and the Big Ten’s next expansion target appears to be… Johns Hopkins University.  Let’s get to some conference realignment talk:

(1) Big Ten Expansion and Johns Hopkins – In a somewhat surprising bit of news, the Big Ten is apparently targeting Johns Hopkins as an associate member for lacrosse.  Adding Johns Hopkins on top of Rutgers and Maryland would give the Big Ten the minimum number of teams for both men’s and women’s lacrosse (6) to garner an automatic NCAA Tournament bid.  This has brought up the question as to whether the Big Ten would consider other associate members, such as adding Notre Dame or Boston University for hockey or all of the Big West to improve baseball.  I don’t see that happening, though.  From my vantage point, Johns Hopkins is about as unique of a situation as it gets since (a) as noted, its addition is the difference between the Big Ten having an NCAA auto-bid lacrosse league versus having none at all, (b) men’s and women’s lacrosse are the only sports that Johns Hopkins plays at the Division I level (all of its other sports are in Division III), so they would technically be an “all-sports” member for the Big Ten since it is providing “all” of the sports in which the conference sponsors a league (unlike Notre Dame or BU that obviously play at the Division I level in other sports), (c) Johns Hopkins happens to be an elite lacrosse power, so their combination with Maryland would instantly make the Big Ten into a top notch league in that sport and (d) in terms of academics and research funding power, Johns Hopkins is about as top notch as you can get outside of the Ivy League, which means that they can provide further gravitas to the Committee on Institutional Cooperation, which is the academic research consortium of the Big Ten and the University of Chicago.  All of those factors make Johns Hopkins into a unique expansion target for the Big Ten that I don’t believe would apply to other potential associate members.*

(* Note that the College Crosse blog has a fairly skeptical view of the Johns Hopkins/Big Ten marriage occurring because it believes that Johns Hopkins holds the leverage here.  That’s a pretty fascinating lacrosse-centric viewpoint where there is actually a bizarro world where Jim Delany could be considered to be completely powerless while much of the rest of the conference realignment universe believes that he can bring the likes of North Carolina and Florida State to their knees.  All I know is this: whatever ESPNU might be paying Johns Hopkins for lacrosse games probably wouldn’t cover a day’s catering bill at the Big Ten Network.  If Johns Hopkins turns down a Big Ten offer, it certainly won’t be because of TV money or exposure.  The College Crosse analysis is focused upon the on-the-field element and concludes that the Big Ten supposedly doesn’t offer Johns Hopkins anything worthwhile, but it’s unlikely that the school is examining this conference option for any competitive reason.  Instead, it’s about an possible offer to be part of the most powerful conference and brand in college athletics on the basis of a single sport that isn’t football or basketball along with being the only school that the league has ever granted an associate membership to.  That’s an invitation that the vast majority of university presidents and athletic directors in this country would kill for.  We’ll see how Johns Hopkins approaches this going forward.)

Now, what does the prospect of adding Johns Hopkins mean for Big Ten expansion overall?  One school of thought is that adding Johns Hopkins and a Big Ten lacrosse league would make it more palatable for Virginia and North Carolina to consider the Big Ten (as they have powerhouse lacrosse programs that have greater influence on campus than their revenue might indicate).  The other viewpoint is the flip side, where the Big Ten wouldn’t be considering the addition of Johns Hopkins at all as an associate member if it believed a larger expansion that included UVA and/or UNC was imminent.  I tend to favor the latter point of view.  As much as I see the benefits listed above with adding JHU for lacrosse, I highly doubt it would be happening if the Big Ten thought that more full members with their own lacrosse members would be joining at any point in the near future.  That doesn’t mean that UVA or UNC won’t ever join the Big Ten, but the talk about Johns Hopkins is a bit of a canary in the coal mine on the overall status of conference realignment as of now.

(2) Potential Catholic 7 Fallout – We’ve spent most of our time here lately focused on the large potential realignment earthquakes with the power football conferences along with analyzing who might the 7 Catholic schools splitting from the Big East (AKA the “Catholic 7″ or “C7″) might add to their new basketball-centric league.  However, we haven’t really examined the potential fallout from the formation of the new C7 league, which may very well affect every single Division I basketball conference that doesn’t sponsor FBS football.  While I’m an ACC Armageddon skeptic, there should be little question that the basketball conference landscape is going to get smashed as soon as the C7 announces who they’re adding (and that could happen any day at this point).

The C7 still appears to have Xavier and Butler as locks to be additions with some combination of 3 of Creighton, Dayton, St. Louis and VCU.  (My semi-educated guess is that VCU will end up being left out as a result of being a lack of an institutional fit.)  In any scenario, the Atlantic 10 is going to end up losing a crippling chunk of top programs, while the Missouri Valley Conference is at risk of losing its top breadwinner, as well.  Will the A-10 end up attempting to raid the MVC or vice versa?  Could both the A-10 and MVC start fighting over programs from the Horizon League (e.g. Loyola and/or my parents’ alma mater of UIC in the Chicago market)?  Will the Colonial Athletic Association get poached by the A-10 again (e.g. George Mason and/or Northeastern)?  Who would the Horizon and CAA end up raiding for replacements?  Missouri-Kansas City (UMKC) just announced today that it is leaving the relatively geographically friendly Summit League for the spread out WAC that has been life support, which makes no sense on paper… unless they believe that the Summit will get picked apart after the C7 makes their move. The number of permutations is endless, so it’s tough to even wrap my mind around how all of these conferences are going to react to the C7′s final decision.  It’s particularly curious that there really isn’t any indication whatsoever as to who the Atlantic 10 would be interested in when they inevitably need to backfill their membership (assuming that they even want to stay as a 14-school conference), so it’s difficult to reasonably predict who will be moving despite the fact that there will likely be dozens of schools shifting leagues.  I’m going to give this some more thought, but I’d be interested to see what you (as the readers of this blog) believe will happen since (a) it’s uncharted territory and (b) much more imminent compared to FBS power conference moves as of now.

(3) My Vote for the Name of the C7 League: “The Classic East” – Assuming that the C7 won’t be able to keep the Big East brand name for their new league (which is still an item that’s up for negotiation), there have been a number of religiously-related names suggested out there, such as “The Vatican League” or “The Big Priest”.  However, I came across a suggestion from a discussion on VUhoops that I believe is brilliant: “The Classic East”.  It’s a name that gives the C7 league a new and separate identity yet still evokes the tradition and history of what the old Big East used to be.  Think of how the Coca-Cola Company backtracked on its “New Coke” disaster and brought back its original cola formula as “Coca-Cola Classic”.  Anyway, that’s my vote if the Big East name stays with the football schools.

Enjoy the weekend and let’s hope the Illini can keep building upon tonight’s massive win!

(Follow Frank the Tank’s Slant on Twitter @frankthetank111 and Facebook)

(Image from Baltimore Sun)

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