Posts Tagged ‘Big Ten Expansion’

Over the past several years analyzing conference realignment, observers have had access to some overarching data, such as TV ratings, athletic department revenue, population and demographic trends of states and metro areas, and the home states of current college students. However, up to this point, there has been only largely anecdotal and/or unreliable data on a critical piece of the conference realignment puzzle: the specific places where the graduates from each college actually live. As an Illinois graduate, I’ve long known anecdotally that my alma mater sends a critical mass of graduates to San Francisco and Seattle (generally for tech jobs due to the school’s strong engineering and computer science programs) while very few Illini move to Indianapolis despite it actually being geographically closer to campus than Chicago and St. Louis, but it has been difficult to find quantitative data to actually back that up.

This is where a new database from the Wall Street Journal fills the gap.* The Journal worked with a labor market research firm to identify the metro areas where the graduates of 445 colleges now live. It breaks down the most popular locations for the alumni for each school to move to in the United States. What’s also interesting is to see how certain locations are conspicuously devoid of particular schools’ alums, which we’ll discuss in a moment.

(* h/t to Aaron Renn for his original post on this Wall Street Journal database. If you’re interested in urban development and demographic issues, he is one of the best writers out there.)

For someone that’s interested in conference realignment and the college sports business in general, this database is a legitimate treasure trove. As soon as I was made aware of this Journal site, I went through each of the Big Ten schools to identify the top metro areas for each of their respective graduates. Here is the chart I put together with each of the Big Ten schools on top, applicable metropolitan areas listed on the side, and a tier number assigned whenever a market comes up as a top destination for a school’s graduates:

Big Ten Graduate Cities Image 20180517

Key:
Tier 1 = 10% or more of a school’s graduates live in that market
Tier 2 = 5% – 9.99% of a school’s graduates live in that market
Tier 3 = 1% – 4.99% of a school’s graduates live in that market
Dash = Not a measurable destination for a school’s graduates

After creating this chart in my full dorkdom, there are some key takeaways:

FOUR CITIES ARE TOP DESTINATIONS FOR ALL BIG TEN SCHOOLS… AND NONE OF THEM ARE IN THE MIDWEST

There are only four markets in the entire country that drew more than 1% of the graduates from every single Big Ten school: New York, Los Angeles, Washington and San Francisco. None of these metro areas are located in the Midwest. Not even Chicago, the heart of the Big Ten, covered every single conference school, albeit the two sub-1% exceptions are the latest East Coast additions of Maryland and Rutgers.

To be sure, the Wall Street Journal notes that those four particular markets draw from a much wider range of colleges across the country. The sheer sizes of the New York and Los Angeles markets swallow up a lot of college grads and all four of the cities have strengths in industries that attract a national talent pool: finance in New York, entertainment in Los Angeles**, tech in San Francisco, and government and politics in Washington.

(** My favorite Big Ten-to-Hollywood story at the moment: former Penn State basketball player Joonas Suotamo is taking over the role of Chewbacca. Also, while this isn’t reflected in the domestic data, the Big Ten will have a monopoly on Americans in the British royal family after this weekend when Hollywood actress and Northwestern alum Meghan Markle marries Prince Harry.)

Still, the Big Ten’s top-to-bottom presence in those four markets is noteworthy because the only other Division I conference that has every member in those same markets is the Ivy League… and all of the Ivy League schools are in relatively close proximity to New York and Washington. Interestingly enough, all of the Ivy League schools have at least a Tier 3 presence in Chicago, too.

BIG TEN GRADS LARGELY STAY IN THEIR HOME STATES, GO TO CHICAGO, OR LEAVE THE MIDWEST COMPLETELY

Putting aside Maryland and Rutgers, Chicago is still the market with the deepest ties to the Big Ten by a large margin. It is a Tier 1 market for 6 schools, Tier 2 market for 2 schools and Tier 3 market for 4 schools. No other metro area has more than 2 Tier 1 Big Ten school connections. This isn’t exactly surprising with the annual migratory pattern of new Big Ten grads taking over apartments in Lincoln Park and Lakeview every summer (while the older Big Ten grads like me move on to places like Naperville).

Big Ten schools also send a lot of grads to the largest metro areas within their own home states. Every Big Ten school has a Tier 1 connection to at least one market located in its home state. Note that there are many metro areas where the principal city is located in one state but parts of its market are located in another state. New Jersey is a classic example where it’s largely split between the New York and Philadelphia metro areas. There are several other border areas in the Big Ten footprint such as the St. Louis metro area being partially in Illinois, the Louisville and Cincinnati metro areas crossing into Indiana, and the Omaha market including portions of Iowa. Ultimately, a state keeping a large number of grads from its flagship or other large schools isn’t exactly surprising, either. Going home will always be a strong draw.

What’s stunning to me, though, is the utter lack of Big Ten grads going anywhere else in the Midwest other than Chicago or a metro area that has a presence in their school’s state. Detroit is the 2nd largest metro area in the Midwest, relatively easy driving distance from most of the Big Ten schools, and larger than both the Seattle and Denver markets. Yet, the only 2 Big Ten schools outside of Michigan and Michigan State that have even a Tier 3 connection to Detroit are Northwestern and Purdue. Meanwhile, 10 Big Ten schools have a Tier 3 connection with Denver and 8 of the league’s colleges have a Tier 3 connection with Seattle.

In fact, the only instances where a Big Ten school has a Tier 3 connection (much less stronger ones) with a Midwestern market that isn’t either Chicago or wholly or partially located in its own state are (i) the aforementioned example of Northwestern and Purdue with Detroit, (ii) Iowa and Wisconsin with Minneapolis, (iii) Minnesota with Milwaukee and (iv) Nebraska and Iowa with Kansas City (which is a market that isn’t even in the current Big Ten footprint). That’s it… and it’s actually even worse when digging deeper because the trading of Badgers and Gophers between Milwaukee and Minneapolis comes with the caveat that there is tuition reciprocity for Wisconsin and Minnesota state residents for their respective flagship universities. In essence, a Milwaukee resident effectively treats Minnesota as an “in-state” school and it would be the same for Minneapolis residents with respect to Wisconsin. As a result, a lot of those Badgers and Gophers are just heading back to their home markets.

If Midwestern metros want to have any chance of changing their slow growth compared to the rest of the country, it’s clear that they need to do a better job of attracting the college grads that are just beyond their own home state universities. There really isn’t a great reason why Indianapolis isn’t drawing at least 1% of grads from neighboring state Big Ten schools like Illinois, Michigan, Michigan State and Ohio State… and Indy is one of the healthier Midwestern economies. Essentially, the Midwest metros with the exception of Chicago have completely ceded their “home field advantage” for Big Ten grads to the coasts and other high growth locations (e.g. Dallas, Atlanta and Denver).

WHAT’S BAD FOR THE MIDWEST MIGHT BE GOOD FOR THE BIG TEN

Paradoxically, the horrific inability of Midwestern markets other than Chicago to capitalize on the pipeline of Big Ten grads that are often within short driving distance is largely a good thing for the conference. The Wall Street Journal database shows that the Big Ten has the most nationalized alumni base of the Power Five conferences from top-to-bottom. As noted previously, the only other conference where every school has at least a Tier 3 connection with New York, Los Angeles, Washington and San Francisco is the Ivy League. More than half of the Big Ten has at least a Tier 3 connection with Atlanta, Boston, Dallas, Denver and Seattle. There are 4 or more Big Ten schools with a Tier 3 connection with Houston, Miami and Phoenix, too.

This helps explain why the Big Ten has consistently received larger media revenue compared to its biggest football rival of the SEC. While the SEC might often receive superficially higher TV ratings compared to the Big Ten, the SEC has much more concentrated intense interest from alums that still live in its home footprint of the South. In contrast, the Big Ten might have a little bit less intense interest in its home footprint of the Midwest/Northeast (outside of places like Ohio), but that’s compensated by its very broad presence of alums in large and wealthy markets from coast-to-coast (AKA valuable viewers).

At the same time, to the extent that cable subscriber fees that have been largely based on home market interest are at risk for the Big Ten Network, the Big Ten is still in the best position of any Power Five league to take advantage of any new media rights paradigm due to its more national footprint. The New York Yankees have a combination of national and regional advantages that made them the wealthiest team in the radio era, over-the-air TV era, and cable TV era… and they’ll be the wealthiest team in the over-the-top streaming era or whatever else might come down the pike. I believe that the Big Ten will continue in that same type of position in the college sports space – they’re the conference that still has the strongest combination of home state passion with a national fan base.

DEMOGRAPHICS AND CONFERENCE REALIGNMENT

Let’s get back to the four cities that have a connection with every single Big Ten school: New York, Los Angeles, Washington and San Francisco. If anyone wants to wonder why the Big Ten added Maryland and Rutgers, just look at this data. The additions of those schools were not so much about Maryland and Rutgers actually delivering their respective home markets of DC and NYC, but rather bringing the Big Ten product directly to where the league’s alums now live. It’s no different than why pro sports leagues are so insistent on having franchises in places like Florida and Arizona: it’s not that they are delusional to believe that those markets will have great homegrown fan bases, but rather that they are places where transplants from New York, Chicago and Boston can directly watch their favorite teams.

The underpinnings of the bond between the Big Ten and Pac-12 beyond the Rose Bowl becomes clearer here, too. Not only are Los Angeles and San Francisco uniformly popular for Big Ten grads, but Denver, Phoenix and Seattle also have strong Big Ten connections. The proposed Big Ten-Pac-12 partnership from earlier this decade that ultimately fell apart would have fit right in line with the demographic data.

To be very clear, I don’t believe that the Big Ten is anywhere near expansion mode. We likely won’t see any real discussion of Power Five conference realignment until the current Big 12 grant of rights contract expires in 2025. That being said, the Wall Street Journal database provides a lot of fodder for which markets make the most for the Big Ten in the event that it wants to expand its footprint further along with some explanation for demonstrated interest in certain schools during recent rounds of conference realignment. The following is simply my blue-sky thinking as opposed to any evidence that there will be realignment moves in the near future.

Texas was mentioned prominently as a past Big Ten expansion target and that was a no-brainer at all levels: a top academic national brand name school with a blue blood football program that delivers a massive high growth population state is the top prize for every Power Five conference even above Notre Dame. The fact that Dallas has a Tier 3 connection with 9 existing Big Ten schools and Houston has connections with 4 conference members is just the proverbial icing on the cake. However, the value wasn’t as obvious when Georgia Tech was also identified as a Big Ten expansion target. The Big Ten graduate data partially points to why the league was interested in the Yellow Jackets: the Atlanta market is one of the most prominent destinations for conference grads with 9 Tier 3 connections.

There wasn’t much discussion about Colorado being a possible Big Ten school in the past, but Denver has Tier 3 connections with every Big Ten school except for the 4 that are closest to the East Coast. I’m not alarmist about the Pac-12’s status among the Power Five conferences (unlike some others) and I won’t subscribe to pie-in-the-sky scenarios (e.g. the Big Ten adding schools like USC and UCLA). However, I wouldn’t put it past the Big Ten to make a play for Colorado in the next decade if the Pac-12’s relatively lower revenue makes it vulnerable. Colorado is an AAU school in a major market with a critical mass of Big Ten alums and even in a state that’s contiguous with the current conference footprint (via Nebraska).***

(*** As a reminder, the Big Ten does not have a contiguous state requirement for expansion. The league will jump over states to get Texas, UNC or similar caliber schools if they ever wanted to join. That being said, geographic proximity is certainly an important factor, especially if it’s not a blue blood program.)

Kansas is also sitting there from the Big 12 as an AAU school with a blue blood basketball program and Kansas City is one of the few Midwest markets that been able to draw non-local Big Ten grads from multiple schools. I have long been on the record that the most valuable single plausible (e.g. no poaching Florida and USC) expansion scenario for the Big Ten that doesn’t involve Texas, Notre Dame and/or ACC schools is the league adding Kansas and Oklahoma. Their smaller markets on paper are countered by having national draws in basketball and football, respectively, along with deeper connections to a lot of major markets beyond their home states’ borders (such the OU presence in the Dallas market).

On the Eastern side of the Big Ten footprint, 10 of the 14 conference schools have connections with Boston. Adding a school to cover the Boston market would effectively make the Big Ten into the conference of the entire North. However, the challenge is finding an acceptable school that fits into the conference. Boston College is obviously located directly in that market, but it isn’t a great institutional fit as a private religious university (although that wouldn’t stop the Big Ten from adding Notre Dame if the Irish were willing to come). I’m not completely dismissive of a BC to the Big Ten scenario down the road since it still has great academics and a location directly in the Boston market, although it’s a stretch.

UConn is a more of an institutional fit as a flagship school, has strong connections to both New York and Boston and a top level basketball program historically. However, its largest roadblock can’t really be fixed by anything other than the passage of time: the Big Ten simply isn’t adding a school that has only been playing FBS football since 2002. In fact, that’s an underrated factor in why UConn isn’t in any Power Five conference today. All of the years that UConn played Division I-AA football might not as well exist. In the minds of the powers that be, UConn is more of newbie than a school like UCF (upgraded in 1996), and that’s a black mark in a universe where being able to say that a school has been playing at the highest level of football since the 1800s actually matters. It might sound arbitrary and unfair, but old school pedigree is simply an absolute requirement when getting to the Power Five level and dealing with very literally the snobbiest group of people on Earth AKA university presidents. Even a bad football history can be overcome if it’s at least a long football history (e.g. Rutgers).

Syracuse actually sends a similar percentage of its grads to the Boston market as UConn despite a farther distance from Upstate New York along having the largest percentage of grads of of any FBS school living in the New York City market with the exception of Rutgers. While Syracuse is a private school, it’s a very large one where it almost serves the role of a flagship-type institution for New Yorkers. As a result, it has Big Ten-like attributes in a region where Ivy League and other elite private universities have historically kept public universities in a subservient position.

To be sure, demographics are only part of what goes into the conference realignment equation. If schools are in markets that don’t necessarily have strong ties to existing Big Ten alums but are bringing in elite blue blood programs (such as Oklahoma football or Duke and/or North Carolina basketball), then those elite brand names are going to win out.

Still, it has been fascinating to go through the grad destination profiles of the Big Ten schools along with other colleges across the country. Once again, in matters more important than conference realignment, Midwestern cities in particular need to review this data and understand that they are giving up their home field advantage of nearby Big Ten grad talent to coastal cities that are providing such talent with more professional and economic opportunities. This is sobering data for every Midwest city outside of Chicago. They likely knew that this challenge was happening at some level, but the results are actually even worse than expected.

P.S. For long-time readers of this blog, I know that it has been a long hiatus. Thank you for your patience and continued support. I promise that I’ll get more posts up before the next Avengers movie comes out next summer that will inevitably undo what happened at the end of Infinity War.

(Image from Amazon)

 

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It has been a couple of days since the news broke from Sports Business Daily that Fox is poised to enter into a deal with the Big Ten for 50% of the packages that are currently on ABC/ESPN (football and basketball) and CBS (basketball)… for up to $250 million per year for 6 years. Once again, this is just for half of the Big Ten rights that are up for grabs, which would provide for 25 football games and 50 basketball games on over-the-air broadcast Fox (“Big Fox”) and FS1. As observers such as Matt Sarzyniak have noted (who has a great post on the overall dynamics of the Big Ten deal), that amount is approximately the amount that the Pac-12 receives for its entire non-Pac-12 network package. In effect, we’re about to enter into a world where Rutgers and Northwestern are going to earn significantly more TV money than Florida State, Oklahoma, USC and even Alabama and Notre Dame. The Big Ten schools were already ahead before through its creation of the BTN (which everyone should remember how bold and risky that move was a decade ago compared to taking guaranteed money from ESPN), but the gap is going to be blown through the roof if the conference ends up with around $500 million per year for its TV rights without even taking into account the BTN portion. I have had plenty of critiques of Jim Delany and the Big Ten leadership over the years, but their management of TV and media properties has been pitch perfect for the past ten years and far beyond the capabilities (both quantitative and qualitative) of the other power conferences.

Some further thoughts:

  • I have seen a lot of scuttlebutt online that this indicates that the Big Ten might be leaving ESPN entirely, but personally don’t believe that for a second. For several years, I’ve been predicting that Fox and ESPN will ultimately split the Big Ten’s rights going forward and that is still the most likely outcome. ESPN reportedly “lowballed” the Big Ten in its initial offer, yet that is not necessarily outcome determinative since ESPN did the same thing ten years ago (which eventually spurred the creation of the Big Ten Network) and the parties still eventually got a deal done. It would have been difficult for ESPN to unilaterally come in with a massive offer several weeks ago with the continued cost-cutting throughout its organization and the possibility that this might be the time when the sports rights bubble (to the extent that there actually is a bubble) is going to pop. Essentially, ESPN bet that there wouldn’t be anyone willing to pay the Big Ten’s high asking price (just as it bet that the BTN wouldn’t be successful)… and it looks like they’re going to lose that bet badly.That being said, I’ve written many times before that ESPN’s supposed financial woes are being completely misinterpreted by many sports fans. The reason why so many Disney investors are spooked by any cord cutting and ESPN subscriber losses is because ESPN is, by far, the most profitable media and entertainment entity in the entire world. Note that I said “media and entertainment entity” – this is not just about sports networks. Let’s put it this way: ESPN currently delivers monthly subscriber revenue to Disney that is the equivalent to the domestic gross of Star Wars: The Force Awakens every single month guaranteed… and before they sell a single ad. Disney has relied upon ESPN to deliver monopoly drug dealer profits for years to prop up their entire business. Now, ESPN is “only” making oligopoly drug dealer profits.

    All of this is to say that ESPN still makes a ton of money that is far, far, far beyond what Fox, NBC, CBS, Turner or any other entity with sports interests could ever dream of. Even in cost-cutting mode, ESPN still needs to invest in core properties in the same way that the rest of the cost-cutting Disney organization will authorize massive budgets for Star Wars, Marvel, Pixar and Disney Princess movies. ESPN leadership can now go back to their overlords at Disney and say, “Look – we tried to get the Big Ten on the cheap and that clearly isn’t going to happen. We have now already let Fox into the door to becoming a top tier sports network competitor and we can’t let someone else, especially NBC/Comcast, to get even more traction on top of them. We need to the funds to pay up here.” Anyone that thinks that ESPN can just plug in more SEC or ACC games into its lineup is fooling themselves. The Big Ten provides a massive lineup of football games in the best time slots on ABC and ESPN and have consistently garnered the best ratings of any of the conferences next to the SEC. The people at ESPN aren’t dumb – they know the difference between a short-term administrative cost cut and a long-term investment in their core product… and the Big Ten has been a huge part of their core product since almost the beginning of the network.

  • By the same token, let’s not pretend that the Big Ten wants to get away from ESPN. I have seen some Big Ten fans profess a desire to leave ESPN entirely, but that would be as short-sighted for the conference as it would be short-sighted for ESPN to let the Big Ten go completely. The fact of the matter is that if you were to show the exact same game on ESPN versus FS1, the viewership on ESPN would be magnitudes higher. We have already seen a track record of Major League Baseball, Big 12 and Pac-12 games where similar games on ESPN crush the ratings on FS1. There has to be great concern that the notion that “fans will just find the channel if they want to watch a particular game” isn’t necessarily completely true. ESPN is, and will be for the foreseeable future because the stranglehold that they have on sports rights overall, the “default channel” for sports fans. Just walk into any sports bar across the country and, outside of NFL Sundays, the vast majority of TVs are going to be tuned into the ESPN mothership. A game that is shown on ESPN literally gets a ratings bump, whereas that same game on FS1 gets a ratings discount.This greatly matters to the Big Ten, which is trying to position its TV deals in the same way that the NFL has over the past few years. Money certainly matters, but long-term money (the proverbial golden goose) is directly correlated with exposure… and no one can provide exposure like ESPN. Indeed, even with the increase in cord cutting and falling numbers of subscribers, every single other media company in the United States would kill to have ESPN. We have already established that they have the top-rated and most profitable TV network, but it goes beyond just that aspect. Who has the #1 sports news website? ESPN. Who has the #1 sports radio network? ESPN. Who has the #1 sports mobile app? ESPN. Who has the #1 streaming sports network? ESPN. Who has the #1 sports podcast network? ESPN.

    That is what a lot of Big Ten fans that care too much about supposed “SEC bias” on ESPN are missing: there is simply no replication for the multi-platform 27/7 exposure that ESPN provides.* Many other companies have tried to apply the ESPN playbook for years and years (see the CBS and Fox efforts to build their own sports websites and radio networks with only a fraction of the audience of ESPN) and have failed. When a Big Ten game is on ESPN, it gets promoted on (a) Mike and Mike on TV, radio, streaming audio and podcasts simultaneously, (b) SportsCenter on multiple networks several times per day, (c) ads on ESPN’s websites and mobile apps, (d) countless other TV, radio shows and podcasts for an entire week, including the all-important College GameDay for college football fans. Other than Inside the NBA on TNT (which is powered by the on-air brilliance of Charles Barkley, there is not a single cable TV platform in any sport that has anywhere close to the audience that ESPN has for even one of its minor shows, much less SportsCenter, GameDay or Mike and Mike.

    (* Note that it isn’t an accident that ESPN is a master of corporate synergy considering that it is owned by Disney, whose entire existence is based on leveraging its brand across countless platforms. I have never heard of someone that likes Universal Studios, the Jurassic Park movies and NBC call themselves a “Comcast Fan” or a fan of Fox shows and movies call themselves a “Fox Fan” (which is distinct from a Fox News Fan that is an entirely different breed), but you will find millions of Disney fans that travel to Disney parks, watch Disney movies and TV shows and buy Disney merchandise with the Disney branding being a the predominant factor. My sister is a prime example of a Disneyphile. Disney and ESPN simply are masters at synergy via corporate culture that can’t really be replicated even if you followed the exact same playbook elsewhere… and believe me when I say that every one of their competitors have tried.)

    At the end of the day, the Big Ten still needs the exposure that only ESPN can uniquely offer. It’s instructive that out of the 4 major pro sports leagues and 5 power college conferences, the only one that doesn’t have a presence on ESPN is the NHL (which has by far the most limited fan base of that group). Just because the Big Ten could theoretically live without ESPN doesn’t mean that it actually wants to do so at all. That’s why I believe that time will heal wounds due to mutual interests and a deal will get done between the Big Ten and ESPN for the other half of the TV rights that are currently in play. The Big Ten won’t take a lowball amount from ESPN, but I think they know well enough to provide a bit more leeway for ESPN’s bid in acknowledgment of their superior platforms for overall exposure compared to Fox. Both the Big Ten and ESPN need each other here.

  • In looking at the imminent Fox deal with the Big Ten, this seems to be set up to put a weekly football game on both Big Fox and FS1. This will end up being quite a boon for Fox’s college football game inventory quality. From a personal standpoint, I just hope that it improves that actual college football game production quality, which I have found lacking compared to ABC/ESPN and CBS. (I think that NBC’s Notre Dame productions have quality visuals, but the commentary is the college football equivalent of listening to Hawk Harrelson’s calls of White Sox games.) Regardless, if this means that most or all of the games that would have ended up on ESPN2, ESPNU or ESPNEWS are on Big Fox and FS1, then that’s an upgrade in terms of viewership exposure as long as the Big Ten keeps its presence on ABC and the ESPN mothership.Further to what I’ve stated before, I don’t think Fox is as flush with funds as much as ESPN (because absolutely no one is as flush with funds as ESPN), but Fox certainly has a lot more incentive to make a bold move with it being in the upstart position. In particular, FS1 has had a rocky history in its short life. On paper, FS1 has the best sports rights outside of ESPN on paper with MLB, Big 12, Pac-12, Big East, NASCAR, Champions League, FIFA (World Cup), UFC and USGA (U.S. Open) properties, but it doesn’t seem to have a cohesive brand even compared to NBCSN (which seems to have become the yuppie/hipster sports network largely relying upon the NHL, English Premier League and Olympics), much less ESPN. At the very least, the Big Ten may push Fox over-the-top in terms of being a legit college sports destination that it hasn’t quite been up to this point.

    Realistically, Fox can never achieve the synergy that ESPN can provide, but there are strong potential cross-promotional opportunities between Fox’s over-the-air NFL package and the new Big Ten coverage along with the clear connection between BTN (which is 51% owned by Fox) and the rest of the Fox organization. The NFL broadcasts on Fox are by far the strongest on the network (which ought to be the case since they are also by far the largest ratings drivers for Fox), so let’s hope that the Big Ten can receive at least comparable quality in terms of treatment.

  • The reported 6-year timeframe of the Fox deal is unusual compared to the much longer-term deals that the other power conferences have signed. In fact, the Big Ten will end up back at the negotiating table before any of the other power conferences once again. On the one hand, this presents some risk to the Big Ten since they are not locking in today’s high rights fees into the late-2020s or even 2030s. On the other hand, every time that the Big Ten has bet on itself, it has ended up succeeding, whether it was with the formation of the BTN or taking its rights to the open market in a period of uncertainty for sports programming values with decreasing cable subscriptions. By the same token, Fox may be hedging on cable subscriber fee uncertainty itself, as Dennis Dodd had suggested.In any event, the short length of the TV deal means that conference realignment talk might cool down in the immediate term, but will pick up a huge amount of steam in the next 5 years. Whether it’s a coincidence or not (and I tend to think “not”), the end of the 6-year deal term in 2023 is shortly before the expiration of the Big 12’s grant of rights agreement in 2025, which makes any possible damages for a Big 12 defector to be much lower and/or negligible compared to a Big Ten windfall. The same usual suspects of Texas, Oklahoma and Kansas as Big Ten candidates. It will also be interesting to see how schools in other conferences (particularly the ACC) are going to adjust to an environment where each Big Ten school could be receiving nearly $60 million per year in media revenue starting in 2017 (as estimated by Awful Announcing), which would lap the SEC’s revenue (much less any of the other power conferences). A few million dollars per year difference in TV revenue may not have been enough to sway the most valuable schools (e.g. Texas, North Carolina, etc.) to switch conferences, but when we’re looking at an eight figure annual gap, it could change the dynamic quite a bit.

The announcement by Jim Delany at the end of 2009 that the Big Ten was exploring expansion was leading to this moment of a new TV contract. Nebraska added a national name brand for football, while Rutgers and Maryland added two massive media markets based on the East Coast. This isn’t the end, though. I still believe that ESPN is going to end up with the other half of the rights. It will be interesting to see what happens with the CBS basketball package (which hasn’t been talked about as much) since that provided great exposure and time slots for the Big Ten (such as the Big Ten Tournament Championship Game leading into the NCAA Tournament Selection Show) even if the contract value itself pales in comparison with football. Digital rights are going to be a much more significant factor in this new contract compared to 10 years ago, while some second tier sports such as hockey, baseball and lacrosse could end up seeing more telecasts beyond the BTN with multiple other networks. The Big Ten’s new Fox deal is a great start and it’s a sign of great things once we get the final overall media rights picture for the conference.

(Image from Detroit Free Press)

hockey_ccha_vs_michigan

In a move that came out of nowhere, the Big Ten will be adding Notre Dame as a hockey member starting in 2017-18. A few quick thoughts on an otherwise sad day with all that has happened in Belgium:

  • This is by far the most surprising move that I’ve seen from the Big Ten (and possibly any conference) ever since I started following conference realignment. The timing of the Maryland/Rutgers expansion was stealthy, but anyone that has followed this blog since 2010 had been tracking those schools as high on the Big Ten candidacy list. Johns Hopkins coming to the Big Ten as an affiliate member was a natural fit academically and in terms of the need to get a 6th lacrosse member to obtain NCAA auto-qualifier status. In contrast, Notre Dame joining the ACC as a non-football member and then placing its hockey program in the extremely strong Hockey East, seemed to be give the Irish everything that it wanted in preserving football independence, membership in strong conferences for its other sports and kowtowing to the segment of its alumni base that wanted to cut off all possible relationships with the Big Ten. Meanwhile, the Big Ten seemed to move on from any possibility of Notre Dame joining the league in any capacity. To see this new arrangement come up is quite remarkable even if it’s just for hockey. Ice hockey could be thawing Big Ten – Notre Dame relations in the way that baseball helped that U.S. – Cuba relations.
  • Notre Dame coming into the Big Ten creates a 7-team hockey league, which is unwieldy for scheduling purposes. The discussion naturally is going to turn to which school comes in as #8 and it continues to look like Arizona State. The Big Ten and Sun Devils have been contemplating possible membership for over a year and I discussed it in depth during last season’s NCAA Tournament. Pretty much everything that I stated a year ago still applies today (minus the part where I didn’t believe that Hockey East members like Notre Dame would join the league as associate members), where Arizona State hits a lot of metrics that the Big Ten is looking for at an individual school level with its key Phoenix market location and the league overall seems to open to adding more affiliate schools. Think about MIT joining the Big Ten for rowing or Rice bringing its top level baseball program to the conference. There are a lot more possibilities for academically-aligned schools in the non-revenue sports.
  • Hockey fans that might be pushing for a powerhouse hockey program like North Dakota to join the Big Ten are engaging in the classic behavior of thinking like a fan instead of a university president. The academic, market and demographic needs of the conference are completely different than on-the-ice considerations. I’m sure the Big Ten would be very open to the top hockey schools in New England, such as Boston University and/or Boston College, but that is more driven by the league’s interest in the Boston market than competitiveness.
  • Speaking of markets, an underrated aspect of this move for the Big Ten is that it finally has a hockey presence in its most important market and alumni home of Chicago. Unfortunately, I don’t have an extra $100 million laying around for me to start-up a new Division I hockey program at Illinois despite it having had one of the most competitive hockey club teams and strongest fan bases for the past two decades. Meanwhile, Northwestern has many other athletic funding priorities in building new facilities, so hockey doesn’t seem to be on the radar. The Big Ten would love to rotate its hockey tournament into the United Center in Chicago to go along with Detroit and Minneapolis/St. Paul, especially with the basketball tournament needing to be outside of Chicago more often with the league’s push into the New York and Washington, DC markets. Note that the 2017 NCAA Frozen Four will be played at the United Center and sponsored by Notre Dame.
  • I’m someone that takes Notre Dame at its word that the school will stay independent in football. There is no “forcing” the Irish to join any league and its independence is as much of an institutional identity issue for the school’s alumni as it is a football issue. I don’t see this hockey membership having any correlation with Notre Dame possibly joining the Big Ten as a full-time football member down the road.
  • That being said, the bigger picture issue is whether the Big Ten would consider offering Notre Dame a full non-football membership in the manner of the ACC (and the old Big East before them). Notre Dame’s agreement with the ACC ends in 2025, so this is more long-range thinking for the conference. Would the Big Ten offer Notre Dame a deal where it would be a basketball and non-revenue sports member in exchange for, say, 6 football games against B1G opponents each season (compared to the Irish commitment to play 5 ACC opponents per year now)? Previously, I never thought that would even be an option on the table since the Big Ten is as much an “all for one and one for all” league as Notre Dame is an independent school, yet this hockey arrangement legitimately puts that into play. The Big Ten really didn’t care about Notre Dame’s relationship with the old Big East, but the ACC deal with the Irish might have been perceived by Jim Delany and others in Rosemont as much more of a potential threat down the road. This is a huge shift in the Big Ten’s thinking, where there is now a large crack in the league’s decades-long insistence for Notre Dame to be “all in” or “all out”.

The upshot is that this is great for Notre Dame in terms of leverage against both the ACC and Big Ten in the future. The ACC might have gotten a bit cocky with how close it thought it was with Notre Dame over the past couple of years and (at least in some quarters) deluding themselves in thinking that they’ll eventually join as a football member. However, the Irish are now openly stating that they have plenty of options. If Notre Dame could get the Big Ten to budge on hockey membership, it’s no longer a stretch at all that the B1G could eventually make a play for Irish basketball and other non-football sports along with a more robust football scheduling arrangement.

(Image from The Daily Domer)

I know that is has been a looooooooong time since my last post. Between coaching basketball and baseball teams for both of my kids and work, it’s been tough to write lately. The patience of the readers and commenters here is sincerely appreciated.

Not much has gone on in the conference realignment world over the past couple of months between a few smaller moves on the margins, such as the Big Ten adding the Johns Hopkins women’s lacrosse team as an affiliate member. (They didn’t join the B1G at the same time as the men’s team.) However, University of Oklahoma President David Boren had some interesting direct comments yesterday about Big 12 expansion. Some quotes from NewsOK about his desire for the Big 12 to add teams:

University of Oklahoma President David Boren on Wednesday reiterated his stance that the Big 12 should expand to 12 teams.

“I think it’s something we should strive for while we have the time, stability, all of that to look and be choosy,” Boren said. “(We) can be very selective about who we want to add. It would have to add value to the conference. I think we should.”

Boren said he worried about not only the perception of the league as other major conferences have expanded but there long-term health of such a setup.

“How many years can this go on?” Boren said. “Finally, it just gets to be really debilitating. I worry about that. That’s something I just worry about long-term about the conference, not short term.”

Boren also threw some shade on the Longhorn Network and the notion that the Big 12 TV revenue distributions would be reduced by expansion:

Boren also said without explicitly naming it that the Longhorn Network—which keeps the Big 12 from having a conference network like the SEC, Big 10 and Pac 12—is a big problem for the conference.

“The elephant in the room remains the network south of us that has struggled and has in a way as long as it’s there,” Boren said. “And we have done quite well with our network and if anything ever changed, it has value to it which we see. But someday, maybe we’ll get past that other problem as well. It’s a problem.”

Boren said the problem of reduced revenue per school with expansion wasn’t as big of a hurdle as it had been made out to be.

“The contract says that our main television contract … if we grow from 10 to 11 or 11 to 12, their payments to us grow proportionally,” Boren said. “So everybody’s share stays the same. If it’s ‘X’ dollars, it stays ‘X’ dollars.

“Our main media contract says it’s not the same pie now cut 12 ways instead of 10.”

Boren did say that that only includes the primary television contract, not other revenue that is split between the schools.

“It’s not total because there’s some smaller—much smaller—amounts of money around the edges but if you can find the right people, it should be additive even though it’s split 12 ways instead of 10.”

Boren provides an important confirmation that the Big 12’s first tier TV contracts would increase proportionally in the event of expansion. Essentially, the notion that each Big 12 member’s revenue slice would be reduced in the event of expansion is largely a non-factor. As a result, any potential Big 12 expansion school doesn’t need to show that they would directly increase the value of the league by $20 million (as some Big 12 expansion opponents have suggested) – that increase is already baked into the conference’s TV contracts.

West Virginia Athletic Director Shane Lyons also indicated support for Big 12 expansion earlier this month (albeit athletic directors generally do not drive conference realignment talks in the way that university presidents have done, notwithstanding the efforts of special exceptions such as Tom Jurich of Louisville and

Does this mean that the Big 12 will take my advice and invite BYU and Cincinnati (or Memphis or other potential candidates)? I’ll reiterate my belief that the Big 12 has been focusing on short-term revenue dollars at the expense of long-term stability… and Boren indicates that there isn’t even much of a short-term revenue upside to avoiding further expansion. The worst thing that happened to the Big 12 leadership (and in turn, many of their fans) is that they deluded themselves into believing schools from the ACC (notably Florida State) could possibly be interested in joining the Texas-centric league. Ever since that occurred, the Big 12 has been paralyzed on the expansion front with an overrating of their position in the conference realignment marketplace (which is #5 out of the 5 power conferences). The Big Ten might have initially wanted Texas and Notre Dame (and to be sure, I wanted them as a fan), but the league moved on with adding a national brand in Nebraska and two mega-markets with Rutgers (New York City) and Maryland (Washington/Baltimore). The Pac-12 had a Pac-16 proposal to create a superconference that would have completely upended the college sports world by adding Texas, Texas A&M, Texas Tech, Oklahoma, Oklahoma State and Colorado, but when that fell through, the league quickly shifted gears to solidify the Rocky Mountain region with a smaller expansion with Colorado and Utah. The SEC surely would have wanted Texas and Oklahoma, too, but they went out and nabbed Texas A&M and Missouri. The ACC will always dream of getting Notre Dame as a full member while harboring their own delusions of thinking that they could ever raid the Big Ten, but that league still got the Irish to commit to being a non-football member with 5 football games per season against ACC opponents and pilfered much of the value of the old Big East.

The point is that the other 4 power conferences gained more power and adjusted even when they didn’t get their #1 and/or #2 expansion options, whereas the Big 12 simply survived. Now, the Big 12 will always survive as long as Texas stays there. The MAC could add Texas and it would be automatically deemed to be a power league. However, if the Big 12 ever wants to get past mere survival and continuing to be the primary target for raiding by the other power conferences, it needs a more cohesive long-term strategy that doesn’t involve pie-in-the-sky hopes and dreams. The only realistic pool of expansion candidates for the Big 12 exists in the non-power “Group of Five” conferences plus independent BYU. The Big 12 can’t just sit back and wait for much longer – it needs to proactively find a way to extract value from 2 (or even 4) expansion candidates from that group in order to be more than a very regionalized (with a West Virginia appendage) conference.

Otherwise, the words of David Boren should be cautionary to the Big 12: this doesn’t sound like a guy that would turn down an invite from the Big Ten, Pac-12 or SEC. Indeed, once you get past the expansion targets that multiple conferences lust after because of their combination of athletic value and academic prestige (i.e. Texas, Notre Dame, North Carolina), Oklahoma is probably the single most valuable school that you could plausibly envision actually moving conferences in the nearish-term (defined as the next 10 years). I’ve stated here previously that if you take away any Texas/Notre Dame/Florida State expansion scenarios, the Big Ten adding Oklahoma and Kansas is probably the most valuable expansion that the league could realistically obtain. Their respective direct markets might not be the largest, but the national brand values of Oklahoma football and Kansas basketball are massive. With the NYC and DC markets already in the fold, the Big Ten Network is not necessarily going to be swayed by market size unless it’s the size of California, Texas or Florida (all of which might be unrealistic). Instead, expansion is about taking the last step of turning the BTN into a true national network, which is something that OU football and KU basketball can do. (Think about how much more attractive the Big Ten West looks as a division with Oklahoma in the fold, too.) On paper, Oklahoma may have some academic issues with the Big Ten since it is not an AAU member, but I believe the conference would look at form over substance in this instance with such an elite national football brand. Oklahoma has long been in the same academic tier as its neighbors of Nebraska, Kansas and Missouri, so this would not be a completely outside-the-box expansion. To be sure, it would be a much easier case for OU if it did have AAU membership, but they’re such a valuable potential addition (like non-AAU member Notre Dame) that I think that it would tip the balance.

The massive mountain-sized caveat, though, is that Oklahoma and Kansas aren’t schools that have complete autonomy over their conference decisions. Oklahoma State and Kansas State need to be taken care of if those schools move, which means either (a) the Big 12 can’t collapse (AKA Texas can’t move anywhere else) as a result of OU and KU ditching the league or (b) OSU and KSU have to come along with them as a package. This is big difference from the decisions of Colorado, Nebraska and Missouri leaving the Big 12 and even Texas A&M was able to avoid outside political pressure (which had occurred during the collapse of the Southwest Conference in connection with the formation of the Big 12 and the potential leaving behind of Baylor in the Pac-16 proposal) since Texas had (and still has) such huge financial incentives with the Longhorn Network that provide it with golden handcuffs to the Big 12.

Indeed, the Big Ten, SEC and Pac-12 would all take Oklahoma in a heartbeat, but the existence of Oklahoma State could limit the options of the Sooners. Note that the Pac-12 turned down an expansion proposal from Oklahoma and Oklahoma State in the chaotic days following Texas A&M’s announcement that it was leaving the Big 12 for the SEC, which means that the Pac-12 did NOT reject Oklahoma as an individual expansion candidate. If Oklahoma and Kansas were making that expansion proposal instead, then they would almost assuredly be Pac-12 members today.

Regardless, David Boren is pretty directly stating that Oklahoma isn’t that happy with where the Big 12 is today. Whether OU has any leverage to do anything about it depends upon whether it can act alone (in which case it has all of the options in the world with the Big Ten, SEC and Pac-12) or needs to do everything in tandem with Oklahoma State (where the only option might be to grit their teeth and stay in the Big 12).

(Image from Wikipedia)

After a long Chicagoland winter that included coaching my twins (and future hopes and saviors for the Illini men’s and women’s basketball programs) in the Naperville YMCA Kindergarten Basketball League, it’s time to get back to blogging. Fortunately, not much has occurred on the conference realignment scene since December when the Big 12 was coming right off of the sting of being left out of the College Football Playoff. After some expansion rumors that included Cincinnati and Memphis, Big 12 commissioner Bob Bowlsby and his conference brethren have a long string of denials about any desire or need to expand. Personally, I don’t believe them – I think the Big 12 is fully aware that they need to expand for the long-term. Whether the Big 12 has any consensus on who they should expand with is an entirely different matter, particularly when those additions will need to come from the pool of non-power schools.

Interestingly enough, the latest expansion scuttlebutt is coming from the Big Ten. Granted, it’s only for hockey, but it’s still an intriguing indicator for the Big Ten’s overall plans (as you’ll see further down in this post). The Minneapolis Star Tribune had an in-depth article last week about how Penn State’s successful start to its hockey program is spurring schools across the Big Ten and the rest of the country to consider adding the sport. Arizona State recently announced that it will be starting a Division I hockey program… and according to the Star Tribune, the Sun Devils have been speaking to the Big Ten about its conference home on the ice:

Arizona State and the Big Ten both confirmed they’ve discussed a hockey future together. An outside school competing in one Big Ten sport already occurs in men’s lacrosse with Johns Hopkins.

Two other conferences with a major presence in the Midwest, the WCHA and the NCHC, are also engaged in conversations with the Sun Devils.

“I think being in a conference with like institutions is important,” [Big Ten Associate Commissioner Jennifer] Heppel said. “[Arizona State] is going to have to think about that from an institutional and sport perspective. The Big Ten and Pac-12 have a historic relationship.”

Heppel oversees men’s hockey for the Big Ten, so her on-the-record quotes directly about Arizona State indicate that this isn’t a fly-by-night rumor.

My knee-jerk reaction: Sounds good to me. Big Ten Commissioner Jim Delany has said before that the Phoenix market is actually home to more Big Ten alums than Pac-12 alums. If you’ve ever visited the Phoenix/Scottsdale area (particularly in the winter and spring), you could certainly believe it with the overwhelming number of Midwestern transplants and retirees (even compared to other Sun Belt locations like Florida). Phoenix/Scottsdale is to Chicago snowbirds as Miami/Ft. Lauderdale is to New York City snowbirds. Arizona State isn’t an AAU institution as of now, but it’s one of the largest universities in the country with respected graduate programs (even with the party school and Girls Gone Wild reputations of its undergrad population). Plus, the fact that Arizona State is in the Big Ten’s brother of the Pac-12 makes a bit easier to envision the Sun Devils as a hockey member compared to, say, Notre Dame.

At the same time, the Big Ten has the opportunity to make this into a broader relationship beyond hockey. For example, imagine if Arizona State commits to playing 1 or 2 Big Ten football teams per year, 2 to 3 non-conference basketball games, and several non-conference baseball games (where the Big Ten legitimately needs help from a powerhouse in that sport like ASU). That’s not a huge commitment from either Arizona State (and they may have wanted to schedule those types of non-conference games on their own, anyway) or the Big Ten, yet it starts building a more in-depth presence in the Phoenix area, which is a key market for Big Ten alums.

A related consideration is if other Big Ten schools will start adding hockey to further grow the league organically. If I had $100 million to spare, I’d start up an Illinois hockey program tomorrow. Alas, I don’t have that type of coin laying around and it doesn’t appear to be coming from other possible benefactors (such as the rumored interest of Jimmy John Liautaud, who is the founder of Jimmy John’s). This is unfortunate since the Illini hockey club has performed well for decades along with having a passionate fan base and that could be supercharged if it turned into the only Division I hockey program in the state of Illinois. Alas, Illinois has everything that it needs from a competition and fan base standpoint to support hockey, but none of the financial support right now.

Instead, from what I’ve heard for at least the past year, Nebraska is by far the closest to jumping up to Division I hockey. The Cornhuskers’ new Pinnacle Bank Arena has icemaking capabilities and the school is also opening a new separate ice arena that can easily be used as a practice facility. Since Nebraska has the expensive physical facilities in place already, they’ve already fought the vast majority of the battle in starting a program. Nebraska has a top tier fundraising operation, as well, so they can get the money into place once they’re given the green light. There have been rumblings about Northwestern, Indiana and Iowa looking at hockey, but if you’re a betting person, you should wager heavily on Nebraska as the next existing Big Ten school to add the sport.

What does this mean for Big Ten fans that don’t care about college hockey? Well, one open question is whether the possibility of Arizona State joining the Big Ten hockey league means that it will blow open the door for more affiliate Big Ten members in hockey or other sports. From my vantage point, not necessarily. Just as Johns Hopkins was a special case as a Big Ten affiliate in being an academic and men’s lacrosse powerhouse, Arizona State hits a lot of metrics for the Big Ten in terms of being in the Phoenix market and a friendly Pac-12 for other sports that don’t exist for other members. Big Ten hockey fans might dream of adding the likes of Boston University, Boston College and Notre Dame if the league were to let in Arizona State, but that doesn’t seem likely (not the least of which is the fact that the Hockey East is a tough nut to crack even with dangling the prestige of the Big Ten). Instead, look at some of the more unique outliers that wouldn’t have the same poaching hurdles. For instance, MIT has Division I men’s and women’s rowing (where just as Johns Hopkins is Division III for all sports except lacrosse, MIT is Division III for all sports except rowing). Could that be leveraged into a relationship between MIT (which would be academic dynamite for the Big Ten presidents) and the Big Ten? What about academically prestigious schools in the Sun Belt that could add firepower to Big Ten baseball, such as Rice or University of California system members? The possibilities are endless, but the Big Ten is also likely to be very conservative in its affiliate member picks.

Separately, the Big Ten is on the precipice of negotiating new TV deals that will start after the 2016-17 season. As Ed Sherman pointed out in the Chicago Tribune last week, the Big Ten is in a great position as the only major pro or college sports property to come onto the market for the rest of this decade. It can expect Fox to bid aggressively for tier 1 rights as well as current rights holder ESPN. In my opinion, the Big Ten will likely end up with a setup similar to the Pac-12, where tier 1 rights are split between ABC/ESPN and Fox while the rest go to its conference network of the BTN. I don’t think there’s much chance of the Big Ten taking all of its rights to Fox even if Rupert Murdoch makes a blood money Godfather offer. The ratings for Big East basketball on FS1 have been depressing beyond belief and, contrary to the rantings of some Big East haters out there, it has nothing to do with the Big East conference itself. Any random game on ESPN and, for that matter, ESPN2, is going to have a massive amount of more exposure compared to the exact same game on FS1. That speaks to a problem with the channel itself – it depresses ratings simply by channel location whereas ESPN boosts ratings.

Believe me – exposure matters greatly to the Big Ten. The money obviously matters, but that money is only there because the Big Ten has had the best TV exposure of any conference for decades. As Sherman noted in his column, the Big Ten had ESPN, CBS and BTN (a partial Fox property) all covering portions of the Big Ten Tournament. That’s akin to the setup that the NFL has – they’re essentially getting paid a lot of money by everybody in the media business. I don’t think the Big Ten is going to step away from that approach – they want as many high profile outlets covering their games as possible. So, I don’t see the Big Ten being willing to move games from ABC and ESPN to FS1 and FS2. Regardless of how Big Ten fans might personally feel about ESPN commentators (and IMHO, Big Ten fans complain too much about them as a whole), it’s horrific for conference exposure to move off of the Worldwide Leader. However, I could certainly see the Big Ten being happy with games that are currently on ESPNU and ESPNEWS being moved to over-the-air Fox and FS1. That points to maximum exposure with a ton of checks being cashed from Disney and Fox with some side basketball money from CBS.

With that, it’s time to fill out my bracket and prepare for watching basketball in the middle of the day. (My Final Four picks: Kentucky, Wisconsin, Villanova and Iowa State, with Kentucky over Villanova in the national championship game.) Enjoy the opening weekend of the NCAA Tournament!

(Image from SI.com)

I don’t exactly have a perfect record of predictions on this blog (as evidenced by the regular stream of friendly visitors from TexAgs that still remind me of what I wrote about Texas A&M and SEC expansion a few years ago), but one big picture issue that I understood from day one (meaning literally right when it was announced in 2006) was that the Big Ten Network would be a massive game changer for the conference and college sports overall. What others saw as vanity project destined to fail compared to the SEC’s then-traditional TV deal with ESPN, with the harshest criticism coming from Big Ten country itself, I looked at as the platform to turn the Big Ten into the New York Yankees of college sports financially. Many sports fans look at the BTN as shooting fish in a barrel money-wise now, but a lot of them have collective amnesia about how much criticism the network took in its first year of existence (including Tom Izzo publicly calling it a “PR nightmare”) and beyond when the SEC signed what was a then-large guaranteed deal with ESPN in 2008. Even when the Big Ten initially announced that it was looking to expand in 2009, many commentators didn’t bother taking into account how much the BTN would drive the process. If it wasn’t clear with the addition of Nebraska (which, despite its small market, could effectively have the BTN charge whatever it wanted to games and Husker fans would pay up), it was blatantly obvious with the expansion with Rutgers (New York/New Jersey market) and Maryland (Washington, DC/Baltimore market).

So, I can imagine how satisfied Big Ten commissioner Jim Delany and the rest of the conference officials must feel with the BTN on the precipice of capturing the great white whale of college sports: the New York City market. According to the Star-Ledger, BTN has entered into deals with Time Warner Cable and Cablevision for basic cable carriage of the channel in the NYC area (with discussions with Comcast moving along well). That means every the BTN (and by, extension, every Big Ten school) is going to receive a significant chunk of change from each Time Warner Cable and Cablevision basic subscriber covered under the deal. (Awful Announcing had a back-of-the-napkin calculation of at least $48 million per year for the Big Ten just from this single carriage deal, although that likely overstates the immediate impact since it doesn’t take into account Fox’s 51% ownership interest in the network and various expenses. Still, this market represents tens of millions of dollars per year for the Big Ten solely based on the BTN.) The skeptics of whether Rutgers would pay off for the Big Ten (myself included) are about to eat crow. This was the financial end game for the Big Ten when the expansion process began nearly 5 years ago: the addition of a massive market the size of either Texas or New York for the BTN. The Texas Longhorns weren’t willing partners on the former, so the Big Ten moved onto the latter.

Frankly, the fact that the BTN was able to negotiate a deal this quickly (several months before football season starts) in any part of the New York DMA was surprising (and bodes very well for the Washington and Baltimore markets where Maryland has a stronger sports presence compared to Rutgers in the New York area). Cable and satellite industry consolidation (the ongoing regulatory approval process of the Comcast acquisition of Time Warner Cable and AT&T’s newly announced deal to acquire DirecTV) is likely in the backdrop, while BTN co-owner Fox has the ability to leverage its cross-ownership of YES (and there isn’t much more powerful programming in the NYC market than Yankees games).

Now, no one should be naive enough to believe that this cable TV money train will run into perpetuity. Cord cutting is on the rise and that will likely continue to accelerate among non-sports fans that can get their programming fixes from online sources such as Netflix, Amazon Prime and Hulu. However, sports are still the killer app when it comes to live TV, which is why NBC/Comcast signed yet another expensive long-term extension of its Olympics rights that will last until I’m close to retirement age in 2032. Meanwhile, the Big Ten itself is gearing up to go to market with its first tier sports rights (with the new contract starting for the 2016 2017 football season) and will almost assuredly sign what will be the largest TV deal in college sports history without even including BTN money in the equation.*

(* For what it’s worth and this is strictly my semi-educated guess, but I believe that the Big Ten will end up with a split of rights between ESPN and Fox similar to how the Pac-12 and Big 12 deals are structured. It makes sense from the exposure and financial perspectives, while ESPN and Fox have clearly shown a willingness to partner with each other on large deals. The latest example of this is the recently-announced MLS/US Soccer deal with ESPN and Fox splitting the rights.)

With the Midwest having a lower proportion of the US population each year**, the East Coast has become a critical focus for the Big Ten out of necessity. The recent announcements of the Big Ten/Big East basketball challenge and the awarding of the Big Ten Tournament to the Verizon Center in Washington, DC in 2017 are important pieces to the league’s Eastern strategy, but the BTN carriage is definitely the clinching factor in all of the B1G plans.

(** Note that this different than the gross misnomer of the Midwest “losing population” that is often perpetuated in the national media, which simply isn’t true. What’s occurring is that the Midwest’s growth is much slower than other regions of the country. Granted, the legacy populations of places like Illinois, Ohio and Michigan are still extremely large to the point where it would still take many years, if not decades, for smaller faster growing states to catch up to them.)

(Image from CBS Chicago)

I’ve been getting a lot of requests for comment on some proposed legislation by an Illinois state representative from Naperville to have a feasibility study performed on whether another Illinois public university can be added to the Big Ten. Here is the full text of the proposed bill. Note that I actually live in Naperville, but the applicable representative (Michael Connelly) doesn’t represent the portion of town that I live in.

Most people that have a passing understanding of conference realignment know that the odds of the feasibility of the Big Ten expanding with any school from the state of Illinois is less than zero (but we’ll spell it out here for any first time readers that haven’t been paying attention to this issue for the past several years). First of all, what the Illinois State Legislature wants is completely irrelevant to Big Ten expansion. They might have some control over the University of Illinois specifically, but Michigan, Ohio State, Wisconsin and every other Big Ten school (even Northwestern) would laugh off any attempt for some type of legislative intervention. Second, a viable Big Ten candidate needs a combination of FBS football credentials, academic prowess (preferably membership in the Association of American Universities, which is an extremely select group of top tier research institutions) and, most importantly of all, additional media value in the form of new TV markets and/or a national brand name (i.e. Notre Dame). Considering that the entire state of Illinois is already receiving the Big Ten Network at the maximum cable carriage rate, any additional school from the state would add exactly $0 in TV revenue for the conference. That would actually mean that all other Big Ten universities would lose money with an Illinois-based expansion by splitting the pie further without making the overall pie larger… and the Big Ten isn’t making moves in order to lose money. Plus, the only other public university that even plays FBS football is Northern Illinois, who isn’t anywhere near AAU status on the academic front (and realistically never will be with its mission). If the State of Illinois wants to spend a single dime on whether it’s feasible for another public university here to join the Big Ten, then the legislature is flushing money down the toilet that it doesn’t have.

That being said, let’s not throw the proverbial baby out with the bathwater on what ought to be the real intent of this legislation: creating a stronger #2 public university in the State of Illinois behind the University of Illinois at Urbana-Champaign (abbreviated as UIUC for ease of discussion here, although I’ve always thought that was a clumsy abbreviation as an Illinois grad) regardless of any Big Ten prospects (which are non-existent in reality). What I hope is that my fellow Naperville native can’t possibly be this naive and is just using the Big Ten name as a headline grabber in order to shine the light on the very real problem that the academic quality gap between UIUC and the rest of the state’s public universities is so large that Illinois high school grads are heading to out-of-state colleges at a rate that dwarfs almost every other state in the country.

In the typical competitive Chicago suburban high school, the top 5% of the class or so is generally gunning for the Ivy League and Ivy-caliber schools (i.e. Stanford, Duke, Northwestern, etc.). The next 5% is the group that UIUC generally targets (with a little bit of variation depending upon the program – engineering and business require top 5% credentials these days, whereas an applicant might be able to get by with being in the top 15% for liberal arts). Regardless, an Illinois high school grad is pretty well-covered if he or she is in the top 10% of his/her high school class and the 90th percentile in SAT or ACT scores.

The problem is the massive academic reputation gap between UIUC  and the rest of the in-state schools. For the very large group of kids that rank between the top 10% and top 30% of their class (people that still have good-but-not-elite grades and test scores and make up a huge share of the college student population), UIUC is getting too tough to get into while the rest of the in-state schools are way too easy to get into in relation to their credentials. There’s no compelling option in-between that’s a solid fit for that group of students. In the latest US News rankings for undergraduate programs at national universities, UIUC is ranked #41 in the nation, but then there isn’t another Illinois public school until the University of Illinois at Chicago (UIC) at #128. Farther down the list are Illinois State (#152), Northern Illinois (#177) and Southern Illinois (#177). It just so happens that neighboring schools like Indiana, Purdue, Iowa and Missouri are in the top 100 of the US News rankings and have admissions standards that perfectly align to those top 10%-30% students that can’t get into UIUC, so Illinois kids go to those schools in massive numbers* and are willing to pay out-of-state tuition for them (which is still relatively less expensive compared to a lot of lower-ranked private university options). According to the Chicago Tribune, there was an outflow of 30,000 freshmen students from Illinois to out-of-state schools and an inflow of 17,000 last year, which is a negative outflow of 13,000.** The academic quality gap is exactly why this is occurring.

(* Last year, the Chicago Tribune put together this fascinating database of where Illinois high school students currently go to out-state colleges. Not surprisingly, schools in neighboring states drew the largest numbers, with Iowa and Missouri having more than 1000 Illinois students each in their respective freshmen classes last year, while Indiana, Marquette, Wisconsin, Purdue, St. Louis University and Iowa State all had over 500 Illinois freshmen. Interestingly, Arizona State, Colorado, Kentucky and Kansas all drew more Illinois students than Ohio State, with all of them getting just under 200 Illinois freshmen each. Other popular power conference destinations for Illinois students outside of the Midwest are Arizona, Vanderbilt and Miami, with over 100 Illinois freshmen each. After this hellacious winter, I can’t blame any Chicagoan heading to some place where you can wear shorts in the middle of January. Meanwhile, Alabama and Ole Miss surprisingly draw more Illinois students than Nebraska, while Rutgers only has 10 Illinois freshmen. Maryland and Penn State don’t show up in this data set, which doesn’t mean anything one way or another, as some schools like Harvard that definitely have Illinois students aren’t listed here.)

(** New Jersey is a state with an even larger outflow of college students and has almost the exact same issue as Illinois: a very large drop in the rankings of its public universities after its flagship of Big Ten newcomer Rutgers.)

UIC is probably the only public school in Illinois that has a realistic chance of filling that gap since its faculty quality is already on the higher end compared to its admissions standards, the school is solid in STEM areas since it houses the University of Illinois system’s medical and pharmacy schools, and has what is now considered to be a very desirable location in the West Loop neighborhood of Chicago. (UIC was actually a visiting member of the Committee on Institutional Cooperation (CIC) that’s considered to be the academic arm of the Big Ten for nearly 30 years, but that status was revoked following the conference’s admission of Nebraska.) The main issue is that UIC’s reputation in professional circles (outside of medicine and pharmacy) actually lags behind its perception in academia, and changes there seem to be glacial. Every Big Ten school has a stronger professional network in Chicago in the finance and tech areas that fuel the influx of new college grads every year in Lincoln Park and Lakeview, and UIC still has to catch up to regional private Catholic schools like Loyola, DePaul and Marquette on that front, too. This is a self-fulfilling prophecy – UIC won’t move up in professional prestige without attracting better students, but such better students won’t go there until UIC moves up in professional prestige.

(* Up until 20 years ago, that location was considered to be a major liability when it was far from gentrified. I know this area well since my parents both graduated from there and my father worked there for 30 years, so I have a lot of affinity for the school. My father used to get his hubcaps stolen quite frequently back in the day and we used to joke that we could buy them back at the old Maxwell Street market adjacent to UIC, which was featured in the John Lee Hooker scene in The Blues Brothers. Needless to say, the old Maxwell Street was moved for UIC’s expansion several years ago and what used to be a seedy neighborhood has turned into a land of high-priced condos and restaurants.)

The other practical problem is that it would take a ton of investment from the state to get UIC up to the level of schools that are strong non-flagships (i.e. Michigan State, Purdue, Miami University of Ohio, etc.), yet the state keeps reducing the money to public universities every single year (and as noted, the state doesn’t have the money to give it to them even if they wanted to). Regardless, I hope that some type of better realistic in-state option exists by the time my 4-year old twins are ready to go to college in 13 years. If Representative Connelly can ensure that the focus is on that particular academic goal (as opposed to Big Ten membership specifically, which is a waste of time and resources because it will never happen), then I’m game.

(Image from PIPBlog)