Posts Tagged ‘Rutgers Scarlet Knights’

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)

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From the moment that the Big Ten announced its intentions to expand three years ago, my attention immediately focused upon “What would be best for the Big Ten Network?” as what would be most critical.  When I kept seeing the media speak about rivalries, geography and on-the-field competitiveness as opposed to the BTN, I wrote the “Big Ten Expansion Index” post as a business-focused response that brought a lot of new readers to this blog (including many that are still commenting here today) since it came to the then-provocative conclusion that it was Texas (not Notre Dame) that would be the conference’s top target.

One of those readers ended up determining the Big Ten’s way of thinking better than anyone.  Back in April 2010, when massive conference realignment was still in the speculative stage and nothing had actually occurred, a reader named Patrick, who is long-time television industry veteran, sent in an analysis of how much various Big Ten expansion candidates would be worth to the Big Ten Network.  He went beyond simply looking at market sizes and cable subscriber fees and took into account fan intensity (which translates into the ability to charge higher cable subscriber fees in specific markets), national TV value and advertising rates.  In no surprise, Texas finished at #1.  However, look at who were the next three highest ranked schools after the Longhorns:

CANDIDATES TOTAL ADDED REVENUE ESTIMATE
 
Texas $101,369,004
Rutgers    WITH NYC $67,798,609
Nebraska $54,487,990
Maryland $50,818,889

Well, on the heels of the Big Ten inviting Nebraska a couple of years ago, Maryland has agreed to join the conference and Rutgers will likely be announced as a new member on Tuesday.  As a result, it turns out that we can proclaim Patrick as the Nate Silver* of Big Ten expansion.  As you can see from that post, most of my takeaways from Patrick’s analysis at the time were more Armageddon-like (particularly with respect to Notre Dame) and completely wrong (as I had assumed that the ACC wasn’t poachable), but his calculations did convince me that Nebraska, in spite of its small market, was going to be a lock for a Big Ten invite over anyone else (and that turned out to be correct several months later) since that Rutgers number was (and still is) much more speculative and it was crystal clear that the Cornhuskers would be more valuable than the other standard candidates mentioned at the time such as Missouri and Pitt.

(*Speaking of Nate Silver, it’s interesting to look back upon this piece that he wrote about conference realignment last year in the New York Times.  The data inputs that he used might be a bit flawed compared to the polls that he leveraged for the 2012 Presidential election, but it shows at least the argument as to why the Big Ten would look to add Rutgers.)

Essentially, the Big Ten executed a two-pronged strategy with its expansion: get a marquee football program at the national level (Nebraska) as a headliner and add top academic flagships at the regional level (Maryland and likely Rutgers) for depth.  As much as fans want every expansion move to be as sexy as adding Nebraska, the reality is that pretty much all of the conference realignment moves in the power conferences were about depth as opposed to headlining.  Texas A&M being added by the SEC was probably the best pure football move from a fan perspective in the last three years outside of the Big Ten expanding with Nebraska, but even then, the draw of the Aggies was predominantly about the SEC getting into the state of Texas for TV purposes (as they will likely have their own conference network coming together sooner rather than later).

The notion of a “Midwestern conference” is over for the Big Ten just as the notion of a tight Southern-based conference has long been over for the ACC ever since it decided to add Boston College (along with Miami and Virginia Tech) in 2003.  As Teddy Greenstein noted in the Chicago Tribune, the addition of Rutgers and Maryland is a long-term play for Jim Delany and the Big Ten driven by demographics.  Arguably, the Big Ten has been in the worst position of any of the power conferences when looking at long-term population trends, as the SEC, Pac-12, Big 12 and ACC all have large presences in fast growing Southern and/or Western states.  The additions of the states of Maryland and New Jersey mitigate that a bit while still not going completely expanding with geographic outliers.  It also doesn’t hurt that these are both recruiting rich states (at least by Northern standards) for football and basketball.  For the Big Ten fans that bemoan the loss of “Midwesterness”, the demographic makeup of the league was legitimately something that had to change regardless of the presence of the Big Ten Network or TV dollars.  Maryland and Rutgers may not be very exciting additions in 2014, but they’ll be extremely important for the long-term health of the Big Ten in 2024 and beyond.

With respect to those TV dollars, as I stated in my post on Saturday, I unequivocally believe that Maryland can deliver the Washington, DC/Baltimore region for the Big Ten Network (and when I say “deliver”, I mean basic carriage at a high “Big Ten footprint” subscriber rate as opposed to the sports tier and/or lower out-of-footprint rate).  That’s why this expansion hinged upon Maryland accepting since they are considered to be a sure thing business-wise.  The real all-in bet for Jim Delany and the Big Ten, though, is with the addition of Rutgers.  Judging by the media commentary and Twitter reactions, there is a healthy skepticism out there about whether Rutgers has the ability to deliver the New York City market, which I agree with at a certain level and have pointed out on this blog numerous times.  This is definitely not a slam dunk by any means.

However, I also don’t believe the Big Ten is naive enough to think that it is just about Rutgers alone delivering that market.  Instead, the conference is likely banking on the immediate geographic presence of Rutgers combined with the large number of other Big Ten alums living in the New York City metro region (particularly from Penn State, Michigan and newly-added Maryland) to gain just enough traction to make it viable.  If you have read Malcolm Gladwell’s “The Tipping Point”, the Big Ten is betting that the network effect of Rutgers being added to all of the existing Big Ten alums in the Tri-State area will have a greater impact than Rutgers alone (or Rutgers combined with the various past and present members of the Big East).  I’m not saying that this will definitely work – this is big-time risk for a conference that isn’t known for big-time risks.  The main point is that this move is not just about what Rutgers alone can deliver in the New York City market, but rather what Rutgers plus all of the other Big Ten fans in that region can deliver just enough there.  No one in the Big Ten is expecting New York sports fans to follow college football like people in Birmingham – the percentage of fans that need to be interested in college sports in that market for the conference to garner the value it needs there is much lower than anywhere else.

Some other thoughts:

  • As much as a lot of people have pointed out the “cultural differences” and geographic distances between Maryland and the rest of the Big Ten, this is a fairly mild change on those fronts by conference realignment standards.  In terms of being a large research institution with excellent academics, Maryland fits in very well with the Big Ten as a school.  At the same time, Maryland won’t exactly be sticking out like a sore thumb in the league, especially with Rutgers being added at the same time and Penn State being in a contiguous state.  This is nowhere near the cultural and geographic differences between West Virginia and the rest of the Big 12 or the current-football-setup-that’s-about-to-change in the Big East.
  • Despite my belief that Maryland would have been foolish to turn down an invite from the Big Ten, I still continue to think that the ACC is stronger than people give it credit for.  The fact that Maryland is leaving doesn’t mean that it’s going to spark an exodus from the ACC overall, particularly with respect to never ending speculation that Florida State and Clemson would consider jumping to the Big 12.  There are two key differences between the Maryland situation and the Florida State/Clemson scenario: (1) outside of money, Maryland is moving to conference that it still fits into as an overall institution without insane geography issues, whereas FSU and Clemson have no real connections at all to the Big 12 and (2) when looking at the money, Maryland is going to receive a LOT LOT LOT more of an increase in TV rights fees by moving to the Big Ten than FSU and Clemson would receive in the Big 12.  Pete Thamel from Sports Illustrated pointed out that the Big Ten is anticipating $30 million to $35 million per school per year in just TV money when it enters into a new deal in 2017… and this appears to be a low end estimate that assumes that there won’t be full BTN carriage in markets covered by Maryland and Rutgers.  (If the Big Ten Network can get a full in-market rate in the NYC and DC markets, then those numbers are going to go up even further.)  The current ACC contract with ESPN that runs through 2027 will pay out an average of $17.1 million per school per year, which means that Maryland is looking at a 100% increase in TV rights money as a conservative estimate.  Contrast this with Florida State and Clemson, where they’d be looking at a bump up to $20 million per school per year in the Big 12’s national TV deals plus whatever they’d be able to garner for third tier TV rights locally.  That’s not an insignificant amount of money, but likely not enough considering that there would be much worse cultural and geographic headaches compared to the Maryland move that will yield far more revenue for the Terps.  Therefore, my semi-educated guess is that the ACC doesn’t lose anyone else in the near-term.
  • Assuming that what I just said about the ACC only losing Maryland holds true, I continue to firmly believe that UConn is going to end up as the Terrapins’ replacement.  From a pure football and even overall athletic department perspective, Louisville is probably the better choice for the ACC, but the league is still one that considers institutional fit and academic profile as being extremely important factors in expansion.  Connecticut is in alignment with the ACC on such factors in a way that Louisville isn’t and, when looking at the ACC’s long-term vision, the Huskies match what the league is looking for in terms of getting into the Northeast as much as possible.  The network effects that apply to Maryland/Rutgers/Penn State for the Big Ten can also apply to UConn/Syracuse/Pitt/Boston College (albeit that’s effectively going back to the old Big East).
  • That leaves Louisville likely praying for the Big 12 to get antsy.  Chip Brown of Orangebloods has stated that the Big 12 isn’t looking to move off of 10 teams for now and I tend to believe him in the short-term.  However, as much as we parse objective TV revenue and demographic data in conference realignment, there’s also a subjective psychological element of “bigger means better” that has been permeating throughout the land.  So, let’s say that it’s about a 60% chance that the Big 12 doesn’t expand within the next few years and a 40% chance that it goes up to 12 (with Louisville being the top target, BYU likely getting consideration, and schools like Cincinnati and USF begging to get in).  That’s up from a 90/10 split prior to the latest Big Ten expansion news, so we’ll have to keep an eye on the Big 12.  (As I’ve noted earlier, I still don’t buy any ACC schools moving to the Big 12.  If anything, it wouldn’t shock me if Texas goes independent and strikes a Notre Dame-type deal with the ACC by the end of this decade.)

The crazy thing is that we’ve only touched the surface here, as the likely defections of Rutgers and Connecticut will leave the Big East searching for new members once again (or maybe preventing Boise State and San Diego State from heading back to the Mountain West or the Catholic non-football members from splitting).  Assuming that Rutgers announces that it’s accepting an invitation to the Big Ten tomorrow, I’ll have more on what the Big East can and/or should do at this point along with the trickle down effect on all of the other conferences.

Until then, welcome to the Big Ten, Maryland!

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

(Image from Testudo Times)

Back in the fall, the Big East extended an “invitation” to Villanova to move up from Division I-AA football and join the football side of the conference.  After several postponements on a decision by Villanova, the school’s Board of Trustees was finally prepared to vote today to approve the football upgrade.

However, the Big East suddenly said, “SIKE!”

The issue appears to be Villanova’s choice of 18,500-seat PPL Park as a home football venue, which is the soccer home to the MLS Philadelphia Union.  I would certainly understand the hesitancy on the part of the other Big East football schools… if it weren’t for the fact that PPL Park has been well-known as the only realistic stadium option for Villanova for around 5 months now.  Regardless of whether one believes that Villanova joining Big East football is a good idea, it appears to be disingenuous on its face that some of the conference’s football members brought up the stadium situation that they’ve known about for quite awhile at the very last minute.

The New York Daily News reported today that 75% of the Big East’s football members would need to approve the upgrade, which means that it requires a 6-3 majority.  What’s interesting is that the scuttlebutt among Villanova insiders is that the Big East members that are blocking the process are Pitt, Rutgers, Syracuse and West Virginia as opposed to the newer members.  (See the 4/11 9:37 am post from the publisher of Rivals site VUSports.com.)  It doesn’t surprise me to see Pitt, Rutgers and West Virginia up there, but the talk about Syracuse having objections is quite jarring as the Orange (along with UConn) have the longest conference relationship with Villanova of any of the football schools.

I explained the rationale for the Big East prodding Villanova to move up in football in my last post: (1) approval of any all-sports expansion (including the addition TCU) by the Catholic members was predicated on Villanova getting a chance to move up and (2) none of the potential expansion candidates from C-USA would clearly add enough football revenue to risk diluting the conference’s basketball revenue even further.  That’s not to say adding Villanova would really do much for Big East football competitively, but they were a necessary political mechanism to obtain the votes for football expansion overall with TCU (which virtually everyone agrees was a great move).

The Big East released a statement that it would continue to perform “due diligence” on the Villanova upgrade.  What I don’t understand is what’s going to change over the next few months – the PPL Park plan “is what it is” and there aren’t any alternative options for Villanova.  If Pitt, Rutgers and others don’t like the Villanova proposal today, then they’re not going to like it in June.  Everyone involved would be best served by an up-or-down vote ASAP instead of dragging this out further.

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

(Image from Sports Business Daily)

The Big Ten expansion rumor mill continues to churn, with the conference reportedly inviting (or at least welcoming to fill out the online Common Application to join the conference) Notre Dame, Missouri, Nebraska and Rutgers.  Supposedly, if Notre Dame were to accept the Big Ten’s invite this time around, then the conference would add one more school for a 16-school conference.  If the Domers reject the overtures of the “Big Integer” once again, then the conference would decide between staying at 14 schools or finding 2 other schools to invite.  (Note that as I’m writing this, SportsCenter has teased talk about Notre Dame possibly joining the Big Ten about 8 times in the last 20 minutes with nary a mention of anyone else.)

This particular rumor has been denied by various parties, including the Big Ten’s office and Nebraska’s chancellor (who has probably been the most open university president of any of the schools involved over the past few weeks).  Still, I’m suffering from confirmation bias with respect to this specific story because it’s the main scenario that the collective brain power of this blog’s readers has settled upon over the last few posts: Nebraska, Missouri and Rutgers as virtual locks in a minimum 3-school expansion, with the Big Ten only going to 16 if it gets Notre Dame and/or Texas.  I noted this in my interview with Penn State blog Nittany Whiteout a couple of weeks ago (here are parts 1 and 2):

NITTANY WHITEOUT: I’ll have to ask you a three part question.  First: without thinking about money, or logistics, and if saying “no” wasn’t an option, what would be the ideal move for the Big Ten?  Second: getting back to the real world, what’s the best possible decision for the conference?  And lastly, just a shot in the dark, what ends up happening? Does Joe Paterno get that “Eastern Rival” he’s been pining for?

FRANK THE TANK:

1. The Big Ten adds Texas as team #12 and stops there.  There is no single school that can provide more impact for the conference (even Notre Dame).

2.  For all of the focus on TV markets, this expansion is going to require a massive football name in order for it work, which means at least one of Nebraska, Notre Dame or Texas.  Any 14-team scenario with 1 of them would work very well and I think that you need 2 of them for a 16-school conference.  If I were making a recommendation to the Big Ten and it’s not an option to just add Texas or Notre Dame as team #12, I’d go for a 14-school conference with one of those big names as an anchor.  The other 2 schools would provide a base of households (Missouri to the west and Rutgers and/or Syracuse to the east), with the caveat being that if the Big Ten can get Texas but also needs to take Texas A&M, too, then the conference should do it in a heartbeat.

3.  If I were to bet today (and be advised that this changes on almost a daily basis), I believe that the Big Ten will add Nebraska, Missouri and Rutgers to create a 14-school conference.  Nebraska provides the national name, Missouri safely delivers a state of 6 million people for the Big Ten Network, and Rutgers is a reasonable bet to at least get a toehold in the state of New Jersey.  They are all large flagship schools that are members of the AAU, so they meet the academic requirements of the conferences while “fitting” the Big Ten mold.  These are also all schools that will say yes to a Big Ten invite almost immediately.  Finally and most importantly for your readership, JoePa gets one Eastern rival to pummel annually.

What’s interesting is that if the Big Ten were to actually send out 4 invites in the manner that it was reported today, it indicates that the conference is employing something similar to the Super Death Star Conference multi-phase expansion strategy that this blog threw against the wall in a homage to John Nash.  The Big Ten is pot committed to expanding one way or another and clearly isn’t bluffing (as many casual fans across the country continue to believe).  This puts Notre Dame in a precarious position because it will end up holding the key to whether the Big East will live on with just losing Rutgers from the football side.  One line of thinking (which is the one that UCONN football coach Randy Edsall and many Big East fans believe) is that if Notre Dame were given an ultimatum to join the Big East football or give up membership in that conference’s other sports leagues, then the Irish would be “forced” into the Big Ten and the Big East could minimize its losses since Jim Delany wouldn’t pursue the East Coast any further.  (I threw a lot of cold water on this popular suggestion in my post about potential Big East expansion scenarios back in February.  Please see assumption #2.)  On the other hand, the line of thinking in my head (and what I believe is the Big Ten’s modus operandi) is that Notre Dame joining the Big Ten actually would embolden the conference to go for the jugular in the Northeast with a 5-school expansion that includes multiple Big East teams.  Jack Swarbrick has consistently tried to toe the proverbial party line that Notre Dame is fully supporting the Big East.  The Irish will have to decide whether joining the Big Ten or staying independent will end up hurting the Big East more (and if it actually matters to the school).

Now, this blog’s commenters went wild in the last post over this Northwestern Rivals message board rumor about a drunk Big Ten employee supposedly stating that the Big Ten’s true targets are Notre Dame, Nebraska… and Texas.  (What’s up with Northwestern and Big Ten expansion rumors? The university president telling a bunch of sorority girls about how the conference voted at the AAU meetings?  Plastered Big Ten insiders getting toasted with the Wildcat faithful?  Is this why Evanston was a center of the temperance movement?)  The scheduling proposal is whack and would seem to be a non-starter for the Big Ten, but as for the mix of teams itself, no one can really discount this as the ultimate goal for the conference (as much as it might be a shoot the moon attempt).  There have been multiple threads on Orangebloods (the premium Texas Rivals message board) that actually corroborated that if the Big Ten could grab Notre Dame and Nebraska, then that would be the scenario that would get Texas to join the Big Ten (whether or not Texas A&M is included).  So, call me just a little bit titillated that the Big Ten might be sending out 4 invitations to apply to receive invitations with 1 outstanding spot that seems to play right into what that wasted Big Ten guy apparently told his Northwestern alum buddy.  I’m simultaneously laughing off the thought that someone with this type of knowledge would spill it to a message board poster while seeing enough detail in the rumor to think, “Why the fuck not?”  This is what passes for “solid” expansion news when no one with actual authority is willing to go on the record.  A variant of the Super Death Star Conference might be coming along just yet.

Or it could “just” be a 3-team expansion with Nebraska, Missouri and Rutgers.  It continues to amaze me that a few months ago I thought that it was ridiculous to even think that the Big Ten would add multiple teams, yet now believe that 3-team expansion with one of the top 10 college football programs of all-time (Nebraska) that locks up the state of Missouri and possibly enters into the New York City market is a “conservative” move.  That’s how much our expectations of Big Ten expansion have changed in an extremely short period of time.  Hopkins Horn, a frequent commenter and Texas alum, asked the blog’s readers whether they’d be happy with that ultimate outcome.  Personally, I think that it would be a great outcome for the Big Ten.  While I’d love to add on Texas and/or Notre Dame on top of that group for a 16-school conference, a 14-school conference with Nebraska, Missouri and Rutgers as new additions provides a great mix of star power, guaranteed households and East Coast market potential while still maintaining some semblance of an actual tight-knit conference feel (as opposed to being a massive confederation).  As an Illinois alum, I like the natural East/West division split with annual games against long-time Braggin’ Rights rival Missouri.  Expanding further to 16 without Texas or Notre Dame isn’t worth it, in my opinion (as much as I have a huge soft spot for Syracuse).

So, that’s where we are in the expansion rumor cycle at this point.  Hopefully, some real news will come sooner rather than later.

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

(Image from College Hoops Journal)

The latest Big Ten expansion rumor du jour: a 5 -team expansion with Missouri, Nebraska, Pitt, Syracuse and Rutgers.  South Bend NBC affiliate WNDU (which was owned by the University of Notre Dame until 2006) has a report from “a source in St. Louis”, while Tom Dienhart of Rivals and Yahoo! tweeted about this scenario and then explained to a Nebraska radio station (h/t to Scott C) that he had received his info from Mizzou officials.   The Show-Me State apparently has so many loose lips that we should expect to have the next big expansion news to break out of Branson.  Hooray for more rampant speculation (and beer)!

As far as news stories about Big Ten expansion go, this is at least within the realm of reasonably coming to fruition.  This particular 5-team combination is no surprise to the followers of this blog as we discussed this in detail in the comments a couple of weeks ago with hypothetical pod alignments and the potential financial and prestige merits of this option.  As a far as collective requirements for the Big Ten, this group consists of great academic schools (all are members of the AAU), provides one marquee football brand name (Nebraska), grabs a set of guaranteed households (Missouri) and makes a legit play for the New York City market (Syracuse and Rutgers).  As sports fans, this expansion would look like a mega-blockbuster if one of those schools were to be replaced by Notre Dame, but I’d still characterize this as a game-changing move that improves both Big Ten football and basketball while expanding the conference footprint.  If true, Notre Dame fans will also feel that they’ve dodged a bullet by maintaining independence while simultaneously giving up millions of dollars per year (both in added revenue and reduced travel costs) and watching their league for basketball and non-revenue sports completely collapse.  This is seriously what passes for wonderful news in South Bend these days.

In addition, I found the comments from University of Nebraska president Harvey Perlman to be slightly titillating.  One week ago, he told the Omaha World-Herald the following:

So far, Perlman said, Nebraska hasn’t been approached by another league.

In an article yesterday in the same paper, Perlman was a lot more evasive:

Last week, I asked Perlman if NU had contacted the Big Ten or any conference about joining. His response: “I’m not going to comment on that.”

Things that make you hmmmm…

Anyway, Dienhart suggested that there would be four 4-team divisions if the Big Ten were to go with the proposed 5-school expansion.  Here’s how it could shake out in my eyes:

EAST: Penn State, Pitt, Rutgers, Syracuse
WEST: Nebraska, Iowa, Missouri, Illinois
NORTH:  Michigan, Michigan State, Wisconsin, Minnesota
SOUTH:  Ohio State, Indiana, Purdue, Northwestern

These “divisions” would really be pods, where the pods would rotate every 2 years.  I’d make the East and West divisions always be opposite each other with the North and South divisions rotating.  At the same time, every team would have a permanent non-division rival as follows:

Michigan – Ohio State
Illinois – Northwestern
Penn State – Nebraska
Iowa – Minnesota
Pitt – Michigan State
Rutgers – Indiana
Syracuse – Purdue
Wisconsin – Missouri

This way, every team has 4 annual rivals while playing everyone else in the conference 2 out of 4 years (with a few exceptions) if there’s a 9-game conference schedule.  The rotating pod mechanism allows everyone in the conference to continue to play each other on a regular basis even in a 16-team conference and still comply with NCAA rules requiring divisions of at least 6-teams each to play an exempt conference championship game.

As for the permanent non-division rivals, despite Pitt’s non-land grant status, I’m fairly certain that Penn State fans will gladly hand over the keys to the Land Grant Trophy (AKA “The Trophy Designed by Rasputin: It Just Won’t Die” or “The Big Ten Bowling League Trophy with a Lion Mold-A-Rama Glued on the Side”) in exchange for an annual game with Nebraska.  Now, if you want a REAL rivalry trophy, check out this bad-ass politically incorrect killing machine that Illini like myself and Northwestern fans get to enjoy… wait a second… WTF?!

I was firmly in the camp of believing that Michigan and Ohio State HAD to be in the same division for a very long time no matter how the conference was expanded and that seriously mucked up logical pod setups if you stuck that principle.  However, I like the aforementioned pods enough that I’ve been convinced that we may be better off splitting the 2 big dogs.  The pods are geographically contiguous and has one marquee football name each.  If Michigan and Ohio State really do have to play each other 2 weeks in a row, maybe that’s not the most horrible thing in the world.  The Worldwide Leader certainly can’t get enough Yankees-Red Sox and Duke-UNC games to slam down our throats, so having a rematch of college football’s best rivalry for the Big Ten championship would be a completely different kind of Armageddon.

All in all, I’d be fairly happy if this 16-school conference came to fruition.  I still think a lot of the value that the Big Ten would be looking for could be achieved in a 3-team expansion with just Nebraska, Missouri and Rutgers (assuming that Notre Dame and Texas aren’t in the mix), but this 5-school proposal would definitely lock up the Northeastern quadrant of the United States for the conference with similarly situated top tier research schools that have big-time athletic departments.  It’s a risk to expand in this manner without either Notre Dame or Texas, yet I do feel as though all of these 5 schools could “feel” like Big Ten schools and fit in well with the current members.  Of course, the only way that this works out financially is if the Big Ten Network takes Manhattan.  That continues to be the gazillion dollar issue to be resolved in this conference realignment.

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

(Image from FanHuddle)

Ah, I love the smell of napalm and crushed Big Ten expansion dreams in the morning.  Judging by the over 1000 comments to last week’s post (a record number for the blog), we’re all exasperated that Jim Delany and the Big Ten have at least publicly stated that they will stick to original timetable of 12-18 months to examine expansion candidates.  This is certainly a fascinating topic, but Lord help me if I’m still speculating12 months from now about who the Big Ten will be adding.  At that point, I’d rather be speculating about… Big East expansion!  Let’s get to my thoughts on last week’s events:

(1) You lie!!! – In all seriousness, I’m not one of those people that subscribe to conspiracy theories and break every conference official comment down like the Zapruder film.  However, if there’s one thing that needs to be beaten into people’s heads after this past week, it’s this: TRUST NO ONE.  The various of lists of 5 and 15 candidates that the Big Ten leaked and every public comment that has been uttered mean nothing to me at this point.  The one reporter that seemed to actually have a decent clue as to what was going on in the Big Ten expansion story, Teddy Greenstein of the Chicago Tribune, appeared to get solid information that the conference was fast-tracking adding new schools and then had to make a complete retraction a couple days later.  If Greenstein is getting played by the Big Ten, then every other reporter is getting played, as well.  I’ve received info from credible people that Texas and Notre Dame are definitely still in legitimate play for the Big Ten and other info that the conference has moved on regarding both of them.  Commenters have posted information suggesting that Maryland preemptively nixed any consideration for Big Ten membership and that Northwestern’s president revealed to a sorority that the conference had actually made a decision as to who it was inviting.  Tom Shatel, one of the Nebraska beat writers at the Omaha World-Herald, shared his frustration that people he trusted last week that stated that the Cornhuskers weren’t part of the Big Ten expansion talks are now saying that the school is definitely in the mix.  It’s impossible to parse through what’s true or false in all of this.

At this point, there is no combination of Notre Dame and/or any Big East and/or Big 12 schools that are AAU members that would surprise me.  If the Big Ten announces in June 2011 that it’s adding Pitt, Syracuse and Rutgers, I wouldn’t flinch.  If the Big Ten announces in 2 weeks that it’s adding Texas, Texas A&M and Notre Dame, it wouldn’t faze me at all.  It’s all fair game at this point.  The leaks so far have been so contradictory that we’re all better off assuming that they’re red herrings.  There’s a plan out there that might be way more aggressive than even the Super Death Star Conference that I’ve brought up or it could very well be a conservative addition of a geographically contiguous school or 3 purely for households.  No one except for Jim Delany and the Big Ten university presidents knows WTF is going on.

Of course, we’ll still have fun pouncing on every leak and rumor in the meantime.

(2) Backdoor meetings are where it’s at – Some commenters astutely noted that Jim Delany isn’t going to call a press conference one day and say, “I’ve just informed the Big East and Big XII that they need to bend over and assume the position.”  If and when Delany talks to his fellow commissioners, it’s going to be private and it’s likely such commissioners would want to keep it that way so they can start planning for their own raids of leagues like the Mountain West and Conference USA.  Delany would certainly not want anything to do with speaking about anything substantive with the feeding frenzy of the media horde gathered at the BCS meetings last week.  This seems like such a simple and logical concept, yet in a world where we’re craving information on this subject, we’re dying for any type of official statement of a go-ahead.

(3) Time is on the Big Ten’s side – I really doubt the Big Ten is going to take the full 12-18 months to examine this expansion issue.  That’s just my gut feeling as the university presidents likely wouldn’t be able to stomach having this story hanging over their heads in the press for such a long period of time.  It could very well be the case that the Big Ten’s university presidents know how they want to proceed and that they simply didn’t want Delany to inform the Big 12 and/or Big East commissioners of the Big Ten’s targets at the media-filled BCS meetings.  Honestly, I don’t know what could be taking so long unless the Big Ten is vetting every single possibility with the two schools that matter the most: Notre Dame and Texas.  Those are certainly two schools worth waiting for if the Big Ten believes that either of them would be willing to join.  Every single other school in the Big East and Big XII would leap toward Big Ten membership, so if the Big Ten was solely targeting non-Notre Dame/Texas schools, this could’ve been wrapped up weeks ago.

(4) Big East being “proactive” by “hiring” Paul Tagliabue and expanding to Jacksonville – As Brian Cook of Sporting News and mgoblog (not the former Illini quasi-great) stated, “Soviet Big East Raids You!”  (I’m not going to lie – I could keep myself entertained making up Yakov Smirnoff-isms for hours at a time.)  On paper, it sounds like a massive coup that former NFL commissioner Paul Tagliabue has been tapped as a strategist for the Big East.  He’s actually providing his services pro bono because he has a very direct interest in how all of this plays out as Chairman of the Board of the Directors at Georgetown.  What does this mean?  Well, if Tagliabue has anything to do with it, the hybrid format of the conference will continue on into perpetuity.  Georgetown would be severely damaged if the Big East split up and one of his tasks will be to ensure that doesn’t happen.  If the Big East were to lose multiple schools, he has the gravitas to tell schools that might be ready to split (i.e. Louisville) that the hybrid is still the revenue maximization model for the conference.  The Big East football schools might not trust anything that the Big East office says anymore, but if the former commissioner of the NFL says that ESPN will still pay a lot more money for a hybrid league than a split league, then that’s going to carry a lot of weight.  As a DePaul law grad, though, I really hope that Tagliabue doesn’t decide that the Big East would be better off skipping the Los Angeles market in favor of the next municipality that whores itself with a taxpayer-financed stadium.

Honestly, there is absolutely nothing “proactive” that the Big East can do at this point to prevent a member from leaving for the Big Ten.  Even if the Big East could somehow create a new TV network that could generate large amounts of cash, there’s no way that could be up and running even if the Big Ten takes the maximum amount of time to complete its expansion process.

Of course, Tagliabue unintentionally torpedoed the prospect of the Big East ever creating its own network by dumping on the thought that the Big Ten adding schools in the New York area would deliver homes for the Big Ten Network by saying the following:

“One of the real challenges for the networks is to provide value, but you only provide value in markets where you provide traction,” he said. “Is Minnesota and Rutgers going to get a big rating on Long Island? Give me a break. Every game isn’t Michigan and Michigan State.” He added, “Am I going to rush home from a tennis game on Saturday to watch Minnesota and Rutgers if I live on Long Island?”

Now, I’m not exactly a favorite person with the Rutgers message board crowd, but I’ve got to defend the school here.  WTF was Tagliabue doing completely ripping apart a current member of the Big East when his job is to presumably keep the conference intact?  Maybe he was suggesting that Midwestern schools like Minnesota wouldn’t exactly attract the Long Island tennis club crowd, which is likely true, yet that’s quite a disingenuous statement coming from someone representing a league that includes Louisville, South Florida and Cincinnati (who don’t conjure up images of summer parties in the Hamptons).  In fact, the highly-rated 2006 Rutgers game where the Empire State Building was lit up in scarlet red was against Louisville as opposed to an Eastern school, which goes to show you that New Yorkers simply want to watch good teams play other good teams regardless of geographic location.  If I were a Rutgers fan, I don’t know how I could deal with someone in a leadership position in the Big East saying that about my school.  At worst, it was a complete cheap shot and at best, it came off extremely wrong with logic that didn’t follow considering that the Big East isn’t a purely Northeastern football league anymore.

(5) ESS – EEE – SEE SPEEEED! – SEC Commissioner Mike Slive articulated the real reason for expansion: it’s a high stakes pissing contest to see who can lay claim to the “Bad Motherfucker” wallet.  More than anyone, there’s kind of this lingering assumption that if the Big Ten expands to 16 schools, then the SEC MUST respond because it simply can’t handle not being the biggest (and therefore, the best).

Frankly, this line of thinking doesn’t make sense to me at all.  I know a lot of fairly knowledgeable people are convinced that we’re going to end up with 4 16-team superconferences after everything shakes out, yet too many people seem to forget that every single conference other than the Big Ten doesn’t have a financial vehicle like the Big Ten Network that would make it financially viable to perform such a large-scale expansion.  The Big Ten isn’t expanding just to expand – it’s looking to maximize the per-school payout for each of its members.  All of the other conferences are going to do the same and I fail to see how any of them would be able to make it a profitable venture to expand beyond 12 without its own conference network.  Heck, even the Big Ten isn’t guaranteed a windfall by going beyond 12 schools (even though it at least has an argument with the Big Ten Network).

In the case of the SEC, there are very few schools that make sense for it in terms of expansion at all.  I see names thrown around like Miami, Florida State, Georgia Tech and Clemson, but all of them would be duplicate teams in markets that the SEC already owns.  There’s very little point in the SEC adding more schools within its current footprint.  In fact, there are only two markets that would add value to the SEC:  Texas and North Carolina.  The problem is that in order to obtain those markets, it would need to try to add the University of Texas and UNC, both of whom would likely completely shun the SEC due to academic reasons.  Throughout this process, I’ve corresponded with many Texas alums (NOT the T-shirt fans that just care about football) and they’re pretty much unanimous in stating that the UT administration will NEVER entertain any thought of joining the SEC.  It cannot be underestimated how much the academically-minded administrators at Texas loathe the thought of the SEC.  I think about this every time I see a columnist wrongly assume that “Texas = South” and therefore “Texas = SEC”, when in reality UT likens itself to be more like Berkeley or Michigan as opposed to any of the SEC schools.  UNC is even more snobby with respect to academics and the Tar Heels have emotional ties to the ACC that go far beyond what Texas has with the Big XII.  So, the chances of the SEC adding either of those schools is between slim and none.  Without them, there aren’t any other worthy markets in the South that the SEC hasn’t already covered.

(6) Why is this topic addictive? – A number of commenters have been wondering about why this expansion topic is so fascinating.  As someone that had been writing this blog for 5 years about a variety of subjects and didn’t focus on conference realignment until the last few months, I’ve also been thinking about how I got hooked on it.  At least for me, I’ve always enjoyed writing about big-picture movements in the sports world and you really can’t get much more big-picture than power schools switching conferences.  Could you imagine if the Yankees and Red Sox approached the Cubs and Dodgers to join the AL East in order to form a super-division of all of baseball’s most popular teams?  (Please note that as a die-hard White Sox fan, it pains me to admit how popular the Cubs are and will likely always be.  I take solace in the fact that they’re paying $19 million to an 8th-inning setup guy.)  Well, the equivalent isn’t just possible in college sports, but it’s happened numerous times.  Within the past 20 years, Penn State joined the Big Ten, Miami joined the Big East and then later switched to the ACC and Texas helped form the Big XII and could be on the move again.

Let’s face it, though: this is like crack-cocaine to the sports blogging world.  As regular commenter allthatyoucanleavebehind noted, it’s a lot more fun to talk about expanding with schools like Syracuse and Rutgers (or really anyone other than the massive players like Texas, Notre Dame and Nebraska) than to actually have to play them when expansion finally occurs.  Once the Big Ten actually makes an announcement regarding expansion, we won’t have a quick fix of speculative blogging material anymore… at least until we start talking about Big XII expansion.

At that point, all I’ll want to do is to rush home from my tennis match to catch the Illinois vs. Rutgers game.

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

(Image from Retecool)

The Big Ten appears to be stepping up the timetable for expansion dramatically, where what once looked like a 12-18 month process might now result in announcements prior to the end of June.  So, this is a perfect time for a guest post from Slant reader Patrick, who is a long-time veteran of the television industry.  (This means that he can actually drop some knowledge, as opposed to being a speculative Unfrozen Caveman Lawyer like myself.)  If you’ve been following the comments on last week’s post, Patrick has been providing incredibly insightful analysis based on industry information and has pinpointed some critical items in the Big Ten Network revenue model that definitely has changed some of my prior thoughts on expansion.  In fact, I’ll go so far as to say that he has provided the most informative viewpoint that I’ve come across since the Big Ten announced that it was exploring expansion back in December and it has changed a number of my views on the candidates.  So, everyone should give Patrick some major kudos for investing his time on this critical issue.  Here’s what he has to say (and my take on it thereafter):

With all the talk of Big Ten expansion lately I could help but wonder why the richest conference with the highest pay outs would want to expand. Wouldn’t that break up the pie into smaller pieces? Wouldn’t that cut the take from the current conference members? In short, NO, a resounding NO! The Big Ten schools together made roughly  $214,000,000 as of the last report. $100,000,000 from ABC / ESPN, $2,000,000 from CBS, and the schools collected $112,000,000 from the newly formed Big Ten Network. That is $19,454,545 per school. The regular network haul of $102,000,000 per year isn’t going to change. Any new members would need to make up that difference, plus carry their own weight of $38,146,166 in new revenues to the Big 10 Network. The conference only controls 51% of the Big 10 Network, FOX News Corp owns the other 49% and takes 49% of the overall profits. So each possible addition would need to earn the conference $19,454,545 per year AND earn FOX News Corp $18,691,621 AND make up the difference in the take from ABC / ESPN / CBS to break even for the current members. Since the conference reported a $112,000,000 payout, the actual profit margin of the Big Ten Network is around $219,607,840. In addition, there are a number of news stories indicating that the universities take this year was just shy of $22,000,000. I haven’t seen anything official on that but if it is true than the BTN made around $272,000,000 in the most recent year. Almost a $50,000,000 climb year to year for a brand new network. So why would anyone mess with that? How could any university earn that much for the BTN?

Advertising!

By the Big Ten’s own admission they are clearing about $0.36 per subscriber per month for the states inside it’s footprint. They also tell us that there are 26,000,000 subscribers and it is AVAILABLE to 75,000,000 people. The BTN wants to increase the available number but even more important is to increase the subscriber numbers, and there is an opportunity to do that within the current footprint. Regardless, at $0.36 per month for 26,000,000 households over 12 months I only came up with $112,320,000 for a cable carry rate. Well short of the $272,000,000 that the network likely made last year. The other $160,000,000 is advertising revenue! Live sporting events get big advertising dollars and the BTN is loaded with them. As Frank pointed out, if the conference were to expand, many more games would be on the BTN. Football, basketball, and maybe down the road a Big Ten hockey conference. Throw in a few conference championship games in different sports and expansion makes money just by added Live programming and increased quality of programming. A few creative tweeks in the scheduling and you could have every Big Ten game make it to air somewhere, which is good for everybody. For the Big Ten to get to 12 schools the addition would need to equal $38,200,000 to break even, for 3 schools they need to reach $114,500,000 combined, and for 5 schools a whopping $190,800,000.  If I were to just pull the #2 – #6 schools from my estimate they would bring in roughly $266,000,000. In that scenario, FOX News Corp profit (by adding 5 schools) goes from $107 million up to $201 million. It would not surprise me to see FOX News Corp gently nudging this process along. If advertising is earning the BTN in the ballpark of what I am thinking, then FOX has realized they opened a gold mine and want to see how deep it goes.

But what about the schools being batted around? I did my level best to average numbers, to play it conservatively, to be fair across the board with finding any schools potential. Notre Dame and Pittsburgh are a little tough to gauge because they don’t add any new television markets. But I found that by extrapolating what is already happening with the conference and the Big Ten Network, combining that with my television experiences, and taking into account some of the posters comments and thoughts I came away with what I feel is a pretty fair assessment of the potential of the candidates. As many of you have noted, game attendance and athletic revenue are important. I used attendance to gauge the level of support and fan interest to help me put a dollar value on ratings potential. If the fans won’t even fill their own stadium, how valuable is the team overall? Any team that joins the Big Ten will share in the Big Ten pie, so I subtracted off the current tv pay out for those teams to gauge strength in their home markets. Then extrapolated to find a decent estimation of a new tv markets potential for advertising revenue. I also averaged in the carry rates for the home market or markets with the number of cable subscribers. I did add a category to try to account for additional Live programming on the BTN and gave each school a flat $10,000,000 for the additional sports coverage, that is probably too low but I am leaning to the conservative side.  The following is a summary of the totals of my findings.

CANDIDATES TOTAL ADDED REVENUE ESTIMATE
 
Texas $101,369,004
Rutgers    WITH NYC $67,798,609
Nebraska $54,487,990
Maryland $50,818,889
Boston College $48,382,692
Notre Dame $47,629,255
Kansas $46,320,092
Missouri $45,901,459
Syracuse $43,504,813
Connecticut $38,080,271
Pittsburgh $34,365,175
Iowa State $31,831,077
   
Syracuse  WITH NYC $65,874,573

For a full chart with my calculations, please see this Word document:

Big Ten Candidates TV Analysis

This table could be read many different ways, I have no clue what the Big Ten will do. I could make a strong argument for Nebraska, Missouri, Rutgers, Maryland, Pittsburgh, and Kansas. If Syracuse can deliver NYC then they might be in but the amount of research they do will hurt their cause. Texas is an absolute no brainer, they lead in almost every category. I don’t think Iowa State is viable, but I was VERY conservative with these numbers. It would be hard to ignore Notre Dame and Nebraska being the #2 and #4 most valuable college sports franchises. Interesting that Kansas is right there behind Nebraska and ND in athletic revenue. If anyone wants to pass along better or more current numbers, I would appreciate it. In addition, with the talk and discussions that were flying around Sunday about the AAU meetings and the accelerated time table, I firmly believe that my estimates are probably too low. The fact that they want to move this quickly with an expansion means that the potential revenue is HUGE and the decision isn’t even a tough or close one. Also in some of the statements coming from the Big Ten brass and Notre Dame, I highly doubt Notre Dame is going to be included in the expansion. I now think that the expansion will happen, and I think that they will go all the way to 16 teams. I believe they will get AAU member schools, and the Big Ten presidents seem to be very interested in graduate research.

 I for one can’t wait, Bucky Badger playing against Nebraska would be an awesome sight!

– Patrick

Based on Patrick’s analysis, there are a few important things that I take away from this:

(1) The 60/40 Rule – This might be the most important piece of information regarding Big Ten expansion that I’ve seen to date: the Big Ten Network makes 60% of its revenue from advertising and 40% 0f its revenue from carriage fees.  I’ll be honest with you – I thought that it would’ve been the other way around and it has definitely altered the lens through which we need to look at expansion candidates.  What this basically means that if push comes to shove, the Big Ten should pick a school that has a great fan base (which translates in viewers for ad revenue) as opposed to market size (which contributes to carriage fees).  This actually brings some common sense back to the discussion, where somehow the world has been convinced over the past few months that Rutgers must be the most valuable school on Earth due to the location of its campus.  We’ve been very focused on footprint sizes and research funding in our discussions lately, but at the end of the day, ad revenue is the #1 source of dollars for the Big Ten Network and that’s based on finding schools that Joe Blow in Anytown, USA will want to watch.  Here’s a chart of some of the expansion candidates with their football TV ratings from last year.  (Note how well Nebraska and Pitt performed compared to everyone else.)  Now, that doesn’t mean that expanding the footprint is irrelevant (as the New York City market is still an important target for the Big Ten), but it definitely lets people “think like sports fans” a little bit here.

(2) Pitt MIGHT make money for the Big Ten – Most of the readers out there know that I personally love Pitt as an academic institution and athletic program, but just couldn’t find any way how the school could add to the Big Ten’s coffers financially.  Well, if Pitt’s ratings for football and basketball are good enough (and judging by the chart I linked to above, they probably are), then the school can end up being financially viable.  Patrick has stated that his figures for Pitt and Notre Dame are very conservative, so if Pitt continues to draw high football ratings, it changes the equation significantly.   Now, Pitt can’t really be put into the same category as Notre Dame or Nebraska where the national draw clearly overrides a lack of new BTN households, yet it does have the advantage of being one of the few expansion candidates that has strong programs in both football and basketball.  Speaking of Nebraska…

(3) If the Big Ten wants to make a ton of TV money, it will invite Nebraska – I’ve been increasingly become more and more supportive of Nebraska joining the Big Ten lately and Patrick’s analysis completely sealed it.  Nebraska’s small market be damned – the Husker fan base is as rabid as any other in the country and they will tune in anytime, anywhere.  (If you were wondering, the photo at the top of this post is evidence of how Nebraska fans completely took over South Bend a few years ago when they played Notre Dame.)  In fact, Patrick’s figures mean that we should remove Nebraska from the realm of “Well, they might be coming instead of Missouri” or “They’re a good back-up if Notre Dame doesn’t want to join” and put the Cornhuskers into the “lock” category instead.  I will now officially be shocked if Big Ten expansion occurs without Nebraska involved.

(4) 16 Schools = Huge Inventory – The 60/40 rule that favors advertising revenue also gives a whole lot more credence to making a 16-school conference financially viable. I recalled this piece from Don Ohlmeyer on that examined how ESPN chose to schedule programs:

http://sports.espn.go.com/espn/columns/story?columnist=ohlmeyer_don&id=4582425

The message that I got from this was that LIVE EVENTS = RATINGS. A live hot rod competition after a college football game actually holds more viewers than a studio show that talks about said game, even though they have nothing to do with each other at face value.

The Big Ten expanding up to 12 schools really doesn’t increase the inventory of conference football games (which are the higher value games) very much at all. Assuming that the Big Ten continues with an 8-game conference schedule, it would have 48 conference games as opposed to 44 conference games in a season. At 14 schools, it would go up to 56 conference games. At 16 schools, though, the Big Ten would almost certainly go to a 9-game conference schedule, which would catapult the inventory up to 72 conference games.

What does 72 conference games allow you to do? Well, let’s assume that the Big Ten provides 4 games to ABC/ESPN every week (2 games on ESPN and ESPN2 at 11 am CT, 1 game on ABC at 2:30 pm CT, and 1 prime time game), which is a package that would likely see a substantial increase in rights fees when it’s now presumably including Notre Dame and/or Nebraska on top of the current Big Ten members plus a conference championship game. This leaves 2 conference games for the BTN for every single week of the season (except for maybe Labor Day weekend, which is reserved for MACrifice games). With non-conference games mixed in, the BTN could have football triple-headers virtually every week. Going up to 16 schools increases the amount of live football on the BTN in a dramatic fashion and if twice as much live football compounds the amount of ad revenue earned, then I’m starting to see how going up to 16 schools makes more financial sense under the BTN model than 12 or 14 schools.

Then, we get to basketball, where a 16-school conference can get at least one basketball game onto the BTN onto every day of the week except for Friday, whereas now the BTN usually only has games on Wednesday, Saturday and Sunday. That’s a dramatic jump in the number of high quality basketball games on more nights of the week. This also still leaves enough for the Big Ten to add 1 or 2 more basketball games on ESPN per week for widespread exposure (and likely garner a rights increase there, too, if schools like Syracuse or Pitt added to the mix). Of course, Friday night can be reserved for the new Big Ten Hockey Conference game(s) of the week if Notre Dame joins. There’s even some side benefits in the spring with baseball (as Nebraska and Notre Dame lift up the quality of that league substantially) and lacrosse (where a new Big Ten league could be formed with Syracuse as the national headliner if that school is invited). Other sports such as women’s basketball and volleyball can end up with new national (and TV-friendly) brand names, too.

So, maybe that’s why the chatter about a 16-school conference has taken center stage: if you have that many more high value football and basketball games plus a ton of other sports of interest where you’ve got live programming every night of the week that’s comparable to the college games on the ESPN networks, that can increase ad revenue dramatically (and in turn, carry rates could increase as the BTN becomes more “essential” to viewers’ lives).

(5) My Latest Prediction That Will Change in a Week – Looking at Pat’s figures, it’s clear to me that the Big Ten pretty much has to at least try for the New York market unless Texas and Texas A&M come walking through that door.  The question will be whether the Big Ten believes that it’s worth it to take both Rutgers and Syracuse.  I get the feeling that the Big Ten’s university presidents have a fondness for Rutgers as  fellow public flagship (and I’ve stated before that they make sense in a multi-school expansion), even though my personal choice would be Syracuse if we had to take one or the other.  The academically-minded people in the Big Ten love Pitt and I think that if there’s any financial case for the conference to to be able to take them, they’ll likely do it.  Missouri, although it doesn’t have gangbuster financial numbers, would  probably be seen as a “safe” option because it can at least be counted on with reasonable certainty to deliver any households in its home state that don’t already carry the Big Ten Network on basic cable at the Tier 1 rate.

The one item that I disagree with Patrick on is Notre Dame – if his figures are close to correct, then I have a hard time believe that the Irish will turn down such a huge windfall for playing a lot of the same teams that it already plays annually in football (especially if its home for basketball and Olympic sports is destroyed).  I feel pretty good that Notre Dame, Nebraska, Missouri and Rutgers would all be involved in a 16-school Big Ten.  This essentially leaves Pitt and Syracuse for the last spot (unless the Big Ten wants to cut further into the Big XII by taking a school like Kansas).  If the Big Ten wants the better institutional fit, it will choose Pitt.  If the Big Ten really thinks that locking down New York is possible for college sports, then it will choose Syracuse.  With such a large-scale expansion, the Big Ten may put more emphasis on institutional fit to ensure maximum cohesion (especially since renegade Notre Dame is very likely to be involved), which would give the edge to Pitt (as much as it pains me as an avowed Syracuse supporter).  I know that this an about-face from what I’ve been saying for quite awhile.

So, here’s my current bet on who will join a 16-school Big Ten: Notre Dame, Nebraska, Missouri, Pitt and Rutgers.  If Notre Dame continues to balk, I believe that we’ll see Nebraska, Missouri and Rutgers added for a 14-school conference.  This will probably change by the end of the week (and I wouldn’t be surprised in the slightest if Pitt is replaced by Syracuse in the 16-school scenario), but that’s my line of thinking right now.

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

(Image from Ning)