Merged - Big 12 Aftermath Thread

[tweeterhawk]

Study firm predicts dire economic outlook for communities of schools remaining in Big 12 with Texas and Oklahoma bolting. This is grim:


“Because strong and effective leadership may not make a difference in the realignment outcomes for the remaining eight — illustrated by the Perryman Group’s methodology using AAC and MWC schools to create the two scenarios — the presidents and athletic directors must now begin planning for significantly reduced budgets as they navigate all the rapid changes happening in college athletics.

“Many if not all of the athletic departments may turn to layoffs to cover those budget deficits, an unfortunate but unavoidable side effect of the decisions made by Texas and Oklahoma.

“Capital projects may be put on hold or forced to rely more heavily on fundraising, though the Perryman Group predicts the possibility of lower alumni and donor engagement, too…”

On the economic impact of Texas and OU leaving the Big 12

A report from the Perryman Group laid out the high potential economic costs to the remaining eight members of the Big 12. Now strong university leadership and public-policy decisions will influence those outcomes.

www.google.com

 

[Fryowa]

Study firm predicts dire economic outlook for communities of schools remaining in Big 12 with Texas and Oklahoma bolting. This is grim:


“Because strong and effective leadership may not make a difference in the realignment outcomes for the remaining eight — illustrated by the Perryman Group’s methodology using AAC and MWC schools to create the two scenarios — the presidents and athletic directors must now begin planning for significantly reduced budgets as they navigate all the rapid changes happening in college athletics.

“Many if not all of the athletic departments may turn to layoffs to cover those budget deficits, an unfortunate but unavoidable side effect of the decisions made by Texas and Oklahoma.

“Capital projects may be put on hold or forced to rely more heavily on fundraising, though the Perryman Group predicts the possibility of lower alumni and donor engagement, too…”

On the economic impact of Texas and OU leaving the Big 12

A report from the Perryman Group laid out the high potential economic costs to the remaining eight members of the Big 12. Now strong university leadership and public-policy decisions will influence those outcomes.

www.google.com

One thing to keep in mind is that Perryman is a for-profit "analysis" firm. They get paid to come up with studies that paint their client in the most sympathetic light for court cases. If Oklahoma and Texas had hired them they would've made it sound like not such a big deal.

The B12 paid them six figures to write a horror story.

 

[okeefe4prez]

The B12 paid them six figures to write a horror story.

I'll write the horror story for free.

1) Media rights revenues will sink
2) Gate will sink
3) Aggregate revenues will crater
4) Bond ratings on athletic department ventures will make Chicago bonds look safe by comparison
5) Borrowing costs will rise
6) Payroll expenses within the AD will have to be slashed
7) Negative return sports will have to be eliminated
8) The overall town will suffer because the biennial Tulsa v. ISU match will be much less of a draw than Texas or OU and local businesses that print money on football weekends will suffer a material adverse change to revenues
9) The programs will eventually face a nearly insurmountable gulf between themselves and the remaining programs in power conferences

 

[ssckelley]

hmmm....I thought the ACC was off limits?

https://twitter.com/MarcRyanOnAir/status/1422255062185910274

 

[hawkinn3]

Have you ever lived in a MAC town? More people go to high school games. Even when U.C. was undefeated in the Big East, they didn't start selling out until 6 or 7 games in. The games are in general, not televised, and not even on the radio in some MAC areas. Second division teams have the media presence of Valley High School or the Iowa Wild. Outside of the town they reside in, nobody cares. Iowa has no pro sports. Big time college football is it. Believe me when I say, people on campus laugh at athletes and their dreams at small schools. They think they are ridiculous wannabe posers.

Saturdays at games in Iowa City are an event. If Iowa goes second division, athletics will go bankrupt, the research grants given by the B1G academic alliance will disappear, the whole thing will collapse and Iowa will be Drake or UNI, a suitcase school, third-tier college with no medical school or children's hospital. That's what is riding on Big Ten membership. Shit that matters. Stuff that literally saves lives. Who cares if they win the Big Ten? What matters is having a seat at that table. All other concerns are secondary.

In 2019 The University of Iowa had 3.4 billion in revenue. In that same year the athletic department had 152 million in revenue.

You are delusional if you think even getting rid of the entire athletic department would affect the university.

It’s an institute of higher learning not an NFL farm team.

 

[Fryowa]

Saturdays at games in Iowa City are an event. If Iowa goes second division, athletics will go bankrupt, the research grants given by the B1G academic alliance will disappear, the whole thing will collapse and Iowa will be Drake or UNI, a suitcase school, third-tier college with no medical school or children's hospital. That's what is riding on Big Ten membership. Shit that matters. Stuff that literally saves lives. Who cares if they win the Big Ten? What matters is having a seat at that table. All other concerns are secondary.

This has to be satire…or you were drunk when you typed it.

The entire athletic dept budget is less than 3% of the total net position of the University, and that’s not counting the hospital system at all. And on top of that, the AD and Uni are separate entities. Different budgets, different financial statements, different everything.

If you think the AD is supporting the university even a tiny little bit you’re fuckin nuts. Do some people go to school at Iowa because they like the Hawks? Sure.

But to even suggest losing sports would put a dent in the school’s viability is absolutely insane. For F’s sake, man, the hospital brought in over $2.1 billion in patient payments alone last year. That’s BILLION. With a B.

 

[Hawkboys]

hmmm....I thought the ACC was off limits?

https://twitter.com/MarcRyanOnAir/status/1422255062185910274

I think you eventually see a few PAC12 teams jump to B1G, the rest merge with Big12, and then the ACC splits between B1G and SEC with 3 super conferences of 20 teams each. There will be a couple of teams each from ACC and Big12 lost in the shuffle.

 

[okeefe4prez]

In 2019 The University of Iowa had 3.4 billion in revenue. In that same year the athletic department had 152 million in revenue.

You are delusional if you think even getting rid of the entire athletic department would affect the university.

It’s an institute of higher learning not an NFL farm team.

That's over 4% of revenue. There are costs, but the ROI on athletic department revenue is pretty big for a school like Iowa. The key is it lets the school fill a whole bunch of out of state scholarships at full tuition. The actual marginal cost of providing the educational services for those students is relatively small.

I get that the athletics budget seems small by comparison when you just look at revenue, but in terms of operations, those few hundred scholarships that get funded at rack rate by the AD are a big fucking deal.

There are schools where the AD probably adds nothing because they could easily fill every seat with some kid paying full freight, but those are not schools like Iowa, Alabama, Kansas, etc. They are schools like Northwestern, Vanderbilt, Duke, etc. I don't agree with the Chicken Little take, but it would be a helluva hiccup to Iowa to lose that revenue from athletics.

 

[ssckelley]

I think you eventually see a few PAC12 teams jump to B1G, the rest merge with Big12, and then the ACC splits between B1G and SEC with 3 super conferences of 20 teams each. There will be a couple of teams each from ACC and Big12 lost in the shuffle.

I read somewhere that the Pac12 and B12 are already talking merger. Make a 20 school conference east and west. They would have schools in every time zone in the continental US.

 

[kicker22]

I read somewhere that the Pac12 and B12 are already talking merger. Make a 20 school conference east and west. They would have schools in every time zone in the continental US.

Maybe I'm just crazy, but from a competitive standpoint what is the benefit of a merger. The split would most likely still be geographic so you'd add on cross over games with Pac12 teams, but I'm not so crazy about the idea of being in the western division and having to travel to the west coast annually for divisional games when the teams in the other division won't have to do it so often. Maybe they'd take a 3 or 4 pod approach, but I'm just not sold on it.

From a financial/marketing standpoint it makes sense. But as a fan I'm not sure what I think.

 

[tweeterhawk]

Kansas to the B1G? I'd love it, personally.

REPORT: Kansas Might Be Nearing A Deal To Join The Big Ten

Kansas might be nearing a deal to leave the Big 12 for the Big Ten. Will the Jayhawks join the Big Ten?

dailycaller.com

 

[haydensly]

Kansas to the B1G? I'd love it, personally.

REPORT: Kansas Might Be Nearing A Deal To Join The Big Ten

Kansas might be nearing a deal to leave the Big 12 for the Big Ten. Will the Jayhawks join the Big Ten?

dailycaller.com

Not doubting you but I will believe it when they announce it. If they were to add Kansas, there must be at least one more school they have in mind to add. Otherwise you end up with an odd number in your conference at 15, which is possible but not how these things usually end up.

 

[tweeterhawk]

Not doubting you but I will believe it when they announce it. If they were to add Kansas, there must be at least one more school they have in mind to add. Otherwise you end up with an odd number in your conference at 15, which is possible but not how these things usually end up.

I would imagine there are other discussions taking place as well. Just hopefully not with the little school up the road.

 

[Hawkboys]

I read somewhere that the Pac12 and B12 are already talking merger. Make a 20 school conference east and west. They would have schools in every time zone in the continental US.

The merger talk is with the commissioners and not by the schools themselves. Having schools across timezones but no big name schools won't get them more $$ than they have now.

 

[ssckelley]

Not doubting you but I will believe it when they announce it. If they were to add Kansas, there must be at least one more school they have in mind to add. Otherwise you end up with an odd number in your conference at 15, which is possible but not how these things usually end up.

I think the Big Ten needs to grab Kansas while they can and worry about the other later. IIRC this did this with Penn State back in the day, I think we had 11 for a while.

 

[ssckelley]

Maybe I'm just crazy, but from a competitive standpoint what is the benefit of a merger. The split would most likely still be geographic so you'd add on cross over games with Pac12 teams, but I'm not so crazy about the idea of being in the western division and having to travel to the west coast annually for divisional games when the teams in the other division won't have to do it so often. Maybe they'd take a 3 or 4 pod approach, but I'm just not sold on it.

From a financial/marketing standpoint it makes sense. But as a fan I'm not sure what I think.

Adds nothing competitively, it's just a geography grab. The Pac12 will be making themselves relevant across 4 time zones. I imagine they will rack up big revenues in TV deals. Although West Virginia being in the east coast probably doesn't do much for them.

 

[HuckFinn]

It may also be a talent grab. Yes, Kansas football is awful. However, the KC area has brought some good football players to Iowa and has ongoing potential. Of course, Kansas bb is a no brainer. And, Midwest geography fits the BT. I would add Missouri in a heartbeat, along with Kansas. Lots of good football players in those areas. Look at a map. I like it. Market is not high level, but neither is the PAC 12 with the time zone issues…don’t go there. How are we doing in the BT financially with Rutgers and Maryland supposedly increasing Eastern exposure.? Penn State is an island isolated from the rest of thevEast coast market. We already have their market, but it will not grow, just maintain. Nobody else in the 12 has any hope of creating an advantage for the BT. Finally, the SEC is what it is. The additions of OU and TX just further define their assumed dominance. Yes, I get the finances, but do we really think the BT will be pushed into a minor conference? I doubt it. Maybe we should worry less about the SEC. Just sayin’.

Adds nothing competitively, it's just a geography grab. The Pac12 will be making themselves relevant across 4 time zones. I imagine they will rack up big revenues in TV deals. Although West Virginia being in the east coast probably doesn't do much for them.

Nope. Their time zone will kill their expansion. Good grief. They are four hours from tv reality.

 

[tweeterhawk]

This just gets funner and funner. Please pass the popcorn.

Paul Finebaum Not Happy With Pac-12 President’s Comment

 

[Motigerhawk]

What if the ACC/B1G/B12/Pac12 merged into one super conference and squeezed the SEC.

Those 4 conferences left the the NCAA and formed their own NC games and tournaments.

Holy cow, would that be amazing.

 

[spliff45]

USC holds the power in the PAC 12 and supposedly the big money donors/boosters want in the B1G. Problem would be separating the CA schools