Maybe the BIG 12 doesnt expand after all?

[Magic95Fan]

http://m.sportsbusinessdaily.com/Journal/Issues/2016/08/01/Media/Big-12-TV.aspx

Gotta keep the money source happy.

[Harry]

2 hours ago, Magic95Fan said:

http://m.sportsbusinessdaily.com/Journal/Issues/2016/08/01/Media/Big-12-TV.aspx

Gotta keep the money source happy.

Nice find there.  Seems like networks want their cake and eat it too.  Don't water down the conference but the contract incentivizes you to?

[MeanGreenMailbox aka TFLF]

1 hour ago, Harry said:

Nice find there.  Seems like networks want their cake and eat it too.  Don't water down the conference but the contract incentivizes you to?

Any newcomers to the league wouldn’t be expected to receive a full share of TV revenue for multiple years, meaning more money for the 10 existing members.

This is where I think college football has gotten way out of whack:  the Big 12 is making these schools bid to get in, then not paying them for years, but cashing in on the new members anyway.

Texas and OU can blatantly say, "Give us money to join, but don't expect much coming your way for a while."

It's really sickening.   

[Harry]

1 minute ago, MeanGreenMailbox said:

Any newcomers to the league wouldn’t be expected to receive a full share of TV revenue for multiple years, meaning more money for the 10 existing members.

This is where I think college football has gotten way out of whack:  the Big 12 is making these schools bid to get in, then not paying them for years, but cashing in on the new members anyway.

Texas and OU can blatantly say, "Give us money to join, but don't expect much coming your way for a while."

It's really sickening.   

Frankly, I could see a situation where a school like SMU would waive all revenues and flat out PAY to join this league.  It's that big of a step up in terms of perception and recruiting.  They would more than make it up in terms of their enrollment and tuition.

[MeanGreenMailbox aka TFLF]

It's also why I've predicted that ESPN eventually comes to Texas and says, "LHN just isn't bringing in the cash we need to keep paying you.  We need to re-do the deal before the whole thing goes belly up."

Cable is changing, but not in a positive way to the schools and conferences.  LHN and the Big 12 have contracts under a system that assume that cable would be by far and away the bell cow.  That's not the case any longer.

[Harry]

Just now, MeanGreenMailbox said:

It's also why I've predicted that ESPN eventually comes to Texas and says, "LHN just isn't bringing in the cash we need to keep paying you.  We need to re-do the deal before the whole thing goes belly up."

Cable is changing, but not in a positive way to the schools and conferences.  LHN and the Big 12 have contracts under a system that assume that cable would be by far and away the bell cow.  That's not the case any longer.

Contract is iron clad.  ESPN would have to go bankrupt for them to get out of the deal.  Not going to happen.

[MeanGreenMailbox aka TFLF]

1 minute ago, Harry said:

Frankly, I could see a situation where a school like SMU would waive all revenues and flat out PAY to join this league.  It's that big of a step up in terms of perception and recruiting.

But, it's only a step up as long as OU and Texas stay in the conference. Either one could leave - and, probably will - once they get a better offer.

The Big East already folded football.  SWC folded as well due to lack of football competitiveness  So, it's not unprecedented for conferences to fold and cut back.  Same thing would happen to the Big 12 if and when OU or Texas leave.

[outoftown]

1 hour ago, Harry said:

Nice find there.  Seems like networks want their cake and eat it too.  Don't water down the conference but the contract incentivizes you to?

Sure. But why would the BIG XII care? The next tv negotiation is years down the road. With how things are going in the TV landscape, I am not even sure the angry partners of today will be major players at the table next time. And whatever they may give to you then out of loyalty may still be less than what the conference can siphon off now. Or do you take the networks to be the loyal kind of people who will say: you didn't expand and saved us millions of $, now we will give you a contract that is loads better than we would have otherwise? I don't. Unless they have a clause where the networks can flat dissolve the contract, there is no real reason to play it soft with them or take their worries into consideration.

Edited August 1, 2016 by outoftown

[UTSA Fan]

31 minutes ago, Harry said:

Frankly, I could see a situation where a school like SMU would waive all revenues and flat out PAY to join this league.  It's that big of a step up in terms of perception and recruiting.  They would more than make it up in terms of their enrollment and tuition.

Man, if SMU became B12, DFW would be a tough recruiting road.