Sports Business Daily: A common-sense solution for conference realignment

Cerebus · December 1, 2016

The fix: A common-sense solution for conference realignment

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One week, Charlotte travels 1,600 miles to El Paso, Texas, for a CUSA matchup. The next week, Appalachian State nearly 1,700 miles to Las Cruces, N.M., to face New Mexico State. Charlotte and App State, separated by 100 miles and potentially natural rivals with their overlapping fan bases, play only if they schedule the occasional nonconference game.

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Very simply, CUSA and the Sun Belt would take their 24 football-playing members and divide them geographically into two new conferences. The dozen easternmost schools would form one conference and the dozen westernmost schools would form the other conference.

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Not only would schools save significantly on travel costs across all of their sports — an estimated $500,000 to $1 million a year in savings — they’d also play schools closer to them, creating the opportunity to develop regional rivalries and sell more tickets.

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Two schools that could be most vulnerable are UTEP in CUSA because of its remote location and the Sun Belt’s Louisiana-Monroe, which is struggling to keep up financially. Annual athletic budgets mostly range from $20 million to $30 million for schools in these two leagues. ULM reported $13 million in revenue from its 2014-15 academic year.

If there are casualties in realignment, other FCS schools such as James Madison, which boasts an annual budget of more than $40 million, are ready to step in.

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Ultimately, Arkansas State’s Mohajir predicted, schools at this level will have to go back to the old financial model, where ticket sales and donations drive the majority of revenue, not TV.

“If you can’t generate revenue from TV, you’ve got to do it through ticket sales and donations,” Mohajir said. “And with few exceptions, the greatest rivalries are regionally based.

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UNT Five&Dime · December 1, 2016

Why did they leave off SEC, ACC and AAC teams that are also in that footprint?

ETA: Yuck to both those scenarios.

Edited December 1, 2016 by UNT Five&Dime

Wag Tag · December 1, 2016

18 minutes ago, Cerebus said:

The fix: A common-sense solution for conference realignment

Agree with the idea a regional competition for savings and create rivalries.

To make bucks the lower level has to come up with a playoff system! As we are seeing in other conferences that were big money can be made.

MWC, C-USA, Mac, Sun Belt. American would probably would not want to be involved.

As TV contracts get cut lets create our own content and improve the streaming. GMG

Cerebus · December 1, 2016

Just now, Wag Tag said:

To make bucks the lower level has to come up with a playoff system!

I believe that is called the FCS.

Wag Tag · December 1, 2016

Just now, Cerebus said:

I believe that is called the FCS.

It works for them, oh and the big boys!

Cerebus · December 1, 2016

23 minutes ago, UNT Five&Dime said:

Why did they leave off SEC, ACC and AAC teams that are also in that footprint?

24 minutes ago, UNT Five&Dime said:

ETA: Yuck to both those scenarios.

So yuck to being in a conference with:

UTEP (already there)
UTSA (see above)
Rice (I like these nerds)
Texas State (meh, but close by meh)
ULL (not going to call them Louisiana)
Ark State (one of the best run G5s)
LaTech (one of the other best run G5s)
USM (Brett Favre .. Fav.. Re... how is that pronounced Farve?)
UAB (They're back, in POG form!)
Troy (How many of you even knew they were in Alabama?)
South Alabama (how can you hate on the USA?)

What exactly are you expecting us to be in? At least this way we stop the trips to F_U. Big time TV money is a thing of the past for the G5s. We just happened to be in the first conference to have their TV deal redone. We have to go back to selling tickets.

Get into the conference that makes the most sense cost wise. When the B12 implodes and kicks off the whole P5 -> P4 transition we'll be in a good place to bring in the former G5 teams that make geographical sense.

9 minutes ago, Wag Tag said:

It works for them, oh and the big boys!

It works for the big boys for the same reason it everything else works for them. They draw TV money. We don't.

UNT Five&Dime · December 1, 2016

2 minutes ago, Cerebus said:

So yuck to being in a conference with:

UTEP (already there)

UTSA (see above)

Rice (I like these nerds)

Texas State (meh, but close by meh)

ULL (not going to call them Louisiana)

Ark State (one of the best run G5s)

LaTech (one of the other best run G5s)

USM (Brett Favre .. Fav.. Re... how is that pronounced Farve?)

UAB (They're back, in POG form!)

Troy (How many of you even knew they were in Alabama?)

South Alabama (how can you hate on the USA?)

Well, yea. Give me Rice and LaTech.

2 minutes ago, Cerebus said:

What exactly are you expecting us to be in? At least this way we stop the trips to F_U. Big time TV money is a thing of the past for the G5s. We just happened to be in the first conference to have their TV deal redone. We have to go back to selling tickets.

Get into the conference that makes the most sense cost wise. When the B12 implodes and kicks off the whole P5 -> P4 transition we'll be in a good place to bring in the former G5 teams that make geographical sense.

Cerebus · December 1, 2016

1 minute ago, UNT Five&Dime said:

The only real functional difference, as UH just learned, is being IN the P5 (future P4) and not being in it. The days of shuffling around the lesser conferences to get into the big TV money conferences is over. The new day of cutting the slack from the P5 is about to begin.

Wag Tag · December 1, 2016

7 minutes ago, Cerebus said:

So yuck to being in a conference with:

UTEP (already there)

UTSA (see above)

Rice (I like these nerds)

Texas State (meh, but close by meh)

ULL (not going to call them Louisiana)

Ark State (one of the best run G5s)

LaTech (one of the other best run G5s)

USM (Brett Favre .. Fav.. Re... how is that pronounced Farve?)

UAB (They're back, in POG form!)

Troy (How many of you even knew they were in Alabama?)

South Alabama (how can you hate on the USA?)

What exactly are you expecting us to be in? At least this way we stop the trips to F_U. Big time TV money is a thing of the past for the G5s. We just happened to be in the first conference to have their TV deal redone. We have to go back to selling tickets.

Get into the conference that makes the most sense cost wise. When the B12 implodes and kicks off the whole P5 -> P4 transition we'll be in a good place to bring in the former G5 teams that make geographical sense.

It works for the big boys for the same reason it everything else works for them. They draw TV money. We don't.

How does it draw TV money? Because it has created interest with play offs and a ranking system! This is why people that care less about Clemson watch Clemson, because it has an effect on MY TEAM! This could have the same impact at any level. How many of us will follow games this weekend because of the bowl impact that we never would of followed if we were not bowl eligible!

Cerebus · December 1, 2016

Just now, Wag Tag said:

How does it draw TV money?

Not because Clemson or UT are in a playoff system, it's because CLEMSON or UT are in a playoff system.

FCS already has a play off system, it makes no money, because Clemson and UT are not in it. G5 games have no real effect on P5 playoff chances. Those hordes of P5 fans aren't going to watch a g5 playoff any more than they watch FCS.

Wag Tag · December 1, 2016

1 minute ago, Cerebus said:

Not because Clemson or UT are in a playoff system, it's because CLEMSON or UT are in a playoff system.

FCS already has a play off system, it makes no money, because Clemson and UT are not in it. G5 games have no real effect on P5 playoff chances. Those hordes of P5 fans aren't going to watch a g5 playoff any more than they watch FCS.

What a joke! I will bet the FCS playoff is their biggest money maker. Just like the National Playoff game is their biggest money maker!

FCS national championship game. It is nationally televised this is creating content!

Cerebus · December 1, 2016

There being a "playoff" with teams most people aren't interested in isn't going to create money, and is in no way comparable to a playoff system with teams most CFB fans are interested in.

If your logic applied, wouldn't the normal non play off games for P5 and G5 payout about the same. I mean think about it, its an FBS game... so an FBS game should draw attention and money no matter what, correct? But yet the SEC TV deal payout is about $23M per team, while the the CUSA TV payout (which again, is also an FBS game) is about $800k per team.

So obviously there is a big $ difference between a normal FBS game between P5 teams, and one with G5 teams. There will be a comparable difference between a playoff between P5 teams and one with G5 teams.

MeanGreen22 · December 1, 2016

13 minutes ago, Wag Tag said:

What a joke! I will bet the FCS playoff is their biggest money maker. Just like the National Playoff game is their biggest money maker!

FCS national championship game. It is nationally televised this is creating content!

"Nationally televised" doesn't mean it's a good revenue generator.

VideoEagle · December 1, 2016

8 minutes ago, MeanGreen22 said:

"Nationally televised" doesn't mean it's a good revenue generator.

Correct. Everything I've ever seen say it doesn't draw much in ad dollars.

UNT Five&Dime · December 1, 2016

5 minutes ago, Cerebus said:

The only real functional difference, as UH just learned, is being IN the P5 (future P4) and not being in it. The days of shuffling around the lesser conferences to get into the big TV money conferences is over. The new day of cutting the slack from the P5 is about to begin.

I'm not worried about TV money or making P#. That's not happening. Wanting to be grouped with Louisiana-Lafayette and Troy because it make sense geographically is a bad idea. It's Louisiana-Lafayette and Troy for Christ's sake! You know those B1G and BigXII commercials they run touting the academics of their member schools? I don't ever want to see one where they cut from a scene of an NT student being really smart and stuff to one of a Troy student learning how to write his ABCs.

Wag Tag · December 1, 2016

23 minutes ago, Cerebus said:

There being a "playoff" with teams most people aren't interested in isn't going to create money, and is in no way comparable to a playoff system with teams most CFB fans are interested in.

If your logic applied, wouldn't the normal non play off games for P5 and G5 payout about the same. I mean think about it, its an FBS game... so an FBS game should draw attention and money no matter what, correct? But yet the SEC TV deal payout is about $23M per team, while the the CUSA TV payout (which again, is also an FBS game) is about $800k per team.

So obviously there is a big $ difference between a normal FBS game between P5 teams, and one with G5 teams. There will be a comparable difference between a playoff between P5 teams and one with G5 teams.

High Schools...playoff

FCS....playoff

G5.... nothing

P5....playoff

Pros....playoff

Largest crowds and TV revenue involve playoffs.

To say not to do it because we can't be as successful as a P5 does not add up. It would be the largest crowds and strongest TV demand in the G5 conference.

oldguystudent · December 1, 2016

Whatever happens, I just hope we get to keep playing on Saturday. I saw more and more and more weekday games creeping in when we joined CUSA.

As the G5 falls further and further down the CFB ladder, I can see ESPN demanding all G5 games get played on Thursday to increase week night revenue and stop mucking up attention on P5. When that day comes, I'm out with my season tickets. Too hard to get to.

wardly · December 1, 2016

This is about athletics, not academics. The Belt and CUSA occupy the same footprint. In business if your revenues are declining then you must reduce expenses accordingly. The biggest single line expense is travel, and realignment is only way to reduce this in a significant manner.Basically we are going back in time to a gate revenue sport for programs other than those in the top 5 conferences. The problem is egos. Removing ULM from the equation should pacify La. Tech. Those of us who think that we are better that programs in the Belt might want to review our last decade of competition on the gridiron in that conference.And,except for one season in CUSA it certainly has not gotten any better.

Cerebus · December 1, 2016

35 minutes ago, Wag Tag said:

G5.... nothing

P5....playoff

But that's wrong. It's

FCS... Playoff

FBS... Nothing

CFP isn't a NCAA playoff. It's a semi autonomous thing put together by the P5 conferences, with token G5 access to keep the it looking legitimate.

If anything the G5 should be fighting for better CFP access, not self segregating. That will just drive it into the mind of the normal CFB fan that we aren't part of the G5.

2 minutes ago, wardly said:

The biggest single line expense is travel, and realignment is only way to reduce this in a significant manner.Basically we are going back in time to a gate revenue sport for programs other than those in the top 5 conferences. The problem is egos.

Bingo.

Wag Tag · December 1, 2016

9 minutes ago, Cerebus said:

But that's wrong. It's

FCS... Playoff

FBS... Nothing

CFP isn't a NCAA playoff. It's a semi autonomous thing put together by the P5 conferences, with token G5 access to keep the it looking legitimate.

If anything the G5 should be fighting for better CFP access, not self segregating. That will just drive it into the mind of the normal CFB fan that we aren't part of the G5.

Bingo.

12 minutes ago, wardly said:

This is about athletics, not academics. The Belt and CUSA occupy the same footprint. In business if your revenues are declining then you must reduce expenses accordingly. The biggest single line expense is travel, and realignment is only way to reduce this in a significant manner.Basically we are going back in time to a gate revenue sport for programs other than those in the top 5 conferences. The problem is egos. Removing ULM from the equation should pacify La. Tech. Those of us who think that we are better that programs in the Belt might want to review our last decade of competition on the gridiron in that conference.And,except for one season in CUSA it certainly has not gotten any better.

Agree 100% on gate rev and reduce travel exp. You need to look at other avenues you have not persued to create additional revenue with minimum exposure. Do we really think a G5 will ever get a chance to play for a P5 championship? P5 will do everything possible to protect their turf! An example of this could be the Houston rejection.

PlummMeanGreen · December 1, 2016

Except for a couple of California MWC schools the other MWC outposts & CUSA east schools are almost equidistant from DFW AIrport & Denton. Check it out for proof.

Ticket Sales? Who do you like for conference games at Apogee (& I'd bet most of us could guess who Wren Baker would have an easier time selling tickets) so would it be:

(1) ODU, FIU, FAU, Charlotte, WKU, etc,

or...

(2) Air Force, San Diego St., Boise St, New Mexico, etc. ?

Still, only way MWC would work are for the 4 Texas CUSA schools (& La Tech if they were interested) forming most of a MWC East Division.

• The MWC seems to be making noises about expanding again.

The MWC is way ahead of CUSA (or rather what has turned into SBC 2.0) in perception & reality by a long, long shot & the aforementioned group of CUSA schools should strike if the expansion irons get hot again or get left at the train station (again).

Edited December 1, 2016 by PlummMeanGreen

UTSA Fan · December 2, 2016

If you accept a premise in this thread that TV money is drying up, you have only addressed one leg of the stool. The other is recruiting. Conferences bring in team for recruiting exposure in other desirable states, see Texas A&M and SEC or the PACIFIC 50 trying to get UT (read the state of Texas for recruiting). I have not read or given much consideration to consolidation, but it seems it would lock the school into a very limited recruit pool with some, shall we say, very large and powerful fish. It would appear the P5 would then have an even greater advantage than they do now.

Edited December 2, 2016 by UTSA Fan

wardly · December 2, 2016

UTSA,UNT,Rice, and UTEP would be no worse off than they are today. We all are trying to get the "Best of the Rest" in Texas.

UTSA Fan · December 2, 2016

Doesn't SL have any plans on recruiting out of state? I'm going to look at the UNT committed list to see if it is limited to Texas. Surely the net that is cast is wider than Texas.

I guess your right. 11 of the 12 committed are from Texas. That's why I come on here. #learningthings

wardly · December 2, 2016

You could probably check your roster as well as UTEP's and come up with similar numbers. UNT will probably pick up a few player from Oklahoma, and since your head coach has a Louisiana background some Cajun's might want to trade gumbo for tacos. The point is that we don't fish in the part of the pond where the whoppers are.