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Wednesday, September 7, 2011

Big 12: Party of 10? 9? 8?

Didn't we go through this last summer? Didn't Texas, Texas A&M, OU, Oklahoma State, Texas Tech, Baylor, Kansas, Kansas State, Iowa State, and Missouri tell Nebraska and Colorado to go pound some freaking sand? Didn't the aforementioned Big 12-2 commit to remaining steadfast regarding the future of this conference? Oh, who am I kidding. Texas has the Longhorn Network and the rest of the schools do not have a dedicated network to showcase their programs. Is there some envy and jealousy there? Perhaps. Should Texas forgo this network and make it the Big 12 Network to save the conference? Part of me says they should. However, not every school is going to put eyeballs onto the screen like Texas will. Equal revenue sharing must be the answer. Correct? Follow along after the jump...

In the Big 10, where equal revenue sharing is loudly touted, these schools must be on some socialistic equal footing. Right? Wrong. Take a look at @jaybeck's splendid post regarding the equal revenue sharing in the Big 10 and how the bottom line is affected. Were it to be applied to the Big 12, a few schools at the top would give up a few million dollars to some schools at the bottom. Would the competitive landscape be altered with equal revenue sharing? Does Minnesota pose a threat to Ohio State or Penn State? An emphatic and resounding "no" is delivered on both accounts. Michigan, Penn State, and Ohio State will always rake in the profits. They are brands. The bottom line is the schools who win more football games will make more national television appearances, thereby increasing their brand awareness, thus generating more merchandise sales.

The aforementioned is how schools turn big profits. In the Big 12 this would equate to a greater share of the pie. In essence, they are doing more of the heavy lifting and are reaping the rewards of their work. Is Texas' athletic department going to be impacted by earning a net profit of $27 million vs. $29 million using the 2009-2010 academic calendar year as an example if equal revenue sharing were employed? Not in the slightest. Would it make Iowa State more competitive across the board? Hardly. Going back to the Big 10, Minnesota receives the same amount of television revenue as Penn State. But, Minnesota merely broke even in its athletic budget while Penn State profited some $26 million in stark contrast. (Figures from turfburner.com) Shouldn't the equal revenue sharing have catapulted the Gophers up the competitive scale? Hmmm. Perhaps it is not that important after all.

What this tells us is equal and unequal revenue sharing are not solutions in and of themselves. Like republicans and democrats, each is a different ideal as how to manage and distribute funds with respect to the conference. There are positive aspects of each dynamic that should be considered. Equal revenue sharing makes those smaller schools feel better about their situation. Yet, it will not change their situation one bit. At the end of the day, it is up to the schools and their athletic programs to build an appealing brand. This is done by winning. If you win, they will come and buy your merchandise, fill your club boxes, and help your profits grow. Next thing you know, you are on your way to the top of the heap, enjoying the profits which you've earned by doing so. In the meantime, those schools should enjoy the guaranteed revenue from the existing television contract. Or, they can chase a few extra million dollars.

Lastly, on a serious note, I am going to miss the Aggies. My fear is there is such bad blood between the athletic departments that this storied rivalry is going to be shelved for the foreseeable future. That is a crying shame. Each school will point the finger and blame the other for its demise. However, in the end the fans are the ones who will be symbolically screwed. I grew up watching Texas vs. Texas A&M on Thanksgiving night. Now, due to pride amongst the fossils running "amateur" institutions, this is in jeopardy. I have very little tolerance for this type of garbage.

The reality here is the Aggies are trading in a bit of instability for "greener" pastures and a myriad of 7-5 seasons. Hey College Station, check those flights to Nashville as the Music City Bowl is going to be a popular destination come Decembers in the future. By the way, I still have a standing wager: O/U of 1.5 on SECCG appearances by Texas A&M in the next decade. I will take the under. Any Aggies want the over?

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